I sometimes wonder if Singaporeans are really that wealthy or are they willing to be so highly geared ?
Before the sub-prime crisis, the Americans too, believed that the property prices will not come down. Usually, when there is a prolonged trend, the masses will start to believe that it is infallible. And it is usually the most ignorant who buy into the tail-end of a trend before it reversed.
It's because the sinkies have bought into the crap sg is lumpar one story sold to them by their unempathetic government, that they are so willing to be highly geared.
Investment in property
under certain conditions should only be for the wealthy who can afford it. Don't trust that pompous know-it-all fucker (if you don't know who I mean, welcome to the forum) who claims that investment in property is for all and under all conditions. That's what those who can afford it or did it successfully at a certain time under different conditions would claim, a classic case of establishment mentality.
Because once there is a downturn and you already went in, you basically start all over again and there will be those who don't recover.
That's why the smart and prudent guys (hahaha) place money in fixed deposits, not because the returns are good (they are not and in fact are very low), but because there is such a thing as funds for medium term (MT) purposes.
Those who are living from paycheck to paycheck, or have very small net worth or are using all their money to pay debt, only have ST funds. Those who are filthy rich (no matter how they got their money) only care about LT funds. They are well equipped to invest in anything they want including property and their private bankers will probably be happy to give them special interest rates on their 7, 8 or 9 figure current account balances.
Think about what type of situation you are in before making the investment decision and don't just base it on the motherhood statements of a discompassionate wealthy government official or pompous all-knowing clowns with establishment mentality who only tell you what they have done successfully or what they know from their elite bastard acquaintances.
