SGs Borrowed $5.5B from Pawnshops, Up 350% From Opening of Casinos in 2010!

[makapaaa]

How many families have been destroyed in the process? FAP Traitors aka FAP Sinners!
Pawnshops cash in on business from gamblers
$5.5b loans in 2013, up from $1.6b in 2007, after opening of casinos in 2010

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<!-- end of media lightbox //--> [SINGAPORE] Yeah Lee Ching recalls when a lady walked into her pawnshop in Singapore and pledged a US$10,000 diamond-studded gold Rolex watch to bankroll casino spending. She never came back for her jewellery.
Pawnbrokers are proliferating across Singapore as gamblers seeking short- term loans add to demand for quick cash from people struggling to make ends meet in the world's most expensive city. The number of pawnshops in the city-state surged to 214 this year from 114 in 2008, according to a report by DMG & Partners Securities. Loans disbursed by the industry jumped to S$5.5 billion in 2013 from S$1.6 billion in 2007, government data shows.
"Pawnshops are the most-frequent automated teller machines for regular gamblers," Ivan Ho, president of Singapore Pawnbrokers' Association, said in an interview this month. "They need capital, and pawnshops offer them loans that are reasonably priced."

Since Singapore's two casinos opened in 2010, about 20 per cent of the increase in pawnbroking activity is driven by clients raising money for gambling, said Mr Ho, who's also the owner of Heng Seng Pawnshop Co. The rest comes from business owners and low-income individuals who need quick cash to pay hospital bills and other unexpected costs.

Who did you vote for? *hee*hee*​

 

[Cestbon]

Now even Iphone/notebook can be pawn.
The pawn shop earning money when item not claim. They know that 50% will not able to claim them back. If customer claim item back they only get 1% interest/month which is just enough to cover labor cost.
Customer always thinking they will able to claim back item but most of them lost in gamble and how to claim it back.

 

[borom]

ECONOMY, FINANCIAL SERVICES | Staff Reporter, Singapore Published: 20 Jun 14

Big spender, bigger borrower: Singapore household debt-GDP ratio hits 6-year high

...........A report by HSBC revealed that Singapore’s household debt as a share of GDP has increased to around 73% in 2013 from 48% before the global financial crisis -

http://sbr.com.sg/economy/news/big-...p-ratio-hits-6-year-high#sthash.gyHULDcl.dpuf

Confirmation from another source.
Looks like things have got worse under the PAP as more people are wallowing in debts.
Just wonder how many end up borrowing because they could not withdraw their Min Sum-imagine living in poverty when you have monies stuck with the govt that refuses to allow you to withdraw your own money?

Isn't it against natural law to prevent an adult from withdrawing his honestly earned money?

 

[makapaaa]

Isn't it against natural law to prevent an adult from withdrawing his honestly earned money?

=>>> When it comes to the 60% Sinkees, common logic does not apply. They will probably feel sia suay by you and scold you if you push too hard for their interest.

 

[Narong Wongwan]

Now even Iphone/notebook can be pawn.
The pawn shop earning money when item not claim. They know that 50% will not able to claim them back. If customer claim item back they only get 1% interest/month which is just enough to cover labor cost.
Customer always thinking they will able to claim back item but most of them lost in gamble and how to claim it back.

Branded handbags and accessories as well....

Sg going backwards.....back then pawnshops accepted blankets and such......
Pap really nostalgic wants sinkies to go retro.

 

[McDonaldsKid]

Are pawnshops a good place to find out the value of gold?

 

[laksaboy]

There's one person (forgot the name) who had said that once a casino has been introduced into any society, within three years that society will largely change for the worse. A key tell-tale sign is the proliferation of pawnshops and moneylenders.

 

[Narong Wongwan]

Are pawnshops a good place to find out the value of gold?

To find out value of gold you just need the weight of the gold and current gold price....perhaps a calculator too.

 

[frenchbriefs]

Now even Iphone/notebook can be pawn.
The pawn shop earning money when item not claim. They know that 50% will not able to claim them back. If customer claim item back they only get 1% interest/month which is just enough to cover labor cost.
Customer always thinking they will able to claim back item but most of them lost in gamble and how to claim it back.

are u serious?the pawn shop earns more money from the interest....pawn shop interest is 1.5% a month thats 18% a year......tell me where on earth can u find investment at 18% roi per year?thats almost close to warren buffet's portfolio roi.....if ur auntie go pwn her 10k rolex at money max,she be paying $150 interest a month or 1.8k a year.....in 6 years time she would have paid 10k interest,enough to buy another rolex.

 

[frenchbriefs]

Are pawnshops a good place to find out the value of gold?

yes but it has to be 999 fine gold though.

 

[Cestbon]

are u serious?the pawn shop earns more money from the interest....pawn shop interest is 1.5% a month thats 18% a year......tell me where on earth can u find investment at 18% roi per year?thats almost close to warren buffet's portfolio roi.....if ur auntie go pwn her 10k rolex at money max,she be paying $150 interest a month or 1.8k a year.....in 6 years time she would have paid 10k interest,enough to buy another rolex.

