Not to be a wet blanket, but it looks like 2018 isn’t shaping up to be such a great year.
Well, it looks like 2018 isn’t going to be much better. Here are five things to be pessimistic about in the coming year:
1. Stagnant salaries
Job seekers have had a pretty gloomy outlook over the past year, with layoffs galore and some major multi-nationals leaving our shores.
In other words, you might get to keep your job, but you might need to shop for a new one if you do not get a satisfactory increment.
2. A bad time to purchase private property
The private property market has been in a slump for quite some time due to the cooling measures, which has made it a great time for prospective purchasers.
However, 2018 might see a temporary spike in private property prices on the back of the en bloc fever that gripped the island in 2017, as the market will soon be flooded with newly-wealthy beneficiaries of en-bloc sales on the prowl for new homes.
In the medium- to long-term, however, prices might fall due to an over-supply of new units as the land acquired in collective sales is re-developed.
The rental market has also been lacklustre for quite some time and doesn’t look like it’s going to improve anytime soon.
3. Short-term Airbnb rentals are no longer tolerated
If you’re one of the many Singaporean condo-owners who’s been sneakily renting out your property to tourists on Airbnb, you’ll know that the financial rewards are much greater than what you can get with a longer-term contract. The average Singapore Airbnb host was reportedly making about $5,000 a year.
But recent news about the prosecution of two Airbnb hosts is likely to put a damper on Airbnb activity in Singapore, which means that all these hosts are going to have to look for a new form of side income.
4. More taxis to offer dynamic pricing
ComfortDelGro recently announced that it will acquire a 51% stake in Uber, and the two companies plan to form an alliance.
But this might spell bad news for Singapore commuters. According to a recent news report, the alliance might lead to all taxis in Singapore offering dynamic pricing.
The only reason some of us still take taxis from time to time is that metered fares are sometimes cheaper than Grab or Uber when prices surge during high-demand periods.
If taxis are going to follow suit and offer dynamic pricing too, commuters could be left with no affordable options during peak hour.
5. Bitcoin plunge
Bitcoin investors who cashed out a month ago are laughing to the bank. But those who are still holding on to the cryptocurrency have been shaken by the dramatic plunge Bitcoin value took recently.
Of course, nothing is stopping potential investors from swooping in and buying Bitcoin in hopes that this is just a temporary loss of value.
But amidst fears that Bitcoin is in a bubble that has started to burst, it’s safe to say that the majority will be too wary to enter the market.
Are you feeling optimistic or pessimistic about the coming year? Tell us in the comments!
The post 5 Things Singaporeans Should be Pessimistic About in 2018 appeared first on the MoneySmart blog.
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