Do these pictures evoke a strong emotional response or desire to own one?

If it does, you’re perfectly normal as we’re naturally attracted to things of beauty and the desire to look successful and live the ‘Good Life’.

Thus, it’s not surprising that in spite of rising cost of living, escalating home and car prices, there appears to be no shortage of buyers. Is this a reflection of the deep pockets of Singaporeans, demand/supply mismatch, foreign demand driving up prices or are people simply over leveraging themselves?

Well, it’s probably a combination of the above factors but what is probably most worrying is if individuals are overstretching themselves to purchase these material stuff before they can well afford it or acquire these at the expense of other more important financial planning objectives such as:-

1. Insurance planning
2. Child Education planning
3. Retirement planning

http://www.todayonline.com/business/rising-household-debt-worries-singapore-central-bank#inside

Hence, is our govt doing the right thing in reining in personal debt through

1. 8 rounds of property cooling measures – so many that it can make your head spin
http://www.property-singapore.sg/singapore-property-measures.html

2. imposing financing restrictions on motor vehicle loans
http://www.mas.gov.sg/news-and-publications/press-releases/2013/mas-imposes-financing-restrictions-on-motorvehicle-loans.aspx

Well, having seen what happened during our last Asian financial crisis in 2007-09 where interest rates rose, asset values plummet and jobs were lost (a triple whammy situation), and that we’ve still in the midst of the ongoing global crisis, some financial prudence is certainly warranted.

To seek a second opinion on your financial plan, just end me an email on the right and we’ll get in touch soon

Till then…
Live life to the Fullest, without Regrets!