Invest in Singapore property Carefully
by www.PropertyBUYER.com.sg Mortgage Consultants
Sometimes, it is often the sweetest of smiles that kills and the most beautiful faces that stabs you from behind.
We are glad that the Ministry of Home Affairs has finally appointed someone to regulate the Singapore property market. As it stands, Singapore property buyers do need some protection against unscrupulous Singapore property agents.
Many agents or agencies are openly claiming to be the Singapore buyer representatives. On the other hand, just click another link on their website, they will explain why they are also the best seller representatives.
Whether you are a first time property buyer or an experienced property buyer, it is good to know that your real estate agent has your best interests in mind as you select a home. You save all the hassle of going through the classifieds daily or surf the internet. This is a very common statement that property agents profess. Then the next moment, they are claiming to be seller representative and how they will get you the best selling prices.
But how do property agents perform?
• Do the Singapore property agents find you the best match?
• Do the Singapore property agents always seemed so positive about the ever rising property market and that the market will never fall? You feel so good about buying!
• Do the Singapore property agents say that there is en-bloc opportunity and that property is a good investment?
• How do they select the properties? From their stock of unsold properties?
• Do the property agents help you by showing you the option to purchase (OTP)? Do the agents tell you the unfair clauses in the Option to purchase (OTP) are standard clauses and that you needn’t worry?
Whose side are the property agents standing on? The seller side or your side?
Well, You can always draft your own Option to purchase (OTP) and tell the agent not to worry, just use yours.
Now, where are the facts? We would often ask them to show us the facts that property prices always appreciate and we can show you many that do not.
Do you want to know how property agents stage a nice show for you?
This is what we heard in the industry, not sure how many people other than Mr. Lim fell to this trick.
Mr. Lim found on the internet and called up a sweet looking property agent. She looked so sincere and innocent and very senior in position. After gaining his trust, she went to show him properties. After learning his needs and choice, she brought him to view properties.
Mr. Lim was surprised that so many properties that he saw, they were not ideal and did not meet his requirement. He saw 5 to 10 properties, but they were all not ideal. Then she brought out her trump card, the property she wanted to move.
Mr. Lim saw the property and Bingo. That was the closest match, maybe 80% match, it didn’t match everything, but the property agent convinced Mr. Lim that that unit is one of the best units available.
What Mr. Lim didn’t know was, what the property agent did, she kept a number of units and didn’t show it to Mr. Lim. Mr. Lim found out after accidentally calling up a few more agents out of curiosity. Surprisingly, Mr. Lim went for viewing and found much better units for cheaper price.
So what did the charming lady Property agent do to deceive Mr. Lim? Why did she do it?
The seller for the unit which was inferior was willing to pay 2% commission to the agent and it was not co-broke unit.
She only used the other other properties to show case and move her own 2% big fat commission property.
So now, the picture is fairly clear isn’t it?
We are eagerly looking forward to Institute of Estate Agents (IEA) to regulate the industry and set some ground rules.
Buying and selling agents must be separated and licensed on an individual basis, so that agents are careful not to be in cahoots with each other. Singapore Property Buyers can be more at ease if regulations are more comprehensive. Nonetheless Property buyers must always be vigilant, Buyers beware.
Propertybuyer.com.sg mortgage consultants and buyer advisors can be contacted at: -
6100 0608
sms 9782 8606
Contact PropertyBuyer.com.sg mortgage consultants
Tuesday, December 22, 2009
Friday, December 18, 2009
Invest in Singapore and Malacca Resorts
Singapore Property Investors: Malacca Private Villa Retreat By The Sea
FOR SALE
Property Details
• 4 Bedrooms retreat home built on 14,000 sq ft of FreeHold land
• FREE HOLD - Sea Front
• 5 minutes from famous Malacca Portuguese Settlement
• 10 minutes away to Malacca Raya
• 15 minutes from the historical sites in Melaka.
• Spacious dry and wet kitchen area
• Counter kitchen concept
• Generous open concept layout
Breathtaking views, soothing sounds of the calm sea, the
refreshing scent of sea breeze with the tropical garden of over a
generous manicured gerden. Designed by renown Singapore
architectural firm, Comprehensive Design Group (CDG) in 1980
and privately built by the late Senator David Loh as his private
residence with his family. The flexible floor plan works well as a
year round home or as a getaway retreat.
The property is well maintained with loving dedication. A
builder’s private residence, finely crafted with an eye for detail
and a passion for classical luxury. The grand living room sets the
stage for exquisite entertaining, opening out to the dining room
and the sea front garden. A potential gourmet kitchen with dry
and wet area. A tranquil master suite is the perfect place to
relax.
TIMELESS RETREAT HOME
Perched right up to the seafront along the infamous straits of
Malacca, the spacious sanctuary residence is most ideal as a
retreat or an investment.
The Freehold land can also be an asset to be developed into
a cluster of residences with great ROI opportunities.
A classically inspired mansion in the historical town of Melaka
captures the imagination and balances artful expression with
practicality. Gracious living spaces merge to form a delightful
opportunity for relaxed daily living and intimate sanctuary. The
house is designed to boast vast spacious and ease for air flow.
The lush landscape plays host to an environmentally respectful view
home with thought in every detail. A beautiful garden perfectly
sited by the sea is host to a private sanctuary. Serenity is found on
this lush, well manicured plot of greenery. It is also ideal for a private
pool.
A RETREAT MANSION - PRIVATE SALE
999, Taman Aman, Ujung Pasir, Malacca.
Michael Loh
Contact Info: Mobile : +6012 2331408
email: michaelloh62@mac.com
OFFER PRICE : SGD 1,100,000
Viewing by appointment ONLY
You may consider to refinance your home loan for term loan for the above property.
FOR SALE
Property Details
• 4 Bedrooms retreat home built on 14,000 sq ft of FreeHold land
• FREE HOLD - Sea Front
• 5 minutes from famous Malacca Portuguese Settlement
• 10 minutes away to Malacca Raya
• 15 minutes from the historical sites in Melaka.
• Spacious dry and wet kitchen area
• Counter kitchen concept
• Generous open concept layout
Breathtaking views, soothing sounds of the calm sea, the
refreshing scent of sea breeze with the tropical garden of over a
generous manicured gerden. Designed by renown Singapore
architectural firm, Comprehensive Design Group (CDG) in 1980
and privately built by the late Senator David Loh as his private
residence with his family. The flexible floor plan works well as a
year round home or as a getaway retreat.
The property is well maintained with loving dedication. A
builder’s private residence, finely crafted with an eye for detail
and a passion for classical luxury. The grand living room sets the
stage for exquisite entertaining, opening out to the dining room
and the sea front garden. A potential gourmet kitchen with dry
and wet area. A tranquil master suite is the perfect place to
relax.
TIMELESS RETREAT HOME
Perched right up to the seafront along the infamous straits of
Malacca, the spacious sanctuary residence is most ideal as a
retreat or an investment.
The Freehold land can also be an asset to be developed into
a cluster of residences with great ROI opportunities.
A classically inspired mansion in the historical town of Melaka
captures the imagination and balances artful expression with
practicality. Gracious living spaces merge to form a delightful
opportunity for relaxed daily living and intimate sanctuary. The
house is designed to boast vast spacious and ease for air flow.
The lush landscape plays host to an environmentally respectful view
home with thought in every detail. A beautiful garden perfectly
sited by the sea is host to a private sanctuary. Serenity is found on
this lush, well manicured plot of greenery. It is also ideal for a private
pool.
A RETREAT MANSION - PRIVATE SALE
999, Taman Aman, Ujung Pasir, Malacca.
Michael Loh
Contact Info: Mobile : +6012 2331408
email: michaelloh62@mac.com
OFFER PRICE : SGD 1,100,000
Viewing by appointment ONLY
You may consider to refinance your home loan for term loan for the above property.
Monday, December 14, 2009
Invest in Singapore properties: 10 things to know for first time private property buyers
10 Important things to know for 1st time Private Property Buyer on sub-sale units
By: Daphne of www.PropertyBUYER.com.sg mortgage consultants
TEL 6100 - 0608
SMS 9782 8606
As a recent property buyer, I started my search for my ideal apartment since November last year. I began my property hunt with absolutely zero knowledge on buying property in Singapore. I do not know the legal procedure involved, I do not know the tricks used by most property agents, and I do not know which area I should start with my property hunt, just to name a few. I missed the boat in making my purchase during the period from Jan- May when the property price was low as I was hoping that the price will go down even further and obviously being a first time inexperience property buyer, I was afraid to take the plunge.
I believe there are many people out there facing the same challenge as I did when I first started my property hunt. I was lucky to have friends who are experience in the property field to provide me with sound advice. I hope that this article can provide some useful insights on things one should take note of when purchasing a private property. The information provided is all base on my own accumulated knowledge and experience when I did my own property purchase.
1) Due Diligence
Buying a property is a big commitment and requires a lot of hard work in doing your own research. Never depend solely on agent’s recommendation as end of the day , the agent’s aim is to close the deal and get the commission. Research includes surfing through various property website to read up on property related articles and checking out the available units sold.
2) Do not depend solely on one agent to look for your apartment. Nothing beats
spreading the eggs into a few baskets and doing your own search. Talk to as many agents to learn and gather insights along the way. Experiencing unprofessional agents is part of the learning curve.
3) As a private property buyer, you do not pay any commission to the agent. And you should not no matter what he or she says. This is because they earn commission from the seller.
4) Stamp duty can be paid using CPF.
Buyer will have to fork out Hard cash first in paying the stamp duty. CPF will only reimburse the stamp duty back to the buyer upon completion of the property sales transaction which will take at least two months.
5) Stamp Duty fee calculation
1st S$180K is 1%
2nd S$180K is 2%
Remaining amount is 3%.
For example: if you are buying a property that cost S$600,000, the stamp duty will be as follow:
1st S$180,000 @ 1%- S$1,800
2nd S$180,000 @ 2%- S$3600
Remaining S$240,000 @ 3%- S$7,200
Total stamp duty is S$12600
6) Bank Valuation
Bank valuation on the property you wish to buy is very important. The bank valuation will help to determine how much cash upfront you need to fork out and whether you are buying an overprice unit or getting a good deal. Never take the Singapore property agent’s claimed valuation as final. Agents do cheat on valuation. Make sure to check with an independent third party such as a Singapore mortgage consultant or your own personal banker who can help you to make sure on getting a proper and correct valuation. Different banks often give different valuation for the same unit.
7) Bank Loan
Not all banks offer up to 90% bank loan. Some bank only offer up to a maximum of 80% of 85%. Thus if you wish to buy a unit with a 85% or 90% bank loan, your choice of bank selection will be limited. Its recommended that you talk to your mortgage consultant or bankers up front on your intention to get more than 80% loan.
8) One should also compare the various bank interest rates to secure the best bank
loan. Some loan package come with lock in period and others use Sor or Sibor rates. Property agents usually ask one of their most frequent use bankers to advise the buyer on the interest rate. Often they do not help the buyer to compare the rates and package from the various banks. It is up to the buyer’s due diligence to do so. The use of independent mortgage consultant will be helpful in this aspect.
9) Ensure that you can secure the bank loan before paying the 1% option to the seller. In the event that your bank loan is not approved, you will have to either top up the differences in cash or to forgo the purchase, end up losing the 1% payment.
10) If you are buying a sub sale unit that is still under construction, you will need to
pay another S$400 to S$428 administrative charges in cash to the developer for the paper work procedure fee.
By: Daphne of www.PropertyBUYER.com.sg mortgage consultants
TEL 6100 - 0608
SMS 9782 8606
As a recent property buyer, I started my search for my ideal apartment since November last year. I began my property hunt with absolutely zero knowledge on buying property in Singapore. I do not know the legal procedure involved, I do not know the tricks used by most property agents, and I do not know which area I should start with my property hunt, just to name a few. I missed the boat in making my purchase during the period from Jan- May when the property price was low as I was hoping that the price will go down even further and obviously being a first time inexperience property buyer, I was afraid to take the plunge.
I believe there are many people out there facing the same challenge as I did when I first started my property hunt. I was lucky to have friends who are experience in the property field to provide me with sound advice. I hope that this article can provide some useful insights on things one should take note of when purchasing a private property. The information provided is all base on my own accumulated knowledge and experience when I did my own property purchase.
1) Due Diligence
Buying a property is a big commitment and requires a lot of hard work in doing your own research. Never depend solely on agent’s recommendation as end of the day , the agent’s aim is to close the deal and get the commission. Research includes surfing through various property website to read up on property related articles and checking out the available units sold.
2) Do not depend solely on one agent to look for your apartment. Nothing beats
spreading the eggs into a few baskets and doing your own search. Talk to as many agents to learn and gather insights along the way. Experiencing unprofessional agents is part of the learning curve.
3) As a private property buyer, you do not pay any commission to the agent. And you should not no matter what he or she says. This is because they earn commission from the seller.
4) Stamp duty can be paid using CPF.
Buyer will have to fork out Hard cash first in paying the stamp duty. CPF will only reimburse the stamp duty back to the buyer upon completion of the property sales transaction which will take at least two months.
5) Stamp Duty fee calculation
1st S$180K is 1%
2nd S$180K is 2%
Remaining amount is 3%.
For example: if you are buying a property that cost S$600,000, the stamp duty will be as follow:
1st S$180,000 @ 1%- S$1,800
2nd S$180,000 @ 2%- S$3600
Remaining S$240,000 @ 3%- S$7,200
Total stamp duty is S$12600
6) Bank Valuation
Bank valuation on the property you wish to buy is very important. The bank valuation will help to determine how much cash upfront you need to fork out and whether you are buying an overprice unit or getting a good deal. Never take the Singapore property agent’s claimed valuation as final. Agents do cheat on valuation. Make sure to check with an independent third party such as a Singapore mortgage consultant or your own personal banker who can help you to make sure on getting a proper and correct valuation. Different banks often give different valuation for the same unit.
7) Bank Loan
Not all banks offer up to 90% bank loan. Some bank only offer up to a maximum of 80% of 85%. Thus if you wish to buy a unit with a 85% or 90% bank loan, your choice of bank selection will be limited. Its recommended that you talk to your mortgage consultant or bankers up front on your intention to get more than 80% loan.
8) One should also compare the various bank interest rates to secure the best bank
loan. Some loan package come with lock in period and others use Sor or Sibor rates. Property agents usually ask one of their most frequent use bankers to advise the buyer on the interest rate. Often they do not help the buyer to compare the rates and package from the various banks. It is up to the buyer’s due diligence to do so. The use of independent mortgage consultant will be helpful in this aspect.
9) Ensure that you can secure the bank loan before paying the 1% option to the seller. In the event that your bank loan is not approved, you will have to either top up the differences in cash or to forgo the purchase, end up losing the 1% payment.
10) If you are buying a sub sale unit that is still under construction, you will need to
pay another S$400 to S$428 administrative charges in cash to the developer for the paper work procedure fee.
Invest in Singapore Ethics framework for Property agents - Not more exams
Head of Property agent need to focus on ethics, not exams
Article by: www.PropertyBUYER.com.sg
We applaud the creation of a regulatory body to regulate the Singapore Property agents.
The below is an excerpt from a news published by the Asiaone.com.sg on 13th Dec 2009.
"MND in October shared some details of the new regulatory framework that it is proposing for the real estate industry, which includes the creation of a new government agency to take on enhanced regulatory powers.
We are a Research-focused Singapore Mortgage Consultant which helps you compare Singapore Home loans either for new home loans or refinance home loans, we balance risks versus rewards for each home loan to match your risk profile and financing needs.
Contact Singapore mortgage Consultants
Tel: 6100 - 0608
SMS: 9782 - 8606
Contact a Singapore mortgage Consultant
...
The move came as property agents here have come under increasing fire over the last few years for not having the right qualifications and for unethical practices. Minister for National Development Mah Bow Tan commented in March this year that the status quo was 'not tenable' and that the whole system was 'not satisfactory'.
