THE HOPELESS CASE OF ISKANDAR

As usual, the latecomers to Iskandar, or any other red hot deals, are at the losing end.

The Monetary Authority of Singapore sounded the alarm today in Parliament via a PQ answered by MAS board member Lawrence Wong. With 336k homes in the pipeline at Iskandar, the number outnumbers Singapore's and is scary.

But is the alarm too late?

And our dear TDSR only applies to borrowing from local finance institutions. I do not believe it curbs you if you intend to borrow from the foreign country where your target property is situated in.

So how? Die.

MAS MAINTAINS STANCE

The Monetary Authority of Singapore has maintained its SNEER band slope, width and centre.

CREDIT CARDS...YEA OR NAY?

I used to have a handful of credit cards. Not that I used them all. I mostly stuck to the one which offered cashback for almost every purchase made. 

The cashback used to come to me in a cheque via snail mail. Now, it just gets offset from the current bill. On top of that, I clear my bills more often now. As and when there are purchases accumulated, I make some transfers via AXS online.

But I have also heard some stories on how some people get by with paying the minimum $50 just to roll over the payments at 24% interest. I cannot stomach that. Someone reminded me that is how some people live from pay cheque to pay cheque. Some even use credit cards as unsecured loans for big ticket items like luxury watches or even to pay for weddings.

All's well and fine if one could pay up on time. If you are not able to, I would suggest saving up a bit more before making that big purchase/decision.

Minister Lawrence Wong in a parliament reply to MP Foo Mee Har in Mar 2015 on her question pertaining to individual indebtedness - "However, an estimated 4-5% of borrowers may be above the 12-month borrowing limit." 

I dread the day when these 5% fall through the cracks. It would require much resolve and effort before one could crawl back to light. 

For more information on managing your money better, do visit MoneySense. 

MAS PHASES IN BORROWING LIMITS ON UNSECURED CREDIT

This means anyone taking personal loans, loans for buying home appliances/furniture etc.

And oh. Credit cards as well. I spoke about it some posts back.

The good thing is the hit would be phased in. The inferred bad thing is, the situation on the ground is not all that rosy. But steps are taken with the relevant help agencies like CCS ever ready.

If you notice the phasing in period ends in July 2019. Perhaps that is MAS' take on when 'peak interest rates' will occur?

SINGAPORE SAVINGS BOND...THE NET EFFECTS

The Monetary Authority of Singapore (MAS) has released more information on the Singapore Savings Bond (SSB). I will leave you to click on the link to find out more about the SSB.

But what's the effects of issuing such bonds?

1.  Another debt instrument is launched to borrow from the public. This time, aimed specifically at individuals, made easier to procure and with 'safeguards' to assure the retail investor.

2.  As suggested by the Business Times article, the SSB would give fixed depos a run for their money. I think it will also grab some share from the ordinary savings accounts, dividend yielding counters on SGX and perhaps even some ETFs. The example cited in the SSB link mentioned a range of 0.9 to 3.3% returns...averaging 2.4%. It should be close.

3.  Banks will likely react. Stocks may drop further to increase their yields and attractiveness.

4.  Will MAS raise rates sans the Feds? Maybe?