With house prices on the rise, despite the new cooling measures, is now really the right time to buy a property? Award-winning property agent Kelvin Fong thinks so. Here are his five reasons why buying a property today could be the best decision you ever make.
1. Low interest rates
People with money to invest can use the current low interest rates – which are as low as 0.88% at present – to leverage a passive income from their purchased property. In fact, the returns from a property can be more than what a bank’s fixed deposit account can offer.
2. Property is an appreciating asset (eventually)
Barring any dramatic economic upheavals, property prices will likely stabilise or slowly, but progressively, increase from now till 2011. Most sellers will not want to sell at a lower price today, and will not suffer when paying a relatively high mortgage due to low borrowing costs. The 30% down payment rule will actually act as an incentive because purchasers, having come up with this capital, will not want to sell.
Provided you do not sell your property during the downturn – as you will almost inevitably lose money on it – the value should increase. The key is that the buyer must have holding power when the market deteriorates and should not buy until they have the holding power to weather any market conditions. Prices will eventually rise again – as witnessed in 2008, when prices were down but did eventually rise to and, in some cases surpass, the 2007 peak.
3. Assets beat playing the market
Many people will choose to purchase an asset like property because the market liquidity – essentially the asset’s cash value – is still strong and, due to the last financial crisis in 2008, people felt safer putting the money in asset rather than financial instruments. The asset will always be there, and even when market conditions are not as good, as long as you do not sell it, you will not lose money.
4. Market conditions don’t matter
Buyers who are looking at property as a long-term investment will be less concerned about the market’s movement up or down.. Property will – nearly always – appreciate in the long term in Singapore due to the scarcity of land and available real estate. While having a diverse portfolio is preferred, as a long-term investment, property is generally going to make more money than other comparable instruments. Investing in bonds, for example, is a safe investment instrument, but capital appreciation is weak.
Property is not the ideal market for speculators though – not only has the government introduced measures to discourage property speculation – but you will be much more at risk of market fluctuations.
5. Property keeps on giving
Buying public housing in today’s market is not cheap, with HDB’s executive condominiums going at around $600 – 700psf, close to mass market private property prices. A HUDC unit has already reached the $1 million mark, and the trend looks set to continue. Parents may see buying an asset, not only as a hedge against inflation, but also as an eventual inheritance to their children. If house prices continue to rise – and with the cost of construction materials inevitably going to rise too – there is the fear that the younger generation could be priced out.
Monday, October 18, 2010
Friday, October 15, 2010
basic communciation course
In basic communciation course, you are taught how to communicate appropriately depending on who is the audience and what is the occasion.
So the PAP manifesto in the 2006 election is all about the above. Nothing wrong with that.
Also if I say "...am concerned about.." and "...worry for..", it may mean just that. It doesn't mean I will do something to resolve the concern or worry. But it shows I empathise, which can sometimes make the target audience feel good and connected.
That's what good communication is all about, not just in politics but also daily interaction.
Get this right and let nature take its course.
So the PAP manifesto in the 2006 election is all about the above. Nothing wrong with that.
Also if I say "...am concerned about.." and "...worry for..", it may mean just that. It doesn't mean I will do something to resolve the concern or worry. But it shows I empathise, which can sometimes make the target audience feel good and connected.
That's what good communication is all about, not just in politics but also daily interaction.
Get this right and let nature take its course.
Saturday, October 09, 2010
A surge in immigrants: Indians
OVER the past decade, more Chinese mainlanders flocked into Singapore as permanent residents than any other nationals, right?
Wrong – and by a long shot!
Contrary to widespread perception, the Chinese are not on top of the list.
In fact, they totalled only 13,000 – or 3.88% – of the estimated quarter of a million new permanent residents (PRs) who arrived since 2000.
This was a lot fewer than PRs from Malaysia (81,000) and India (68,300), according to official figures just released.
These statistics appear to have put paid to a widespread notion that Singapore is being flooded by Chinese immigrants.
The figures do not include the estimated 1.3 million non-resident foreigners on short-term work permits or professional visit passes. If they do, the Chinese would probably outnumber others.
Another caveat is that the figures were for a 10-year period and might or might not reflect trends of more recent years. The Chinese bulk started coming in 2005.
“This whole idea that we are being overwhelmed by mainland Chinese has no basis,” said Associate Professor Eugene Tan of Singapore Management University.
“The numbers should tell us that many from China are here only as foreign workers,” he told the local press.
The government has been careful not to let the foreign intake upset Singapore’s ethnic balance, especially against the minorities.
While a large army of Chinese arrived to work here, the authorities were apparently keeping a lid on their numbers when granting them immigration rights.
This was borne out by the latest ethnic breakdown, which showed Singapore’s ethnic Chinese population proportionately in decline – 77.8% in 1990 to 76.8% in 2000 and 74.3% currently.
