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...]
Now it’s payback time
Payback is a word with double meaning. It can imply something good or bad. Think karma in Buddhism and Hinduism. Karma suggests that every deed, good or bad, has its consequences. In other words, there is cause and effect for everything you do. When it’s payback time, you will see the result of your past action. For instance, you put your money in an investment. When it … [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...]
Cash is king now
We all heard of the saying “cash is king”. It is especially true at this point of time. To cope with rising inflation, the Monetary Authority of Singapore has gone ahead with three rounds of monetary tightening. Each round resulted in further reduction of money supply. Suddenly, cash becomes precious. Everywhere people are looking for cash now. The old trick of money … [Read more...]
Can you really afford that property?
Recently, I have been conducting a few one-to-one consultation sessions for people who are planning to buy their new home. In general, they all want to know three things - whether they should buy a particular condominium project, whether they can afford to buy, and whether this is a good time to buy. By the way, I really enjoy all these personal consultation sessions. In the … [Read more...]