Dishonest Singapore Property agent cooks up SMU story - Article - Property Buyer | Mortgage Consultant | Un-biased Mortgage Advice | Properties for Sale Singapore :: PropertyBuyer.com.sg
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Friday, May 29, 2009
Sunday, May 24, 2009
Singapore Home Loan: Property Affordability
Singapore Home Loan: Property Affordability
Courtesy of www.PropertyBUYER.com.sg
In order to stress test whether you can afford this property, we have worked
out the Monthly installments for Tenure ranging from 10 to 35 years.
It is very easy to over-commit and end up buying a property you will have a
hard time to pay for in subsequent years.
Contact them
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
http://www.propertybuyer.com.sg/contactus.php
Retirement Age from 55 years to 65 years old leads to longer Home
loan tenure
In the past, retirement age is 55 years. That means that if you are 30 years
old, you can only borrow up to 25 years for your home loan.
Since some time ago, Singapore's retirement age has been raised to 65
years old. That makes 35 years tenure Singapore Home Loan possible.
But by having 30 years and 35 years home loan tenures, this also mean that
the monthly installment is reduced.
Easy Financing Inflates Property prices
This makes properties more affordable (From a purchasing stand-point), but
allows properties to become expensive. Property developers can then raise
prices because more people can afford the purchase.
Hence the main beneficiaries are the Property Developers and the
government. Why? Because more people can afford, the property
developers can raise prices. Because the prices are raised, the government
can earn more taxes from development charges and property taxes.
Home Buyers are the Biggest Losers
The biggest losers are home buyers! They can be expected to be CHAINED
to their properties or home loans for 35 years. Let's say this is modern day
slavery. But you have a choice not to be a big loser.
500k Home Loan Scenario
Property Price : $625,000
Interest rates Assumption : 3%
Salary requirement assumption : 2 x Monthly installment
35 years Tenure Home Loans
For a Singapore home loan of 500,000, at 35 years tenure, the monthly
installment is $1,925, this requires a salary of $3,850 to be able to sustain it.
30 Years Tenure Home Loans
For a Singapore Home loan o 500,000 at 30 years tenure, the monthly
installment is $2,110, this requires a salary of $4,220 to be able to sustain it.
Committing to an expensive Home loan Means No savings
As the salary requirement assumption is based on 2x installment, the debt
servicing ratio is already 50%. The other 50% is normally used for costs and
consumption, therefore it is expected that the person will have very little
savings.
A salary of $4,220 per month (single person) is about in line with Singapore
average salary. Assume a joint income of $5,000 per month (both person).
In case any one of the couple becomes unemployed, they will face hardship
in servicing the Home Loan.
There is no way to guarantee anyone stays gainfully employed until 65 years
old. In reality, due to a more dynamic economic environment and global
trade, we can expect to see 3 to 5 major recessions in our working lives.
What this means is that, the age of lifelong employment is no more. Many
people can expect to be retrenched within their working lives and the risks
becomes bigger for those who are in their 40s and 50s, who can become
semi-employed or outright unemployed for years.
What will happen to those people who has taken a 35 year loan when they
are 30 years old and become unemployed when they reach 50 years old?
They still have some 15 years of home loan to pay up.
CPF Withdrawal limit
Not only that, when they hit their CPF withdrawal limit for their properties,
they will need to fork out cash. That will cause more severe distress to
Home owners.
Singapore's mean wage is about $4,000 per month. Lower salaried jobs are
more easily found than certain higher salaried jobs, therefore the is a good
likelihood of finding another job.
800k Home Loan Scenario
Property Price : $1,000,000
Interest rates Assumption : 3%
Salary requirement assumption : 2 x Monthly installment
It is so easy to be emotionally drawn into buying your "DREAM" home. In
this case, you may only need an income of around $7,000. If this $7,000
consists of 2 x $3,500 income, it seems affordable, but a safer salary would
be around $7590 or $8880.
Understanding your Home Loan risks
A higher income and a higher priced property has more risks than a lower
income and lower priced property. The reason is because it is not as easy to
replace one high paying job with another high paying job in the event of a
loss of job.
Of course we are happy if more people come to us to look for home loans.
But we strongly urge you to consider not to buy a property that is more
expensive than what you can safely afford. We emphasize "safely afford",
not simply "afford". What that means is, borrow within your means and do
not get swayed by fanciful property agents or nice property brochures.
www.PropertyBUYER.com.sg is a research-focused mortgage Advisory, we do not emphasize cheap loans, but balances risks versus savings to structure the best fit home loan for individuals. We work with many banks, we receive a fee from the banks when you choose to deal through us, therefore we have decided not to charge for this service. Please the "about us" to know more about us.
Email: loans@propertyBUYER.com.sg
Courtesy of www.PropertyBUYER.com.sg
In order to stress test whether you can afford this property, we have worked
out the Monthly installments for Tenure ranging from 10 to 35 years.
It is very easy to over-commit and end up buying a property you will have a
hard time to pay for in subsequent years.
Contact them
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
http://www.propertybuyer.com.sg/contactus.php
Retirement Age from 55 years to 65 years old leads to longer Home
loan tenure
In the past, retirement age is 55 years. That means that if you are 30 years
old, you can only borrow up to 25 years for your home loan.
Since some time ago, Singapore's retirement age has been raised to 65
years old. That makes 35 years tenure Singapore Home Loan possible.
But by having 30 years and 35 years home loan tenures, this also mean that
the monthly installment is reduced.
Easy Financing Inflates Property prices
This makes properties more affordable (From a purchasing stand-point), but
allows properties to become expensive. Property developers can then raise
prices because more people can afford the purchase.
Hence the main beneficiaries are the Property Developers and the
government. Why? Because more people can afford, the property
developers can raise prices. Because the prices are raised, the government
can earn more taxes from development charges and property taxes.
