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
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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
Wednesday, September 16, 2009
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