Legislative enactment is expected by the second half of next year once the key elements are unveiled.
With the planned changes, agents' activities will be monitored more closely and rules enforced more keenly. For example, real estate agents will no longer be allowed to be freelancers (agents who are not contracted with any accredited agencies). They will also be prevented from representing more than one agency.
Agents must also pass an industry examination and be accredited by a new accreditation body (to be set up next year) before they can practise."
http://business.asiaone.com/Business/News/My%2BMoney/Story/A1Story20091211-185327.html
There seems to be an overly keen focus on Examinations
There is a lot of talk about agents will be monitored more closely and they cannot represent more than one agency. These protect the rights of the Agencies.
The only thing that is mentioned that perhaps have a slight influence on protecting the consumer is Examination and improving professionalism.
What is the real challenge?
Many agents are already very knowledgeable. It is not a matter of full-time or part-time. Did MND know that many of the Singapore property agent cheaters are very professional and have many years of experience?
It's just that some of these people are simply unethical.
Now, examinations will NOT solve the problem. By enforcing more and more examinations which we are afraid MND will impose, would have missed the point completely.
By having examinations, you would remove some agents from the field, this would make long time agents stronger and give them more business. This is a rather stupid and potentially dangerous way of regulating, if it really comes to that. We are hopeful it will not end up this way. Do note that some of the dishonest agents are the experienced ones.
Just like there are wolfs out there. We don't throw sheeps to the wolfs so that these wolfs will become less hungry and tame.
So by feeding a Dishonest Singapore property agent who can also be very senior and very professional (knowledge wise) by eliminating less experienced agents, this is like throwing sheep to wolves.
How can we ever satisfy their greed?
So we urge MND and the new Head of Property agent regulator to focus on creating a framework that monitors ethics and removing conflicts of interests.
Some of these agents even work with rogue mortgage consultants which are tied up with lawyers to charge property buyers more for law fees so as to get a commission.
Some of the unethical Singapore Property agents' behaviours: -
* Cheating on valuation, working with roger valuers who stick their heads out for higher valuation so as to cheat the banks.
* Lying about the property transaction and staging a show to squeeze more commission
* Illegal kick backs from rogue loan consultants which are tied to lawyers.
* Illegal kick backs from lawyers.
* Running away with cheques, giving fake identidy.
* Recommending loans where they are not expert in.
* Cornering property launches and buying them up for sub-sale.
* Cheating the selling into letting go their property cheaply. Buys the Option of purchase and then immediately transfer of nominees (names) for Option to purchase.
o This involves cheating an owner into disposing a property at below the fair value. Then the agent goes into the market to re-sell the option to purchase for easily 50k to 100k more as there will be takers.
* The list goes on.
We are a Research-focused Singapore Mortgage Consultant which helps you compare Singapore Home loans either for new home loans or refinance home loans, we balance risks versus rewards for each home loan to match your risk profile and financing needs.
Buying property is a serious affair, we do NOT advocate a Greed or fear based buying approach, we emphasize that you need to check your property home loan affordability. Check out the mortgage calculators.
Not Simply Cheap, but what Fits. We Research, You Save!
Contact Singapore mortgage consultants
Tel: 6100 - 0608
SMS: 9782 - 8606
Article by: www.PropertyBUYER.com.sg
We applaud the creation of a regulatory body to regulate the Singapore Property agents.
The below is an excerpt from a news published by the Asiaone.com.sg on 13th Dec 2009.
"MND in October shared some details of the new regulatory framework that it is proposing for the real estate industry, which includes the creation of a new government agency to take on enhanced regulatory powers.
We are a Research-focused Singapore Mortgage Consultant which helps you compare Singapore Home loans either for new home loans or refinance home loans, we balance risks versus rewards for each home loan to match your risk profile and financing needs.
Contact Singapore mortgage Consultants
Tel: 6100 - 0608
SMS: 9782 - 8606
Contact a Singapore mortgage Consultant
...
The move came as property agents here have come under increasing fire over the last few years for not having the right qualifications and for unethical practices. Minister for National Development Mah Bow Tan commented in March this year that the status quo was 'not tenable' and that the whole system was 'not satisfactory'.
Legislative enactment is expected by the second half of next year once the key elements are unveiled.
With the planned changes, agents' activities will be monitored more closely and rules enforced more keenly. For example, real estate agents will no longer be allowed to be freelancers (agents who are not contracted with any accredited agencies). They will also be prevented from representing more than one agency.
Agents must also pass an industry examination and be accredited by a new accreditation body (to be set up next year) before they can practise."
http://business.asiaone.com/Business/News/My%2BMoney/Story/A1Story20091211-185327.html
There seems to be an overly keen focus on Examinations
There is a lot of talk about agents will be monitored more closely and they cannot represent more than one agency. These protect the rights of the Agencies.
The only thing that is mentioned that perhaps have a slight influence on protecting the consumer is Examination and improving professionalism.
What is the real challenge?
Many agents are already very knowledgeable. It is not a matter of full-time or part-time. Did MND know that many of the Singapore property agent cheaters are very professional and have many years of experience?
It's just that some of these people are simply unethical.
Now, examinations will NOT solve the problem. By enforcing more and more examinations which we are afraid MND will impose, would have missed the point completely.
By having examinations, you would remove some agents from the field, this would make long time agents stronger and give them more business. This is a rather stupid and potentially dangerous way of regulating, if it really comes to that. We are hopeful it will not end up this way. Do note that some of the dishonest agents are the experienced ones.
Just like there are wolfs out there. We don't throw sheeps to the wolfs so that these wolfs will become less hungry and tame.
So by feeding a Dishonest Singapore property agent who can also be very senior and very professional (knowledge wise) by eliminating less experienced agents, this is like throwing sheep to wolves.
How can we ever satisfy their greed?
So we urge MND and the new Head of Property agent regulator to focus on creating a framework that monitors ethics and removing conflicts of interests.
Some of these agents even work with rogue mortgage consultants which are tied up with lawyers to charge property buyers more for law fees so as to get a commission.
Some of the unethical Singapore Property agents' behaviours: -
* Cheating on valuation, working with roger valuers who stick their heads out for higher valuation so as to cheat the banks.
* Lying about the property transaction and staging a show to squeeze more commission
* Illegal kick backs from rogue loan consultants which are tied to lawyers.
* Illegal kick backs from lawyers.
* Running away with cheques, giving fake identidy.
* Recommending loans where they are not expert in.
* Cornering property launches and buying them up for sub-sale.
* Cheating the selling into letting go their property cheaply. Buys the Option of purchase and then immediately transfer of nominees (names) for Option to purchase.
o This involves cheating an owner into disposing a property at below the fair value. Then the agent goes into the market to re-sell the option to purchase for easily 50k to 100k more as there will be takers.
* The list goes on.
We are a Research-focused Singapore Mortgage Consultant which helps you compare Singapore Home loans either for new home loans or refinance home loans, we balance risks versus rewards for each home loan to match your risk profile and financing needs.
Buying property is a serious affair, we do NOT advocate a Greed or fear based buying approach, we emphasize that you need to check your property home loan affordability. Check out the mortgage calculators.
Not Simply Cheap, but what Fits. We Research, You Save!
Contact Singapore mortgage consultants
Tel: 6100 - 0608
SMS: 9782 - 8606
Monday, December 7, 2009
Invest in Singapore Double Bay residences: Value Analysis
Invest in Singapore Double Bay Residences: Value analysis
Contributed by: www.PropertyBUYER.com.sg
In china, most residential property comes with leases of 70 years. Let's take a look at the valuation dynamics of 99 years lease-hold properties in Singapore.
We are a Research-focused Singapore Mortgage Consultant which helps you compare Singapore Home loans either for new home loans or refinance home loans, we balance risks versus rewards for each home loan to match your risk profile and financing needs.
Buying property is a serious affair, we do NOT advocate a Greed or fear based buying approach, we emphasize that you need to check your property home loan affordability. Check out the mortgage calculators.
According to SLA’s leasehold land premium calculation and valuation of 99 years lease hold land.
Singapore SLA 99 lease hold valuation
(Adapted from SLA’s Differential Premium valuation calculation)
SLA's valautions for 99 year leasehold properties are a structured way in which to calculate the depreciation of an existing 99 years lease-hold property which is being proposed for upgrade, re-build, renewal or re-zoning. This nonetheless forms a basis of how a 99 year leasehold property in Singapore is valued across the board if you consider that Singapore Land Authority is the Authority in these matters.
Of course, how the property is valued and what price it is being sold for may differ. SLA's valuations of such properties do not take into account the various differences in the conditions of the properties.
Condition of 20 years and 30 years buildings (Free hold and 99 years leasehold)
The conditions of 20 year to 30 years buildings are already quite poor. Most will have issues such as leaking from pipes, minor cracks, electrical systems malfunctioning and possibly other structural issues. Tenants always like new properties with new amenities. Therefore as properties age, the rental value deteriorate. And hence the price of these properties trade at a discount to other properties.
Double Bay Residences in Simei Singapore
A building consists of 2 major components
· Building cost (plus other building related costs) - ~$350
· Land cost - ~$296
Land cost for Double Bay residences - Simei Singapore = $296 per square foot per plot ratio (psf ppr)
(Source: Straits times - http://www.asiaone.com/Business/Story/A1Story20080724-78562.html)
“'A PARTNERSHIP between UOL Group and Kheng Leong – both companies linked to banker Wee Cho Yaw – emerged as the top bidder for a residential site at Simei Street 4 at the close of the tender yesterday....
The two companies’ bid, which was the highest of three bids, came to $236.1 million, or some $296 per square foot per plot ratio (psf ppr).Right now, developers can bid up to about $200-250 per square foot of potential gross floor area at most for suburban condo sites, which translates to breakeven costs of $650-700 psf. However, if construction costs continue to go up and selling prices continue to drop, there's not much else you can do except to lower your land bids. The question is what is the government's threshold for pain?' a seasoned developer said.” (http://www.asiaone.com/Business/Story/A1Story20080724-78562.html, By Kalpana Rashiwala
Building cost for Double Bay residences - Simei Singapore
According to a Straits times report published in July 2008, construction costs for medium-quality condominiums are in the $260 psf of GFA to $320 psf of GFA in Q1, 2008 and in Q2, it has increased from $280 to $350 psf of GFA range. This is in line with analysts expectations of a breakeven cost of $650 to $700 psf ppr.
"Construction cost consultancy Rider Levett Bucknall (RLB). said: 'Construction prices for medium-quality condominiums indicatively range from $260 psf of GFA to $320 psf of GFA in Q1 2008, and prices have risen further to $280 to $350 psf of GFA for Q2 2008,' it said. 'High demand and competition for limited resources, the lack of tendering capacity among contractors, sub-contractors and suppliers, and volatile commodity prices have contributed significantly to building tender price escalation,' the firm added." (Source: Straits times, http://www.asiaone.com/Business/Story/A1Story20080724-78562.html)
Assumptions For Depreciation of Double Bay Residences in Singapore: -
· Depreciate the building more slowly with the 1st 10 years depreciating less and gradually more in the second 10 years and so on.
· Depreciate land more slowly in the earlier years and then depreciate faster in the later years.
This is just an illustration and represents our views only, buyers please exercise your own judgement.
Double Bay residences Simei Singapore
In the absence of external factors, on an intrinsic value basis, double bay residences valuation could continue to drop in the years ahead. Of course, the actual prices does not necessarily have to follow this pattern if there are external factors at play.
What external factors could affect Double Bay residences value?
Developments, lifestyle, Population, etc.
Positive external factors could also be in the form of Free Hold land value in the vicinity of double bay leading to the base value of the land increasing. For Double bay, the land cost is $296 per square feet per plot ratio, if free hold land price has increased dramatically in the same area to $500 psf ppr 10 years later. Then by inference, the remainder 89 years of the lease of a 99 years lease hold property land will also increase in value. This increase in the land value could either partially offset the depreciation in the building value or completely offset it and increase in selling prices.
Sentiments
Sentiments drive up prices, leading to price distortions and anomalies. This factor is very pertinent in 99 years lease-hold investing. Developers and Singapore property agents alike have very compelling arguments promoting the sale of 99 years lease-hold properties. If enough people believe in it, the price gap will narrow between a 99 years leasehold property and a free hold property.
Government policies and changes in Differential premium
Government policies could impact the base value of future 99 years lease-hold land and consequently affect the remainder lease of any lease-hold land.
So for double bay residences in Simei Singapore, the best form of increase in value stems mostly from increase in land prices. As far as en-bloc potential, it is almost NIL if the price increase in Free Hold land is not significant and the differential premium (by SLA), is not reduced from 75% to a lower figure.
Construction cost and raw materials
If construction costs go up, a similar or new replacement property would likely be more expensive, therefore any existing buildings still in fairly good condition will therefore fetch better prices. However, if the cost of construction go down, then it would be cheaper to build more units onto the market depressing (or moderating the increase of) the prices of existing units.
So property investors can still make money from any swing up in sentiment. But if fundamentals remained unchanged, it will be more a matter of the greater fool theory.
What lessons could we learn from Double Bay Residences - Simei Singapore?
In the case of Double Bay residences in Simei Singapore, the building cost is high. And buildings do depreciate fairly quickly. Usually, buildings after 30 years would be in fairly bad shape despite whether it is safe to stay in. These properties would be practically undesirable as rental properties.
Given that the total base value of this property is 54% of the total cost of the property and that buildings depreciate faster than 99 lease hold land. This property will likely lose value quickly. The land value of this property would also along with time, lose it's value.
So Should we buy more expensive properties?
Generally yes, if you can afford it. But buy value, not price!!!
Buying a Singapore property is a personal choice as much as it is a matter of affordability. When the government made credit easily available by lowering the cash downpayment requirement, the end result is that people will have to pay higher prices for smaller properties. So there really is not much choice if affordability is an issue and you will most likely end up with smaller units. That also mean that you will not get a very good deal as small units trade at a more expensive price.
For Example, if we look at other places where the land could be $1000 psf ppr (Free Hold) and we add a luxuriously fitted building at $500 psf ppr. The building is only 33% of the total value. The total psf ppr price would then be $1500.
Assume that with a mark up, you buy it at $2000 psf ppr. In this case, the building portion of the value will continue to depreciate, while the Free hold land value tends to increase in line with inflation and/or population growth. You could be paying more, but you are sitting on valuable land which can potentially more than offset any reduction in building prices.
Expensive land stays expensive or it could even become more expensive.
And the more expensive the land, the more incentive it is to build luxuriously and beautifully in order to optimize usage in prime land. With more and more such buildings in any particular area, the vibrancy will increase, leading to better overall facilities and amenities. This creates a positive reinforcing cycle which supports the property values. In the case of building cost to land cost ratio, as long as it can be built luxuriously enough with good utility, as a rule of thumb, the lower the ratio, the better it is in keeping the value of the property as a large part in the value is vested in the land itself, while the building itself depreciates.
You can contact a Singapore mortgage consultant to evaluate home loan affordability.
Contributed by: www.PropertyBUYER.com.sg
In china, most residential property comes with leases of 70 years. Let's take a look at the valuation dynamics of 99 years lease-hold properties in Singapore.
We are a Research-focused Singapore Mortgage Consultant which helps you compare Singapore Home loans either for new home loans or refinance home loans, we balance risks versus rewards for each home loan to match your risk profile and financing needs.
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According to SLA’s leasehold land premium calculation and valuation of 99 years lease hold land.
Singapore SLA 99 lease hold valuation
(Adapted from SLA’s Differential Premium valuation calculation)
SLA's valautions for 99 year leasehold properties are a structured way in which to calculate the depreciation of an existing 99 years lease-hold property which is being proposed for upgrade, re-build, renewal or re-zoning. This nonetheless forms a basis of how a 99 year leasehold property in Singapore is valued across the board if you consider that Singapore Land Authority is the Authority in these matters.
