KBW's New Cooling Measures Will Not Work

[Loofydralb]

http://wikitemasek.org/what-does-the-recent-hdb-loan-changes-mean-to-singaporeans/

I will state here categorically that cooling measures announced on 5th Oct 2012 will not work. Simply because it affects nobody at all. Most people take, at the maximum, 30-years loan. It is very very rare owners will take a 35-years loan.

But why did KBW do it at all?

It seems evidently clear that our Ministers take us for granted as fools and able to run rings around us. So it is up to citizens to decide, are these the types of Ministers that we want? They would change policies just to shut the people up.

It is quite similar to what the PM did when he reviewed the salaries of MPs and Ministers. At the end of that, they were back at square one. They did not even come close to what the citizens demanded, which was a substantial cut.

So now it seems that PAP is hell-bent on wanting the prices of housing to sky-rocket. Some of you may doubt this. But just take a look at the past cooling measures. Did any one of those worked? None of them did. Is that because, PAP did not know what to do? Of course not. PAP exactly knew what they were doing. They gave the impression they were doing something but in actual fact they knew the measures would be at best cause a ripple only.

For the young people, be forewarned. You will have a hard time buying and owning a home. For parents of these people, wake up. Your children will forever be dependent on you for their housing needs. This is definitely not a situation we want for our future. Show your displeasure in 2016. Make the PM accountable. He will have to make his MND Minister also accountable. MBT felt the effects of that accountability.

Lastly I would have preferred that KBW did not roll out this last measure. He seems afraid of the industry.

Worst, he treats us condescendingly.

 

[laksaboy]

His role is to maintain the status quo, and to ensure continued profiteering by HDB, SLA and various property developers.

If you want to be ruled by corporate fascists, this is exactly what you're going to get.

 

[Valdez]

I think our property really undervalued considering how good our country infrastructure is. No country even come close. So it's only right that property prices should go up. It's like a house with the best quality furniture, best workmanship, best location, best everything and you want to get it cheap. No way.

 

[Loofydralb]

Valdez, I'm not sure if you're a new resident here or not.

But this country is built up under a social contract where we have a system where everybody benefits, not only the rich.

It includes both young and old, for the current citizens and for future breadmakers too. It is the decay in the social contract that we see the problems crop up. One of which is greed, the other, inability to grasp the bigger picture, amongst others.

What we are doing now is to deprive and lock the young and underpriviledged to a future of endless borrowing, renting and servitude to the banks.

You are right we have the right infrastructure. But that was built up by the last generation for the benefit of our future citizens, not for the new immigrants.

 

[Valdez]

In an ideal world I agree with you..but unfortunately it's not possible. Do remember our forefathers were immigrants too and they built this country to where it is. Likewise the new immigrants will be building this country for your children and their children.

 

[Confuseous]

Latest measures more pre-emptive than cooling

04:45 AM Oct 06, 2012

by Colin Tan


If not viewed in the light of the possibly harmful effects of the US Federal Reserve's third round of quantitative easing (QE3) and other stimulus measures by monetary authorities around the world, the "cooling" measures announced yesterday by the Monetary Authority of Singapore (MAS) may be seen as the first attempt at curbing the abnormally robust property buying seen this year.

Private home prices rose 0.5 per cent in the third quarter from the April-June quarter, according to the Urban Redevelopment Authority's flash estimate. It may the biggest quarterly rise this year but, really, did we even notice it? We know that prices are already at a high level but can we really tell whether they are higher? Ditto for the 1 per cent rise for homes in the suburbs.

So, price growth is not really a problem now, but it may be in the future - which means the latest measures are more pre-emptive than cooling.

What about purchases? At first reading, the measures appear daunting. Besides the cap of 35 years on all new housing loans, higher loan-to-value (LTV) limits apply to mortgages exceeding 30 years and where the loan term ends beyond the borrower's retirement age of 65 years.

These will likely bring down the average loan term quite significantly. The adverse impact on the volume of home sales depends on how much liquidity presently resides in the hands of buyers. Most buyers I know accept longer loan terms simply because the banks offer them.

At this point, I am tempted to say that home buying will be significantly curtailed. Developers will now think twice before raising prices and may even be forced to cut prices if sales are not moving.

But, crucially, the measures do not force banks to lend at a higher mortgage rate. If another wave of liquidity were to hit Singapore as the MAS expects, banks would have even more cash than channels to put that money to work. Already ample liquidity has forced some banks - even before QE3 was announced - to introduce that infamous 50-year home loan.

The more "innovative" of the banks will find incentives to put that money to use. How about "no or close-to-no interest" payments for the first two or maybe three years? And what else? If one bank does not raise its incentives, others doing so will grab more market share.

This may lead us back to square one.


Colin Tan is Head, Research & Consultancy at Chesterton Suntec International

 

[Loofydralb]

In an ideal world I agree with you..but unfortunately it's not possible. Do remember our forefathers were immigrants too and they built this country to where it is. Likewise the new immigrants will be building this country for your children and their children.

