Maybe maybe not.JR8 wrote:Nothing has changed... and this is how this discussion has been going around (as described) for the c25 years I've had an interest in the subject.
The Singapore Govt will be under pressure to open up the gates again to let folk in to fill up the houses that everyone has bought and needs to rent out....Primrose Hill wrote:Maybe maybe not.JR8 wrote:Nothing has changed... and this is how this discussion has been going around (as described) for the c25 years I've had an interest in the subject.
There are talks that the SG's govt cooling measures maybe loosen up.
And UK? Interesting times
Don't know about the Swiss, but the government in Germany actively regulate housing rent, imposing rental cap. As a result, housing price has not shot through the roof, unlike UK. This makes it more attractive to rent, does it not?JR8 wrote:One notable local cultural aspect is about striving to own your home. Isn't it verging on taboo to be a SGn adult and rent your home? Strange that when you think about it. Stranger still when compared to stats from the UK where say 100 years ago only 10% [the very rich] owned their homes, and the rest rented. You see this shift in the UK where young people now seem to have this notion that they have a right to own their home; and many are very angry to find that they can't. Not only that, but the home must be in a nice, convenient and preferably fashionable area. Who sold them this lie?earthfriendly wrote:If you have got the money, nobody should be telling you how to spend it. But there is something quite wrong when skyrocketing property value ends up pricing the locals out of a roof over their heads. Can't find the link but Singaporeans have one of the highest debt ratio in the world. And it is not for luxury items. Most of the debts are incurred for necessities like housing and food.
Even today in Germany there is only a 43% owner-occupation rate, and Switzerland is lower still. That is curious given they're arguably the two richest countries in Europe. -> http://qz.com/167887/germany-has-one-of ... hip-rates/ How can such successful people be content to rent for life?
Mebbe indebted SGn citizens are controllable citizens, in hock (debt) to the government for their working lifetimes.
The article is behind the FTs paywall so unfortunately I can't read it.thismyvoice wrote:Don't know about the Swiss, but the government in Germany actively regulate housing rent, imposing rental cap. As a result, housing price has not shot through the roof, unlike UK. This makes it more attractive to rent, does it not?
http://www.ft.com/cms/s/0/7e682660-1019 ... z40gsV7AJ3
Don't get me wrong, I am not advocating rent control. I am just explaining why people prefer to rent in parts of Germany, where the government is actively managing rents.JR8 wrote:The article is behind the FTs paywall so unfortunately I can't read it.thismyvoice wrote:Don't know about the Swiss, but the government in Germany actively regulate housing rent, imposing rental cap. As a result, housing price has not shot through the roof, unlike UK. This makes it more attractive to rent, does it not?
http://www.ft.com/cms/s/0/7e682660-1019 ... z40gsV7AJ3
I forget how rent is determined in Germany; but I know we paid full market price there. There are a couple of things to consider though:
- They don't seem to moved beyond a culture of renting for life. Some of our neighbours had lived their entire lives in their current apartments. Our immediate neighbour was born in his and had lived out WW2 there as a child. It would be veeery unusual to meet someone in that position in the UK; I never have.
- Germany has a lot of unused habitable land. Esp post unification w/former East Germany. There's far less pressure on land hence property prices.
- Creating a system of artificially regulating rent lower has side effects. There is little or no incentive to create supply, or pay to maintain any supply. Apparently in Germany when you rent in the regulated/long-term market you're responsible for the supply and maintenance of all internal fixtures and fittings. Kitchen, bathroom/s, flooring etc - the lot.
- Rent control is a protection often introduced after very hard times. In the UK it would have likely come in after one of the wars. They only began to seriously deregulate the market in the 80s. That has markedly increased supply and the quality thereof. This is convenient for job mobility, both for people moving domestically, but also for people coming from abroad who wish to rent. It helps keep the economy dynamic and flexible.
Sure prices haven't 'shot through the roof' in Germany. Maybe for the same reason neither you nor I would buy investment property there? There is very limited free building land in the UK, it's a crowded island, a lot of people aspire to owning property there. Getting the permits to build is $$$ and even where possible they can take years to get.
Dow Jones Global 50 Index - 'The Dow Jones Global Titans 50 Index is a float-adjusted index of 50 of the largest (by market capitalization) and best known blue chip companies' [Wiki]sgstrait wrote:I guess in places like Germany their GDP reflects real industry whereas in places like UK it reflects house price inflation ie hot air.
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People sell at a loss only when they are forced to. Currently buyers dont want to buy at the quoted prices and sellers dont want to sell at a loss. Its been like this from the last few years. It will be interesting to see who will bat first. Rents falling is a real danger sign for investors. At some point when rents are not high enough to cover installments, that will be a tipping point.PNGMK wrote:I was looking at some Singapore house/apt prices on the weekend - thinking about upgrading... decided that the market (at least asking price wise) has not corrected at all... on the other hand rents are dropping where I am living....
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