Mostly accept 1%/month.
Let assume 1.5% a month. Technically is correct 18%/year.
But do you know that there over head cost like labor/rental and bill.
For small customer may be few hundred $ value pawn to as much as gold/rolex to few thousand. Is a small amount value to do all paper work to charge 1.5%/month.
Eg. $1k pawn only service charge at 1.5% is only $15. And have to waste 10min~15min to do valuation, paper work and etc......
Not much profit. Of course cannot compare to bank charge all paper work one time for duration of 30 year less work.
If pawn so easy money why bank dont open???
Basically pawn shop biggest profit is hoping customer will never claim the item when due date.
Example new rolex worth $10k and 2nd hand value only $5k pawn shop give loan of $3k only. When due date pawn shop will sell it at auction or customer walk in to shop at $4k~$5k.

 

[Leckmichamarsch]

Now even Iphone/notebook can be pawn.
The pawn shop earning money when item not claim. They know that 50% will not able to claim them back. If customer claim item back they only get 1% interest/month which is just enough to cover labor cost.
Customer always thinking they will able to claim back item but most of them lost in gamble and how to claim it back.

n casinos hired three thousand FTs

 

[frenchbriefs]

Mostly accept 1%/month.
Let assume 1.5% a month. Technically is correct 18%/year.
But do you know that there over head cost like labor/rental and bill.
For small customer may be few hundred $ value pawn to as much as gold/rolex to few thousand. Is a small amount value to do all paper work to charge 1.5%/month.
Eg. $1k pawn only service charge at 1.5% is only $15. And have to waste 10min~15min to do valuation, paper work and etc......
Not much profit. Of course cannot compare to bank charge all paper work one time for duration of 30 year less work.
If pawn so easy money why bank dont open???
Basically pawn shop biggest profit is hoping customer will never claim the item when due date.
Example new rolex worth $10k and 2nd hand value only $5k pawn shop give loan of $3k only. When due date pawn shop will sell it at auction or customer walk in to shop at $4k~$5k.

i tell u i see those lao ah ma pawning their jewellry at this hdb pawnshops,it dont take much work to process a loan,they can take a gold bracelet and do a valuation in less than 60 seconds simply to determine whether its genuine or not,after that all it takes is ur identification card and they will issue u a receipt....boom a few k loan done,its not like a frickin bank where u have to go thru all these red tape and they have to check ur background whether ur credits good ur income and all that crap,these pwn shops are issuing loans with 100% collateral and 18% interest their ass is covered all the way....and these old people in these poor neighbourhood they treat the pawn shop like a atm.....shocking.and u can see from the headlines pawnshop industry 5.5 billion loans...im not surprised if the pawnshop at bukit merah makes more than 100k loans a month.....can u imagine?just a simple shop,they pay the same rent as the bakery next door but they are doing high margin business here.

 

[laksaboy]

just a simple shop,they pay the same rent as the bakery next door but they are doing high margin business here.

I think pawnshops are displacing bakeries (not Breadtalk).

 

[Narong Wongwan]

Mostly accept 1%/month.
Let assume 1.5% a month. Technically is correct 18%/year.
But do you know that there over head cost like labor/rental and bill.
For small customer may be few hundred $ value pawn to as much as gold/rolex to few thousand. Is a small amount value to do all paper work to charge 1.5%/month.
Eg. $1k pawn only service charge at 1.5% is only $15. And have to waste 10min~15min to do valuation, paper work and etc......
Not much profit. Of course cannot compare to bank charge all paper work one time for duration of 30 year less work.
If pawn so easy money why bank dont open???
Basically pawn shop biggest profit is hoping customer will never claim the item when due date.
Example new rolex worth $10k and 2nd hand value only $5k pawn shop give loan of $3k only. When due date pawn shop will sell it at auction or customer walk in to shop at $4k~$5k.

This is only partly correct.
The pawnshops do not own the pawned items outright if they are not redeemed.
The items need to be auctioned off first.
Any profit made from the auctioned pawned items also not belonged to the pawnshops but to the pawnee. If not claimed the excess monies goes to govt.
That said, pawnshops usually know the real value of the more valuable items to be auctioned and will bid on those to resell for profit but competition is stiff nowsadays during auctions...so profit margins also go down.

Also 1% interest is a gimmick and usually only applicable for 1st month redemption.
So its still effectively 18% per year and overdue is charged at an extra 1.5%. This alone is very lucrative.

 

[Narong Wongwan]

i tell u i see those lao ah ma pawning their jewellry at this hdb pawnshops,it dont take much work to process a loan,they can take a gold bracelet and do a valuation in less than 60 seconds simply to determine whether its genuine or not,after that all it takes is ur identification card and they will issue u a receipt....boom a few k loan done,its not like a frickin bank where u have to go thru all these red tape and they have to check ur background whether ur credits good ur income and all that crap,these pwn shops are issuing loans with 100% collateral and 18% interest their ass is covered all the way....and these old people in these poor neighbourhood they treat the pawn shop like a atm.....shocking.and u can see from the headlines pawnshop industry 5.5 billion loans...im not surprised if the pawnshop at bukit merah makes more than 100k loans a month.....can u imagine?just a simple shop,they pay the same rent as the bakery next door but they are doing high margin business here.

100k loans per month? Im sure they can dish that amount out in a single day alone.
Simple math....there are 200 odd pawnshops now in sg....divide that by 5.5bn.
This industry can get listed after in business for few years....huat ah!
Kumsai PAP!