Home Buyers are the Biggest Losers
The biggest losers are home buyers! They can be expected to be CHAINED
to their properties or home loans for 35 years. Let's say this is modern day
slavery. But you have a choice not to be a big loser.
500k Home Loan Scenario
Property Price : $625,000
Interest rates Assumption : 3%
Salary requirement assumption : 2 x Monthly installment
35 years Tenure Home Loans
For a Singapore home loan of 500,000, at 35 years tenure, the monthly
installment is $1,925, this requires a salary of $3,850 to be able to sustain it.
30 Years Tenure Home Loans
For a Singapore Home loan o 500,000 at 30 years tenure, the monthly
installment is $2,110, this requires a salary of $4,220 to be able to sustain it.
Committing to an expensive Home loan Means No savings
As the salary requirement assumption is based on 2x installment, the debt
servicing ratio is already 50%. The other 50% is normally used for costs and
consumption, therefore it is expected that the person will have very little
savings.
A salary of $4,220 per month (single person) is about in line with Singapore
average salary. Assume a joint income of $5,000 per month (both person).
In case any one of the couple becomes unemployed, they will face hardship
in servicing the Home Loan.
There is no way to guarantee anyone stays gainfully employed until 65 years
old. In reality, due to a more dynamic economic environment and global
trade, we can expect to see 3 to 5 major recessions in our working lives.
What this means is that, the age of lifelong employment is no more. Many
people can expect to be retrenched within their working lives and the risks
becomes bigger for those who are in their 40s and 50s, who can become
semi-employed or outright unemployed for years.
What will happen to those people who has taken a 35 year loan when they
are 30 years old and become unemployed when they reach 50 years old?
They still have some 15 years of home loan to pay up.
CPF Withdrawal limit
Not only that, when they hit their CPF withdrawal limit for their properties,
they will need to fork out cash. That will cause more severe distress to
Home owners.
Singapore's mean wage is about $4,000 per month. Lower salaried jobs are
more easily found than certain higher salaried jobs, therefore the is a good
likelihood of finding another job.
800k Home Loan Scenario
Property Price : $1,000,000
Interest rates Assumption : 3%
Salary requirement assumption : 2 x Monthly installment
It is so easy to be emotionally drawn into buying your "DREAM" home. In
this case, you may only need an income of around $7,000. If this $7,000
consists of 2 x $3,500 income, it seems affordable, but a safer salary would
be around $7590 or $8880.
Understanding your Home Loan risks
A higher income and a higher priced property has more risks than a lower
income and lower priced property. The reason is because it is not as easy to
replace one high paying job with another high paying job in the event of a
loss of job.
Of course we are happy if more people come to us to look for home loans.
But we strongly urge you to consider not to buy a property that is more
expensive than what you can safely afford. We emphasize "safely afford",
not simply "afford". What that means is, borrow within your means and do
not get swayed by fanciful property agents or nice property brochures.
www.PropertyBUYER.com.sg is a research-focused mortgage Advisory, we do not emphasize cheap loans, but balances risks versus savings to structure the best fit home loan for individuals. We work with many banks, we receive a fee from the banks when you choose to deal through us, therefore we have decided not to charge for this service. Please the "about us" to know more about us.
Email: loans@propertyBUYER.com.sg
Wednesday, May 20, 2009
Invest in Singapore Property: Singapore Property Stamp Duty
Invest in Singapore Property: Singapore Property Stamp Duty
Courtesy of http://www.PropertyBUYER.com.sg
http://www.propertybuyer.com.sg/viewnews.php?article=105
ABOUT US Contact us
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
http://www.propertybuyer.com.sg/contactus.php
Stamp duty for Property Purchase for Singapore Properties
Conveyance: Purchase Price or Market Value, whichever is higher
For the First $180,000 - 1% = $1,800
For the next $180,000 - 2% = $3,600
Thereafter, - 3%
Before you even consider a property or a Home loan mortgage, you should
first assess whether you can afford a property.
If the property is valued at or transacted at $1,000,000, your stamp duty will
be: -
For the First $180,000 - 1% = $ 1,800
For the next $180,000 - 2% = $ 3,600
For the next $ 640,000 - 3% = $19,200
The Stamp duty = $24,600
If you are able to get a 90% loan to a property valuation, you will need 10%
downpayment, plus roughly 3% for Stamp duty.
For a 90% loan to valuation, for a $1,000,000 property, you will need to
standby for downpayment: -
* $124,600
This is the minimum amount required.
Problems with 90% Loan to valuation
Since 90% loans become available, this affordability has led to property
becoming more affordable. But due to this affordability, it has created an
increased number of people being able to afford Private properties. On top
of that, banks are increasing their number of years of loan tenure from 20 to
25 to 30 and even 35 or 40 years in some cases.
This has the effect of reducing the monthly installment, leading to more
people chasing after properties and eventually elevated property prices.
We are very worried about this development. The false sense of affordability
will surely come back to haunt the person or the Singapore economy when
they hit their CPF withdrawal limits.
We will talk about that in the next article.
www.PropertyBUYER.com.sg is a Research-Focused Mortgage Advisory that do NOT emphasize Cheap rates, but balance risks versus possible savings and structure the best fit mortgage packages based on the Home Owner's personal circumstances. On top of that, we help buyers check the property valuations and recommend a safe bid price for their properties and help them in getting a Home Loan approved-in-principle before they go into a property price negotiation and before they pay a 1% option to purchase.