Of course, how the property is valued and what price it is being sold for may differ. SLA's valuations of such properties do not take into account the various differences in the conditions of the properties.
Condition of 20 years and 30 years buildings (Free hold and 99 years leasehold)
The conditions of 20 year to 30 years buildings are already quite poor. Most will have issues such as leaking from pipes, minor cracks, electrical systems malfunctioning and possibly other structural issues. Tenants always like new properties with new amenities. Therefore as properties age, the rental value deteriorate. And hence the price of these properties trade at a discount to other properties.
Double Bay Residences in Simei Singapore
A building consists of 2 major components
· Building cost (plus other building related costs) - ~$350
· Land cost - ~$296
Land cost for Double Bay residences - Simei Singapore = $296 per square foot per plot ratio (psf ppr)
(Source: Straits times - http://www.asiaone.com/Business/Story/A1Story20080724-78562.html)
“'A PARTNERSHIP between UOL Group and Kheng Leong – both companies linked to banker Wee Cho Yaw – emerged as the top bidder for a residential site at Simei Street 4 at the close of the tender yesterday....
The two companies’ bid, which was the highest of three bids, came to $236.1 million, or some $296 per square foot per plot ratio (psf ppr).Right now, developers can bid up to about $200-250 per square foot of potential gross floor area at most for suburban condo sites, which translates to breakeven costs of $650-700 psf. However, if construction costs continue to go up and selling prices continue to drop, there's not much else you can do except to lower your land bids. The question is what is the government's threshold for pain?' a seasoned developer said.” (http://www.asiaone.com/Business/Story/A1Story20080724-78562.html, By Kalpana Rashiwala
Building cost for Double Bay residences - Simei Singapore
According to a Straits times report published in July 2008, construction costs for medium-quality condominiums are in the $260 psf of GFA to $320 psf of GFA in Q1, 2008 and in Q2, it has increased from $280 to $350 psf of GFA range. This is in line with analysts expectations of a breakeven cost of $650 to $700 psf ppr.
"Construction cost consultancy Rider Levett Bucknall (RLB). said: 'Construction prices for medium-quality condominiums indicatively range from $260 psf of GFA to $320 psf of GFA in Q1 2008, and prices have risen further to $280 to $350 psf of GFA for Q2 2008,' it said. 'High demand and competition for limited resources, the lack of tendering capacity among contractors, sub-contractors and suppliers, and volatile commodity prices have contributed significantly to building tender price escalation,' the firm added." (Source: Straits times, http://www.asiaone.com/Business/Story/A1Story20080724-78562.html)
Assumptions For Depreciation of Double Bay Residences in Singapore: -
· Depreciate the building more slowly with the 1st 10 years depreciating less and gradually more in the second 10 years and so on.
· Depreciate land more slowly in the earlier years and then depreciate faster in the later years.
This is just an illustration and represents our views only, buyers please exercise your own judgement.
Double Bay residences Simei Singapore
In the absence of external factors, on an intrinsic value basis, double bay residences valuation could continue to drop in the years ahead. Of course, the actual prices does not necessarily have to follow this pattern if there are external factors at play.
What external factors could affect Double Bay residences value?
Developments, lifestyle, Population, etc.
Positive external factors could also be in the form of Free Hold land value in the vicinity of double bay leading to the base value of the land increasing. For Double bay, the land cost is $296 per square feet per plot ratio, if free hold land price has increased dramatically in the same area to $500 psf ppr 10 years later. Then by inference, the remainder 89 years of the lease of a 99 years lease hold property land will also increase in value. This increase in the land value could either partially offset the depreciation in the building value or completely offset it and increase in selling prices.
Sentiments
Sentiments drive up prices, leading to price distortions and anomalies. This factor is very pertinent in 99 years lease-hold investing. Developers and Singapore property agents alike have very compelling arguments promoting the sale of 99 years lease-hold properties. If enough people believe in it, the price gap will narrow between a 99 years leasehold property and a free hold property.
Government policies and changes in Differential premium
Government policies could impact the base value of future 99 years lease-hold land and consequently affect the remainder lease of any lease-hold land.
So for double bay residences in Simei Singapore, the best form of increase in value stems mostly from increase in land prices. As far as en-bloc potential, it is almost NIL if the price increase in Free Hold land is not significant and the differential premium (by SLA), is not reduced from 75% to a lower figure.
Construction cost and raw materials
If construction costs go up, a similar or new replacement property would likely be more expensive, therefore any existing buildings still in fairly good condition will therefore fetch better prices. However, if the cost of construction go down, then it would be cheaper to build more units onto the market depressing (or moderating the increase of) the prices of existing units.
So property investors can still make money from any swing up in sentiment. But if fundamentals remained unchanged, it will be more a matter of the greater fool theory.
What lessons could we learn from Double Bay Residences - Simei Singapore?
In the case of Double Bay residences in Simei Singapore, the building cost is high. And buildings do depreciate fairly quickly. Usually, buildings after 30 years would be in fairly bad shape despite whether it is safe to stay in. These properties would be practically undesirable as rental properties.
Given that the total base value of this property is 54% of the total cost of the property and that buildings depreciate faster than 99 lease hold land. This property will likely lose value quickly. The land value of this property would also along with time, lose it's value.
So Should we buy more expensive properties?
Generally yes, if you can afford it. But buy value, not price!!!
Buying a Singapore property is a personal choice as much as it is a matter of affordability. When the government made credit easily available by lowering the cash downpayment requirement, the end result is that people will have to pay higher prices for smaller properties. So there really is not much choice if affordability is an issue and you will most likely end up with smaller units. That also mean that you will not get a very good deal as small units trade at a more expensive price.
For Example, if we look at other places where the land could be $1000 psf ppr (Free Hold) and we add a luxuriously fitted building at $500 psf ppr. The building is only 33% of the total value. The total psf ppr price would then be $1500.
Assume that with a mark up, you buy it at $2000 psf ppr. In this case, the building portion of the value will continue to depreciate, while the Free hold land value tends to increase in line with inflation and/or population growth. You could be paying more, but you are sitting on valuable land which can potentially more than offset any reduction in building prices.
Expensive land stays expensive or it could even become more expensive.
And the more expensive the land, the more incentive it is to build luxuriously and beautifully in order to optimize usage in prime land. With more and more such buildings in any particular area, the vibrancy will increase, leading to better overall facilities and amenities. This creates a positive reinforcing cycle which supports the property values. In the case of building cost to land cost ratio, as long as it can be built luxuriously enough with good utility, as a rule of thumb, the lower the ratio, the better it is in keeping the value of the property as a large part in the value is vested in the land itself, while the building itself depreciates.
You can contact a Singapore mortgage consultant to evaluate home loan affordability.
Monday, November 23, 2009
Singapore property investors: Can a 99 year lease-hold condominium go en-bloc?
Singapore property investors: Can a 99 year lease-hold condominium go en-bloc?
Contributed by www.PropertyBUYER.com.sg Mortgage Consultants
What should you buy? A 99 year property or a FH/999 year tenor property?
Are you looking for yield or are you looking for overall capital gains + Yield?
Assumes that a 99 year property gives a yield of 4% while that of a Free Hold property gives 3%.
Is it still worth it? What if the fall in your property value more than offset what you earned in rental?
Say you make 20k a year in rental for 10 years (making 200k) of a $1m property and after 10 years the property value falls from $1m to $800k. Not to mention interest costs, your efforts would have come to nothing.
Let’s look at how Singapore land authority determine the value of a 99 lease hold property.
According to SLA’s leasehold land premium calculation and valuation of 99 years lease hold land.
(Adapted from SLA’s Differential Premium valuation calculation)
As you can see, 99 year lease hold land depreciate less during the first 33 years, still fetching at least 80% of a similar Free Hold land it drops off very quickly after 60 years.
How much is a 99 year old lease property worth?
Under normal circumstances, without any Singapore government policy impetus, a 99 year lease-hold property will continue to lose value until it reaches zero.
If a development (or a condo) wants to top up the lease of a lease-hold property back up to 99 years, it is still subject to SLA’s chief valuer’s valuation of the value of the proposed upgrade.
Can en-bloc happen to a 99 year lease hold condominium?
In case of an en-bloc or simply just a top-up of lease, you would have a difference in values between the existing property and the proposed new one.
So this is how SLA calculates the differential premium.
• Differential Premium = The proposed new property value – existing property value.
Under the new ruling in 2007, Singapore government takes 75% of the additional value created (Differential Premium) from the proposed upgrade or development, while the stake holders take 25% of the additional value.
Due to the depreciation of the 99 lease hold properties, the differential premium becomes higher.
When the Singapore government takes 75% of the differential premium, this means that most of it will end up as tax or fees while the stake holders only stand to gain the 25% of the additional value created from an en-bloc or top-up of lease.
And this top up of lease of a 99 years land is not a given. It is entirely subject to approval.
So are you saying that 99 year lease hold condominiums cannot en-bloc?
En-bloc activity for 99 years lease hold properties can still happen.
Scenario 1 – Top up of lease to 99 years + tear down and build a new condo: -
For example, a 99 years lease hold property was sold at $900 per sq feet per plot ratio (psf ppr). The price differential between this property and the free hold property in the same vicinity is very small when new. Say the Free Hold property was $1000 psf ppr.
30 years later, the Free hold property price is $2500 psf ppr.
• At 30 years old, SLA’s valuation rates the 99 year property at 85.4% of a Free hold equivalent property. Assuming that the market also rates the property similarly.
This means that the equivalent 99 year old free hold property is rated at $2500 x 85.4% = $2,135 psf ppr.
Say you want to top up the lease to 99 years and build a new condominium on it’s existing site, the top up value would be $2500 x 96% = $2400 psf ppr. (But 99 years leases top-up is subject to case-by-case valuation by the SLA)
Considering that you would already fetch $2135 psf ppr. If you were to tear down the building to re-build a new condo, you are likely to get $2400 psf ppr and cost of building psf ppr could be $300 to $600 psf ppr. That would mean that the cost already be $2435 or $2735 psf ppr.
So in this case, there is absolutely no impetus for the developer to build or to make an offer to the residents for en-bloc.
The only ways an en-bloc would happen to the 99 years condo are: -
• The 99 year lease hold building is in a very bad condition. The price being sold on the market is much less than SLA’s valuation of 85.4% of a Free Hold equivalent. This type of anomaly or price distortion makes en-bloc possible.
• 99 years top-up of leases is approved. (There is no guarantee)
Scenario 2 – Top up of lease to 99 years + tear down and build a new condo + Doubling the plot ratio: -
For example, a 99 years lease hold property was sold at $900 per sq feet per plot ratio (psf ppr). The price differential between this property and the free hold property in the same vicinity is very small when new. Say the Free Hold property was $1000 psf ppr.
30 years later, the Free hold property price is $2500 psf ppr. But if you double the plot ratio, that means that you could build double the sq feet of space on the same plot of land. That would mean that the potential price now is $2500 x 2 x 96% = $4,800 psf ppr.
• At 30 years old, SLA’s valuation rates the 99 year property at 85.4% of a Free hold equivalent property. Assuming that the market also rates the property similarly.
Now, with an existing property on the old plot ratio = 85.4% of $2,400 = $2,049.60.
Assuming that building cost would be $400 psf ppr to $800 psf ppr (higher for bigger buildings)
So SLA calculated the differential premium is $4,800 psf ppr (assuming the case-by-case valuation agrees with this value)
So the cost is $2,049.6 and potential value is $4,800 psf ppr.
So the differential premium is around $4,800 psf ppr - $2,049.60 = $2,750.40.
And under the new role in 2007, the Singapore government takes 75% of the $2,750.40. So the cost payable to the Singapore Government is $2,062.80.
So the cost of the renewal of the 99 year condominium is: -
$2,062.80 (payable to the Singapore government) + $2,049.60 (Existing value of condominium) + $800 (Construction cost) = $4,912.40
The cost of building, topping up the lease as well as paying the differential premium of 75% came up to $4,912.40, there is no value to be had from en-bloc in this case.
Given the high development charge of 75% for change of use or for Differential premium, it is unlikely that en-bloc can happen.
Unless there is a change of the Singapore government’s share of the differential premium from 75% to a more reasonable level.
SUMMARY OF 99 YEARS LEASE HOLD EN-BLOC POTENTIAL
So in conclusion, the capital value of a 99 year lease hold property is better obtained from increase in property prices around the property rather than waiting from any en-bloc or top-up of lease.
This would likely hold true until such time that government policies would change making residential property renewal profitable and happen.
What would you do if Singapore property agents tell you again, "En-bloc" potential indiscriminately? As a Singapore property buyer, the choice is yours. Buyers beware.
Monday, November 16, 2009
Refinance home loan PROMOTION starts 16 Nov 2009
Refinance home loan PROMOTION starts 16th Nov 2009
Article provided by www.PropertyBUYER.com.sg and www.SingaporeHomeloan.net
Clicking on the title will BRING YOU TO the registration page.
http://singaporehomeloan.net/2009/11/refinance-home-loans-sibor-rates-promotion-starts-16th-nov-2009/
PROMOTION - Starts 16h Nov 2009 -
Will end once funds run out (Last hot promo lasted only 19 days)
For Refinance of housing loans
SIBOR(3month) + 0.85% (Throughout)
* Rates at same spread of 0.85% throughout loan tenure.
* Applicable for properties > 500k
* No lock-in (that means you can switch loans or sell your property without penalty, just the usual 3 month notice)
For those who are currently on SIBOR package, it is an apple-to-apple comparison, so it is a no-brainer.
CALL US NOW, FIRST COME FIRST SERVE: -
TEL: 6100 - 0608
SMS: 9782 - 8606
Email: loans@propertyBUYER.com.sg and info@propertyBUYER.com.sg
Fill in the forms at: http://www.propertyBUYER.com.sg/contactus.php
NOTE:
This refinance package is NOT for everyone. Home loans are not 1 size fits all, please do consider your family’s financial situation before you decide whether to take this up. If you are unsure, please feel free to talk to us to discuss. Other home loan packages are also available.
Article provided by www.PropertyBUYER.com.sg and www.SingaporeHomeloan.net
Clicking on the title will BRING YOU TO the registration page.
http://singaporehomeloan.net/2009/11/refinance-home-loans-sibor-rates-promotion-starts-16th-nov-2009/
PROMOTION - Starts 16h Nov 2009 -
Will end once funds run out (Last hot promo lasted only 19 days)
For Refinance of housing loans
SIBOR(3month) + 0.85% (Throughout)
* Rates at same spread of 0.85% throughout loan tenure.
* Applicable for properties > 500k
* No lock-in (that means you can switch loans or sell your property without penalty, just the usual 3 month notice)
For those who are currently on SIBOR package, it is an apple-to-apple comparison, so it is a no-brainer.
CALL US NOW, FIRST COME FIRST SERVE: -
TEL: 6100 - 0608
SMS: 9782 - 8606
Email: loans@propertyBUYER.com.sg and info@propertyBUYER.com.sg
Fill in the forms at: http://www.propertyBUYER.com.sg/contactus.php
NOTE:
This refinance package is NOT for everyone. Home loans are not 1 size fits all, please do consider your family’s financial situation before you decide whether to take this up. If you are unsure, please feel free to talk to us to discuss. Other home loan packages are also available.
Wednesday, November 11, 2009
Compare Singapore home loans with NOT the best mortgage consultant
Compare Singapore home loans with NOT the BEST Mortgage consultant
Article contributed by www.PropertyBUYER.com.sg, 6100 - 0608, SMS 9782 - 8606
If you want to invest in Singapore properties, it is important to work with NOT the best home loan consultant.
By the way, have you ever noticed, we (at www.propertybuyer.com.sg) never say we are the BEST HOME LOAN Consultancy and we simply do NOT use the word BEST very much?