So is the ratio for Malays, which fell slightly from 14% to 13.4% over 20 years, while ethnic Indians rose from 7.1% in 1990 to 9.2%.
Maintaining the ethnic balance has long been a national tenet virtually carved in stone.
Prime Minister Lee Hsien Loong has reassured Singaporeans, especially the minorities that new immigrants would not be allowed to upset the current mix of races.
The city would remain open to immigrants of all ethnic groups, so long as they can contribute to the national economy, he added.
Despite this, maintaining the balance may likely become tougher – even impossible – in the face of Singapore’s huge appetite for skilled immigrants.
However, he admitted to the difficulty of attracting more Malays or pribumi talent from South-East Asia. Malays make up only 3% of PRs.
A senior leader said Singapore would not actively head out to woo ethnic Malay immigrants from the region, relying instead on scholarships and job opportunities.
“What we cannot do is go overseas and target specific ethnic groups to come to Singapore,” said Deputy Prime Minister Wong Kan Seng.
The increase in Indian arrivals has been visible in everyday life but the margin has caught many Singaporeans by surprise.
Indians today make up a quarter of the 1.79 million foreigners in Singapore that include PRs and foreign workers.
The number of new arrivals doubled from 200,000 to 400,000 in the past two years, according to the Indian High Commission. In 2007, some 10,000 professionals arrived in the one year alone.
Once felt mainly in Little India, the Indian presence is today visibly established in Shenton Way, Suntek City and the central parts of the city.
The new arrivals are almost everywhere – in trains, shopping malls and hawker centres.
The wealthy Indians bought new homes along East Coast Road or set up businesses here.
The professionals are mostly in engineering, finance and computers, some of them moving into grassroots politics to serve the ruling People’s Action Party.
I stopped by at VivoCity Kopitiam food court during lunch hour last week and caught a glimpse of Singapore’s new trend.
By local size, it is a rather large place. As much as a quarter of the crowd were Indian professionals, many of whom could be seen queuing up for northern Indian food.
They then sat down to eat among themselves, few mixing with locals.
Like the Chinese and others, the Indian settlers have stirred resentment among a large segment of Singaporeans who regard them as usurpers of jobs and other opportunities.
Others, however, say their presence is helping to create a buzz and improve competitiveness. It is changing lives.
“Recently I put an advert to rent out my father’s flat and all the callers have been from India,” said a Singaporean. “No other nationalities have called so far.”
Other comments include:
* “Some Indians now want to go to Tao Nan primary school (an elite school strong in Chinese language). There are really a lot of Indians now.”
* “I overheard one Indian saying Singapore is an outpost of India, and only fours hours away by plane.”
* “As a Singaporean Indian, I feel insulted when some of my classmates asked me if I was from India. The record shows my ancestors first came here in the 1800s.”
A few are speculating why the government is controlling the granting of PR status to Chinese while allowing them to come in large numbers to work.
One writer said: “Minister Mentor Lee Kuan Yew is concerned that Singapore will become a satellite city of China.
“I think the huge increase in the number of Indian PRs and new citizens is deliberate filtering by the government.
Wrong – and by a long shot!
Contrary to widespread perception, the Chinese are not on top of the list.
In fact, they totalled only 13,000 – or 3.88% – of the estimated quarter of a million new permanent residents (PRs) who arrived since 2000.
This was a lot fewer than PRs from Malaysia (81,000) and India (68,300), according to official figures just released.
These statistics appear to have put paid to a widespread notion that Singapore is being flooded by Chinese immigrants.
The figures do not include the estimated 1.3 million non-resident foreigners on short-term work permits or professional visit passes. If they do, the Chinese would probably outnumber others.
Another caveat is that the figures were for a 10-year period and might or might not reflect trends of more recent years. The Chinese bulk started coming in 2005.
“This whole idea that we are being overwhelmed by mainland Chinese has no basis,” said Associate Professor Eugene Tan of Singapore Management University.
“The numbers should tell us that many from China are here only as foreign workers,” he told the local press.
The government has been careful not to let the foreign intake upset Singapore’s ethnic balance, especially against the minorities.
While a large army of Chinese arrived to work here, the authorities were apparently keeping a lid on their numbers when granting them immigration rights.
This was borne out by the latest ethnic breakdown, which showed Singapore’s ethnic Chinese population proportionately in decline – 77.8% in 1990 to 76.8% in 2000 and 74.3% currently.
So is the ratio for Malays, which fell slightly from 14% to 13.4% over 20 years, while ethnic Indians rose from 7.1% in 1990 to 9.2%.
Maintaining the ethnic balance has long been a national tenet virtually carved in stone.
Prime Minister Lee Hsien Loong has reassured Singaporeans, especially the minorities that new immigrants would not be allowed to upset the current mix of races.