Contact us
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
Contact us
http://www.propertybuyer.com.sg/contactus.php
Read More articles
http://www.propertyBUYER.com.sg/articlesnews.php
Courtesy of http://www.PropertyBUYER.com.sg
http://www.propertybuyer.com.sg/viewnews.php?article=105
ABOUT US Contact us
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
http://www.propertybuyer.com.sg/contactus.php
Stamp duty for Property Purchase for Singapore Properties
Conveyance: Purchase Price or Market Value, whichever is higher
For the First $180,000 - 1% = $1,800
For the next $180,000 - 2% = $3,600
Thereafter, - 3%
Before you even consider a property or a Home loan mortgage, you should
first assess whether you can afford a property.
If the property is valued at or transacted at $1,000,000, your stamp duty will
be: -
For the First $180,000 - 1% = $ 1,800
For the next $180,000 - 2% = $ 3,600
For the next $ 640,000 - 3% = $19,200
The Stamp duty = $24,600
If you are able to get a 90% loan to a property valuation, you will need 10%
downpayment, plus roughly 3% for Stamp duty.
For a 90% loan to valuation, for a $1,000,000 property, you will need to
standby for downpayment: -
* $124,600
This is the minimum amount required.
Problems with 90% Loan to valuation
Since 90% loans become available, this affordability has led to property
becoming more affordable. But due to this affordability, it has created an
increased number of people being able to afford Private properties. On top
of that, banks are increasing their number of years of loan tenure from 20 to
25 to 30 and even 35 or 40 years in some cases.
This has the effect of reducing the monthly installment, leading to more
people chasing after properties and eventually elevated property prices.
We are very worried about this development. The false sense of affordability
will surely come back to haunt the person or the Singapore economy when
they hit their CPF withdrawal limits.
We will talk about that in the next article.
www.PropertyBUYER.com.sg is a Research-Focused Mortgage Advisory that do NOT emphasize Cheap rates, but balance risks versus possible savings and structure the best fit mortgage packages based on the Home Owner's personal circumstances. On top of that, we help buyers check the property valuations and recommend a safe bid price for their properties and help them in getting a Home Loan approved-in-principle before they go into a property price negotiation and before they pay a 1% option to purchase.
Contact us
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
Contact us
http://www.propertybuyer.com.sg/contactus.php
Read More articles
http://www.propertyBUYER.com.sg/articlesnews.php
Sunday, May 17, 2009
HDB Loan: Pay down your HDB loan slowly
HDB Loan: Pay down your HDB loan slowly
Article Contributed by www.PropertyBUYER.com.sg
Tel : 6100 0608
SMS : 9782 8606
Email : loans@propertyBUYER.com.sg
Contact us : http://www.PropertyBUYER.com.sg/contactus.php
In the recent months, we have come across many individuals calling us up trying to get cash out of their HDB homes.
This person, let's call him Mr. Tan. He bought a HDB property for $400,000. The HDB property is worth $450,000 he reckons.
Bought at :$400,000
Current estimated value :$450,000
CPF/HDB interest rate :2.6%
The outstanding loan size :$120,000
PAYING DOWN YOUR HDB LOAN?
Just 2 years ago, Mr. Tan used $50,000 from his CPF to reduce the outstanding loan amount. This wiped out his entire CFP ordinary account savings.
Mr. Tan's home loan installment is ~$1000 a month. $500 each him and $500 from his wife.
However Mr. Tan recently lost his job and his CPF has totally run out. This leaves him having to pay $500 cash for his HDB flat.
Mr. Tan came to enquire with us. He would like to refinance his HDB and get CASH OUT.
Since his house is only owing very little. Assuming that the price is $450,000 with a debt of $120,000, the equity in the HDB flat should be $330,000.
That was what Mr. Tan thought. He needed some cash to tide him over the financial crisis.
HDB flats have NO (ZERO) Equity for Term Loan
What many people forget is that HDB flats have no equity in the refinance market. Under current HDB rules, banks cannot give term loans to HDB flats.
DEBT is BAD???
For those people on HDB preferential loan of 2.6%, DEBT is not a bad thing. If they took their time to pay for the installment, the cash held in ordinary account would be earning 2.5% while the debt is payable at 2.6%. This represents a very small spread of 0.1%. This is hardly anything. For $100,000 this is just $100 dollars.
Of course if the couple had the money, they should pay off the debt so that it is cheaper in the long run. (even though it is very marginal)
In this case, DEBT is not a bad thing. Debt is better than having no food on the table.
What Should Mr. Tan have done? (If he met us earlier)
We would have advised Mr. TAN not to use his $50,000 from CPF ordinary account to pay down his loan. Sure, the extra 0.1% cost (pay 2.6% while earning 2.5% interest) would cost him roughly $50 a year. But that is a very small price to pay, it is similar to buying insurance.
With CPF savings of $50,000, Mr. Tan should have kept at least $12,000 from his CPF ordinary account to stand-by for at least 12 months worth of HDB installment/repayment.
This way, in case he did not have an income, at least he does not need to fork out more money to maintain the house.
Unfortunately we cannot help him this time and we are saddened by this and the several incidents that came before Mr. Tan.
In case you are in Mr. Tan's position, even when you still have a job, we see no rush in paying back your HDB loan in double quick time and paint yourself into a corner.
If you haven't done it yet, we strongly encourage you to give yourself some breathing room of at least 12 to 24 months. Keep 24 months worth of HDB repayment in your CPF ordinary account in case of emergency.
REFER a FRIEND TO US
Contact us : 6100 0608
SMS : 9782 8606
Email : loans@propertybuyer.com.sg
http://www.PropertyBUYER.com.sg/contactus.php
Article Contributed by www.PropertyBUYER.com.sg
Tel : 6100 0608
SMS : 9782 8606
Email : loans@propertyBUYER.com.sg
Contact us : http://www.PropertyBUYER.com.sg/contactus.php
In the recent months, we have come across many individuals calling us up trying to get cash out of their HDB homes.
This person, let's call him Mr. Tan. He bought a HDB property for $400,000. The HDB property is worth $450,000 he reckons.
