Are cooling measures for Singapore property solving the right problem?

SG Wealth Builder is pleased to form a partnership with SRX Singapore Property to bring you the latest information on property trend in Singapore. Below article is based on information provided by SRX Research and readers must not interpret it as a form of financial advice.
Recent Singapore Real Estate Exchange (SRX) data suggests that the government’s cooling measures have been very effective at reducing the volume sales for condominiums and private apartments. In particular, the combination of measures to tighten the loan-to-value limits and the total debt servicing ratio have helped cut volume sales from 32,125 transactions in 2012, to 20,203 last year. These two measures have been effective at reducing demand because they restrict the amount of capital Singaporeans can borrow to purchase investment properties.The impact of the cooling measures on price has been less dramatic. Again, the two measures seem to have had the most effect. However, prices did not plummet like volume did. Instead, the former plateaued and experienced monthly gains and losses.

It is more difficult for cooling measures to bring down prices than it is to bring down volume sales. The reason is that the market is constantly in search of a fundamental price for each home, factoring in many variables and pricing signals unavailable to analysts and policymakers.This fundamental price does not change when policymakers introduce measures to stimulate or dampen the market. It merely goes into hibernation.

For a transaction to take place, the buyer and seller must agree that the price of the house is acceptable; otherwise one of the two parties will sit out and wait for the market to change. Cooling measures encourage one or two, or both, parties to sit on the side lines and wait for a more favourable environment. Most participants in today’s private market are

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Three things about Baker Technology Limited

Disclaimer: The views and opinions expressed in this blog are based solely on the author’s perspectives and/or experiences. Readers must not treat the articles as financial advices. The author shall not be liable for any damages caused to the reader(s) arising from the use or purchase of information, products and services directly or indirectly featured or implied in this blog.

Recently I chanced upon this stock called Baker Technology Limited and decided to do some research after a fellow blogger claimed that this is a good investment. Usually I am fairly skeptical on penny stocks in SGX because good ones with growth potential are far and few. Most of them are either overvalued or simply trash stocks not worth mentioning. But just out of curiosity, I decided to do an evaluation on this stock.

Dividend Stocks
In light of the low interest rates, one of the favorite strategies in recent years is to invest in stocks that consistently pay out good dividends. For those who invested in Baker Technology Limited, this investment may look like it fits the bill as a classical dividend stock. In 2013, it paid out $0.10 of dividends and this year May, it will pay out $0.05. So if you had bought the stock at $0.45 in April 2013, the yield would have been 33%. Not a bad return for a small cap stock. But if investors are discerning enough, they would have noted that the company only started dishing out dividends since 2009. To be honest, five years of dividend track record seems a bit short and it is still early days to deem the stock as a “dividend stock”.

Rationale for dividends
Many investors would thought that any forms of dividend payouts indicate that the company is in good financial shape. This may not

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Top Ten Personal Finance and Investment Blogs in Singapore

I am so happy that my blog. SG Wealth Builder has been featured by DirectAsia.com!
In one of their latest articles, my blog was ranked fifth. Check out the article here.

The author wrote the following:
Having begun life way back in 2010, this one-man-blog is one of the ‘old guard’ of Singapore finance blogs – but it is still regularly updated with insightful posts on wealth accumulation, investments and money-making in general. In fact, this blogger furnished his readers with more posts in 2013 than any other year. Some in-depth information on investing here, and while it may not seem like a blog for beginners at first glance, many younger, less experienced investors do write in for advice and tips.

DirectAsia.com has established itself as one of Singapore’s leading online insurers in recent years. The company’s mission is to change the face of insurance in Singapore, and to bring the best value insurance policies and customer service to the region. On this aspect, the company’s core values are aligned with the philosophy of my blog, SG Wealth Builder.

I firmly believe that consumers, or rather investors, should be empowered to make investment decisions based on transparent information. To this, there are certainly areas within the insurance industry that needs to be improved – namely customer service and transparency. Hopefully going forward, the insurance industry in Singapore would be revolutionized and consumers are able to compare and purchase the best value insurance policies online.

I certainly don’t see myself as an “old guard” of Singapore finance blogs as there are many other financial blogs that has been around longer than mine. But I feel my blog can add value and provide a different dimension to the local personal finance community, especially to the novice investors.

Each of us have
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