Market issit bad now?

[leslie]

Another School of thought is cheap credit and low interest rates could be here to stay if the markets travel south. This is like the lost decade in Japan where the interest rates are low to prompt the companies to borrow to invest,but with bad sentiment, no companies want to take the risk to borrow. QE3 from the US will flush more money into the systems and thus holding the rates down. Vicious cycle really.

now ben bernanke hands are stucked. republican passed a bill in house to audit fed reserve. they cannot suka suka print anymore. then fundementals are not right. flushed the market with liquidity will cause the crash to be worst in the future. US not dealing with inflation now because money printed are not in circulation. zero interest means banks do not wanna lend out money and take risk. they rather use the money to speculate in stocks.

[desfrie]

This is a strange situation of a combination of sluggish economy, high level of liquidity and inflation and high/higher prices. Just look at the price of DSSD!

Don't think it is just a simple matter of prices correcting drastically. Was watching the property market in 2009 and it corrected only abt 5% then for CCR properties. As much as there are many negative feelings and fear (me included), many are just waiting for the opportunity to pounce.

[leslie]

This is a strange situation of a combination of sluggish economy, high level of liquidity and inflation and high/higher prices. Just look at the price of DSSD!

Don't think it is just a simple matter of prices correcting drastically. Was watching the property market in 2009 and it corrected only abt 5% then for CCR properties. As much as there are many negative feelings and fear (me included), many are just waiting for the opportunity to pounce.

bro. have u noticed that 6 months after lehman crashed in sept 2008. private condos prices corrected 30% in march 2009. only when fed started qe 1 and then prices creeps back.

[desfrie]

Well, I was about to buy an apartment at Newton and distinctively remember there is not much movement. Was at showflat before and after Lehman period. I was dissapointed with the low level of correction. If 30% correction, i will be staying at Newton now

[leslie]

Well, I was about to buy an apartment at Newton and distinctively remember there is not much movement. Was at showflat before and after Lehman period. I was dissapointed with the low level of correction. If 30% correction, i will be staying at Newton now

bro. buying big tkt items depend on timing. wrong timing will kenna headache.

[toffeesthings]

bro. buying big tkt items depend on timing. wrong timing will kenna headache.

Haha, so bro Leslie, guess this is not the time to buy properties yet...maybe buy a few watches can lah...

[desfrie]

bro. buying big tkt items depend on timing. wrong timing will kenna headache.

Agree. Thks for advice bro!

[leslie]

Agree. Thks for advice bro!

bro welcome. save bullets now. may you hoot ur newton house soon at a good price.

[leslie]

Haha, so bro Leslie, guess this is not the time to buy properties yet...maybe buy a few watches can lah...

hahaha bro, long time no see. no money buy watches also. u selling a few watches also huh?

[ac_wong75]

If interest rates stays low , most folks wil probably happ hapay go on installment plans for watchs hahaha hence prices
will go up UP UP .....

[patrickmaniac]

I know bro but nearly 200k for a car is no joke.
And people are buying them like bread and butter cars.

Quite scary

bro. that is the power of cheap credits. banks here are never so willing to loan out money in big amount in history comparing to these few years.

[patrickmaniac]

Yep I know the emotional factor here.
When market crash, gonna be stuck.

For cars, its partly due to COE... now Camry selling 160k so people rather top up 20-30k to get a Merc or Beemer...
The high COE has made entry to mid level cars expensive and the higher end cars cheap in comparison...

[divespyder]

I see colleagues all buying new merc C180 and condos when prices are at all time high. Office car park is filled with new mercs & bmws driven by low level executives on 10 year loans. All cite cheap interest rates & not wanting to miss the boat when prices rise further as reason for buying. Quite a few are contemplating taking 40 year mortgages.

My boss is asking why i'm not leveraging on cheap credit & mortgages to invest in property.. he has 9 condos & commercial properties in SG and 3 in Johore.. I'd like to see who is wearing pants when the tide recedes.

[leslie]

I know bro but nearly 200k for a car is no joke.
And people are buying them like bread and butter cars.

Quite scary

Bro. Take loan easy these days. U need 400k and they can offer u 800k. Ppl call u everyday to ask u take unsecured loans. Ppl these days not scared one. Tomorrow problems tomorrow then worry.

[leslie]

I see colleagues all buying new merc C180 and condos when prices are at all time high. Office car park is filled with new mercs & bmws driven by low level executives on 10 year loans. All cite cheap interest rates & not wanting to miss the boat when prices rise further as reason for buying. Quite a few are contemplating taking 40 year mortgages.

My boss is asking why i'm not leveraging on cheap credit & mortgages to invest in property.. he has 9 condos & commercial properties in SG and 3 in Johore.. I'd like to see who is wearing pants when the tide recedes.

Bro. That is why I worry that bigger problems will arise. Been and seen how bad it was in 97-2004. I know if something hits. These ppl will be jia lak.