Bought at :$400,000
Current estimated value :$450,000
CPF/HDB interest rate :2.6%
The outstanding loan size :$120,000
PAYING DOWN YOUR HDB LOAN?
Just 2 years ago, Mr. Tan used $50,000 from his CPF to reduce the outstanding loan amount. This wiped out his entire CFP ordinary account savings.
Mr. Tan's home loan installment is ~$1000 a month. $500 each him and $500 from his wife.
However Mr. Tan recently lost his job and his CPF has totally run out. This leaves him having to pay $500 cash for his HDB flat.
Mr. Tan came to enquire with us. He would like to refinance his HDB and get CASH OUT.
Since his house is only owing very little. Assuming that the price is $450,000 with a debt of $120,000, the equity in the HDB flat should be $330,000.
That was what Mr. Tan thought. He needed some cash to tide him over the financial crisis.
HDB flats have NO (ZERO) Equity for Term Loan
What many people forget is that HDB flats have no equity in the refinance market. Under current HDB rules, banks cannot give term loans to HDB flats.
DEBT is BAD???
For those people on HDB preferential loan of 2.6%, DEBT is not a bad thing. If they took their time to pay for the installment, the cash held in ordinary account would be earning 2.5% while the debt is payable at 2.6%. This represents a very small spread of 0.1%. This is hardly anything. For $100,000 this is just $100 dollars.
Of course if the couple had the money, they should pay off the debt so that it is cheaper in the long run. (even though it is very marginal)
In this case, DEBT is not a bad thing. Debt is better than having no food on the table.
What Should Mr. Tan have done? (If he met us earlier)
We would have advised Mr. TAN not to use his $50,000 from CPF ordinary account to pay down his loan. Sure, the extra 0.1% cost (pay 2.6% while earning 2.5% interest) would cost him roughly $50 a year. But that is a very small price to pay, it is similar to buying insurance.
With CPF savings of $50,000, Mr. Tan should have kept at least $12,000 from his CPF ordinary account to stand-by for at least 12 months worth of HDB installment/repayment.
This way, in case he did not have an income, at least he does not need to fork out more money to maintain the house.
Unfortunately we cannot help him this time and we are saddened by this and the several incidents that came before Mr. Tan.
In case you are in Mr. Tan's position, even when you still have a job, we see no rush in paying back your HDB loan in double quick time and paint yourself into a corner.
If you haven't done it yet, we strongly encourage you to give yourself some breathing room of at least 12 to 24 months. Keep 24 months worth of HDB repayment in your CPF ordinary account in case of emergency.
REFER a FRIEND TO US
Contact us : 6100 0608
SMS : 9782 8606
Email : loans@propertybuyer.com.sg
http://www.PropertyBUYER.com.sg/contactus.php
Friday, May 15, 2009
Invest in Singapore Property: Jurong Lake District
Invest Singaore, Invest in Singapore's Own Lake District
Courtesy of http://www.PropertyBUYER.com.sg/articlesnews.php
"...National Development Minister Mah Bow Tan yesterday unveiled a vision for a revamped Jurong, starting with a new name: the Jurong Lake District.
The ambitious plan, to be implemented over the next 10 to 15 years, involves building new waterways, 1,000 private homes, 2,800 hotel rooms and adding 750,000 sq m of office and retail space.
The Jurong Lake District, which at 360ha is the size of Marina Bay, will consist of two precincts.
One is the 70ha Jurong Gateway, which will boast swanky new offices, condos and entertainment features, including an Olympic-size ice-skating rink, all set around Jurong East MRT station.
The other is Lakeside, which is being targeted as a hang-out for young families.
It will feature a bold new science centre, tourist attractions and parks complemented by water activities, all set around the Chinese Garden and Lakeside MRT stations.
Mr Mah told a 500-strong audience at an Urban Redevelopment Authority (URA) seminar yesterday that many Singaporeans saw Jurong as a suburban residential and industrial area 'located far away from the city centre'.
But he described it as a 'gem', with compelling reasons singling it out for redevelopment. It is near established towns, with a large labour force and a population catchment of more than one million residents...."
Source: Channel News Asia
http://www.channelnewsasia.com/stories/singaporelocalnews/view/339270/1/.html
Should we buy into the Jurong Lake District Dream?
For those of you who have been to the UK Lake District, you will know that
Singapore's Jurong Lake District will never match up. The air, the breeze
and even the rustle in the wind is different, not to mention the clean air free
of industrial pollutant.
And the above is the BEST CASE scenario assuming the beautiful scenario
comes true.
Will Jurong Lake District become reality?
Do you remember Minister Mah Bow Tan wanted Singapore to qualify for
World Cup in 2010? It's 2009, what do we have to show for it?
Remember what happened to Punggol 21?
http://www.mrbrownshow.com/2007/09/21/the-mrbrown-show-punggol-21-plus-plus/
Do you remember what happened to Punggol 21? The hype, the excitement
and the promise! So many people bought into the dream of a leisurely and
riverside lifestyle. They ended up buying into expensive HDB units which
were half occupied.
The place was so deserted that there were hardly any amenities and facilities. It took a good 10+ years and yet the promise is still not fulfilled.
Singapore's very own Lake District
Any chance of Jurong Lake District happening? We suspect the only people
laughing all the way to the bank are the developers who timed their property
launches after the government announces this publicity campaign.
The government's track record of fulfilling plans such as Punggol 21 and sengkang new town is not compelling. There were a lot of promises.
The industrial parks and the factories are not about to move out of Jurong
any time soon, pollution is still a problem. Although there are some logistics
park and some business parks, building houses around 2 lakes is hardly a dream, much less a beautiful dream.
Even if all the commercial activities do take off, we doubt the place will be a
truly enjoyable living experience as it will be over crowded. (You only need to
take a MRT ride to Boon Lay to experience it today).
