04-06-2014, 08:57 AM
(04-06-2014, 12:03 AM)specuvestor Wrote: [ -> ]A. Negative real rates is not a uniquely singapore phenomenon. Hopefully when interest rates normalise, whenever that might be, starting with the tapering of QE, the distortion in price of money can be resolved
B. it started because some segment of society was clamouring for a choice to get low interest pte loans for HDB flats, just as now people clamouring for more investment returns for CPF. Hence rules had to be changed for banks to have first lien on proceeds. Big mistake. Prior to this I have never heard HDB flat being auctioned. To be honest sometimes people really dont know what they are asking for
C. Negative real interest rates are always positive assets.
D. Agree people trying to extract out the CPF locked by using CPF to buy house and rent it out to get cash flow
The common solution is actually what I've been saying: to back peddle and reduce CPF used in property deposits and monthly mortgage payments. However the scheme is too entrenched and likely way forward is implement in phases for new acquires. You can thank ESM Goh for this property centric ideology
Quote:For B :-It's natural for people to want to borrow from cheaper source (Banks) to service their debt - HDB mortgage loan of 20 to 25 years.
They can't or don't want to think too far like in case they got retrench, what's going to happen next.
i think i will do the same if i am in the same situation.
Quote:You can thank ESM Goh for this property centric ideologyEveryone should own rather than rent a HDB is actually LAU LEE's thinking.
He thinks Singaporeans should have their money tie down in's HDB.
So that Singaporeans will fight instead of just run away if there is a war. i think he is right.
Where you nest is where is your home.
You just can't run away.
Therefore try renting a flat from our G, you can't.
Only under very distressing financial circumstances you may be able to do so.
Indeed HDB has become a very "POWERFUL TOOL" for our G.
My mother who had gone over the other side(at age 90+)had told us so when she was around 50 or 60.
But a "POWER TOOL" if misuse can become a "WEAPON OF DESTRUCTION", instead.
Which the G realise now and trying to control the proper use of this "POWER TOOL"
Anyway our G is quite good at treating Singaporeans like a kite. When to ulo and when to tarik.
But even G can not control the WIND after sometimes.
Without the WIND, behind our G, ulo and tarik also no use.
The kite just won't take off.
The WIND OF CHANGE may comes sooner then our G think?
GE 2015/16 will show us indeed how much has the WIND changed.
How much???