COV slipping down, is it good?
Why are people making comments like as if it is a good thing that COV is coming down? If it is good to keep it down, it should not have gone up so high in the first place. Oh, market forces, can’t be helped. But the govt is helping to push it down with all the curbs and cooling measures, which means it can be helped. A young couple was happy that they could afford a resale flat at $350k with a $15k COV. Happy like shit, as if striking lottery. Their combined income is $3,500 pm. Even with a $50k grant, it is still more than $300k for that unit. With the mortgages and interest, it is probably something like $600k by the time the loan is fully repaid. How many months or years of income is that? Nearly 20 years. It means that this couple would have to work for 20 years for free just to pay for that flat. Don’t they need money to survive, to bring up children? Never mind, these are the losers in our society. Think about the good stuff. Many residents are owning properties worth millions and feeling so rich. And their properties are going to go up in value with more investors flooding here. Singapore is now the top city for property investment. To maintain this shining title, our property prices must go up. And for COV to come down, that is bad. It is working the other way. Maybe it is temporary as election is around the corner. Singaporeans will have more to cheer after the election when their property prices shoot to the sky once more. And the young couple mentioned above can pat their own back to congratulate themselves for making a wise decision. Their $350k flat may then be worth $500k and they will be sitting on a fat profit, and feeling very rich.