Should you pay for your Home at an inflated price?
We would not hold our breath for Jurong Lake District, until more plans and
concrete action becomes available. Not more nice plans and announcements!!!
Should you hold your breath for it? It's up to you, if you already like the place
even before the hype, by all means go for it. But if you are buying into the
hype, we suggest you have at least 10 to 20 years of holding power.
Or you can wait for the Singapore government to cook up another beautiful scenario
and remember to OFF LOAD your property at that time. During this time, the
rental in Jurong is uncertain at best.
This means you should avoid 99 years lease hold properties, because
capital values of 99 years properties do not hold so well when the number of
years remaining on the lease is shorter.
About www.PropertyBUYER.com.sg
www.PropertyBUYER.com.sg is a research-focused mortgage Advisory that do NOT simply emphasize cheap rates but rather what works best for the individual based on his/her circumstances to structure a balanced Risk versus Benefit home loan or refinancing package. The service is Free to you as banks pay them directly as banks save on staffing cost.
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
Contact us
http://www.propertybuyer.com.sg/contactus.php
Read More articles
http://www.propertyBUYER.com.sg/articlesnews.php
Refinance and Mortgages DIY steps
http://www.squidoo.com/Singapore-homeloan
Courtesy of http://www.PropertyBUYER.com.sg/articlesnews.php
"...National Development Minister Mah Bow Tan yesterday unveiled a vision for a revamped Jurong, starting with a new name: the Jurong Lake District.
The ambitious plan, to be implemented over the next 10 to 15 years, involves building new waterways, 1,000 private homes, 2,800 hotel rooms and adding 750,000 sq m of office and retail space.
The Jurong Lake District, which at 360ha is the size of Marina Bay, will consist of two precincts.
One is the 70ha Jurong Gateway, which will boast swanky new offices, condos and entertainment features, including an Olympic-size ice-skating rink, all set around Jurong East MRT station.
The other is Lakeside, which is being targeted as a hang-out for young families.
It will feature a bold new science centre, tourist attractions and parks complemented by water activities, all set around the Chinese Garden and Lakeside MRT stations.
Mr Mah told a 500-strong audience at an Urban Redevelopment Authority (URA) seminar yesterday that many Singaporeans saw Jurong as a suburban residential and industrial area 'located far away from the city centre'.
But he described it as a 'gem', with compelling reasons singling it out for redevelopment. It is near established towns, with a large labour force and a population catchment of more than one million residents...."
Source: Channel News Asia
http://www.channelnewsasia.com/stories/singaporelocalnews/view/339270/1/.html
Should we buy into the Jurong Lake District Dream?
For those of you who have been to the UK Lake District, you will know that
Singapore's Jurong Lake District will never match up. The air, the breeze
and even the rustle in the wind is different, not to mention the clean air free
of industrial pollutant.
And the above is the BEST CASE scenario assuming the beautiful scenario
comes true.
Will Jurong Lake District become reality?
Do you remember Minister Mah Bow Tan wanted Singapore to qualify for
World Cup in 2010? It's 2009, what do we have to show for it?
Remember what happened to Punggol 21?
http://www.mrbrownshow.com/2007/09/21/the-mrbrown-show-punggol-21-plus-plus/
Do you remember what happened to Punggol 21? The hype, the excitement
and the promise! So many people bought into the dream of a leisurely and
riverside lifestyle. They ended up buying into expensive HDB units which
were half occupied.
The place was so deserted that there were hardly any amenities and facilities. It took a good 10+ years and yet the promise is still not fulfilled.
Singapore's very own Lake District
Any chance of Jurong Lake District happening? We suspect the only people
laughing all the way to the bank are the developers who timed their property
launches after the government announces this publicity campaign.
The government's track record of fulfilling plans such as Punggol 21 and sengkang new town is not compelling. There were a lot of promises.
The industrial parks and the factories are not about to move out of Jurong
any time soon, pollution is still a problem. Although there are some logistics
park and some business parks, building houses around 2 lakes is hardly a dream, much less a beautiful dream.
Even if all the commercial activities do take off, we doubt the place will be a
truly enjoyable living experience as it will be over crowded. (You only need to
take a MRT ride to Boon Lay to experience it today).
Should you pay for your Home at an inflated price?
We would not hold our breath for Jurong Lake District, until more plans and
concrete action becomes available. Not more nice plans and announcements!!!
Should you hold your breath for it? It's up to you, if you already like the place
even before the hype, by all means go for it. But if you are buying into the
hype, we suggest you have at least 10 to 20 years of holding power.
Or you can wait for the Singapore government to cook up another beautiful scenario
and remember to OFF LOAD your property at that time. During this time, the
rental in Jurong is uncertain at best.
This means you should avoid 99 years lease hold properties, because
capital values of 99 years properties do not hold so well when the number of
years remaining on the lease is shorter.
About www.PropertyBUYER.com.sg
www.PropertyBUYER.com.sg is a research-focused mortgage Advisory that do NOT simply emphasize cheap rates but rather what works best for the individual based on his/her circumstances to structure a balanced Risk versus Benefit home loan or refinancing package. The service is Free to you as banks pay them directly as banks save on staffing cost.
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
Contact us
http://www.propertybuyer.com.sg/contactus.php
Read More articles
http://www.propertyBUYER.com.sg/articlesnews.php
Refinance and Mortgages DIY steps
http://www.squidoo.com/Singapore-homeloan
Saturday, May 9, 2009
Invest in Singapore: Protect your Credit Report
Investment, Invest in Singapore: Protect your credit report
Courtesy of www.PropertyBUYER.com.sg
Email: loans@propertyBUYER.com.sg
http://www.propertybuyer.com.sg/contactus.php
Singapore Home Loan and Investment in Singapore: Everyone claims to be experts
In Singapore, getting a home loan can sometimes be tricky. Considering that
there are many banks competing for your attention. Not only that, there are
also property agents and others claiming to be Mortgage specialist. Are they
really experts? You decide.
