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...]
4 reasons behind the loss of appetite for private homes
Last Monday (August 29), there was an article in The Straits Times titled “Drop in appetite for private homes among some HDB owners”. It said HDB upgraders’ love affair with private properties has cooled in the first half of this year. According to URA’s data, buyers with HDB addresses only bought 3,649 new and resale non-landed private homes. The figure was down 26.2 … [Read more...]
How rate hikes hit developers and homebuyers
It’s the season for rate hikes. This Wednesday (July 27) the Federal Reserve raised another 0.75 basis point for second consecutive month. It vowed to go for more rate hikes to fight the battle against inflation. Taking the hint from the Fed, Singapore banks are likely to follow suit to raise rates like the previous round. After all, this was how the three local banks … [Read more...]