8/23/2010

Buy to profit versus buy to stay

The speculators, investors and developers are happy that property prices are up. And with limited land, the formula in investing in properties here is a sure win formula. Foreigners and swarming into our shores to swipe up whatever they can get with clean money and money to be cleaned. It is a happy story. Speculators and developers are in the property business to make money. Our citizens buy properties to stay, with a few exceptions in the speculator category. The respectable word is investors. Who do the speculators and developers made their money from? Of course from those who need to buy a roof over their heads. In the end, the people who needed a place to stay, a home here, will have to pay double, triple or quadruple for a roof over their heads. And this is good. Our residents paid through their noses for something that cost so little but to enrich the speculators and foreign investors. Who ends up the winner and who the suckers? And some jokers said don’t worry, when the demand is high, they will build more to manage the bubble. With our limited supply of land against an unlimited supply of money from abroad, who is going to call the shot? Oh, don’t worry, we can build many Towers of Babel. I don’t know whether the guy up there has anything to say about this.

2 comments:

Wally Buffet said...

I don't know whether this rule that foreigners can only buy developments more than 6 storeys high still holds but it seems that this rule to ensure that they do not buy up landed property is being circumvented.

How?

The landed property owners, ever greedy are doing en bloc sales collectively and in its place, another Tower of Babel will rise up and foreigners will be the dominant buyers edging out locals.

Before, these locals have cheap HDB flats to fall back on but not anymore.

Wow! it's really tough to get an affordable roof over one's head these days eh?

Matilah_Singapura said...

Everyone "buys" to profit.

In life, everything has to be "paid for" by "buyimg" -- friendships, respect, cars, food, sex and houses.

It depends what the "profit" (after the chosen action) intended is. Sometimes there is "buyer's remorse", which leads to the idea of caveat emptor -- let the buyer beware.

Since we have to "buy" everything of value, caveat emptor applies at all times and in all situations where we have to make choices.