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Friday, 7 March 2008

Jim Rogers, who has moved to Singapore with his family, said he is not buying Singapore property for now for a number of reasons. 'I expect there to be a slowdown, if not a decline; it is happening already.'

Slower growth, for one, may cause a drop in the number of foreigners here, which could dampen home prices, he said.

Dennis Ng's comments:
in the worst case scenario of a Global Financial Crisis whereby we have Crash in Stock Markets, Property Markets and Bond Markets, low-end private property prices in Singapore might crash to S$550 psf, from about S$700 psf currently (or a drop of 21%).

Note: property prices dropped to as low as S$350 psf in year 2003. This is Unlikely to be repeated in my opinion, as each Property Cycle will have higher low and higher high. (similar to stock markets).

S'pore stock market might drop to 2,100 level or lower. (another 30% drop).

Prices of HDB resale flats and Prices of New HDB flats would provide support and act as a "floor" for property prices.

Just my personal opinion, which might be worth not even 1 cent.

Year 2009 is likely to be a very bad year, so better build up Cash Now. Whatever Cash/CPF you have now better don't invest in stocks and also please don't use it to reduce/pay off Housing Loans.

Currently, Housing Loan interest rate is below 2.6% while inflation is over 5%. It does NOT make any Financial Sense to reduce/pay off your Housing Loan.

Cheers!

Dennis Ng

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