Monthly Archives: August 2009

It’s just small home projects now – if at all

Posted on 26 Aug 2009 | Comments Off on It’s just small home projects now – if at all

In pre-recession days, home improvement projects were usually grand, expensive overhauls of kitchens and bathrooms.

In this economy, home improvement projects consist of painting the walls and replacing the jiggly toilet handle.

‘I’m not doing any major projects anymore,’ Steve Miller said as he shopped for putty knives last week at a Lowe’s in a suburb of Chicago, ‘but just fixing what I’ve got.’

For months, Mr Miller, 51, had been planning to give his kitchen and bathrooms a facelift. ‘Then the economy got bad, and I don’t want to run up any more credit,’ he said.

While the recession has caused consumers to pull the plug on exorbitant renovations, it has sparked a resurgence of small, do-it- yourself (DIY) Continue reading →

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Posted in Overseas Property

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Structural changes needed

Posted on 26 Aug 2009 | Comments Off on Structural changes needed

RECENT reports suggest that property prices are now about 19 times the average annual household income.

Can an average Singapore household afford even the low- to mid-end private condominium with the current going rates of $800 to $1,200 per sq ft? Based on a typical household size of 3.5 persons and median household income of $5,500, a four- to five-room apartment of say 1,200 sq ft would cost around $960,000 to $1.44 million, or an average of $1.2 million.

That would work out to a ratio of 19 times the median annual household income. Even if we were to use $8,000 as the median monthly household income, which is the salary limit which bars one from buying an HDB flat, the ratio is about 12.5 times.

However, if we were to use only 35 per cent of one’s income to service a housing mortgage, which is the recommended percentage under prudent financial planning, then the ratio becomes 52 times and 36 times respectively, assuming 100 per cent mortgage financing and zero interest. Is this sustainable? Continue reading →

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Posted in Property Market / Real Estate

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