Property Market Sentiments

[specuvestor]

Most people have good experiences with property simply because 1) they tend to hold very long term and inflation itself will help the property prices which is a function of inflating rental cost and 2) it is ~4X levered. So a better comparison of equities vs one's specific property might be to synthetically leverage equities by 4X and compare the opportunity cost.

Even US house prices are already above GFC so unless one buys property in Japan in 1990 or HK property recently (which is the world's most expensive on some measure) it tends to appreciate if one negates the opportunity cost which is why I think it is a good idea for CPF to require the 2.5% opportunity cost refund to CPF first so opportunity cost is built into the transaction.

From a policy point of view I support govt's L99 policy for renewals but lament the idea of HDB being an investment that a PM tried to advocate in his Singapore Inc policy... it's becoming a political hot potato cause HDB is supposed to go to zero but 80% voters stay in HDB and thinks it's an investment.