Will the property cooling measures be removed anytime soon?

lifeafter41 · May 17, 2015

Was talking to a friend, done quite ok, wife and him both professionals, make at least 20k/ month, some sort of corporate thingy. Stayed in a landed, got another condo, that is currently being rented out. Got cash on hand, kpkb about the property measure, tdsr, absd, etc. as they want to buy another property and rent it out, put the cash to good use, as he tells me.

Look at him in bewilderment, as already got 2 property, landed and condo. Yearly holiday in Europe, Usa, South america, etc. 3 kids, eldest already in uni, the other one in ns and third in jc.

Told him he is already doing very well, compared to most Singaporean, me included. But still kpkb, about the measures. Don't know what to say.......

Wunderfool · May 17, 2015

lifeafter41 said:
Was talking to a friend, done quite ok, wife and him both professionals, make at least 20k/ month, some sort of corporate thingy. Stayed in a landed, got another condo, that is currently being rented out. Got cash on hand, kpkb about the property measure, tdsr, absd, etc. as they want to buy another property and rent it out, put the cash to good use, as he tells me.

Look at him in bewilderment, as already got 2 property, landed and condo. Yearly holiday in Europe, Usa, South america, etc. 3 kids, eldest already in uni, the other one in ns and third in jc.

Told him he is already doing very well, compared to most Singaporean, me included. But still kpkb, about the measures. Don't know what to say.......

If I am not wrong, they are going for 4 properties eventually; one for each of the children (x3) and 1 for their retirement.
These are the kiasu Singaporeans ... already well to do , but still complaining ... as though they do not already have enough.

That's why Govt is not removing the cooling measures at any time soon ... not until the GE is over and the property market has adjusted to a reasonable level where income and price are not too divergent.

Leongsam · May 17, 2015

lifeafter41 said:
Told him he is already doing very well, compared to most Singaporean, me included. But still kpkb, about the measures. Don't know what to say.......

He shouldn't be buying more property in Singapore because he's putting all his eggs in one basket.

When Singapore goes downhill, he'll end up with nothing.

Tell him to invest overseas in order to diversify.

enterprise2 · May 17, 2015

One can never have enough...

Wunderfool · May 17, 2015

Leongsam said:
He shouldn't be buying more property in Singapore because he's putting all his eggs in one basket.

When Singapore goes downhill, he'll end up with nothing.

Tell him to invest overseas in order to diversify.

Singapore going for 6.9M population by 2030. So, there is still runway for property demand in Singapore and for property to go up in value.

Moreover, with the HSR ready by 2024, more FTs and tourists will travel from KL to Singapore / vice versa. More homes will be in demand as more businesses and jobs are created.

All these are the initiatives of the current government.

The caveat for these to happen is only when PAP remains in power.

So, vote wisely in the coming GE. Vote in the Opps, the value of your property will go the opposite way.

xpo2015 · May 17, 2015

Anybody who thinks money can buy happiness is in for a rude shock.

xebay11 · May 17, 2015

What if the Kra Isthmus Project becomes a reality? Singapore will be doomed.

Runifyouhaveto · May 17, 2015

There are 4 main cooling measures:

1. MSR for HDB loans
2. TDSR to limit the exposure/impact during interest rates upside
3. SSD to counter short-term speculation in private residential and industrial properties
4. ABSD for second or more residential properties

No. 1 and 2 are prudences in financial planning and global economy is slowing (job loss) and interest rates expected to gradually edge higher.

No. 3 is a minor revenue generator for the state and removing it now might trigger a major sell-down in private property prices, resulting in margin-calls in a domino effect. During property boom, it reduces speculative demand. During property weakness, it limits selldown. Policymakers are likely to prefer stability.

No. 4 is the most effective in reducing speculative demand during property rally and it is a good revenue generator for the country. It will also serve another important purpose when removed (while retaining 1 & 2) after achieving 20-30% drop in property prices, by introducing investors with good holding power. (Speculators risk bankrupcies during margin-calls when prices drop by 20-30%)

lifeafter41 · May 17, 2015

Runifyouhaveto said:
There are 4 main cooling measures:

1. MSR for HDB loans
2. TDSR to limit the exposure/impact during interest rates upside
3. SSD to counter short-term speculation in private residential and industrial properties
4. ABSD for second or more residential properties

No. 1 and 2 are prudences in financial planning and global economy is slowing (job loss) and interest rates expected to gradually edge higher.

No. 3 is a minor revenue generator for the state and removing it now might trigger a major sell-down in private property prices, resulting in margin-calls in a domino effect. During property boom, it reduces speculative demand. During property weakness, it limits selldown. Policymakers are likely to prefer stability.