Are you crazy? Why work with NOT THE BEST HOME LOAN Consultancy?
This is because we are not the best and we are still trying to improve with your feedback.
And there are at least 5 to 10 other out there than claimed they are the BEST. As far as we understand, BEST means number 1, so rather than join them in claiming we are also the BEST, we would rather say outright now to set the record straight. We are NOT THE BEST Home loan consultancy in Singapore.
We are not the best home loan consultancy out there, but we do try very hard and we have a methodology to try to fit your needs.
Why use a Mortgage Consultant if you want to invest in Singapore properties?
In many economic cycles of boom and bust, the retail banking sector has evolved with the time. As more and more banks came into the home loan market, the bank’s margins became challenging.
As banks only mark up slightly above their cost of funds, this liberation of credit and financing fueled investments and asset prices. This included property prices inflation.
Singapore home loans margins are very little. But why do banks still do it?
Banks still lend out for home loans because in any economy, residential home loans form a large part of a country’s economic activity. This is a high volume activity despite the low margins.
Many rounds of cost cutting and retrenchments meant that the banks are really short of staff. Helplines are no longer manned by real people, instead you will go through endless hours of wait while listening to, “Your call is important to us, please hold on, our consultants will attend to your call soon.” And worst of all, “Please press * to hang up or call us back between 9 to 5pm.” Bank tellers are replaced by ATM machines.
Singapore banks retrench bankers to stay lean
In order to cope with the uncertain demand, banks have outsourced the front end banking. They pay Singapore mortgage consultants like us a fee for handling the advice, processing and follow up of the home loans. This way, they minimize the issue of a hire and fire culture at the banks, not that the banks cared, at the end of the day, it’s about profitability.
Banks do not really like home loan consultants that much. As a mortgage consultant works for the client’s interest and that means we represent the client rather than the banks. So it is in a way, a twisted outcome from the bank’s promotional activity. Banks prefer to work with property agents which has less concerns for their clients.
Service Satisfaction drops with retail bankers
Service satisfaction with banks soon dropped, banking loyalty which were in the past held by people to people relationship no longer holds as there is simply not enough bankers. But the banks will not start employing bankers as they want to stay lean.
Staying lean means that you cannot expect to maintain professional long term relationship with any banker.
With mortgage consultants such as us, SMS +65-9782-8606 or loans@propertyBUYER.com.sg, our customers have gradually become our friends. We maintain a long term professional relationship and friendship where we understand your unique requirements. We do not simply compare Singapore home loans or take out the Singapore mortgage calculator. The key step is first to establish the investment objective, not the mortgage calculator or comparing mortgage rates.
Our focus is on:
Doing the right things, right.
Right things = setting the objectives and setting it right.
Right = doing things correctly. So if you do the right things, wrong, it’s no use.
And what is worst? Doing the wrong things, right. (This means you have set the wrong objectives and you have successfully executed upon wrong targets and arrived at achieving the wrong targets)
So how did Singapore mortgage consultants come about?
Initially banks wanted the consultants to market only their home loans. However mortgage consultants like us have signed up with many banks and pick up the best features and packages from each bank. Property Buyer mortgage consultants at loans@propertybuyer.com.sg or sms us at +65-9782-8606 we will pick out the best few packages and highlight the pros and cons of each package. The clients will then pick from them.
Of course banks still need to stay profitable
In order to stay competitive while also profitable, banks came up with many possible combinations. While property buyer mortgage consultants are working for the benefit for the client, we are not against banks making money. And we are not advocating that banks cut rates or prices outright. Ultimately the banks will still need to make money. So we strongly encourage the Singapore banks to be innovative and create unique and useful features matches the client’s needs.
As more and more packages became available, the layman will have problems sifting through hundreds of home loans. So property buyer mortgage consultants can help you to compare Singapore home loans.
Refinance home loan Singapore or Get housing loans Singapore
Not Simply Cheap, but what Fits.
We Research, You Save!
Tel: 6100 - 0608
SMS: 9782 - 8606
Email: loans@propertyBUYER.com.sg
Article contributed by www.PropertyBUYER.com.sg, 6100 - 0608, SMS 9782 - 8606
If you want to invest in Singapore properties, it is important to work with NOT the best home loan consultant.
By the way, have you ever noticed, we (at www.propertybuyer.com.sg) never say we are the BEST HOME LOAN Consultancy and we simply do NOT use the word BEST very much?
Are you crazy? Why work with NOT THE BEST HOME LOAN Consultancy?
This is because we are not the best and we are still trying to improve with your feedback.
And there are at least 5 to 10 other out there than claimed they are the BEST. As far as we understand, BEST means number 1, so rather than join them in claiming we are also the BEST, we would rather say outright now to set the record straight. We are NOT THE BEST Home loan consultancy in Singapore.
We are not the best home loan consultancy out there, but we do try very hard and we have a methodology to try to fit your needs.
Why use a Mortgage Consultant if you want to invest in Singapore properties?
In many economic cycles of boom and bust, the retail banking sector has evolved with the time. As more and more banks came into the home loan market, the bank’s margins became challenging.
As banks only mark up slightly above their cost of funds, this liberation of credit and financing fueled investments and asset prices. This included property prices inflation.
Singapore home loans margins are very little. But why do banks still do it?
Banks still lend out for home loans because in any economy, residential home loans form a large part of a country’s economic activity. This is a high volume activity despite the low margins.
Many rounds of cost cutting and retrenchments meant that the banks are really short of staff. Helplines are no longer manned by real people, instead you will go through endless hours of wait while listening to, “Your call is important to us, please hold on, our consultants will attend to your call soon.” And worst of all, “Please press * to hang up or call us back between 9 to 5pm.” Bank tellers are replaced by ATM machines.
Singapore banks retrench bankers to stay lean
In order to cope with the uncertain demand, banks have outsourced the front end banking. They pay Singapore mortgage consultants like us a fee for handling the advice, processing and follow up of the home loans. This way, they minimize the issue of a hire and fire culture at the banks, not that the banks cared, at the end of the day, it’s about profitability.
Banks do not really like home loan consultants that much. As a mortgage consultant works for the client’s interest and that means we represent the client rather than the banks. So it is in a way, a twisted outcome from the bank’s promotional activity. Banks prefer to work with property agents which has less concerns for their clients.
Service Satisfaction drops with retail bankers
Service satisfaction with banks soon dropped, banking loyalty which were in the past held by people to people relationship no longer holds as there is simply not enough bankers. But the banks will not start employing bankers as they want to stay lean.
Staying lean means that you cannot expect to maintain professional long term relationship with any banker.
With mortgage consultants such as us, SMS +65-9782-8606 or loans@propertyBUYER.com.sg, our customers have gradually become our friends. We maintain a long term professional relationship and friendship where we understand your unique requirements. We do not simply compare Singapore home loans or take out the Singapore mortgage calculator. The key step is first to establish the investment objective, not the mortgage calculator or comparing mortgage rates.
Our focus is on:
Doing the right things, right.
Right things = setting the objectives and setting it right.
Right = doing things correctly. So if you do the right things, wrong, it’s no use.
And what is worst? Doing the wrong things, right. (This means you have set the wrong objectives and you have successfully executed upon wrong targets and arrived at achieving the wrong targets)
So how did Singapore mortgage consultants come about?
Initially banks wanted the consultants to market only their home loans. However mortgage consultants like us have signed up with many banks and pick up the best features and packages from each bank. Property Buyer mortgage consultants at loans@propertybuyer.com.sg or sms us at +65-9782-8606 we will pick out the best few packages and highlight the pros and cons of each package. The clients will then pick from them.
Of course banks still need to stay profitable
In order to stay competitive while also profitable, banks came up with many possible combinations. While property buyer mortgage consultants are working for the benefit for the client, we are not against banks making money. And we are not advocating that banks cut rates or prices outright. Ultimately the banks will still need to make money. So we strongly encourage the Singapore banks to be innovative and create unique and useful features matches the client’s needs.
As more and more packages became available, the layman will have problems sifting through hundreds of home loans. So property buyer mortgage consultants can help you to compare Singapore home loans.
Refinance home loan Singapore or Get housing loans Singapore
Not Simply Cheap, but what Fits.
We Research, You Save!
Tel: 6100 - 0608
SMS: 9782 - 8606
Email: loans@propertyBUYER.com.sg
Thursday, November 5, 2009
Singapore property agents speculate and fleece buyers
Singapore property agents speculate and fleece buyers
Article contributed by www.PropertyBUYER.com.sg
Do you really think you can get a good deal from property agents?
Do you really think you can outsmart the property developer?
Read on.
Do you remember some months ago that we warned that property agents are out hunting again. Their tools are catch words such as “it will sell out soon”, “En-bloc”, “sea view”, “Expats are buying”, “MRT”, “population growth”.
To us, these are simply qualitative aspects of an economy or a property or a development. It has no research value and very little bearing on the true value of a property.
Sometimes simply the word “MRT” will make you part with more than you realize and then after a while, you felt that you had overpaid.
During June to September 2009, there are many developer's condominium launches. Developers have a field day clearing inventory while Singapore property agents pounce on genuine property buyers.
Is it possible to get a good deal from developer launches?
Developers always find ways to enhance value of their properties through features and uniqueness. Many of these uniqueness are building related, some of these are location related and others perhaps are landscape related.
Many building related unique features will only last while the building is in good condition. Over time, the building deteriorates and the unique feature and it’s value is consumed and disappear.
So can you outsmart the property developer?
Condominium launches are timed to extract maximum benefit for the developer. You will only get a good deal when the developers are starved of cash and wants to let go of their properties cheaply and quickly.
Generally it is hard to get a good deal at property launches. This is because the property developers have: -
· They have inside news and development plans
· They have an in-house economic team
· They have political connection and relationships
· They have holding power
· They can constrict supply
· They can time the market
· They can influence the media, advertise and create PR
· The whip up the consumer sentiment.
In other words, the launches are timed to perfection exacting the maximum damage on your wallet.
Although all property cycles follow the economic fundamentals, but property cycles can also defy fundamentals for a period of time when sentiments are especially bullish, the prices only fall back down once the sentiment fades and tracks again the economic fundamentals.
There is another element of surprise. Recently our contacts have been telling us that the agents are themselves the speculators and they are fleecing the buyers.
Singapore property agents speculators add to your problems
A property developer will likely appoint 1 or 2 property agencies as marketing agents. These agencies will inform their agents to stand-by to sell the properties.
Developers normally do not launch the condominiums directly with the exception of Far east organization. Therefore the property agents are then able to get market information of the launches and then gauge the market response.
They will jump in and buy first if they sensed a possible killing. They have no plans to stay in the condos.
So Singapore property agents buy the properties and flip immediately at a huge profit. This profit is of course at the expense of genuine property buyers.
So do consumers get a choice to the best units and the best prices?
Usually not. This is because Singapore property agents dominate access to these information. And will they share these information with you?
Mostly not! Many agents with their “potong jalan” grab all mentality will not think of long term. They will leave the best for themselves and give you the scraps.
If they call you and tell you it’s a good deal, that’s because they don’t find it good enough, else they or their families will have already bought it.
Genuine property buyers will have to pay more
Of course you as genuine property buyer, if you like the development, not only you have to pay the developer’s already high asking prices, you will also have to suffer paying easily 5 to 15% more because of these Singapore property speculators if you really like the condo.
Property agents Convince property buyers that valuation can be matched
Property agents convince property buyers that bank’s home loan is obtainable as valuation can be matched when in fact there is no such thing.
After paying the 1% deposit for an option to purchase, the property buyer is stuck.
So how much did the Singapore property agents make from you?
Purchase price = $850,000
(Only a few banks can match as it is too high valuation)
Speculator buys at $850,000 and puts it up again at $920,000
(within days).
Property agents - how how does it cost them to speculate
$850,000 + $20,100 (Stamp duty) – $8,500 (1% commission for selling property) = $861,600.
Property agent flipper makes = $920,000 - $861,600 = $58,400.
This is the extra money you have to pay because of these property agents cornering the market and because banks refuse to raise valuations any higher.
Many people will fail to get a Singapore home loan and lose their 1% deposit. Luckily for some, they have come to us Property buyer mortgage consultants at SMS 9782 8606 to do an Approval in Principle for their potential purchase.
The EXTRA cash you have to pay because of Speculator property agents
$58,400 (extra) + $42,500 (5% cash) + $22,200 (Stamp duty) =
$123,100
Suddenly you are out of budget by $80,600.
Usually you can pay your stamp duty using the Central provident fund (CPF), but because for sub-sale, there may not be enough time to complete the transaction and insufficient time for your lawyers to work with the CPF lawyers to disburse the funds. Instead of using your central provident fund (CPF) to pay for your stamp duty, you will have to first pay it through cash.
Should I buy a Sub-sale unit?
It depends on how desperate you are to buy that property. There are more than 280,000 condominiums and private properties in Singapore. If you are patient you can always find another one as good, if not better.
Other articles: -
Singapore property investors
Singapore mortgage consultants
Article contributed by www.PropertyBUYER.com.sg
Do you really think you can get a good deal from property agents?
Do you really think you can outsmart the property developer?
Read on.
Do you remember some months ago that we warned that property agents are out hunting again. Their tools are catch words such as “it will sell out soon”, “En-bloc”, “sea view”, “Expats are buying”, “MRT”, “population growth”.
To us, these are simply qualitative aspects of an economy or a property or a development. It has no research value and very little bearing on the true value of a property.
Sometimes simply the word “MRT” will make you part with more than you realize and then after a while, you felt that you had overpaid.
During June to September 2009, there are many developer's condominium launches. Developers have a field day clearing inventory while Singapore property agents pounce on genuine property buyers.
Is it possible to get a good deal from developer launches?
Developers always find ways to enhance value of their properties through features and uniqueness. Many of these uniqueness are building related, some of these are location related and others perhaps are landscape related.
Many building related unique features will only last while the building is in good condition. Over time, the building deteriorates and the unique feature and it’s value is consumed and disappear.
So can you outsmart the property developer?
Condominium launches are timed to extract maximum benefit for the developer. You will only get a good deal when the developers are starved of cash and wants to let go of their properties cheaply and quickly.
Generally it is hard to get a good deal at property launches. This is because the property developers have: -
· They have inside news and development plans
· They have an in-house economic team
· They have political connection and relationships
· They have holding power
· They can constrict supply
· They can time the market
· They can influence the media, advertise and create PR
· The whip up the consumer sentiment.
In other words, the launches are timed to perfection exacting the maximum damage on your wallet.
Although all property cycles follow the economic fundamentals, but property cycles can also defy fundamentals for a period of time when sentiments are especially bullish, the prices only fall back down once the sentiment fades and tracks again the economic fundamentals.
There is another element of surprise. Recently our contacts have been telling us that the agents are themselves the speculators and they are fleecing the buyers.
Singapore property agents speculators add to your problems
A property developer will likely appoint 1 or 2 property agencies as marketing agents. These agencies will inform their agents to stand-by to sell the properties.
Developers normally do not launch the condominiums directly with the exception of Far east organization. Therefore the property agents are then able to get market information of the launches and then gauge the market response.
They will jump in and buy first if they sensed a possible killing. They have no plans to stay in the condos.
So Singapore property agents buy the properties and flip immediately at a huge profit. This profit is of course at the expense of genuine property buyers.
So do consumers get a choice to the best units and the best prices?
Usually not. This is because Singapore property agents dominate access to these information. And will they share these information with you?
Mostly not! Many agents with their “potong jalan” grab all mentality will not think of long term. They will leave the best for themselves and give you the scraps.
If they call you and tell you it’s a good deal, that’s because they don’t find it good enough, else they or their families will have already bought it.
Genuine property buyers will have to pay more
Of course you as genuine property buyer, if you like the development, not only you have to pay the developer’s already high asking prices, you will also have to suffer paying easily 5 to 15% more because of these Singapore property speculators if you really like the condo.