What happens when you make a bank loan application
Whenever a mortgage broker or a banker lodges your application, the
bank's Credit department will submit an enquiry to the Credit bureau about
you. The Credit Bureau Singapore will lodge a record in your file. The file
builds up over the years. This record is not erased. (See picture below, the
number of times an enquiry is made is filed in the credit report)
Invest in Singapore: Protect Your Credit Report
What do banks think about multiple consecutive enquiries?
Each bank have their in-house risk management team to assess the risk of
lending to an individual. For example, if a person has defaulted on his/her
loan before, and this is followed by many enquiries by banks, the
subsequent bank's suspicions may be raised about the person.
Even if the person have not defaulted before, many attempts to borrow from
personal loans or many attempts to obtain home loan may result in many
enquiries.
Are Credit "Enquiries" necessarily Bad?
Credit enquiries are neutral in nature. However excessive credit enquiries on
a single individual by banks or financial institutions can be an indication of
distress or recognised as such by some lenders. Excessive "Enquiries"
coupled by a past history of one single default (even in the distant past),
may just be enough to discourage lenders to lend you.
Will if impact my chances of getting a bank Home Loan approved?
If the enquiries are consecutive, the property Buyer or home loan borrower
may jeopardize their subsequent chances of obtaining a loan with another
bank. We, we certainly think that excessive enquiries can impact the
chances of a home loan being approved.
Each enquiry made is being logged.
We are a research-focused Mortgage advisory, we do not emphasize cheap
loans, but rather what best fits your financial situation to structure the best fit
home loans based on risk-versus-savings.
HOW Does www.PropertyBuyer.com.sg minimize the "enquiries" being
lodged to a person's Credit Report?
We work closely with the banks. After obtaining your financial information,
we cross check with the banks on your likely success rates before we submit
your completed bank loan application form to the banks.
This way, your Credit report will not have too many enquiries being logged
and you will therefore likely have a better credit rating.
Then we will sort out which banks offer you the best home loan features or
structure that gives you that financial flexibility and protection.
Our approach of NOT emphasizing cheap loans has cost us dearly in terms
of revenues as we do NOT push our clients into cheap loans to close a deal.
Many times when we felt that the valuation is unjustified for a property, we
will also inform our client and advise them of the possible risks. Thankfully,
our "lost clients" have been very generous in their referrals of their friends
and family to us. This has helped us maintain our operations.
If you feel that you have truly benefited from our articles or service, we kindly
request that you bookmark us in your "facebook" or refer your friends and
family to us.
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
Contact us
http://www.propertybuyer.com.sg/contactus.php
Read More articles
http://www.propertyBUYER.com.sg/articlesnews.php
Understand Property Investing and Sub-prime
http://astore.amazon.com/httpwwwpro0ad-20?%5Fencoding=UTF8&node=55
Refinance and Mortgages DIY steps
http://www.squidoo.com/Singapore-homeloan
Courtesy of www.PropertyBUYER.com.sg
Email: loans@propertyBUYER.com.sg
http://www.propertybuyer.com.sg/contactus.php
Singapore Home Loan and Investment in Singapore: Everyone claims to be experts
In Singapore, getting a home loan can sometimes be tricky. Considering that
there are many banks competing for your attention. Not only that, there are
also property agents and others claiming to be Mortgage specialist. Are they
really experts? You decide.
What happens when you make a bank loan application
Whenever a mortgage broker or a banker lodges your application, the
bank's Credit department will submit an enquiry to the Credit bureau about
you. The Credit Bureau Singapore will lodge a record in your file. The file
builds up over the years. This record is not erased. (See picture below, the
number of times an enquiry is made is filed in the credit report)
Invest in Singapore: Protect Your Credit Report
What do banks think about multiple consecutive enquiries?
Each bank have their in-house risk management team to assess the risk of
lending to an individual. For example, if a person has defaulted on his/her
loan before, and this is followed by many enquiries by banks, the
subsequent bank's suspicions may be raised about the person.
Even if the person have not defaulted before, many attempts to borrow from
personal loans or many attempts to obtain home loan may result in many
enquiries.
Are Credit "Enquiries" necessarily Bad?
Credit enquiries are neutral in nature. However excessive credit enquiries on
a single individual by banks or financial institutions can be an indication of
distress or recognised as such by some lenders. Excessive "Enquiries"
coupled by a past history of one single default (even in the distant past),
may just be enough to discourage lenders to lend you.
Will if impact my chances of getting a bank Home Loan approved?
If the enquiries are consecutive, the property Buyer or home loan borrower
may jeopardize their subsequent chances of obtaining a loan with another
bank. We, we certainly think that excessive enquiries can impact the
chances of a home loan being approved.
Each enquiry made is being logged.
We are a research-focused Mortgage advisory, we do not emphasize cheap
loans, but rather what best fits your financial situation to structure the best fit
home loans based on risk-versus-savings.
HOW Does www.PropertyBuyer.com.sg minimize the "enquiries" being
lodged to a person's Credit Report?
We work closely with the banks. After obtaining your financial information,
we cross check with the banks on your likely success rates before we submit
your completed bank loan application form to the banks.
This way, your Credit report will not have too many enquiries being logged
and you will therefore likely have a better credit rating.
Then we will sort out which banks offer you the best home loan features or
structure that gives you that financial flexibility and protection.
Our approach of NOT emphasizing cheap loans has cost us dearly in terms
of revenues as we do NOT push our clients into cheap loans to close a deal.
Many times when we felt that the valuation is unjustified for a property, we
will also inform our client and advise them of the possible risks. Thankfully,
our "lost clients" have been very generous in their referrals of their friends
and family to us. This has helped us maintain our operations.