The city would remain open to immigrants of all ethnic groups, so long as they can contribute to the national economy, he added.
Despite this, maintaining the balance may likely become tougher – even impossible – in the face of Singapore’s huge appetite for skilled immigrants.
However, he admitted to the difficulty of attracting more Malays or pribumi talent from South-East Asia. Malays make up only 3% of PRs.
A senior leader said Singapore would not actively head out to woo ethnic Malay immigrants from the region, relying instead on scholarships and job opportunities.
“What we cannot do is go overseas and target specific ethnic groups to come to Singapore,” said Deputy Prime Minister Wong Kan Seng.
The increase in Indian arrivals has been visible in everyday life but the margin has caught many Singaporeans by surprise.
Indians today make up a quarter of the 1.79 million foreigners in Singapore that include PRs and foreign workers.
The number of new arrivals doubled from 200,000 to 400,000 in the past two years, according to the Indian High Commission. In 2007, some 10,000 professionals arrived in the one year alone.
Once felt mainly in Little India, the Indian presence is today visibly established in Shenton Way, Suntek City and the central parts of the city.
The new arrivals are almost everywhere – in trains, shopping malls and hawker centres.
The wealthy Indians bought new homes along East Coast Road or set up businesses here.
The professionals are mostly in engineering, finance and computers, some of them moving into grassroots politics to serve the ruling People’s Action Party.
I stopped by at VivoCity Kopitiam food court during lunch hour last week and caught a glimpse of Singapore’s new trend.
By local size, it is a rather large place. As much as a quarter of the crowd were Indian professionals, many of whom could be seen queuing up for northern Indian food.
They then sat down to eat among themselves, few mixing with locals.
Like the Chinese and others, the Indian settlers have stirred resentment among a large segment of Singaporeans who regard them as usurpers of jobs and other opportunities.
Others, however, say their presence is helping to create a buzz and improve competitiveness. It is changing lives.
“Recently I put an advert to rent out my father’s flat and all the callers have been from India,” said a Singaporean. “No other nationalities have called so far.”
Other comments include:
* “Some Indians now want to go to Tao Nan primary school (an elite school strong in Chinese language). There are really a lot of Indians now.”
* “I overheard one Indian saying Singapore is an outpost of India, and only fours hours away by plane.”
* “As a Singaporean Indian, I feel insulted when some of my classmates asked me if I was from India. The record shows my ancestors first came here in the 1800s.”
A few are speculating why the government is controlling the granting of PR status to Chinese while allowing them to come in large numbers to work.
One writer said: “Minister Mentor Lee Kuan Yew is concerned that Singapore will become a satellite city of China.
“I think the huge increase in the number of Indian PRs and new citizens is deliberate filtering by the government.
how do they survive?
I just gave a talk to my son on how not to be in debt when he starts work in a few years time after university.
I told him that when I graduated, after 3 years, I was able to save 40k enough to buy a 5 rooms HDB flat. But for him, after 3 years, he may be able to save around max 150k if he live in with me and I pay for everything and he can pay 1/3 of a 5 room hdb flat if he buys direct from hdb!
Frankly, I just do not know how they can survive as I told him that I really do not want him to be in debt to the extent that life is like being put on a pedestal like a rat running to turn the wheel till it drops dead.
And we are talking about the life of a young professional starting life with full support and not incurring debt either in uni study and the first few years of working life. I do not know how people who would earn less, how do they survive?
I read from the papers that someone planning to buy the govt condo meant for income of 8 to 10k commenting that $750 per sq ft is cheap maening getting a 1,000 sq ft 2 bedroom apartment for 750K is cheap? How on earth can the couple pays for the unit paying probably 150k down payment and taking a debt of 600k likely to be paid over 30 years!This is insane.
I told him that when I graduated, after 3 years, I was able to save 40k enough to buy a 5 rooms HDB flat. But for him, after 3 years, he may be able to save around max 150k if he live in with me and I pay for everything and he can pay 1/3 of a 5 room hdb flat if he buys direct from hdb!
Frankly, I just do not know how they can survive as I told him that I really do not want him to be in debt to the extent that life is like being put on a pedestal like a rat running to turn the wheel till it drops dead.
And we are talking about the life of a young professional starting life with full support and not incurring debt either in uni study and the first few years of working life. I do not know how people who would earn less, how do they survive?
I read from the papers that someone planning to buy the govt condo meant for income of 8 to 10k commenting that $750 per sq ft is cheap maening getting a 1,000 sq ft 2 bedroom apartment for 750K is cheap? How on earth can the couple pays for the unit paying probably 150k down payment and taking a debt of 600k likely to be paid over 30 years!This is insane.
Tuesday, October 05, 2010
reposition
each time there is a crisis, we should treat it as a turning point instead.
reposition ourselves, let go our old self and change to a new person, let go and move on.
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