“Debt is dumb. Cash is king.” - Dave Ramsey, American millionaire, author and radio personality “The Last Dance” Early this week I went Johor Bahru to watch the original Cantonese version of “The Last Dance” (破地狱). The Hong Kong film has broken six box office records, including highest opening day and total gross, taking in HK$100 million revenue 20 days after … [Read more...]
4 bank valuation facts you don’t know
Am I buying above valuation? That is the question clients asked me lately in our one-to-one property consultation sessions. Buyers often mix up a home’s asking price and fair valuation. Many cannot tell the difference between price and value. In short, price is what we pay for something and value is what it is really worth. Valuation is different for homebuyers and … [Read more...]
Can we repay our debts?
2023 is another year of high interest rates. Borrowers with outstanding debts from the banks are constantly under pressure. With four more months to go, the Federal Reserve shows no sign of decelerating the engine of rate hike. The big question is: How much longer can individuals, SMEs, corporations and governments hold onto their high-interest debts? The trap of … [Read more...]
Can pay or can’t pay?
In 2022, mortgage rates have surged beyond our expectations. What if borrowers can’t pay? On November 25, the Monetary Authority of Singapore (MAS) published the Financial Stability Review 2022. It stated that most households appear to be resilient to interest rate shocks. The proportion of non-performing mortgage loans is likely to remain low. On the contrary, the OCBC … [Read more...]
Buying homes under inflation? What will happen next
In July, I wrote the blog post “Cash is king now”. Two months later, the trends covered in the post have advanced faster than anyone can predict. Everywhere we hear people saying, “Inflation makes everything expensive. I need more money!” Inflation stress far more contagious than Covid-19 As of this writing, Singapore has close to 2,500 daily new cases. However, the … [Read more...]