If you feel that you have truly benefited from our articles or service, we kindly
request that you bookmark us in your "facebook" or refer your friends and
family to us.
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
Contact us
http://www.propertybuyer.com.sg/contactus.php
Read More articles
http://www.propertyBUYER.com.sg/articlesnews.php
Understand Property Investing and Sub-prime
http://astore.amazon.com/httpwwwpro0ad-20?%5Fencoding=UTF8&node=55
Refinance and Mortgages DIY steps
http://www.squidoo.com/Singapore-homeloan
Wednesday, May 6, 2009
Invest in Singapore: Bernanke says Credit easing while job losses continue to get worse
Invest in Singapore: Bernanke says credit is easing.
The unemployment rate will continue to get worse and more jobs will be lost. However Credit is easing. Companies are running down their inventory. Increased in production activity may resume towards the end of this year as inventories need to be replenished.
Interest rates are near ZERO, though not all may benefit from these low interest rates. US Consumer income continue to drop. Last month consumer income shrank some US$29 billion.
Even after GDP picks up, there will still be considerable slack in the economy in that there is likely to be economic growth without significant net job additions, until such time that the economy is back on a firm footing.
The unemployment rate will continue to get worse and more jobs will be lost. However Credit is easing. Companies are running down their inventory. Increased in production activity may resume towards the end of this year as inventories need to be replenished.
Interest rates are near ZERO, though not all may benefit from these low interest rates. US Consumer income continue to drop. Last month consumer income shrank some US$29 billion.
Even after GDP picks up, there will still be considerable slack in the economy in that there is likely to be economic growth without significant net job additions, until such time that the economy is back on a firm footing.
Monday, May 4, 2009
Singapore Home Loan and US Home loans
Joseph Stiglitz says it. Tax cuts are too big and too ineffective, but that is part of the political process. Republicans want tax cuts to please the people that finance their election campaign. Stimulus packages are too small given that Republicans hijacked a large part of the funds for tax cuts.
Given that so many people are now out of work, the key to prevent property valuations falling and make the economic situation worse is to help home owners.
Only when US gets well can Singapore recover.
Singapore could do with banks helping out Home owners in default or going into default with their home loans. This will help the market recover faster. Banks do have some responsibility regarding getting people into this current situation in the first place by lending money to people who otherwise wouldn't qualify for the home loans. Banks should ease credit and only to tighten in the next cycle of upswing.
Invest in Singapore Properties: Credit may be easing
A recent interview with Warren Buffet, he thinks the credit crisis is largely under control. Though there is no free lunch, massive stimulus injected now may have consequences of massive inflation down the road, but Buffet felt that what the US administration did now is correct, because it "pulled the economy out of the quick sand".
Friday, May 1, 2009
Invest in Singapore Properties: Protect yourselves from Rogue Dishonest agents
Singapore Property Investor: Protect yourselves from Rogue Dishonest agents
Courtesy of www.PropertyBUYER.com.sg
Contact them
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
http://www.propertybuyer.com.sg/contactus.php
In an article by Straits Times, April 8, 2009.
"Eric Heng Jit Siang (left) conned 127 people, mainly foreigners and permanent residents...
Heng would pose as the owner of a property seeking to rent it out, milking the tenant for a deposit on the rent, and then pulling a disappearing act.
Using both landed properties and flats he had rented, the 33-year-old conned over $242,500 in rental deposits between last April and January out of 127 people.
The court heard that he rented 10 properties across Singapore, got hold of the keys and then placed advertisements in newspapers and in train stations seeking tenants.
When people responded to his advertisements, he posed as the owner of these properties and arranged to show them the units.
When the tenancy agreement was signed - and each unit was 'rented' out to more than one house-hunter - he collected money from each of them as a deposit on the rent or the utility bill."
(Source: The Straits Times, "http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_361167.html, Esther Tan")
HOW SOME SINGAPORE PROPERTY AGENTS BEHAVE
When you go to an agent, he/she brings you to see a property. He/she
always emphasize "Bring your cheque book". This is because in the heat of
the moment, sometimes you can get influenced into making a rash decision.
A rash decision is what an agent wants. Because no matter the house is
sold or not, he/she still gets his/her commission, while if you do not proceed,
you forfeit your Option to purchase deposit of 1% of the House price.
You can pay for a property that is NOT worth that much and eventually the
bank will not loan you the full amount you want to borrow or worse, you get
cheated.
Agents always tell you, it's best for them to negotiate on your behalf. Many times,
this is the worst scenario. We will talk about that in the next article.
PLACING AN OPTION TO PURCHASE
Usually the agent will ask you to place the cheque first for an amount.
But the agent did NOT get an agreement from the seller to sell at the
particular price. The agent will then use this cheque to dangle in front of the
seller inducing him/her to sell.
WHAT IS THE PROBLEM WITH GIVING A CHEQUE?
Usually, the agent will take your cheque without asking you to sign the
Option to purchase agreement.
There is No verification of who you are writing the cheque to.
If the property is $1m, 1% = $10,000.
Giving a cheque without proper verification is like passing someone your 1
CARAT Diamond ring without checking his identity.
In case the agent asks you to write to an "Imaginery owner" of the property
which is his/her friend, the agent can cash your cheque and run if he is
crooked.
Even if the agent is not crooked, giving your cheque without proper Identity
verification of the related parties is fraught with risks.
You Could consider the following Precautions: -
* Check NRIC: Of the agent
* Check NRIC of the property owner - With documents showing he/she
is indeed the owner of the property.
* Check through the Option to Purchase agreement for unfavourable
terms. (These contracts are usually worded to favour the
agent/agency, but you can negotiate to CHANGE them)
* Make sure that the owner gives you a photo-stated NRIC together with
documents stating ownership, i.e. a Bank Loan statement showing
his/her name on the loan as owner.
