Seah Chiang Nee wrote the above article in his Littlespeck blog. He is reading the warnings by the political leaders of an impending recession coming Singapore’s way and how it will impact the people.
The worst hit will be the PMETs, especially those with a million dollar or half a million dollar mortgage. What will they do if one of the paymasters got retrenched?
Don’t forget that there are many who have several hundred thousand dollar mortgages in HDB flats. There are many Singaporeans in this category which includes many PRs as well. When the crunch comes, when they lose their jobs, the 30 year mortgage will not go away. They all depend solely on their monthly incomes to service the debt.
I reckon this time the impact will be much greater as the outstanding housing loan sizes are much bigger, all expecting a 30 year free ride without having to worry about any financial crisis.
Just a few months back, it was all sunny skies and full of optimism. Dark clouds are forming overnight.
Be frightened, be very frightened.