One of the key features of the American Dream is to own a home with a little white fencing around it. This is becoming elusive to many Americans. To make matters worse, they are ‘more than a quarter of all home owners owing more on their mortgages than their properties are worth,’ according to an article in the ST today.
Many Sinkies are smiling, our Singapore Dream is still ok.
Many are home owners, never mind that it does not sit on a piece of land or has
a white fencing running around it. It is still home in the air. During the last
financial crisis, quite a number of Sinkies ended up in the same fate as the
quarter of American home owners, with negative assets, ie owing more than the
value of the properties they owned.
Is the situation better now? The first fallacy is that the
Sinkies think they are home owners when they have a 30 year mortgage to service
and all they paid was 10% or 20% of the property. Wise up, get real, you only
become a home owner when you fully paid up the mortgage, or for those who have
the ability to pay all, or on the last few years of their mortgages, the
Singapore Dream of homeownership is there or nearly there. Many are just
servicing their mortgages while the ownership of their properties is with the
lenders, the banks.
The next fallacy which many take for granted is that it is a
lease. Even after paying up the mortgages, the lease would only have a
remaining life of 69 years and getting shorter every year. Homeownership of a
99 year lease is a temporary ownership, a lease is a lease.
In another 50 years or so, the first batch of lease owners
of 99 year flats will no longer be homeowners. And the pace of disowning their
homes will pick up after that when we will see many Sinkies losing their homes
unless they can afford to buy another lease at $2m or $3m for a 3 rm public
flat.
Other than those living in freehold properties, the
Singapore Dream of homeownership is, yes, a dream. It is a 99 year dream and
who ever ends up living in the dying years of this dream will have to wake up
to face reality.
26 comments:
The Singapore dream is indeed just that ...., a dream. Mortgagees are just conned to think that they are already homeowners. This is a dream that comes true only when the mortgage is fully paid. If not, the dream goes up in smoke. Better to put PAP up in smoke instead. Then the Singaporean dream can crystallize into reality sooner. Tio bo ?
99 years long enough lah.
How long can Sinkies live? more than 100 years?
Whether it is LKY, Bill Gates or even ordinary Sinkie, all will end up the same in 99 years or even less, tio bo?
So in the meanwhile, smart Sinkies will make money, enjoy life while they can, here or if not, elsewhere lah.
Much easier and better than to fight and replace PAP, tio bo?
Blog to fight PAP, and also at the same time earn kopi money.
Some smart Sinkies already doing that.
They will not fight PAP in election because 93% chance sure lose one and some more no money to get. So what for?
Thank you for your patronage and kopi. Cheers.
When one wake up from the dream, one realise himself/herself lay flat beside the "long Kur" or road side, very scary.
tio bo?
Here is another Singapore fallacy.
How can we call ourselves citizens when we can never vote out the PAP?
First, is there a gerrymandering of the electoral boundaries?
Second, is there a continuous increase in the number of parliamentary seats to ensure Opposition MPs can never be majority in Parliament?
How many Members of Parliament are needed to "represent" tiny Singapore? And still Ah Loong cannot find enough "talents" to form his gahmen !!!???
How many mayors do we need in Singapore? New York city which is bigger in size and economy than the entire Singapore only got one mayor.
We have all the money to pay and pay. Can have 3 PMs, 30 Ministers and 20 mayors. And 4 Presidents too. Don't ask where the money is coming from.
Readbean,
The topic almost similar to the one I wrote. It's not whether Singapore's housing will bust, but when. I further add the US's housing will go under again, depend whether the Fed's interest rate goes up and when. This time it will be worst than 2008.
There are few indicators to watch in Singapore: How many FT, PR etc leaving the countries, how many Garmen's link companies, former PAP's MP and civil Servants manage companies in private sector disposing properties or real estate? Lastly will the Garmen support and prevent total collapse?
JC
Hi JC, at the moment everyone, locals and foreigners, including private companies etc are buying properties and supporting the property price. Wait for the herd instinct when someone says 'RUN'.
The house of cards built up so high will collapse when there is a pull out.
Oh, JC, didn't you sleep?
Jc u posted often. You have critical view of tjs. May we know why? Some personal vendetta?
Knn
Readbean,
Oh, JC, didn't you sleep?