* Make sure that the Option to Purchase is duly signed by the Property
owner and DATED (Don't leave the DATE empty).
* If you have to give a cheque, post date it by a few days, so in case you
want to change your mind, you can quickly stop payment.
Even all these won't stop a rogue agent or a rogue Homeowner selling his
home multiple times to multiple buyers, but at least you have a slightly better
level of protection. Because at least you are sure you are dealing with the
Property Owner.
www.PropertyBUYER.com.sg is a research focused Mortgage Advisory that do not emphasize cheap loans. We balance risks with savings based on the individual's financial situation to find the best fit Home Loan.
Not only that, we help to make sure of the following: -
* Buyer is buying at the right price (we check multiple valuations to give a safe price)
* Because all these work takes a lot of time, if you commit to get your loan through us, we can
help you to check recent transaction around that block, or the particular unit's transaction
and price history.
* We can check and verify PROPERTY Seller details.
* When bank's letter of offer is given, we can check to verify the contract
details and make sure that it is as agreed.
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
Contact us
http://www.propertybuyer.com.sg/contactus.php
Read More articles
http://www.propertyBUYER.com.sg/articlesnews.php
Understand Property Investing and Sub-prime
http://astore.amazon.com/httpwwwpro0ad-20?%5Fencoding=UTF8&node=55
Refinance and Mortgages DIY steps
http://www.squidoo.com/Singapore-homeloan
Courtesy of www.PropertyBUYER.com.sg
Contact them
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
http://www.propertybuyer.com.sg/contactus.php
In an article by Straits Times, April 8, 2009.
"Eric Heng Jit Siang (left) conned 127 people, mainly foreigners and permanent residents...
Heng would pose as the owner of a property seeking to rent it out, milking the tenant for a deposit on the rent, and then pulling a disappearing act.
Using both landed properties and flats he had rented, the 33-year-old conned over $242,500 in rental deposits between last April and January out of 127 people.
The court heard that he rented 10 properties across Singapore, got hold of the keys and then placed advertisements in newspapers and in train stations seeking tenants.
When people responded to his advertisements, he posed as the owner of these properties and arranged to show them the units.
When the tenancy agreement was signed - and each unit was 'rented' out to more than one house-hunter - he collected money from each of them as a deposit on the rent or the utility bill."
(Source: The Straits Times, "http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_361167.html, Esther Tan")
HOW SOME SINGAPORE PROPERTY AGENTS BEHAVE
When you go to an agent, he/she brings you to see a property. He/she
always emphasize "Bring your cheque book". This is because in the heat of
the moment, sometimes you can get influenced into making a rash decision.
A rash decision is what an agent wants. Because no matter the house is
sold or not, he/she still gets his/her commission, while if you do not proceed,
you forfeit your Option to purchase deposit of 1% of the House price.
You can pay for a property that is NOT worth that much and eventually the
bank will not loan you the full amount you want to borrow or worse, you get
cheated.
Agents always tell you, it's best for them to negotiate on your behalf. Many times,
this is the worst scenario. We will talk about that in the next article.
PLACING AN OPTION TO PURCHASE
Usually the agent will ask you to place the cheque first for an amount.
But the agent did NOT get an agreement from the seller to sell at the
particular price. The agent will then use this cheque to dangle in front of the
seller inducing him/her to sell.
WHAT IS THE PROBLEM WITH GIVING A CHEQUE?
Usually, the agent will take your cheque without asking you to sign the
Option to purchase agreement.
There is No verification of who you are writing the cheque to.
If the property is $1m, 1% = $10,000.
Giving a cheque without proper verification is like passing someone your 1
CARAT Diamond ring without checking his identity.
In case the agent asks you to write to an "Imaginery owner" of the property
which is his/her friend, the agent can cash your cheque and run if he is
crooked.
Even if the agent is not crooked, giving your cheque without proper Identity
verification of the related parties is fraught with risks.
You Could consider the following Precautions: -
* Check NRIC: Of the agent
* Check NRIC of the property owner - With documents showing he/she
is indeed the owner of the property.
* Check through the Option to Purchase agreement for unfavourable
terms. (These contracts are usually worded to favour the
agent/agency, but you can negotiate to CHANGE them)
* Make sure that the owner gives you a photo-stated NRIC together with
documents stating ownership, i.e. a Bank Loan statement showing
his/her name on the loan as owner.
* Make sure that the Option to Purchase is duly signed by the Property
owner and DATED (Don't leave the DATE empty).
* If you have to give a cheque, post date it by a few days, so in case you
want to change your mind, you can quickly stop payment.
Even all these won't stop a rogue agent or a rogue Homeowner selling his
home multiple times to multiple buyers, but at least you have a slightly better
level of protection. Because at least you are sure you are dealing with the
Property Owner.
www.PropertyBUYER.com.sg is a research focused Mortgage Advisory that do not emphasize cheap loans. We balance risks with savings based on the individual's financial situation to find the best fit Home Loan.
Not only that, we help to make sure of the following: -
* Buyer is buying at the right price (we check multiple valuations to give a safe price)
* Because all these work takes a lot of time, if you commit to get your loan through us, we can
help you to check recent transaction around that block, or the particular unit's transaction
and price history.
* We can check and verify PROPERTY Seller details.
* When bank's letter of offer is given, we can check to verify the contract
details and make sure that it is as agreed.
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
Contact us
http://www.propertybuyer.com.sg/contactus.php
Read More articles
http://www.propertyBUYER.com.sg/articlesnews.php
Understand Property Investing and Sub-prime
http://astore.amazon.com/httpwwwpro0ad-20?%5Fencoding=UTF8&node=55
Refinance and Mortgages DIY steps
http://www.squidoo.com/Singapore-homeloan
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