Property prices, an exercise in illusion

We have this property frenzy turning more crazier by the days. How much of this is real and how much are concocted to give the impression of real demand and real affordability? The ST carries several pages today with two conflicting views, that property prices are really affordable and with some cautioning that a bubble is in the building and we will have our property crisis like the US in the next economic downturn. Would we hear some sensible words of advice on this happy tragedy that is waiting to happen, or everyone is happily playing the monopoly game? A report by Citigroup economist Kit Wei Zheng said that prices at 19 times are now more affordable compare to the 40 times annual income of 1996. It is a relative game. From 40 times to 19, everyone should be cheering and rushing to get one unit. It is less than half price! The crazy and irresponsible thing is to let this go on and on. In fact it was utmost irresponsibility to let prices shot up to 40 times the annual income of the buyer at the average Singaporean level. But no one cares. Ahhh, caveat emptor. Nothing can be done. It is all good business and individual responsibility, and free market. Wny are we so concerned about people gambling in the casinos? Take a 20 year annual income as an example. It would mean that the buyer would need to pay every cent of his income for 20 years to fully pay up for the unit. And this also isn't true as the mortgage plus interest for 20 years will easily work out to be double the amount, ie, he needs to pay for 40 years instead, every single cent. Let's say that he uses half of his income to service the loan, wow, does it mean that it will take him 80 years to do so? Ok, double income family. So maybe 40 years to pay up. Still sounds good, provided neither of them loses his/her job. Then the increments and promotions along the way will make the repayment much easier. But still a 30 to 40 year repayment and a sum that is not small. In 1975 a semi D cost only 2 years of annual income, a 5rm HDB flat cost slightly more than 1 year annual income. That was why those who bought into properties then could sit on huge profits from asset appreciation. With today's prices, is there going to be a profit at the end of 30 years? We are assuming that many Singaporeans are rich and able to afford such properties looking at the attendance in property launches. We are also assuming that many Singaporeans in the future will be able to pay double the current prices if the present day properties are going to appreciate in value. What is very likely to happen is that in the next 10 to 20 years, there are bound to be several economic turmoils along the way, and people paying high prices and servicing high mortgages are going to be hanged for sure. For the time being, enjoy the party...if it is for real. Let's see who ends up with the baby when the music stops.

Time for celebration

Singapore is officially the 2nd most expensive Asian city after Tokyo. Bring me my wine, or champagne better, for such a great achievement. And with our salaries also at record high, property prices at record high, Singaporeans are a lucky lot to be able to afford such high living. How do I conclude so? No Singaporean is complaining. So all is fine. And foreigners are flocking here in bigger numbers, all laughing to the banks. There are plenty of money everywhere. A modern day Eden.

High faluting ideas to be demolished

I have glanced through a few papers and blogs and they were all talking about high faluting ideas and these need to be demolished. Now what is a high faluting idea? I search the web and found this: Meaning: (Regional slang) 1. Highly pompous, bombastic (speech). 2. Showing off, ostentatious, pretending to be above one's station in life, putting on airs. Ya, I agree. All high faluting ideas must be demolished. Which one? Anyone comes across any high faluting ideas, please tell me. PS. An idea that is faluting or not is very subjective. It all depends on who is saying what.

Cyberspace state of health

Or shall I call it freedom of speech? Between a communist giant like China and a democratic island like Singapore, I think it is quite shameful if we are to compare the freedom of speech between the two. Mind you, they have demonstrations every frequently. And I am not referring to those in Xinjiang but in Beijing and Shanghai. Back to freedom of speech. The first thought is that we must be much freer, and our bloggers must be blogging themselves crazy with a diverse spread of views, pro and anti establishment. In reality, the country that is freer in terms of blogging and expressing of views is China. Cannot be? In a comment in the editorial of the ST on the topic of India and China relations, the editor said this, '...few Indians know that there are millions of Chinese bloggers who express themselves freely and fearlessly.' The we look at our own cyberspace and netizens and ask ourselves, who can be qualified as 'blogging freely and fearlessly'? If there are such animals, they are probably blogging from overseas or found in P65.

Race and Religion the hot topic

After Hsien Loong's ND Rally, race and religion have taken on a higher profile with poeple agreeing that they should be discussed openly and not be tabooed, or fearing that someone will come knocking at your door. The general mood is that it is time for issues of race and religion be discussed. I think before such a great happening becomes a reality, people must accept certain limitations, constraints and ground rules to abide by. It is easy to start talking about them. But it is not easy to close the topic when things get heated up and when young blood or instigators join the fray. Discussing such issues, the demand for maturity, respect, sensitivity and an understanding ear are very high as the views put forth, when the views are true, genuine and from the heart, can be very tough to the wrong listener. In the case of religion, I think it is more difficult as certain doctrines and seeds of division and hatred are already deeply embedded over centuries in religious books. Unless such dangerous views are removed from these books, they will always be used by the wrong group as reasons to fight and kill. For such views and doctrines, which many believers chose to ignore or pretend that they do not exist, are intolerable or breed intolerance of those not of the same sect. Many are outright destructive. Would a revision be done by the wise men of today to erase those words, phrases and doctrines of the ancient and do a cleansing of these old books so that future generations can live in peace without such historical notes to invite them to be intolerable or to kill those who do not subscribe to their beliefs? How real, genuine and sincere can believers be when the doctrines are not of peace, not of tolerance and acceptance of others?