October 05, 2013 11:01 am.
Readbean, you raise an important question. I am different from an average broke, beside political, social views and behavior. I eat, sleeps and does things whenever please me. :-)
JC
Knn said...
"Jc u posted often. You have critical view of tjs. May we know why? Some personal vendetta?"
I have no axe to grind nor vendetta. Dunno him. Politicians tell you what you want to hear. Attack, attack the PAP and you love anyone attacking the PAP. TJS must be on your side, right?
Tan Jee Say was Principal Secretary to Lao Gow, beside six years in MTI, Dp Director for Economic and Manpower Planning. A financial advisor, ex-director Deutsche Morgan Grenfell, heads of Peregrine Capital.....
Does the above mean anything to you? You cannot tell me he played no part in Singapore FT, PR and 5.5 millions or 39% foreigners now in Singapore?
Do you know what happens in 2008, when the financial world foundations almost collapse? It was Goldman Sach, Bank of America, AIA, Deutsche banks, hedges fund mangers, etc, etc......
Not a single crook went to jail, but millions lost their home. Don't believe me go and find out... in the Internet, be careful of fake and lies. Check the facts like I do. Here is few websites I regular visits..
Common Dream
http://www.commondreams.org/
Asia Time Online
http://www.atimes.com/
The Real News
http://www.therealnews.com/t2/index.php
JC
Readbean,
"Hi JC, at the moment everyone, ...buying properties and supporting the property price. Wait for the herd instinct when someone says 'RUN'..."
Who holding the mortgages? Local banks, Garmen (CPF). What if the majority Sinkies cannot pay b'cus lost jobs or sickness? Does that remind you 2008? Everyone buying even the banks (SubPrime) give loans knowing the borrowers can never pay back.
I just cannot believe it will not happens, but when? Don't forget EU is in the blink of breaking up. The US printing too much money and never ending wars. Even The Fed decided to continue with almost ZERO interest.
Watch RT Keiser Report:
http://rt.com/shows/keiser-report/
JC
I was very surprised to see most show flats flooded by potential buyers committing $1,000,000.00 (million dollars) or more per flat making these flats look very affordable.
I ASK: Where to find the money? High borrowings/debts? No other debts? No other commitments? Sure stay employed? Sure promoted? Can get another job easily? No recession/retrenchment? Health OK all the way? Etc..etc..
I think in this very uncertain and cruel world .......
THE BASIC SINGAPORE DREAM IS : To be DEBT-free or at least DEBT-low.
This was what happened to America before the subprime crisis. Everyone was buying properties that they could not pay. And their loans were only a fraction of what our citizens are borrowing now.
What will happen if something similar happens? The scale will be multiplied so many times because of the huge loan quantum.
"I was very surprised to see most show flats flooded by potential buyers committing $1,000,000.00 (million dollars) or more per flat making these flats look very affordable."
Anon October 05, 2013 1:39 pm
If there are only real Sinkies in Sinkieland, then I would be surprised.
Ha ha ha, it depends on whose dreams, whose nightmares.
Could it be somebody's dream is Sinkies' nightmare?
Otherwise, why bother organise picnic parties so often at HLP?
Tiok Booooooooooooooooooooooh?
Kee chiuuuuuuuuuuuuuuuuuuuu!
2 stars or starfish?
What do u think?
Redbean and Knn,
Not sleeping again!
I am not an economist hard to articulate complex Socio-political and Economic topics. However, Sinkies will face grief if Tan Jee Say elected to future opposition Garmen. He proposed disposing Temasek. To understand why I am against TJS and predict Singapore Housing bubbles, Watch RT (Russia Today).
Episode 506 Max Keiser dialogs with Professor Michael Hudson.
http://rt.com/shows/keiser-report/cameron-global-economic-policies-717/
Even if you are not in tunes with economic 101. This episode briefly discussed 2008 leading to the present. Sovereign Wealth Funds (Singapore), Garmen, banks in UK, USA and Downunder.
JC
Talking of judgement of a person, even our 90-year old grandmaster does not dare brag about it.
In fact, he may be one of those having one of the worst records among past world leaders. In terms of leaders selection, maybe the people collectively have better foresight than our rare mentor.