You did not clarify your residential status, so I take it you're a newcomer in Singapore. This is important because there is a different take from people who are born here and ppl who emigrate here.

You say it is impossible. In 1965 things appeared impossible for newly independent Singapore where we suddenly lost our hinterland overnight. That is one stark difference in the point of view of new residents and born residents. One gives up and seeks others' green pastures. The other stays and fight for what they believe.

It is a fact the our forefathers built this country up to where it is now. But the defining fact is not that they are immigrants, it is the selfless sacrifice they make for the nation as a whole.

I too will make tonnes of profit if the housing prices were to escalate, but I would gladly give it up so that our housing is moderated so that our young could have a future. If new citizens do not have this notion of forgoing immediate profit for longer term prospects, your future Singapore will eventually cease to exist.

 

[lee6100]

I too will make tonnes of profit if the housing prices were to escalate, but I would gladly give it up so that our housing is moderated so that our young could have a future. If new citizens do not have this notion of forgoing immediate profit for longer term prospects, your future Singapore will eventually cease to exist.

Well said. I couldn't agree more.

 

[zeddy]

In an ideal world I agree with you..but unfortunately it's not possible. Do remember our forefathers were immigrants too and they built this country to where it is. Likewise the new immigrants will be building this country for your children and their children.

You are originally from Pinoy Land?

 

[zeddy]

In an ideal world I agree with you..but unfortunately it's not possible. Do remember our forefathers were immigrants too and they built this country to where it is. Likewise the new immigrants will be building this country for your children and their children.

Don't compare the past to the present situation now.. Its totally a different matter alltogether.. New immigrants will be building this country for our children and our children's children?

You're either naive or plain dumb.. How many of these new immigrants who shipped their sons out of this island and back to their native countries the minute MINDEF send that dreaded NS letter to them?

New immigrants will only be here for the good times.. When it comes to the crunch they'll be the first to flee from Spore.. I have seen alot of Indian PRs, the Pinoy PRs going back home to their respective motherlands the minute they sell their HDB flats for a good profit..

I have more respect for the past generation of immigrants than the present new immigrants that we have in this country right now..

 

[hairylee]

Maybe Khaw's cooling measures meant cooling the heads of property tycoon and not the market.
A man who get his house at 30 years old will only finish his loans at 65 years old.

 

[boring]

mother fucker fake vegetarian cow only can come out wayang self slap face policy. those measures will made the private proverty palyers turn to HDB market, it will made more peasant can't afford hdb flats. but anyway...... garment had already build lots of rental flats, these are reserve for those "victims"....

 

[boring]

Don't compare the past to the present situation now.. Its totally a different matter alltogether.. New immigrants will be building this country for our children and our children's children?

You're either naive or plain dumb.. How many of these new immigrants who shipped their sons out of this island and back to their native countries the minute MINDEF send that dreaded NS letter to them?

New immigrants will only be here for the good times.. When it comes to the crunch they'll be the first to flee from Spore.. I have seen alot of Indian PRs, the Pinoy PRs going back home to their respective motherlands the minute they sell their HDB flats for a good profit..

I have more respect for the past generation of immigrants than the present new immigrants that we have in this country right now..

bro, this assholes neither naive or plain dumb, it's simply a dog, perhare a pap's dog..

 

[LeMans2011]

What cooling measures??
That had been the rules since time immemorial... silently over the last couple of years they allowed the banks to do whatever they wanted... now just putting back what should have been in the first place

 

[batman1]

No need so many wayang lah.If really want to stabilize the property prices in this small island, stop the PRs from buying resale HDB flats.Tell the PRS to buy private property to stay or rent private property to stay.HDB flats are public housing for Singapore Citizens only. PRs are NOT Singapore Citizens.
Wake up u farking PAP !!!

 

[Reddog]

The best cooling measure will be the introduction of property capital gain tax. Period.

 

[sense]

http://wikitemasek.org/what-does-the-recent-hdb-loan-changes-mean-to-singaporeans/

I will state here categorically that cooling measures announced on 5th Oct 2012 will not work. Simply because it affects nobody at all. Most people take, at the maximum, 30-years loan. It is very very rare owners will take a 35-years loan.
:
:

The writer overlooked the other important change, regarding 40% per cent cash instead of 20%.

• If they have no outstanding mortgage, the cash down payment is now 40 per cent of the property's valuation instead of the usual 20 per cent.

• If they already have an existing mortgage and want to take another one for another property, the cash down payment is 60 per cent, instead of the current 40 per cent.

That WILL affect those who do not have sufficient cash. 40% to 60% cash is significant to most people.

http://www.straitstimes.com/breakin...gage-rules-may-deter-older-investors-20121006

 

[chupacabra]

It will never end this HDB shit. Immigrate is the best answer!

 

[zhihau]

vote those kutus out of parliament, make sure they get less than 2 thirds majority :o:o:o

 

[Valdez]

True blue Malaysian