3/10/2010
Day of reckoning
In 50 years or 30 years time, if you are still alive, many Singaporeans will start to cry. Because in that time frame, many of the HDB properties will have less than 50 years of lease left. And some may have lesser.
And the million dollar properties will not be worth a million anymore, and may not even be worth half of it. That is the reality when the day of reckoning comes. There is no running away from it.
Today, many are trying to make hay while the sun shines. Profit can be made by short term flipping. In the long term, the HDB properties are going to worth nothing. Yes, $0!
Don’t be mad to plough in your millions. At $500k, with interest of 30 years, it is going to cost $1m for nothing at the end of the story. And this applies to all 99 year leasehold properties. The $1m condo is going to cost $2m and will come to nothing too.
It cannot keep going up. It must come down to ground zero!
Only freehold or 999 years properties will retain their values.
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10 comments:
Don't worry. It will keep on going up. They just have to let in more foreigners to help blow in more hot air.
The sad part is that, when the balloon does puncture, the foreigners will not be around, because they would have cash in their chips and left to be citizens of another country.
You and me will be left singing the chorus all over again, like the busker at the bus terminal, reminiscing the good old days.
Actually the prices of HDB flats will continue to stay up and when the lease reaches 50 years HDB could buy back all the flats at market price, pull down the flats and build higher and more expensive flats to be sold.
See, the prices can only go up and not down. By then, 30/50 years from now, all the HDB flats would feth $2m or $3m each and the new flats would be at least $5m each. And our workers median salary will be $300k each pa.
Mr Bean;
You are prophet of truth and You are also prophet of doom.
That's why I say cash it while profit can be made and leave SIN.
Dream on Sir!!
Median salary $300K pa.
This must be a joke; right?
You will need this kind of salary for our average workers when a HDB flat costs $2m or $3m. How then could they pay for it?
HDB prices and income levels have gone up by between 5 to 10 times in the last 30 to 40 years.
It is therefore not inconceivable for HDB prices to hit $5m - maybe less likely in 30 years time(though not impossible), but reasonably likely in 50 years time.
If the price of the HDB flats grow at an average compounded rate of 5% pa, a $500K flat today will fetch $2.1m in 30years time and $5.7m in 50 years time.
Don't know about others, but I won't be in "paradise" by then to celebrate the event..
By then we will have to follow those countries that crossed out the zeros in their currency notes.
Hey guys, why are we talking about something that will happen not within our lifetime?
By that time, a nuclear war or a world calamity like that depicted in the flick 2012 would have got rid of all excess population and property prices would be only a fraction of what it is now.
The good news is that everything would be cheap cheap. The bad news is that half of everyone we know is gone.
Hehe.
Maybe someone is thinking of building a boat to save some species.
Having said the above-mentioned, for one who live many decades, I have yet to come across any scientists, archeologist, geologists or the likes talking about a world flood.
Was the Earth ever been flooded for over ten percent of its' surface at the same time. Or was it a hoax when it was said to happen and of course, it is an eternal myth lah.
As for 2012, it sure sounds too early to me for a worldwide calamity. However, some countries shall be having hard times, that's for sure.
You will need a lot of faith to believe in miracles.
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