Property agents Convince property buyers that valuation can be matched
Property agents convince property buyers that bank’s home loan is obtainable as valuation can be matched when in fact there is no such thing.
After paying the 1% deposit for an option to purchase, the property buyer is stuck.
So how much did the Singapore property agents make from you?
Purchase price = $850,000
(Only a few banks can match as it is too high valuation)
Speculator buys at $850,000 and puts it up again at $920,000
(within days).
Property agents - how how does it cost them to speculate
$850,000 + $20,100 (Stamp duty) – $8,500 (1% commission for selling property) = $861,600.
Property agent flipper makes = $920,000 - $861,600 = $58,400.
This is the extra money you have to pay because of these property agents cornering the market and because banks refuse to raise valuations any higher.
Many people will fail to get a Singapore home loan and lose their 1% deposit. Luckily for some, they have come to us Property buyer mortgage consultants at SMS 9782 8606 to do an Approval in Principle for their potential purchase.
The EXTRA cash you have to pay because of Speculator property agents
$58,400 (extra) + $42,500 (5% cash) + $22,200 (Stamp duty) =
$123,100
Suddenly you are out of budget by $80,600.
Usually you can pay your stamp duty using the Central provident fund (CPF), but because for sub-sale, there may not be enough time to complete the transaction and insufficient time for your lawyers to work with the CPF lawyers to disburse the funds. Instead of using your central provident fund (CPF) to pay for your stamp duty, you will have to first pay it through cash.
Should I buy a Sub-sale unit?
It depends on how desperate you are to buy that property. There are more than 280,000 condominiums and private properties in Singapore. If you are patient you can always find another one as good, if not better.
Other articles: -
Singapore property investors
Singapore mortgage consultants
Thursday, October 29, 2009
Spring Singapore Initiatives to boost funding for Singapore SMEs
Spring Singapore Initiatives to boost funding for local SMEs
The year 08 and much of the 1st quarter of 09 saw the global economy facing an almost unprecedented worldwide recession. Singapore was not spared the spill over effects by the double whammy of liquidity crunch and falling global demand either.
Faced with the worst recession in Singapore's history, the Government had to devise extraordinary measures to keep our well-oiled economy in good shape. The Finance Ministry Budget for FY '09 unveiled a record $20.5 billion 'resilience package' that required presidential assent to be delivered in full. Among the slew of job saving and economy boosting initiatives, Spring Singapore introduced major enhancements to increase liquidity and boost lending to the sudden risk adverse banks.
The most eye-catching tweaks done to the existing Bridging and Micro loan was to increase government risk sharing from 50% to 80%-90%. This would encourage the now sudden risk adverse banks to lighten up on their lending. The maximum loan quantum was also increased from $500,000 to $5 million. Most banks would not over gear on 1 company. With the increased loan quantum, companies can apply through more than 1 bank for the Bridging Loan programme.
Most local SMEs lauded the above initiative as in an adverse downturn, unsecured loans amounting to cold hard cash was what small businesses need to survive and remain viable. Most companies would not seek to expand with weakening demand, therefore machinery loans & complex trade facilities are not as seeked after as a simple unsecured term loan. This form of financing would provide working capital and transactional buffer and is a vital lifeline for SMEs to ride out the crisis.
The Bridging/Micro Loan programme by Spring S’pore was launched in December 08, with the government body pumping in $2.3 billion to aid funding. There is no certainty as yet whether if Spring would continue the government assisted funding once the $2.3 billion has been fully drawn down. There remains the possibility that the programme might be discontinued when there are visible signs of the economy picking up. The program was introduced in the face of the global economic downturnin the first place. If and when the loan programe is eventually discontinued, small businesses might have to revert back to traditional unsecured bank loans and facilities again.
The biggest difference between commercial unsecured business loans and the Bridging/Micro loans would be the interest rates charged. Spring, being essentially a Government body, aims to lower the cost of credit for businesses as part of the overall package to address the business community's financing needs, inject liquidity and preserve jobs (SMEs hire almost half of Singapore’s workforce)
An alternative to unsecured commercial loans would be to borrow against your homes by refinancing Singapore home loan, but that would be rather risky. You can contact a Singapore mortgage consultant to do so.
The year 08 and much of the 1st quarter of 09 saw the global economy facing an almost unprecedented worldwide recession. Singapore was not spared the spill over effects by the double whammy of liquidity crunch and falling global demand either.
Faced with the worst recession in Singapore's history, the Government had to devise extraordinary measures to keep our well-oiled economy in good shape. The Finance Ministry Budget for FY '09 unveiled a record $20.5 billion 'resilience package' that required presidential assent to be delivered in full. Among the slew of job saving and economy boosting initiatives, Spring Singapore introduced major enhancements to increase liquidity and boost lending to the sudden risk adverse banks.
The most eye-catching tweaks done to the existing Bridging and Micro loan was to increase government risk sharing from 50% to 80%-90%. This would encourage the now sudden risk adverse banks to lighten up on their lending. The maximum loan quantum was also increased from $500,000 to $5 million. Most banks would not over gear on 1 company. With the increased loan quantum, companies can apply through more than 1 bank for the Bridging Loan programme.
Most local SMEs lauded the above initiative as in an adverse downturn, unsecured loans amounting to cold hard cash was what small businesses need to survive and remain viable. Most companies would not seek to expand with weakening demand, therefore machinery loans & complex trade facilities are not as seeked after as a simple unsecured term loan. This form of financing would provide working capital and transactional buffer and is a vital lifeline for SMEs to ride out the crisis.
The Bridging/Micro Loan programme by Spring S’pore was launched in December 08, with the government body pumping in $2.3 billion to aid funding. There is no certainty as yet whether if Spring would continue the government assisted funding once the $2.3 billion has been fully drawn down. There remains the possibility that the programme might be discontinued when there are visible signs of the economy picking up. The program was introduced in the face of the global economic downturnin the first place. If and when the loan programe is eventually discontinued, small businesses might have to revert back to traditional unsecured bank loans and facilities again.
The biggest difference between commercial unsecured business loans and the Bridging/Micro loans would be the interest rates charged. Spring, being essentially a Government body, aims to lower the cost of credit for businesses as part of the overall package to address the business community's financing needs, inject liquidity and preserve jobs (SMEs hire almost half of Singapore’s workforce)
An alternative to unsecured commercial loans would be to borrow against your homes by refinancing Singapore home loan, but that would be rather risky. You can contact a Singapore mortgage consultant to do so.
Sunday, October 18, 2009
Invest in Singapore Properties: Property investor review Oct 2009
Singapore property investor - buyer review Oct 2009
Singapore property investor
Singapore Q3, 2009 figures showed that "Singapore's economy grew 0.8% in the three months to September from a year ago". (Source: AFP)
Singapore is technically out of recession with two consecutive quarters of positive growth in Q2 and Q3.
"A clear but modest recovery is under way globally, at least for the next three or four quarters," but "One-off factors such as restocking activities and fiscal stimulus measures will continue to support growth in the near term."
"Manufacturing, which accounts for almost a quarter of Singapore's GDP, grew 8.3 percent in third quarter from a year ago and expanded 34.9 percent on a quarterly basis. The services industry shrank 2.4 percent on the year but expanded 9.5 percent on a quarterly basis. The construction sector surged 12.4 percent year-on-year but fell 0.6 percent from the previous three months." (Source: AFP)
These one off inventory restocking factors are what we are afraid were the primary reasons of Q3, 2009 recovery.
Singapore gets out of recession BUT Singapore property market cools.
We think that the Singapore government didn't expect that their positive media spin, easy credit largely kicked started by DBS and short term constriction of property supply (by property developers) has led to an almost 10 to 20% rise in valuation within one quarter. The Singapore government has therefore had to imposed anti-speculative measures recently in September for fear of a property bubble building up.
But the anti-speculative measures were imposed at a time when the market is already showing signs of slower volumes. It is strange, people buy when there are no fundamentals and slow down in buying when economic fundamentals improve.
Singapore economy recovers with Q3 figures up yet again
Q3, 2009 Singapore economic figures have improved, this means that the economy has firmed up a little and on the path to a slow recovery.
There is a likelihood that this is a recovery that is built for the ramp up to Q4 Christmas sales demand and re-stocking of inventories activities.
But the recovery (growth of Gross domestic product GDP) is likely to be a recovery without job growth at least for the short term.
Unemployment rate may still trend upwards while GDP growth resumes. In all likelihood, the recovery will likely be very mild and fraught with uncertainties and risks.
Possible risks to Singapore property market in 2010
1. Run out of stimulus funding in the US and elsewhere may lead to economy dropping back again.
2. China's stimulus funding (for their own domestic economy) is showing signs of fatigue. China's exports have also dropped. There are worries of stimulus funding being wasted on useless projects just to stimulate the economy.
3. Massive inflation. (The US Federal reserve has kept interest rates at 0.25% while it relied massively on foreign governments to lend it money (by buying it's treasury bonds) to fund it's massive deficit of around US$1 Trillion. The global community has started to lose confidence in the US. USD has started to fall relative to other currencies. The US may be forced to raise rates to attract lending. Other countries may not be interested to lend US the money and see the value of their lending fall.
The options are dire for the USA.
The US may continue to offer low rates and print more money without an actual offset through borrowings or it must raise rates.
Raising rates now will kill a still weak economy. Printing more money will infuriate America's lenders and lead to a cascade of USD falling + interest rates hikes.
Any upswing is likely to be moderate as developers have massive Singapore property supply in the years 2011 through 2015.
Possible positive factors to Singapore property market in 2010
Singapore must hold it's election latest by around June 2011. The economy must hold up well for the PAP to win another election.
Apart from the economy recovering (although very slowly), casinos are also ready in 2010. Media spin: The state controlled press' recent reports have always picked up and accentuated the positives (whether rightly or wrongly), despite the generally very weak economy. The press can single-handedly improve consumer sentiments. These can work in your favour or against you.
Improved sentiments may lead to more aggressive lending by banks, leading to the market over-heating. (remember, banks are usually pro-cyclical, they lend when markets are hot and they cut lending when everyone needs money). Singapore home loans rate may rise, but banks may sacrifice their margins to offer attractive rates which could stimulate the housing market. You will then be able to compare Singapore home loans across many banks who are very eager to lend you money.
Invest in Singapore properties now?
Generally we think that anytime is a good time to look for a property. It's a matter of getting the right price. There are good deals and bad deals in all economic cycles.
For Singapore property investors, now is a good time to look at Singapore property investments. The quieter property market means that there is less hype and more rational sellers. There is a much higher likelihood to get a better deal if you are careful and do your research before buying a properly. If you can find a property with consistent good yield at a good price, you may be able to use sentiments to your advantage when the hype builds up again in 2010 nearing election.
Holding power is still very important during this time as the economic fundamentals have not fully recovered and cash is still king.
Should Singapore property investor simply consider economic fundamentals?
As a Singapore property buyer - investor who wants to also profit from not just fundamentals but also sentiments. It is then important to recognise the sentiments in play.
For example, despite the fact that the market is really not as positive than it really is, but due to the SPIN from the media and other factors, that can work in your favour or against you. But also bear in mind that the media is something you have no control over.
For example, Singapore Aspen heights condo was trading at $1000 psf for units over 1300 sq feet in May 2009 and by July and August the prices have moved to around $1200 psf.
If any economic shocks occur, the property prices could fall. If you bought a property at $1200 psf and it drops back to 1000 psf, that would wipe out your 20% downpayment.
SUMMARY OF SINGAPORE PROPERTY MARKET Q3, Q4 2009
Going forward, economic recovery is going to be slow and bumpy. There exists much uncertainty and risks on the downside as well as some potential upside domestic surprises. Overall economy has stabilized with reduced risks of major economic shocks. There could also be a risk of the economy slipping back into the red, but this should be viewed as an opportunity to cheery pick.
Potential property market bubble curbed. Singapore government's land sales with it's more favourable terms and longer time to completion means developers are likely to bid higher.
Higher land prices are likely to translate higher selling prices (if there is holding power). Incomes are not recovering as fast, therefore the most likely outcome is smaller housing units selling at higher prices.
More and more property developers are likely to launch smaller size units to achieve their margins and meet the budget of the Singapore population. This could potentially lead to oversupply risks of smaller sizes units few years down the road.
Again we recommend that investors buy with caution and should have some cash buffer and holding power to limit the potential risks and to make sure to buy at the right price. If valuations drop and banks ask for equity top-up, most people will be caught unprepared.
Read More Singapore Property Investment articles
http://www.PropertyBUYER.com.sg/articles/article.php
TEL: 6100 - 0608
SMS: 9782 - 8606
Email: loans@propertyBUYER.com.sg
Singapore property investor
Singapore Q3, 2009 figures showed that "Singapore's economy grew 0.8% in the three months to September from a year ago". (Source: AFP)
Singapore is technically out of recession with two consecutive quarters of positive growth in Q2 and Q3.
"A clear but modest recovery is under way globally, at least for the next three or four quarters," but "One-off factors such as restocking activities and fiscal stimulus measures will continue to support growth in the near term."
"Manufacturing, which accounts for almost a quarter of Singapore's GDP, grew 8.3 percent in third quarter from a year ago and expanded 34.9 percent on a quarterly basis. The services industry shrank 2.4 percent on the year but expanded 9.5 percent on a quarterly basis. The construction sector surged 12.4 percent year-on-year but fell 0.6 percent from the previous three months." (Source: AFP)
These one off inventory restocking factors are what we are afraid were the primary reasons of Q3, 2009 recovery.
Singapore gets out of recession BUT Singapore property market cools.
We think that the Singapore government didn't expect that their positive media spin, easy credit largely kicked started by DBS and short term constriction of property supply (by property developers) has led to an almost 10 to 20% rise in valuation within one quarter. The Singapore government has therefore had to imposed anti-speculative measures recently in September for fear of a property bubble building up.
But the anti-speculative measures were imposed at a time when the market is already showing signs of slower volumes. It is strange, people buy when there are no fundamentals and slow down in buying when economic fundamentals improve.
Singapore economy recovers with Q3 figures up yet again
Q3, 2009 Singapore economic figures have improved, this means that the economy has firmed up a little and on the path to a slow recovery.
There is a likelihood that this is a recovery that is built for the ramp up to Q4 Christmas sales demand and re-stocking of inventories activities.
But the recovery (growth of Gross domestic product GDP) is likely to be a recovery without job growth at least for the short term.
Unemployment rate may still trend upwards while GDP growth resumes. In all likelihood, the recovery will likely be very mild and fraught with uncertainties and risks.
Possible risks to Singapore property market in 2010
1. Run out of stimulus funding in the US and elsewhere may lead to economy dropping back again.
2. China's stimulus funding (for their own domestic economy) is showing signs of fatigue. China's exports have also dropped. There are worries of stimulus funding being wasted on useless projects just to stimulate the economy.
3. Massive inflation. (The US Federal reserve has kept interest rates at 0.25% while it relied massively on foreign governments to lend it money (by buying it's treasury bonds) to fund it's massive deficit of around US$1 Trillion. The global community has started to lose confidence in the US. USD has started to fall relative to other currencies. The US may be forced to raise rates to attract lending. Other countries may not be interested to lend US the money and see the value of their lending fall.
The options are dire for the USA.
The US may continue to offer low rates and print more money without an actual offset through borrowings or it must raise rates.
Raising rates now will kill a still weak economy. Printing more money will infuriate America's lenders and lead to a cascade of USD falling + interest rates hikes.
Any upswing is likely to be moderate as developers have massive Singapore property supply in the years 2011 through 2015.
Possible positive factors to Singapore property market in 2010
Singapore must hold it's election latest by around June 2011. The economy must hold up well for the PAP to win another election.
Apart from the economy recovering (although very slowly), casinos are also ready in 2010. Media spin: The state controlled press' recent reports have always picked up and accentuated the positives (whether rightly or wrongly), despite the generally very weak economy. The press can single-handedly improve consumer sentiments. These can work in your favour or against you.