Let me explain.
..... con't anon 8.21 am
Take for example MBT. During one of the rallies during GE 1984 ( this incident I watched from past videos and read about it from some articles, given my age, ha ha ), our enlightened mentor brandish the glowing "A"s of MBT scored for his "O" Level ( alamak, "O" level only also talked until like Nobel Prize. I also very surprised when I knew about it many years later. What big deal? Now even at "A" Level, there are a few thousand students score straight "A"s every year. So "O" Level talked until managed to pluck the stars liao. Easily excited over minute achievements. That may explain why his people judgement is one of the worst among past world leaders.)
..... con't anon 8.30 am
Coming back to that "infamous" 1984 GE rally speech, CST was "greatly dismissed, discredited and belittled because his "O" Level only a couple of credits despite him having achieved later in his student life a good law degree from a respectable university.
See what happen later. Fast forward to the 1990s. Mrs Peanut husband ( S$600k annual salary for a small fry also disdainfully waved off as "Peanuts" by our very rich Mrs Peanut. Ha ha, so much for reviewing the inner thoughts of our leaders' family members. US President now also probably earn less than S$600,000 managing the 3rd most populous nation, the 4th largest country in land size and economically, politically and militarily the most powerful in the world. That fella Mrs Peanut thought was earning a small "Peanut of S$600K was only running a relatively tiny organisation with a land area of at most a few thousand square feet, still think the $600k salary peanut. Brain peanut, EQ peanut or salary peanut?)
.... con't anon 8.39 am
entasked MBT with the local football S-League & reach the world cup finals by 2010. See what happen?
After failing then just say oh, it was just a "wild dream"!
Oh, what a leader! We have great leaders in GCT, Mrs Peanut and MBT.
What foresight!
I never say his "eyes Pak Jiao" ha!
I never say his "eyes paste stamps" ha!
No worries!
With great leaders in place such as former MM handpicked former PPS HSK around, Singaporeans dream sure in "VERY SAFE HANDS", "VERY SAFE BUTTER HANDS". Sure won't led the ball kanna roll into own goal one!
Ole ole ole, ole ole!
Ole ole ole, ole ole!
Ole ole ole, ole ole!
Pls join me in the famous mexican wave to "salute" and "celebrate" our great "hand picked talent" by "no Pak Jiao" and "no paste stamp" master.
Ole ole ole, ole ole!
Ole ole ole, ole ole!
Ole ole ole, ole ole!
Why I bring up this talent tinkie and 2010 World Cup Finals promised by Lau Goa is mainly the fact that in 1998, after France won the 1998 World Cup for the first time, Lau Goa used that excuse to "bring in fake talents ( FTs )" en masse.
He claimed that France achieved that ( winning the world cup , no believe pls go google, otherwise go read up various archives about his speeches back then in 1998 and after ) with > 50% in the team being foreign born talents.
So the flood gate was opened for FTs ( mostly fake talents lah )!
Now you know why Lau Goa neglected SinkieLand's birth rate and let the TFR plummet and plummet under his watch! Because have potential > 3.5 billion "cheap" FTs to import from Asia mah.
Anon 8.48 am
...... con't anon 9.03 am
Again back to the world cup talent.
Eventually did Sinkieland reach World Cup 2010 after Lau Goa used that as pretext to bring in massive FTs?
So you tell me lah! How to achieve Singapore Dream like that with $90,000 COE toilet paper, 15 years salary to buy public housing pigeon holes, sardine packed tin can public tpt mrt and buses, almost 24 hour round the clock stressed up education paper chase from cradle to grave etc etc ............
Singaporean Dream or SinkieLand Nightmare?
You tell me lar?
Did I say anything wrong?
Pls correct me if I say anything wrong hor! Pls don't keep quiet and let untruth spread!
Mr Ministar, can pls tell me now majority Singaporeans still have Singaporean Dream to chase or majority Sinkies only have SinkieLand Nightmare in front? Pls tell me! I waiting your reply and answer. NO! Singaporeans or Sinkies, depending on your clever reply or BS, would be waiting for your reply EAGERLY!
In Singapore, we overpay for everything:
cars,
leases for our subsidized HDB flats,
maids,
and salaries for our politicians and their cronies.
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