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.
Wednesday, September 30, 2009
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)
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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
Friday, September 4, 2009
Invest in Singapore SME: SME Loans
Small medium enterprise SME loans - Small Business Loans
A small and medium enterprise businesses needs capital to survive. Many SME will scrimp for funds during the down turn to survive and struggle to find funds during the boom cycle to expand. Worst still, during boom times, the cost of funds are much more expensive, this further limits the growth potential of small and medium enterprise.
How do banks determine whether to lend your company the money?
Banks want to lend money to winners or perceived winners. This is because they want to know that they will get their money back.
Banks will put the SME through a lot of tests and requirements to make sure that these SME will survive and that the bank’s funds are safe.
Why do banks insist on the company putting up so much collateral?
I have so much collateral and the bank still ask for this and that proof. This is really annoying. I have more that enough assets to pay off the loan, why does the bank keep harassing me to pay up on time?
The bank is not an asset trader. The bank have no wish to seize your assets or collateral. The bank’s core business is making a spread on the money they lend out. The collateral is used as a backing or guarantee for the money which they lend out. Only in the worst situation will the bank want to sell your collateral or take control of your collateral.
Banks may even want to see your business plan
Some banks may even want to see your business plans. This is because it is not wise for banks to lend to businesses that will fail as this will only cause a credit bubble. This credit bubble will artificially keep an otherwise dead company alive on life support, only to die later when credit is exhausted. Let’s put it bluntly, a company needs to have a good business plan and good execution to survive.
So how does can my Singapore Small Medium size (SME) company qualify for a business loan?
Therefore there are some ground rules which banks set for SMEs in Singapore.
The Basic criteria to qualify for SME Loans are: -
• Registered in Singapore for at least 3 years
• >50% shareholdings held by Singaporeans
• Business run by same director/owner for at least 2 years
Standard Chartered Loan → Spring Singapore Bridging - Micro Loan
Unsecured term loan
Loan amount possible is between $50K - $600K
Loan tenor 1-4 years
Interest rate (effective) 5%-9%, (flat) 2.25%-5%
No processing fee for loan >$100K, else $500 processing fee
No early redemption/partial repayment penalty
Documents required For Application:
• Directors' ID copies
• Last 6 months operating bank account statements
• Last financial year Management A/C (Balance Sheet & P&L) *for loan >100K
• Last 3 years audited/management A/C *for loan >300K
You can contact a Standard Chartered Banker directly at
scb.ben@propertyBUYER.com.sg
A small and medium enterprise businesses needs capital to survive. Many SME will scrimp for funds during the down turn to survive and struggle to find funds during the boom cycle to expand. Worst still, during boom times, the cost of funds are much more expensive, this further limits the growth potential of small and medium enterprise.
How do banks determine whether to lend your company the money?
Banks want to lend money to winners or perceived winners. This is because they want to know that they will get their money back.
Banks will put the SME through a lot of tests and requirements to make sure that these SME will survive and that the bank’s funds are safe.
Why do banks insist on the company putting up so much collateral?
I have so much collateral and the bank still ask for this and that proof. This is really annoying. I have more that enough assets to pay off the loan, why does the bank keep harassing me to pay up on time?
The bank is not an asset trader. The bank have no wish to seize your assets or collateral. The bank’s core business is making a spread on the money they lend out. The collateral is used as a backing or guarantee for the money which they lend out. Only in the worst situation will the bank want to sell your collateral or take control of your collateral.
Banks may even want to see your business plan
Some banks may even want to see your business plans. This is because it is not wise for banks to lend to businesses that will fail as this will only cause a credit bubble. This credit bubble will artificially keep an otherwise dead company alive on life support, only to die later when credit is exhausted. Let’s put it bluntly, a company needs to have a good business plan and good execution to survive.
So how does can my Singapore Small Medium size (SME) company qualify for a business loan?
Therefore there are some ground rules which banks set for SMEs in Singapore.
The Basic criteria to qualify for SME Loans are: -
• Registered in Singapore for at least 3 years
• >50% shareholdings held by Singaporeans
• Business run by same director/owner for at least 2 years
Standard Chartered Loan → Spring Singapore Bridging - Micro Loan
Unsecured term loan
Loan amount possible is between $50K - $600K
Loan tenor 1-4 years
Interest rate (effective) 5%-9%, (flat) 2.25%-5%
No processing fee for loan >$100K, else $500 processing fee
No early redemption/partial repayment penalty
Documents required For Application:
• Directors' ID copies
• Last 6 months operating bank account statements
• Last financial year Management A/C (Balance Sheet & P&L) *for loan >100K
• Last 3 years audited/management A/C *for loan >300K
You can contact a Standard Chartered Banker directly at
scb.ben@propertyBUYER.com.sg
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