Improved sentiments may lead to more aggressive lending by banks, leading to the market over-heating. (remember, banks are usually pro-cyclical, they lend when markets are hot and they cut lending when everyone needs money). Singapore home loans rate may rise, but banks may sacrifice their margins to offer attractive rates which could stimulate the housing market. You will then be able to compare Singapore home loans across many banks who are very eager to lend you money.
Invest in Singapore properties now?
Generally we think that anytime is a good time to look for a property. It's a matter of getting the right price. There are good deals and bad deals in all economic cycles.
For Singapore property investors, now is a good time to look at Singapore property investments. The quieter property market means that there is less hype and more rational sellers. There is a much higher likelihood to get a better deal if you are careful and do your research before buying a properly. If you can find a property with consistent good yield at a good price, you may be able to use sentiments to your advantage when the hype builds up again in 2010 nearing election.
Holding power is still very important during this time as the economic fundamentals have not fully recovered and cash is still king.
Should Singapore property investor simply consider economic fundamentals?
As a Singapore property buyer - investor who wants to also profit from not just fundamentals but also sentiments. It is then important to recognise the sentiments in play.
For example, despite the fact that the market is really not as positive than it really is, but due to the SPIN from the media and other factors, that can work in your favour or against you. But also bear in mind that the media is something you have no control over.
For example, Singapore Aspen heights condo was trading at $1000 psf for units over 1300 sq feet in May 2009 and by July and August the prices have moved to around $1200 psf.
If any economic shocks occur, the property prices could fall. If you bought a property at $1200 psf and it drops back to 1000 psf, that would wipe out your 20% downpayment.
SUMMARY OF SINGAPORE PROPERTY MARKET Q3, Q4 2009
Going forward, economic recovery is going to be slow and bumpy. There exists much uncertainty and risks on the downside as well as some potential upside domestic surprises. Overall economy has stabilized with reduced risks of major economic shocks. There could also be a risk of the economy slipping back into the red, but this should be viewed as an opportunity to cheery pick.
Potential property market bubble curbed. Singapore government's land sales with it's more favourable terms and longer time to completion means developers are likely to bid higher.
Higher land prices are likely to translate higher selling prices (if there is holding power). Incomes are not recovering as fast, therefore the most likely outcome is smaller housing units selling at higher prices.
More and more property developers are likely to launch smaller size units to achieve their margins and meet the budget of the Singapore population. This could potentially lead to oversupply risks of smaller sizes units few years down the road.
Again we recommend that investors buy with caution and should have some cash buffer and holding power to limit the potential risks and to make sure to buy at the right price. If valuations drop and banks ask for equity top-up, most people will be caught unprepared.
Read More Singapore Property Investment articles
http://www.PropertyBUYER.com.sg/articles/article.php
TEL: 6100 - 0608
SMS: 9782 - 8606
Email: loans@propertyBUYER.com.sg
Wednesday, September 30, 2009
Singapore Mortgage Refinance Rates and Valuations overview 2006 to 2009
Refinance Home loans - Window of opportunity
http://propertybuyer.com.sg/articles/compare-singapore-home-loans-/singapore-mortgage-refinance-mortgage-rates-and-valuation-overview/
Singapore Mortgage Refinance rates and time-line and Valuation overview from 2006 to 2009
2006 to Q3, 2009 Recap.
The years between 2006 to 2009 have been an eventful ride. We have seen property prices run up from around 2006 onwards to 2007, followed by the blow-up in 2007 of sub-prime housing debt.
In 2008, we see the collapse of near collapse of financial institutions of substantial sizes such as lehman brothers, Bear sterns, Merrill Lynch, AIG, UBS, Citibank and Madoff fraud just to name a few.
Together these financial institutions held assets worth over 4 to 5 trillion US dollars at book value, which if they failed, these assets will be dumped onto the market with no buyers. An apocalypse nearly happened.
US Federal Reserve Set interest rates to almost ZERO in 2009 and China Stimulates its economy
In 2009, US federal reserve set interest rates to nearly 0% while pumping in US$700 billion of funds to rescue the banks. These measures were also matched with the China government committing to pump more than 4 Trillion Yuan (~US$600Bilion) into their own economy over a several year period to maintain worldwide economic stability.
Consequently in Singapore, we are not spared from this roller-coaster ride. Interest rates have fallen from ~3.5% to 0.68% based on the 3 months Singapore Inter-bank borrowing rate (SIBOR – 3months).
What happened to property valuations between 2006 to Q4, 2007
During the year 2006 to end 2007, property valuations in Singapore have reached a feverish pitch. In the year alone in 2007, Singapore population grew by 5.5% (Source: http://www.singstat.gov.sg/stats/keyind.html or www.PropertyBUYER.com.sg) mainly through Singapore in-bound expatriates.
Expats fueled the Singapore Property Yields
This fueled increase in rental yields which in turn fuels property prices. There was a mad rush by Property investors novice or experts to speculate and buy properties in Singapore in which we at www.propertybuyer.com.sg urged caution.
Property prices swing up in 2007
This led to a huge increase in property prices in some locations of over 100% rises, such as Marina Sail, a 99 year leasehold condominium which went from S$900+ psf to more than S$2000 psf. This pattern is repeated across the all Singapore properties with varying degrees of price increases.
Novice property investors were caught out.
Many novice property investors were caught up in the hype. Those novice property investors and speculators who bought properties in the hype ended up buying into very expensive properties.
What happened to property valuations between 2008 to 1Q, 2009
What happened to property valuations between 2008 to 1Q, 2009, property valuations have started to fall. The fall in property valuations in Singapore properties accelerated towards 3Q and 4Q of 2008 with the melt down of financial institutions.
People who bought in 2006 and 2007 end up with high rates and cannot refinance
Many people who bought their properties in 2006, 2007 at high interest rates cannot refinance their properties due to the fall in valuations.
For example, many places whose valuation have fallen 10 to 30% in the very least. Those in Singapore’s District 9, district 10 and district 11 have seen valuations fall equally drastically.
Especially so for those prime areas within District 9, 10 and 11, a lot of our clients called us at 6100 0608 to speak with us, propertybuyer Singapore mortgage consultants, however due to the valuation drop, banks are refusing to lend.
Some Banks stopped lending to District 9, 10 and 11 in Q1, 2009
During this time 2008 to 1Q, 2009, some banks have unofficially stopped lending for properties in District 9, 10 and 11 pending further review.
Some bankers privately disclosed that the banks are no longer able to accurately value properties in these areas as valuation gaps opened up. Sometimes as wide at 20 to 30% difference between the highest valuation and the lowest ones.
Between March 2009 till end Q3 2009
The property prices have enjoyed a revival (although we shall not go into whether that revival is justified, that will be reviewed in another research which we are preparing, but do email us at loans@propertybuyer.com.sg to enquire).
Although the statistics reported sliding valuations and lowered selling prices, some places within District 9, 10 and 11 have enjoyed spectacular revival of property prices and valuations.
Park Infinia Prices Swing
Between January and June alone, as an example, Park Infinia located in Newton area went from around S$1100 per square feet to S$1200 per square feet between January to March 2009. And between March to June 2009, the valuation at Park Infinia in Newton went to S$1400 per square feet. It was easily a 30% increase.
We have seen valuations rising in the Singapore property mass market areas as well.
With a revival of valuations from between 10 to 30% in some districts or for some projects, for those who were unable to refinance due to fallen valuations in January to April 2009, now may be a good time to check valuations again whether they can refinance Singapore properties.
Now is a window of opportunity to refinance since valuations have recovered a bit
Although the singapore property prices have not recovered to pre-crisis levels in 2007 levels, even if some of these Singapore property investors – buyers who cannot meet the valuation levels to qualify for a 80% loan (Loan to valuation), they would nonetheless still be able to refinance their properties at 90% loan.
The current interest rates would still easily beat the previous rates and provide savings to the tune of around 1.5% per year. Over 2 years, Singapore home owners can expect to save around S$30,000 of interest costs or more, based on a loan size of S$1m.
What is the Singapore economic outlook for 2010?
It’s really a tough call, but by all measures the risk of a severe financial system melt-down is much reduced. There are many conflicting economic forecasts, some good and some bad.
None of the so called “Green shoots of recovery” have fully developed into a sustainable trend, but neither are the pessimists having their predictions correct. The economic statistics are flip-flopping from good to bad to good to bad.
So analysts are similarly divided on where the economy is headed.
We are mindful that substantial risks remained, economic fundamentals have not really improved.
Anyway, let us just call these forecasts by economists “analyst opinions”.
Since there are various economic modeling used, and each of these “Analyst opinions” have foundations based on facts and statistics (one way or the other), we can simply aggregate these opinions to get a proxy of the economic directions.
In 2008, economic analyst opinions were almost all negative and doom. Now in Q3, 209, we have quite a few very positive opinions, some moderate and some negative, this is a marked improvement from 2008.
On a balance of probabilities as well as on a fundamental economic basis, the worldwide economy is on the mend.
There is now a higher probability of economic recovery (however slight it may be) and possible inflation.
Going forward, there is a chance that interest rates may rise. Refinancing will then safe you less money.
So now may be the only window of opportunity to refinance Singapore property where the interest rates are still low and the valuations have somewhat recovered. Property Buyer Home loans and Singapore Mortgage Consultants like us do not charge you a fee because the banks pay us directly, therefore there is no cost to you and you have someone to do the work for you.
Why not try to contact us at loans@propertybuyer.com.sg or SMS us at +65 9782 - 8606 for a free valuation check and after that, we can help you compare Singapore home loans or compare refinance home loans.
If refinance interest rates go up or if property valuations fall towards the end of the year, the opportunity is lost.
http://propertybuyer.com.sg/articles/compare-singapore-home-loans-/singapore-mortgage-refinance-mortgage-rates-and-valuation-overview/
Singapore Mortgage Refinance rates and time-line and Valuation overview from 2006 to 2009
2006 to Q3, 2009 Recap.
The years between 2006 to 2009 have been an eventful ride. We have seen property prices run up from around 2006 onwards to 2007, followed by the blow-up in 2007 of sub-prime housing debt.
In 2008, we see the collapse of near collapse of financial institutions of substantial sizes such as lehman brothers, Bear sterns, Merrill Lynch, AIG, UBS, Citibank and Madoff fraud just to name a few.
Together these financial institutions held assets worth over 4 to 5 trillion US dollars at book value, which if they failed, these assets will be dumped onto the market with no buyers. An apocalypse nearly happened.
US Federal Reserve Set interest rates to almost ZERO in 2009 and China Stimulates its economy
In 2009, US federal reserve set interest rates to nearly 0% while pumping in US$700 billion of funds to rescue the banks. These measures were also matched with the China government committing to pump more than 4 Trillion Yuan (~US$600Bilion) into their own economy over a several year period to maintain worldwide economic stability.
Consequently in Singapore, we are not spared from this roller-coaster ride. Interest rates have fallen from ~3.5% to 0.68% based on the 3 months Singapore Inter-bank borrowing rate (SIBOR – 3months).
What happened to property valuations between 2006 to Q4, 2007
During the year 2006 to end 2007, property valuations in Singapore have reached a feverish pitch. In the year alone in 2007, Singapore population grew by 5.5% (Source: http://www.singstat.gov.sg/stats/keyind.html or www.PropertyBUYER.com.sg) mainly through Singapore in-bound expatriates.
Expats fueled the Singapore Property Yields
This fueled increase in rental yields which in turn fuels property prices. There was a mad rush by Property investors novice or experts to speculate and buy properties in Singapore in which we at www.propertybuyer.com.sg urged caution.
Property prices swing up in 2007
This led to a huge increase in property prices in some locations of over 100% rises, such as Marina Sail, a 99 year leasehold condominium which went from S$900+ psf to more than S$2000 psf. This pattern is repeated across the all Singapore properties with varying degrees of price increases.
Novice property investors were caught out.
Many novice property investors were caught up in the hype. Those novice property investors and speculators who bought properties in the hype ended up buying into very expensive properties.
What happened to property valuations between 2008 to 1Q, 2009
What happened to property valuations between 2008 to 1Q, 2009, property valuations have started to fall. The fall in property valuations in Singapore properties accelerated towards 3Q and 4Q of 2008 with the melt down of financial institutions.
People who bought in 2006 and 2007 end up with high rates and cannot refinance
Many people who bought their properties in 2006, 2007 at high interest rates cannot refinance their properties due to the fall in valuations.
For example, many places whose valuation have fallen 10 to 30% in the very least. Those in Singapore’s District 9, district 10 and district 11 have seen valuations fall equally drastically.
Especially so for those prime areas within District 9, 10 and 11, a lot of our clients called us at 6100 0608 to speak with us, propertybuyer Singapore mortgage consultants, however due to the valuation drop, banks are refusing to lend.
Some Banks stopped lending to District 9, 10 and 11 in Q1, 2009
During this time 2008 to 1Q, 2009, some banks have unofficially stopped lending for properties in District 9, 10 and 11 pending further review.
Some bankers privately disclosed that the banks are no longer able to accurately value properties in these areas as valuation gaps opened up. Sometimes as wide at 20 to 30% difference between the highest valuation and the lowest ones.
Between March 2009 till end Q3 2009
The property prices have enjoyed a revival (although we shall not go into whether that revival is justified, that will be reviewed in another research which we are preparing, but do email us at loans@propertybuyer.com.sg to enquire).
Although the statistics reported sliding valuations and lowered selling prices, some places within District 9, 10 and 11 have enjoyed spectacular revival of property prices and valuations.
Park Infinia Prices Swing
Between January and June alone, as an example, Park Infinia located in Newton area went from around S$1100 per square feet to S$1200 per square feet between January to March 2009. And between March to June 2009, the valuation at Park Infinia in Newton went to S$1400 per square feet. It was easily a 30% increase.
We have seen valuations rising in the Singapore property mass market areas as well.
With a revival of valuations from between 10 to 30% in some districts or for some projects, for those who were unable to refinance due to fallen valuations in January to April 2009, now may be a good time to check valuations again whether they can refinance Singapore properties.
Now is a window of opportunity to refinance since valuations have recovered a bit
Although the singapore property prices have not recovered to pre-crisis levels in 2007 levels, even if some of these Singapore property investors – buyers who cannot meet the valuation levels to qualify for a 80% loan (Loan to valuation), they would nonetheless still be able to refinance their properties at 90% loan.
The current interest rates would still easily beat the previous rates and provide savings to the tune of around 1.5% per year. Over 2 years, Singapore home owners can expect to save around S$30,000 of interest costs or more, based on a loan size of S$1m.
What is the Singapore economic outlook for 2010?
It’s really a tough call, but by all measures the risk of a severe financial system melt-down is much reduced. There are many conflicting economic forecasts, some good and some bad.
None of the so called “Green shoots of recovery” have fully developed into a sustainable trend, but neither are the pessimists having their predictions correct. The economic statistics are flip-flopping from good to bad to good to bad.
So analysts are similarly divided on where the economy is headed.
We are mindful that substantial risks remained, economic fundamentals have not really improved.
Anyway, let us just call these forecasts by economists “analyst opinions”.
Since there are various economic modeling used, and each of these “Analyst opinions” have foundations based on facts and statistics (one way or the other), we can simply aggregate these opinions to get a proxy of the economic directions.
In 2008, economic analyst opinions were almost all negative and doom. Now in Q3, 209, we have quite a few very positive opinions, some moderate and some negative, this is a marked improvement from 2008.
On a balance of probabilities as well as on a fundamental economic basis, the worldwide economy is on the mend.
There is now a higher probability of economic recovery (however slight it may be) and possible inflation.
Going forward, there is a chance that interest rates may rise. Refinancing will then safe you less money.
