Thursday, 28 May 2015

[Straits Times] Property can also be unpredictable

BUYING property is merely one investment tool ("Property investment won't narrow income gap" by Mr David Goh Chee Hoe; last Thursday).
Investing in property still has potential unpredictable risks.
Property investors should do their due calculations, and draw up their long-term plans and strategies to ensure their investments are sustainable in the long run, regardless of potential economic crises.
The property market boom and overheating in the recent decade could be due to more rich people investing in it.
In 2011, 17.1 per cent of households here - or one in six - were millionaires ("17% of Singapore households are millionaires"; June 2, 2012).
The late interference by the authorities in curbing speculation on the property market could also have contributed to the overheating.
The number of millionaire households is expected to grow. However, the majority of Singapore's population still worries over bread and butter issues, such as healthcare costs and the sufficiency of retirement funding.
While the ups and downs in the property market may affect the country's gross domestic product growth, and property developers, agents and developers, I agree with Mr Goh that it will not greatly narrow the gap between rich and poor.
Teo Kueh Liang