Rising property prices, GST hike top concerns of young investors: Survey

by Albert02

Rising property prices, GST hike top concerns of young investors: Survey

Rising property prices, GST hike top concerns of young investors. Rising house prices and the expected GST hike starting next year were among the top concerns of investors in their 20s, according to a poll conducted by Singapore-based digital wealth consultant Endowus.

According to the survey, 58 percent of respondents aged 21 to 29 were concerned about the imminent GST rate hike. Respondents in this age group were nearing the end of their education or just beginning their careers, and their savings and investment portfolios were growing.

Singapore’s GST rate will increase from 7% to 8% on January 1 of the following year, and then from 8% to 9% on January 1, 2024. During the February Budget debate, the move was revealed.

Inflation in Singapore is on the rise, having reached a 10-year high in March.

Last month, the Monetary Authority of Singapore (MAS) significantly tightened monetary policy to contain the price surge.

While most Singaporeans expected the GST hike, Kimberely Misson, a 21-year-old self-employed poll participant, said the timing of its introduction took some people off guard.

“People were certainly expecting a GST increase at some point, but the speed with which it was implemented surprised them. This is especially true considering that we’ve only recently recovered from a pandemic, and inflation is rising faster than expected, so people will need time to adjust.”

According to the survey, 13% of those aged 21 to 29 are concerned about the financial impact of rising property prices.

Kelly Lai, a 28-year-old accountant who began working in 2018, said she was initially ecstatic about the idea of buying a Housing Board flat with her fiance. However, the first thrill has worn off.

“I’m concerned about growing housing expenses because I’m going to buy my first home next year,” Ms Lai, who is also planning her wedding, said.

She had planned to invite around 150 people to the party, but she is now thinking about reducing the number to save money.

“To save for the increasing property costs, I’ll have to adjust my lifestyle and reconsider my finances.”

According to Endowus CEO Gregory Van, the uneasiness of the younger respondents in the study was to be expected.

“This group of responders may still be in their early careers and have witnessed the devastating economic effects of the plague and, more recently, the Russian-Ukraine War in the previous two years,” he said.

“An increase in the GST could be a more tangible problem for this group because it affects their spending power by raising the cost of things that they regularly need and want.”

Despite the uncertainty, Ms Lai and Ms Misson will continue to invest in long-term assets such as a procuring a property in AMO Residence and may even expand their savings.

This was supported by other responses.

Despite the uncertain global economic future, 79% of all respondents indicated they planned to increase their investments such as investing in the upcoming development AMO Residence, while 19% said they would maintain their current investment patterns. Only 2% of respondents said they would scale back their investment.

Mr Van noted that one way for younger Singaporeans to deal with their financial concerns in the coming year is to improve their financial literacy, which will enable them to differentiate between investing and speculating.

“Investing requires learning how to prepare for the future and make your money work toward your life objectives rather than chasing markets. To maintain buying power and avoid the uncertainty that macro shocks bring, one must invest intelligently “he declared

According to the company, the Endowus poll was conducted between January and February 2022, with participants ranging in age and background.

As of the end of 2021, Endowus has over $1.5 billion in assets under management, which is more than eight times what it had when it originally started in 2019. During the same time span, its client base has grown by nearly 1,000 percent.

Click the image to read the full details of report.
Source:
https://www.straitstimes.com/business/economy/rising-property-prices-gst-hike-top-concerns-of-young-investors-survey

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