So now may be the only window of opportunity to refinance Singapore property where the interest rates are still low and the valuations have somewhat recovered. Property Buyer Home loans and Singapore Mortgage Consultants like us do not charge you a fee because the banks pay us directly, therefore there is no cost to you and you have someone to do the work for you.
Why not try to contact us at loans@propertybuyer.com.sg or SMS us at +65 9782 - 8606 for a free valuation check and after that, we can help you compare Singapore home loans or compare refinance home loans.
If refinance interest rates go up or if property valuations fall towards the end of the year, the opportunity is lost.
Monday, September 21, 2009
Invest in Singapore Small medium size companies
Singapore small business loans improves returns
September 20th, 2009
Posted by chief under Singapore small business loans with No Comments
Singapore Small Business loans: Leverage improves returns and capture business opportunities
Much has been touched on the issue of good debts and bad debts. In terms of personal debts, most personal financial advisers would generally advocate that consumption debts like credit cards and hire purchases are bad debts.
This is for obvious reasons since banks typically charge the highest interest rates to credit cards and personal loans ranging from 12% - 24% p.a.
Debts Incurred for higher potential gains can be good
Debts incurred for loans like education loans however are considered good debt since there’s a good chance that the expected increase in income in future can cover the interest charged.
Business loans, if used prudently can also be a good debt for a company. Let’s take a very simple illustration on how a small business can take advantage of a business loan to generate higher growth.
Example: IMPORTING AND CAPTURING DEMAND
Company A imports product X for $1 and sells it off for $2. Business is growing and it receives 10 orders for product X. However, it has only sufficient capital to fulfill 5 orders. Company A would then take a $5 loan from the Bank, which charges 10% interest for every dollar lend. Company A would still pocket a 90 cents profit per product after accounting for the interest charged by the bank.
USING THE BANK’S MONEY
This is just a simplified example on how companies leverage on financing loans to meet growth and demand, a popular concept also known as using OPM (other people’s money). The bottom line is: As long as the business can generate higher revenue/mark up than the interest charged by the bank, then a business loan would be considered a good debt.
If you can get a bank loan for your business for a viable business model, that would be best. At least you will not have to mortgage your home to get your housing loans to fund your business.
INTEREST EXPENSE CAN BE TAX DEDUCTIBLE
Apart from fuelling revenue, business loans could also be used as a vehicle for tax reduction. The current corporate tax rate in Singapore is at 18% on chargeable income. The market rate for unsecured business loans is around 5%-10%.
So it does make accounting sense for companies to take on a small amount of debt and charge it to the Profil and Loss as finance and interest expenses to shelter their chargeable income/profits. This of course has to be done legally and with the expertise of a qualified accountant/management consultancy, to avoid trouble with IRAS.
Most companies have debt in order to improve returns. Too much debt is not healthy of a company, but so is too little debt. Debt leverage gives the company higher returns and faster growth.
You can also talk to a Standard Chartered Banker about these loans.
Tel: 6100 - 0608
SMS: 9782 - 8606
September 20th, 2009
Posted by chief under Singapore small business loans with No Comments
Singapore Small Business loans: Leverage improves returns and capture business opportunities
Much has been touched on the issue of good debts and bad debts. In terms of personal debts, most personal financial advisers would generally advocate that consumption debts like credit cards and hire purchases are bad debts.
This is for obvious reasons since banks typically charge the highest interest rates to credit cards and personal loans ranging from 12% - 24% p.a.
Debts Incurred for higher potential gains can be good
Debts incurred for loans like education loans however are considered good debt since there’s a good chance that the expected increase in income in future can cover the interest charged.
Business loans, if used prudently can also be a good debt for a company. Let’s take a very simple illustration on how a small business can take advantage of a business loan to generate higher growth.
Example: IMPORTING AND CAPTURING DEMAND
Company A imports product X for $1 and sells it off for $2. Business is growing and it receives 10 orders for product X. However, it has only sufficient capital to fulfill 5 orders. Company A would then take a $5 loan from the Bank, which charges 10% interest for every dollar lend. Company A would still pocket a 90 cents profit per product after accounting for the interest charged by the bank.
USING THE BANK’S MONEY
This is just a simplified example on how companies leverage on financing loans to meet growth and demand, a popular concept also known as using OPM (other people’s money). The bottom line is: As long as the business can generate higher revenue/mark up than the interest charged by the bank, then a business loan would be considered a good debt.
If you can get a bank loan for your business for a viable business model, that would be best. At least you will not have to mortgage your home to get your housing loans to fund your business.
INTEREST EXPENSE CAN BE TAX DEDUCTIBLE
Apart from fuelling revenue, business loans could also be used as a vehicle for tax reduction. The current corporate tax rate in Singapore is at 18% on chargeable income. The market rate for unsecured business loans is around 5%-10%.
So it does make accounting sense for companies to take on a small amount of debt and charge it to the Profil and Loss as finance and interest expenses to shelter their chargeable income/profits. This of course has to be done legally and with the expertise of a qualified accountant/management consultancy, to avoid trouble with IRAS.
Most companies have debt in order to improve returns. Too much debt is not healthy of a company, but so is too little debt. Debt leverage gives the company higher returns and faster growth.
You can also talk to a Standard Chartered Banker about these loans.
Tel: 6100 - 0608
SMS: 9782 - 8606
Wednesday, September 16, 2009
Invest in Singapore Properties: But Novice Singapore Property investors beware of Singapore Property agents
Invest in Singapore Properties: Novice property investors beware of Property agents.
Singapore Property agents cheat HDB Home buyer
Today we watched in horror another Singapore property agent attempts to cheat hdb property buyer. He asked for deposit of $1000 as money for option to purchase but gives the home buyer only an empty option to purchase form that is unsigned. (source: tv channel 8 news, 12 Sep 2009)
Article contributed by www.PropertyBUYER.com.sg (Other authors, if you wish to contribute articles, please contact me)
-----------------------------------------------------------------------------------------------
About Property Buyer Contact Property Buyer for Singapore housing loan
www.PropertyBUYER.com.sg
We are a Research-focused Singapore Mortgage Consultant which helps you compare Singapore Home loans either for new home loans or refinancing, we balance risks versus rewards for each home loan to match your risk profile and financing needs.
Buying property is a serious affair, we do NOT advocate a Greed based buying approach, we emphasize that you need to check your affordability and do your sums right. If you are unsure, we are happy to help you check.
Not Simply Cheap, but what Fits. We Research, You Save!
Tel: 6100 - 0608
SMS: 9782 - 8606
loans@propertyBUYER.com.sg
-----------------------------------------------------------------------------------------------
This is a time to be extremely careful, dishonest property agents in Singapore are out on the loose again. A hot property Market has the same effect as changi prison not locking opening it's gates. Yes, the effect is criminals running amok.
During a hot property market dishonest Singapore property agents run amok. They find many preys as people are generally guided by fear and greed.
FEAR AND GREED ARE DISHONEST PROPERTY AGENT’S BEST FRIEND
Fear that the Property market will run away with hefty price rises! This cuts short the thinking process, things are not thought through in detail.
Greed, in that they want to get in quickly as the market is rising, the can buy and sell at a higher price.
YET ANOTHER TRUE STORY OF DISHONEST SINGAPORE PROPERTY AGENT CHEATING HOME BUYER
Recently around late august, a novice Singapore property investor Miss Yuen came to us to get a Singapore home loan for her studio apartment. She (the property buyer, Miss Yuen) recounted her interesting encounter with a Dishonest Singapore property Agent.
Property Buyer Views clementi property Singapore
She was looking for a 2 bedroom property around 890 sq feet in Clementi. A very professional groomed and pleasant looking Singapore property agent brought her to see the studio. Miss Yuen was very keen with the property, but she had a budget of $580k. The asking price was $650k. The price is quite steep for such a small unit which also happens to be 99 years lease hold too.
Property agent assured investor that UOB can match home loan valuation
The Property agent assured Miss Yuen that banks can match $650k.
She ask us to check the valuation, we came back with a valuation of $550k and the highest valuation we got was $550k.
We told miss Yuen our customer that no matter how we push UOB wouldn't move the valuation more than $560k.
Property Investor doubts our mortgage consulting abilities
Miss Yuen started to doubt www.PropertyBUYER.com.sg Mortgage Consultant’s ability to get the best and highest valuation. She said the Property agent promised her to get bank loan for her to match $650k. Miss Yuen was very tempted to just go ahead to place the 1% deposit for the option to purchase.
Property Investor Miss Yuen gave www.PropertyBUYER.com.sg a chance to check
Miss Yuen was very busy but she still gave us a chance to respond by calling us to verify.
We told her to ask the agent to give the name of the banker who promised $650k valuation so that we can verify the information.
So miss yuen asked the property agent for the name and the contact of the banker. The property agent gave the name and number of the banker without hesitation.
She looked to real and genuine. Miss Yuen was so convinced. She even called us and she said, “I’ll have to go with the agent’s home loan suggestions, her banker can match the valuation.”
We told Miss Yuen, “Why don’t you let us check with the UOB banker to verify the information? And if possible ask the UOB banker to put the valuation confirmation in writing.”
Property buyer Miss Yuen reluctantly agreed to give us a chance to Verify
Miss Yuen was so convinced by the Property agent that she reluctantly let us go and verify it, because she didn't see a need to.
She gave us the number of the UOB banker to call, we called the banker and he told us the valuation was $540k, but that was 3 weeks ago.
We asked the UOB banker, “Didn’t you tell the Property Agent that it was $650k for that particular condominium unit?”
The UOB banker said, “Nope, I never said that. She asked me to match $650k but I told her, sorry, NO WAY! The valuers said NO. I only told her it was $540K.”
www.PropertyBUYER.com.sg, “But the property agent claimed you said, $650k valuation is matched!”
UOB Banker: “Sorry, I did not say that, I said it can match $540k, that is the maximum. I told her no way to match $650k property valuation very clearly.”
We told Miss Yuen that the Valuation cannot match $650k
She asked us, "Are you sure? Agent says her banker can match $650k property valuation."
We asked her to go verify with the banker. If he says can match at $650k, ask for an email to confirm that.
Miss Yuen checks with Dishonest Singapore Property Agent
After this encounter, we asked Miss Yuen to check with the the Singapore property agent how she had known the valuation was $650k?
Miss Yuen, “How did you know that the valuation was $650k? UOB says cannot match valuation.”
Dishonest Property agent: “Did I ever say UOB can match? Sorry I must have made a mistake, it was my colleague who told me.”
Could the Property Agent have made an Honest mistake?
How could she not know the valuation of the property she is marketing?
By now, Miss yuen was fuming. She questioned the property agent and wanted her to explain.
Before the property buyer Miss Yuen could finish, the agent quickly hung up the phone.
Miss Yuen tried to call the property agent back many times, the property agent refused to pick up the call.
Dishonest Singapore Property Agents are Armed with Bank’s application forms at Launches or show rooms
These days, some property agents are armed with the bank’s application forms at the launches. They will try to ask you to sign up and apply for a loan on the spot.
Sometimes, that bank is the only bank that can match an over-priced property, that means if you buy, you are forced to go with 1 package. In the worst case, for some re-sale properties, the prices being asked cannot be matched, that means you will have to pay a CASH-OVER-VALUATION (COV) like in HDB case. That is a lot of extra cash to cough out.
In case you did not budget for this, you will have to let your option to purchase lapse and lose your 1% deposit.
If the property is $600k, you will lose $6000 just like that.
Property agents don’t care, they will still get 50% of the forfeited deposit, plus they can market the property again. If their commission is 1%, selling the property 2 times gives them 1.5% of commission. This is a good deal. If they sell the property three times, they will get (0.5% + 0.5% and 1% on final successful sale). They will get 2 times.
For many dishonest property agents out there, they CHURN the buyers. This is because listings are hard to get, so they don’t care.
Novice property investor must be extra careful. Some Dishonest Singapore property agents look very honest and professional. Be careful of a beautiful or handsome face. And it is sometimes the more experienced property agents that are more dangerous and cunning to deal with. CEHA only does so much to certify them for knowledge, but CEHA cannot guarantee their integrity especially when the agents are engaged in conflicts of interests (both selling and buying activities).
Your loss is Dishonest Singapore property agent’s bonus.
About Property Buyer Contact Property Buyer for Singapore housing loan
www.PropertyBUYER.com.sg
We are a Research-focused Singapore Mortgage Consultant which helps you compare Singapore Home loans either for new home loans or refinancing, we balance risks versus rewards for each home loan to match your risk profile and financing needs.
Buying property is a serious affair, we do NOT advocate a Greed based buying approach, we emphasize that you need to check your affordability and do your sums right. If you are unsure, we are happy to help you check.
Not Simply Cheap, but what Fits. We Research, You Save!
Tel: 6100 - 0608
SMS: 9782 - 8606
loans@propertyBUYER.com.sg
Singapore Property agents cheat HDB Home buyer
Today we watched in horror another Singapore property agent attempts to cheat hdb property buyer. He asked for deposit of $1000 as money for option to purchase but gives the home buyer only an empty option to purchase form that is unsigned. (source: tv channel 8 news, 12 Sep 2009)
Article contributed by www.PropertyBUYER.com.sg (Other authors, if you wish to contribute articles, please contact me)
-----------------------------------------------------------------------------------------------
About Property Buyer Contact Property Buyer for Singapore housing loan
www.PropertyBUYER.com.sg
We are a Research-focused Singapore Mortgage Consultant which helps you compare Singapore Home loans either for new home loans or refinancing, we balance risks versus rewards for each home loan to match your risk profile and financing needs.
Buying property is a serious affair, we do NOT advocate a Greed based buying approach, we emphasize that you need to check your affordability and do your sums right. If you are unsure, we are happy to help you check.
Not Simply Cheap, but what Fits. We Research, You Save!
Tel: 6100 - 0608
SMS: 9782 - 8606
loans@propertyBUYER.com.sg
-----------------------------------------------------------------------------------------------
This is a time to be extremely careful, dishonest property agents in Singapore are out on the loose again. A hot property Market has the same effect as changi prison not locking opening it's gates. Yes, the effect is criminals running amok.
During a hot property market dishonest Singapore property agents run amok. They find many preys as people are generally guided by fear and greed.
FEAR AND GREED ARE DISHONEST PROPERTY AGENT’S BEST FRIEND
Fear that the Property market will run away with hefty price rises! This cuts short the thinking process, things are not thought through in detail.
Greed, in that they want to get in quickly as the market is rising, the can buy and sell at a higher price.
YET ANOTHER TRUE STORY OF DISHONEST SINGAPORE PROPERTY AGENT CHEATING HOME BUYER
Recently around late august, a novice Singapore property investor Miss Yuen came to us to get a Singapore home loan for her studio apartment. She (the property buyer, Miss Yuen) recounted her interesting encounter with a Dishonest Singapore property Agent.
Property Buyer Views clementi property Singapore
She was looking for a 2 bedroom property around 890 sq feet in Clementi. A very professional groomed and pleasant looking Singapore property agent brought her to see the studio. Miss Yuen was very keen with the property, but she had a budget of $580k. The asking price was $650k. The price is quite steep for such a small unit which also happens to be 99 years lease hold too.
Property agent assured investor that UOB can match home loan valuation
The Property agent assured Miss Yuen that banks can match $650k.
She ask us to check the valuation, we came back with a valuation of $550k and the highest valuation we got was $550k.
We told miss Yuen our customer that no matter how we push UOB wouldn't move the valuation more than $560k.
Property Investor doubts our mortgage consulting abilities
Miss Yuen started to doubt www.PropertyBUYER.com.sg Mortgage Consultant’s ability to get the best and highest valuation. She said the Property agent promised her to get bank loan for her to match $650k. Miss Yuen was very tempted to just go ahead to place the 1% deposit for the option to purchase.
Property Investor Miss Yuen gave www.PropertyBUYER.com.sg a chance to check
Miss Yuen was very busy but she still gave us a chance to respond by calling us to verify.
