2/11/2012

The road of no return

As a country we are doing very well, and extremely well in many areas. We have become rich and life has become very comfortable to many. There is no doubt that we are the envy of the world in being what we are today. And it is quite appropriate to call this the paradise on earth to many of the wealthy residents.

While the rich and able are happily living their lives, the lower income earners are getting to feel the pinch. And this pinch is going to get worst everyday. No one can deny that many goods and services are going to be out of reach to the average citizens.

There are several major causes that are leading to a frightening future and if nothing is done to restrain these forces and reverse the trend, the eventuality is not going to look pretty.

The high property price of residential and commercial properties is a very dangerous game to play. For those who have acquired the properties, they are just in for a good ride and everything is looking better everyday. Many are selling their properties bought for a few hundred thousands and selling for a few millions. They are so happy to live with their new wealth till kingdom comes.

The problem will be those coming after them. Residential property is going to be the biggest debt for the future generations to bear. They would have bought these properties costing hundreds of thousands or a few millions. Their only hope is that the value multiplies like their predecessors and at the end of the day they could sell off for an easy retirement. Could this be repeated?

The high prices of commercial properties too have a compound effect on the cost of living. Everything, goods and services, will cost more and more to cover the rental or property cost.

The real problem is that there is no winding back. Falling property prices will hurt a lot of property owners. This time around, with the debt becoming so much bigger, it is inconceivable how serious would the problems be if there is a crash. And the govt cannot afford this to happen and will have to keep boosting or supporting the high prices. There is no other way out. Price going down is not an option of the planners.

It is unlikely that the lower income groups can catch up with the high cost of housing and services, in particular the very deadly medical bills. A gap is going to open up very soon, when more and more of the lower income will be gasping for air. Their meagre income and the mini increment rate can never keep up with the rapid rise in cost of living. Once this gap opens up, social disorder is going to be a major issue.

The other major concern is foreigners and foreign workers. There is no way to get rid of them in the short term. And as they grow and melted into the whole social fabric and economic system, they will be embedded as a part of our society and tearing it out is out of question. It becomes an inter dependable arrangement, that the system needs them or will face another big empty hole. This is another policy of no return.

The competition by foreigners, and many would have been given the pink IC, will be felt adversely by the original Singaporeans. How this game will be played out in the longer term is still hazy. Couple with the marginalisation of the lower income groups, which will keep swelling, it is looking like a recipe for more unbearable consequences. A recipe of no return.

15 comments:

Anonymous said...

Don't think the million dollars ministers has any solution. So they are paid to lead us to where we are ?

jjgg said...

Good day RB ..wise sage once told me...borrow borrow borrow...the longer the period the better...inflation cures all sickness...can you imagine buying your property in the 80's with 30 year bank loans..you'll be wallowing knee deep in moolah..think Ng Teng Fong n Kwek Hong Png..it's simple enough to bridge the problems of the have nots..just give them 40 to 50 years cheap housing loans with no repayment terms until the end of the period..then sell n return the proceeds to the state. it's a darn sight better investment than letting Temasick loose with a few billion dollars in the world markets....)))))

Anonymous said...

Find a better place
and return here just
for visit and food.
Got to learn from
Sir Matilah Singapura.

No money, No honey said...

When the US stop printing money till the machines go up in smoke, everything will be alright.

In the meantime, as the printing presses are still running like crazy, expect to pay millions soon for your pigeon holes.

Anonymous said...

Eat a lot of pussies is your best revenge - jizzus cuntry

Anonymous said...

The faster the inflation and rise in property prices, the faster would the balloon burst. It never fails.

Anonymous said...

Are you talking about orgasm?

Anonymous said...

You won't believe this. Actually when you compare Spore's ratio of median property market price to median income with most other developing countries, Spore's is the lowest and much lower (50-100% lower). So, the property prices should go up further with more population and fixed land area. The only problem is that the Spore market is not even because the private apartments can be $1500-2000 per sq ft with a space in the air but private landed houses are still less than $1000 per sq ft. The land price is not equitable because of government control on landed house market. With high flux of foreigners, control of this landed market segment should be relaxed just like other countries so that real land price can be realized. It is therefore still good to buy a piece of land in Spore if you can afford. Only if you can afford because Sporeans' real income in terms of purchasing power is rather low because of high hidden taxes and fees and high cost of living. Inflation will stay at more than 5% a year. Spore dollar is getting smaller in terms of real value.

Anonymous said...

This EC idea is questionable. It is basically private condo, except with minor restrictions lifted after a few years, but on the cheap( all matured EC owners are currently experiencing massive capital gain over similar condos with private status and thus the popularity of EC).

I am just wondering what kind of message the govt is sending to the people with EC

Vote buying? Enriching higher incomers? Social discrimination? Envy?

Question is: why are those whose income bracket falls between (8K to 12K) get to enjoy greater financial return(buy low sell higher), apart from living better, than the majority who have to settle for HDB or buy private condos?

Why this particular income group so bloody special?

Matilah_Singapura said...

I don't know why it is so difficult for some people to be happy. Always complaining that things are not "perfect".

Heyman, be thankful you are alive and reasonably well in Singapore. Many people in other parts of the world are not so fortunate.

Foreigners who settle in Singapore tend to complain less, and are grateful for their good fortune, plus they have the balls to take advantage of the opportunities and out perform the whinging, complaining locals.

Anonymous said...

Oh,it is puuuuurfeck.

Anonymous said...

The unfortunate people elsewhere does not mean they are less happy than Singaporeans.
Somehow, the more one has, the more one wants and the more one wants, the less happy one becomes. Not very logical but, it is a fact.

patriot

Anonymous said...

Where did you learn it from? The pope with the prick head?

Anonymous said...

Must be from prick heads like you lah.

Anonymous said...

Oh, it is always good to be alive and standing.