No. 4 is the most effective in reducing speculative demand during property rally and it is a good revenue generator for the country. It will also serve another important purpose when removed (while retaining 1 & 2) after achieving 20-30% drop in property prices, by introducing investors with good holding power. (Speculators risk bankrupcies during margin-calls when prices drop by 20-30%)

Yes run, it is no. 4 that this friend of mine kpkb at. The have the cash, tdsr, no problem.
Absd is the problem one as it will be a third property for them. Can't recall what's the % though of purchase price.

Wunderfool · May 17, 2015

lifeafter41 said:
Yes run, it is no. 4 that this friend of mine kpkb at. The have the cash, tdsr, no problem.
Absd is the problem one as it will be a third property for them. Can't recall what's the % though of purchase price.

3rd property purchase will incur ABSD of 10% on top of 3% BSD if they are Singapore citizens.

eErotica69 · May 17, 2015

TDSR and MSR are here to stay for sure.

dr.wailing · May 18, 2015

Property cooling measures are in place to win more votes for the PAP. After the next GE, they'll be lifted to enable the PAP to meet or exceed the targets set by the Population White Paper.

Leongsam · May 18, 2015

Wunderfool said:
Singapore going for 6.9M population by 2030.

You don't have to worry about that because it will never happen.

Narong Wongwan · May 18, 2015

If income 20k per month the type of landed he can buy also limited.

virus · May 18, 2015

Leongsam said:
He shouldn't be buying more property in Singapore because he's putting all his eggs in one basket.

When Singapore goes downhill, he'll end up with nothing.

Tell him to invest overseas in order to diversify.

It's all rotten eggs. So no matters.

virus · May 18, 2015

xpo2015 said:
Anybody who thinks money can buy happiness is in for a rude shock.

Any one who has no money to buy happiness is alrdy rudely shocked

numero uno · May 18, 2015

xpo2015 said:
Anybody who thinks money can buy happiness is in for a rude shock.

those people who says money cannot buy happiness are sour grapes. If you are poor and have to work 2-3 jobs just to make ends meet, you would never be happy. in fact perpetually tired, and unhappy like fighting for seats in cramp MRTs and buses, queing at food courts etc. that's why alot of poor people are unhappy.
Money definitely buys comfort, authority , fame and convenience. once you have comfort and convenience, then whether you are happy or not is up to your mindset and aims in life. simple Maslow's principles. I have never hear my rich friends says money cannot buy happiness. Most are contented. happiness to them is a side dish. on the contrary I have heard alot of poor or average people say such stupid things, because of sour grapes attitude especially amongst sinkies. that's why I avoid such crap poor people. they are failures of society. just grip and whine and try to exonerate thier pitiful state by saying money does not buy happiness, yet trying to get rich by gambling and lottery. what a joke. no wonder they are poor useless sour grapes whiners.

xebay11 · May 18, 2015

numero uno said:
those people who says money cannot buy happiness are sour grapes. If you are poor and have to work 2-3 jobs just to make ends meet, you would never be happy. in fact perpetually tired, and unhappy like fighting for seats in cramp MRTs and buses, queing at food courts etc. that's why alot of poor people are unhappy.

What else is new? Captain Obvious

kulgai · May 18, 2015

numero uno said:
those people who says money cannot buy happiness are sour grapes. If you are poor and have to work 2-3 jobs just to make ends meet, you would never be happy. in fact perpetually tired, and unhappy like fighting for seats in cramp MRTs and buses, queing at food courts etc. that's why alot of poor people are unhappy.
Money definitely buys comfort, authority , fame and convenience. once you have comfort and convenience, then whether you are happy or not is up to your mindset and aims in life. simple Maslow's principles. I have never hear my rich friends says money cannot buy happiness. Most are contented. happiness to them is a side dish. on the contrary I have heard alot of poor or average people say such stupid things, because of sour grapes attitude especially amongst sinkies. that's why I avoid such crap poor people. they are failures of society. just grip and whine and try to exonerate thier pitiful state by saying money does not buy happiness, yet trying to get rich by gambling and lottery. what a joke. no wonder they are poor useless sour grapes whiners.

That's true. Whilst money cannot buy happiness per se, money most certainly can provide more comfort and security in your life. Who doesn't want to be pampered? I'm not saying the rich do not have problems. Sure, they have their own set of problems like everyone else but at least 1 big aspect of their lives is well taken care off.

Leongsam · May 18, 2015

kulgai said:
That's true. Whilst money cannot buy happiness per se, money most certainly can provide more comfort and security in your life. Who doesn't want to be pampered? I'm not saying the rich do not have problems. Sure, they have their own set of problems like everyone else but at least 1 big aspect of their lives is well taken care off.

Having been on both ends of the spectrum I can assure everyone that is far better to be financially independent than to have to be beholden to others in order to pay the bills.

Will the property cooling measures be removed anytime soon?

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