We told her to ask the agent to give the name of the banker who promised $650k valuation so that we can verify the information.
So miss yuen asked the property agent for the name and the contact of the banker. The property agent gave the name and number of the banker without hesitation.
She looked to real and genuine. Miss Yuen was so convinced. She even called us and she said, “I’ll have to go with the agent’s home loan suggestions, her banker can match the valuation.”
We told Miss Yuen, “Why don’t you let us check with the UOB banker to verify the information? And if possible ask the UOB banker to put the valuation confirmation in writing.”
Property buyer Miss Yuen reluctantly agreed to give us a chance to Verify
Miss Yuen was so convinced by the Property agent that she reluctantly let us go and verify it, because she didn't see a need to.
She gave us the number of the UOB banker to call, we called the banker and he told us the valuation was $540k, but that was 3 weeks ago.
We asked the UOB banker, “Didn’t you tell the Property Agent that it was $650k for that particular condominium unit?”
The UOB banker said, “Nope, I never said that. She asked me to match $650k but I told her, sorry, NO WAY! The valuers said NO. I only told her it was $540K.”
www.PropertyBUYER.com.sg, “But the property agent claimed you said, $650k valuation is matched!”
UOB Banker: “Sorry, I did not say that, I said it can match $540k, that is the maximum. I told her no way to match $650k property valuation very clearly.”
We told Miss Yuen that the Valuation cannot match $650k
She asked us, "Are you sure? Agent says her banker can match $650k property valuation."
We asked her to go verify with the banker. If he says can match at $650k, ask for an email to confirm that.
Miss Yuen checks with Dishonest Singapore Property Agent
After this encounter, we asked Miss Yuen to check with the the Singapore property agent how she had known the valuation was $650k?
Miss Yuen, “How did you know that the valuation was $650k? UOB says cannot match valuation.”
Dishonest Property agent: “Did I ever say UOB can match? Sorry I must have made a mistake, it was my colleague who told me.”
Could the Property Agent have made an Honest mistake?
How could she not know the valuation of the property she is marketing?
By now, Miss yuen was fuming. She questioned the property agent and wanted her to explain.
Before the property buyer Miss Yuen could finish, the agent quickly hung up the phone.
Miss Yuen tried to call the property agent back many times, the property agent refused to pick up the call.
Dishonest Singapore Property Agents are Armed with Bank’s application forms at Launches or show rooms
These days, some property agents are armed with the bank’s application forms at the launches. They will try to ask you to sign up and apply for a loan on the spot.
Sometimes, that bank is the only bank that can match an over-priced property, that means if you buy, you are forced to go with 1 package. In the worst case, for some re-sale properties, the prices being asked cannot be matched, that means you will have to pay a CASH-OVER-VALUATION (COV) like in HDB case. That is a lot of extra cash to cough out.
In case you did not budget for this, you will have to let your option to purchase lapse and lose your 1% deposit.
If the property is $600k, you will lose $6000 just like that.
Property agents don’t care, they will still get 50% of the forfeited deposit, plus they can market the property again. If their commission is 1%, selling the property 2 times gives them 1.5% of commission. This is a good deal. If they sell the property three times, they will get (0.5% + 0.5% and 1% on final successful sale). They will get 2 times.
For many dishonest property agents out there, they CHURN the buyers. This is because listings are hard to get, so they don’t care.
Novice property investor must be extra careful. Some Dishonest Singapore property agents look very honest and professional. Be careful of a beautiful or handsome face. And it is sometimes the more experienced property agents that are more dangerous and cunning to deal with. CEHA only does so much to certify them for knowledge, but CEHA cannot guarantee their integrity especially when the agents are engaged in conflicts of interests (both selling and buying activities).
Your loss is Dishonest Singapore property agent’s bonus.
About Property Buyer Contact Property Buyer for Singapore housing loan
www.PropertyBUYER.com.sg
We are a Research-focused Singapore Mortgage Consultant which helps you compare Singapore Home loans either for new home loans or refinancing, we balance risks versus rewards for each home loan to match your risk profile and financing needs.
Buying property is a serious affair, we do NOT advocate a Greed based buying approach, we emphasize that you need to check your affordability and do your sums right. If you are unsure, we are happy to help you check.
Not Simply Cheap, but what Fits. We Research, You Save!
Tel: 6100 - 0608
SMS: 9782 - 8606
loans@propertyBUYER.com.sg
Saturday, September 5, 2009
Invest in Singapore property using CPF
Singapore Property Investor and CPF funds for second property
CPF is abbreviation for Central Providend fund. It is similar to the American 301k plan. CPF funds are supposed to be saved for retirement.
Every Singaporean must contribute 20% of their income into CPF. Therefore Singapore’s CPF has billions of dollars of funds. Singapore property investor and Singapore property buyer also have lots of fund and liquidity, unlike other markets. The Singapore market is more about confidence than about liquidity.
About Property Buyer Contact Property Buyer
www.PropertyBUYER.com.sg
We are a Research-focused Singapore Mortgage Consultant which helps you compare Singapore Home loans either for new home loans or refinancing, we balance risks versus rewards for each home loan to match your risk profile and financing needs.
Buying property is a serious affair, we do NOT advocate a Greed based buying approach, we emphasize that you need to check your affordability and do your sums right. If you are unsure, we are happy to help you check.
Not Simply Cheap, but what Fits. We Research, You Save!
Tel: 6100 - 0608
SMS: 9782 - 8606
loans@propertyBUYER.com.sg
CPF causes you to overpay?
Singapore government likes to get maximum value for its land. If too many people can afford Housing, it is time to raise prices. In other circumstances, we can say it’s market forces or free market as supply and demand are determined by private enterprise. But not in this case.
HDB Government Housing market is Not a free market
But in Singapore’s case, government housing (HDB) is a controlled market, www.propertybuyer.com.sg is often critical of the way some policies are dished out, to the disadvantaged of the Singapore property buyers.
Many people along with us also see the setting of prices as arbitrary, because the government controls much the state land and there is no question of supply, but rather that of demand and affordability. The government can freely control supply to set prices.
CPF funds adds to affordability
Allowing the use of CPF funds for HDB and property in general raises the affordability.
With this new found liquidity, the government can then raise the selling prices of HDB, by putting in more frills and of course enhancing the construction industry producing more value add.
Of course, ultimately the home buyers and the Singapore property investors are the ones that pay for it through sapping up their retirement funds in CPF.
Raising prices of HDB flats is a means to sap liquidity out of the individual’s CPF account into the government coffers through land sales.
Since the Singapore property investor – buyer may have limited cash, the Singapore government allows the use of individual’s CPF funds to pay for their government “subsidized” housing. As a result properties become more and more expensive, effectively becoming an indirect tax.
Coupled with more funds (through the use of CPF) money, plus low interest rate environment, many Singapore banks cannot reduce rates much more rather they start to come out with newer terminology and features. Comparing Singapore Home loan has become much more tedious exercise, it is prudent to engage www.PropertyBUYER.com.sg mortgage consultants to help. They can be contacted at +65-6100-0608.
Refinancing home loan can also be tedious.
Singaporeans have lesser and lesser CPF money for retirement
Singaporeans have lesser and lesser CPF monies left for their retirement as they pay for ever more expensive properties. At some stage, we have to say, “Mr. Government, stop eying our CPF money!!!”
Since so many people are resigned to the fact that they will never really see their CPF money as cash as more and more rules are put in place to tap into their CPF.
Even after retirement age at 55 years, there is the minimum sum that you have to set aside. Currently (as at 2009) the minimum sum is $117,000 for retirement. This is the minimum sum that a person must have in the account. You can only withdraw any CPF funds in excess of the minimum sum upon retirement age.
Many Singaporeans have already given up on hoping to see their CPF money. As a result, many Singaporeans and PR used CPF to buy their second property before 1st July, 2006.
Can I use my CPF to purchase more than one property?
(Source: www.cpf.gov.sg)
Yes, you may use your CPF to purchase more than one property.
However, if you already own a property (HDB flat or private property) bought with your CPF savings and wishes to buy another property with CPF savings from 1 July 2006, you will be able to do so only after setting aside in your Ordinary and Special Accounts (including the amount used for investment from the Special Account) the prevailing Minimum Sum cash component if you are below 55 years, or the Minimum Sum cash component shortfall if you are aged 55 and above.
If you currently own more than one property bought with CPF savings before 1 July 2006, you need not set aside the prevailing Minimum Sum cash component unless you subsequently buy another property using your CPF savings on or after 1 July 2006.
Please note that this is not applicable if you are applying to use your CPF to purchase a second or subsequent property with non-related singles. Non-related singles can only jointly use their CPF to purchase their one and only property (private property or HDB flat).
Your first property can be used as a pledge for half the monies required under the Minimum sum. This means that if you with to use CPF for your second property (as at 2009), you must have at least $58,500 ($117,000 x 50%). Any CPF above $58,500 can be used for your second property.
Is Singapore Market over Leveraged?
Although Singapore is no where near as dangerous as other markets where there are plentiful “no cash down” home loans. With CPF being allowed to make up the 15% down-payment on the purchase price and only 5% is cash down-payment, we at www.PropertyBUYER.com.sg would consider the Singapore market rather leveraged compared to the early say 5 years ago or pre-2000.
The current property boom in 2009 lacks fundamentals (Refer to Property Buyer update July 2009 in the article section of www.PropertyBUYER.com.sg/articles/article.php) as its underpinnings, so it is still hard to say whether sentiments will change the economic fundamentals or economic fundamentals will eventually bring the sentiments back in line.
There are good and bad deals in every property cycle, please exercise your own good judgement.
About Property Buyer Contact Property Buyer
www.PropertyBUYER.com.sg
We are a Research-focused Singapore Mortgage Consultant which helps you compare Singapore Home loans either for new home loans or refinancing, we balance risks versus rewards for each home loan to match your risk profile and financing needs.
Buying property is a serious affair, we do NOT advocate a Greed based buying approach, we emphasize that you need to check your affordability and do your sums right. If you are unsure, we are happy to help you check.
Not Simply Cheap, but what Fits. We Research, You Save!
Tel: 6100 - 0608
SMS: 9782 - 8606
loans@propertyBUYER.com.sg
CPF is abbreviation for Central Providend fund. It is similar to the American 301k plan. CPF funds are supposed to be saved for retirement.
Every Singaporean must contribute 20% of their income into CPF. Therefore Singapore’s CPF has billions of dollars of funds. Singapore property investor and Singapore property buyer also have lots of fund and liquidity, unlike other markets. The Singapore market is more about confidence than about liquidity.
About Property Buyer Contact Property Buyer
www.PropertyBUYER.com.sg
We are a Research-focused Singapore Mortgage Consultant which helps you compare Singapore Home loans either for new home loans or refinancing, we balance risks versus rewards for each home loan to match your risk profile and financing needs.
Buying property is a serious affair, we do NOT advocate a Greed based buying approach, we emphasize that you need to check your affordability and do your sums right. If you are unsure, we are happy to help you check.
Not Simply Cheap, but what Fits. We Research, You Save!
Tel: 6100 - 0608
SMS: 9782 - 8606
loans@propertyBUYER.com.sg
CPF causes you to overpay?
Singapore government likes to get maximum value for its land. If too many people can afford Housing, it is time to raise prices. In other circumstances, we can say it’s market forces or free market as supply and demand are determined by private enterprise. But not in this case.
HDB Government Housing market is Not a free market
But in Singapore’s case, government housing (HDB) is a controlled market, www.propertybuyer.com.sg is often critical of the way some policies are dished out, to the disadvantaged of the Singapore property buyers.
Many people along with us also see the setting of prices as arbitrary, because the government controls much the state land and there is no question of supply, but rather that of demand and affordability. The government can freely control supply to set prices.
CPF funds adds to affordability
Allowing the use of CPF funds for HDB and property in general raises the affordability.
With this new found liquidity, the government can then raise the selling prices of HDB, by putting in more frills and of course enhancing the construction industry producing more value add.
Of course, ultimately the home buyers and the Singapore property investors are the ones that pay for it through sapping up their retirement funds in CPF.
Raising prices of HDB flats is a means to sap liquidity out of the individual’s CPF account into the government coffers through land sales.
Since the Singapore property investor – buyer may have limited cash, the Singapore government allows the use of individual’s CPF funds to pay for their government “subsidized” housing. As a result properties become more and more expensive, effectively becoming an indirect tax.
Coupled with more funds (through the use of CPF) money, plus low interest rate environment, many Singapore banks cannot reduce rates much more rather they start to come out with newer terminology and features. Comparing Singapore Home loan has become much more tedious exercise, it is prudent to engage www.PropertyBUYER.com.sg mortgage consultants to help. They can be contacted at +65-6100-0608.
Refinancing home loan can also be tedious.
Singaporeans have lesser and lesser CPF money for retirement
Singaporeans have lesser and lesser CPF monies left for their retirement as they pay for ever more expensive properties. At some stage, we have to say, “Mr. Government, stop eying our CPF money!!!”
Since so many people are resigned to the fact that they will never really see their CPF money as cash as more and more rules are put in place to tap into their CPF.
Even after retirement age at 55 years, there is the minimum sum that you have to set aside. Currently (as at 2009) the minimum sum is $117,000 for retirement. This is the minimum sum that a person must have in the account. You can only withdraw any CPF funds in excess of the minimum sum upon retirement age.
Many Singaporeans have already given up on hoping to see their CPF money. As a result, many Singaporeans and PR used CPF to buy their second property before 1st July, 2006.
Can I use my CPF to purchase more than one property?
(Source: www.cpf.gov.sg)
Yes, you may use your CPF to purchase more than one property.
However, if you already own a property (HDB flat or private property) bought with your CPF savings and wishes to buy another property with CPF savings from 1 July 2006, you will be able to do so only after setting aside in your Ordinary and Special Accounts (including the amount used for investment from the Special Account) the prevailing Minimum Sum cash component if you are below 55 years, or the Minimum Sum cash component shortfall if you are aged 55 and above.
If you currently own more than one property bought with CPF savings before 1 July 2006, you need not set aside the prevailing Minimum Sum cash component unless you subsequently buy another property using your CPF savings on or after 1 July 2006.
Please note that this is not applicable if you are applying to use your CPF to purchase a second or subsequent property with non-related singles. Non-related singles can only jointly use their CPF to purchase their one and only property (private property or HDB flat).
Your first property can be used as a pledge for half the monies required under the Minimum sum. This means that if you with to use CPF for your second property (as at 2009), you must have at least $58,500 ($117,000 x 50%). Any CPF above $58,500 can be used for your second property.
Is Singapore Market over Leveraged?
Although Singapore is no where near as dangerous as other markets where there are plentiful “no cash down” home loans. With CPF being allowed to make up the 15% down-payment on the purchase price and only 5% is cash down-payment, we at www.PropertyBUYER.com.sg would consider the Singapore market rather leveraged compared to the early say 5 years ago or pre-2000.
The current property boom in 2009 lacks fundamentals (Refer to Property Buyer update July 2009 in the article section of www.PropertyBUYER.com.sg/articles/article.php) as its underpinnings, so it is still hard to say whether sentiments will change the economic fundamentals or economic fundamentals will eventually bring the sentiments back in line.
There are good and bad deals in every property cycle, please exercise your own good judgement.
About Property Buyer Contact Property Buyer
www.PropertyBUYER.com.sg
We are a Research-focused Singapore Mortgage Consultant which helps you compare Singapore Home loans either for new home loans or refinancing, we balance risks versus rewards for each home loan to match your risk profile and financing needs.
Buying property is a serious affair, we do NOT advocate a Greed based buying approach, we emphasize that you need to check your affordability and do your sums right. If you are unsure, we are happy to help you check.
Not Simply Cheap, but what Fits. We Research, You Save!
Tel: 6100 - 0608
SMS: 9782 - 8606
loans@propertyBUYER.com.sg
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