What do Conveyance lawyers in Singapore do?
The lawyer's role in property buying includes but not limited to the following:
The lawyer's role is to review the contracts and terms of purchase. Such as reviewing an Offer to purchase, Option to purchase or a sales and purchase agreement. (Many times, this important process is skipped as people go straight to the show room and sign contracts blindly after listening to property agents without adequate legal advice.)
Conduct title searches on the property which you are buying to make sure that the titles are unencumbered or unchallenged and can be delivered to you upon completion of the purchase of the property.
Check against government policies or regulations which may adversely affect the value of the property that you are buying. Such enquiries may include checks with URA, BCA, SLA, LTA or more.
Once all checks are complete, a caveat on the property title is lodged. This Caveat is then published and made available to the public. This serves to inform the public that you have a vested interest or claim in the property which has the corresponding property title. During this period, if there are other claims or counter claims on the property title, they must be raised at that time. Lodging a caveat increases the protection to the buyer from future legal challenges on the legality of the sale process.
Given that properties are large commitments. Most people will use a bank loan to finance a property buying. During this stage, (you would have already completed exercising option to purchase and already signed a bank's letter of offer for a Singapore bank loan.) your lawyer will liaise with your bank's lawyer to ensure smooth disbursement of the agreed home loan mortgage on your property. Sometimes, the bank's lawyer is also your lawyer. This lawyer will assist in coordinating to disburse your loan. The bank's lawyer will check against terms in the bank's letter of offer and compliance to matters of material facts and report such matters accordingly to the banks prior to funds disbursement.
Liaising with CPF Board (or Lawyers on CPF board). If you intend to utilize Central provident fund (CPF) - A Singapore's version of pension fund, your lawyer will check and ensure that the CPF funds are ready for drawdown in order to complete the property purchase within the completion time-lines. Sometimes, your lawyer may also be a lawyer on CPF panel of lawyers, that makes things potentially easier and faster (but CPF has internal processes for disbursing funds, these things still takes time).
Your lawyer will be responsible for liaising with the Bank and the CPF Board (or their lawyers) to ensure that your Housing Loan and your CPF Funds are in place and ready for drawdown to order to complete the purchase within the agreed completion period.
Completion of sale. This is a legal term which refers to all the payment of the agreed and contracted property sale price where you have fully paid all monies to the seller. The seller hands over to you the signed conveyance of title called the "Instrument of transfer" which effectively transfers the ownership of the titles from the seller to the buyer and hence the ownership of the property from sellers to buyers. At this stage, your Singapore bank loan is fully disbursed. Or in the case of a building under construction, whatever monies which should be paid during this stage of construction is disbursed.
Property Buyer Mortgage Consultants are experienced in the property buying process and can act as Property Buyer advisors to guide buyers into avoiding dishonest property agents.
Property Buyer Singapore Mortgage Consultants do NOT receive commission from Property transactions of Buying and Selling.
About Property Buyer Mortgage Consultants
Tel : 6100 0608
SMS (text) : 9782 8606
Contact us : http://www.propertyBUYER.com.sg/contactus.php
Email us : loans@propertyBUYER.com.sg
Showing posts with label Compare singapore mortgage refinance. Show all posts
Showing posts with label Compare singapore mortgage refinance. Show all posts
Thursday, June 24, 2010
Tuesday, June 8, 2010
Invest in Singapore Property: Will Low singapore SOR rates inflate property prices?
Invest in Singapore Property: Will Low singapore SOR rates inflate property prices?
Quotes -->
“Analysts say the Sibor drop may complicate recent government efforts to rein in rising asset prices, in particular a surging real estate market.” (David Roman and Gaurav Raghuvanshi, Dow Jones Newswires, online.wsj.com/article/BT-CO-20100519-718371.html
,19th May 2010)
"Property is the most interest-rate sensitive sector of the economy," said David Carbon, an economist with DBS. "The economy is growing very fast, rates are very low: You can draw your own conclusions." (David Roman and Gaurav Raghuvanshi, Dow Jones Newswires, online.wsj.com/article/BT-CO-20100519-718371.html
Some financial news reports or articles have been saying that Sibor at an all time low is making the situation more complex as low interest rates cause asset bubbles especially in the property market.
Though the statement looks correct universally and is more or less so, but if you bother to drill down, a lot of so called Universal truth is not so Universal afterall.
How much movement in interest rates before something happens? Is property most sensitive to interest rates? (Maybe but maybe not)
The general hypothesis is that when Interest rates are low, people can afford the properties, therefore bidding up the property prices . We are usually very careful about being a parrot and repeating statements such as these.
While in the extreme, that statement "Property is the most interest-rate sensitive sector of the economy" is usually true, but the degree of sensitivity of property to that is suspect.
Because if you look at 2007 to 2008, during the property boom, the run up in prices as well as interest rates are almost in tandem. It took quite a lot of interest rates hike (from about 2% home loans singapore rates to almost 5%) to slow down the property market. So there is a substantial lag effect.
And eventually it was the break-out of the global financial crisis that made people lose jobs and lose confidence that did the job or slowing the property market.
So how will Singapore condominium prices be affected by varying property loan singapore rates.
At Property Buyer Singapore Mortgage consultants, we like to research it and present the facts.
Tel: 6100 0608
Sms: 9782 8606
http://www.propertybuyer.com.sg/articles/about-us
Arguments FOR AND AGAINST " Low Interest rates complicate recent government efforts to rein in rising asset prices"
Our customers are buying for reasons that are NOT how much Singapore bank interest rates they have to pay.
Then they will check the repayment schedule, only then they will realize that they are over-stretching or not.
The cases that we have seen are very different.
It is often not just about the Home loans Singapore, it's more than that.
Property Buyers who are getting home loans in Singapore do so for the following reasons : -
Need a place to stay
Replacement for their renting
Property available in their locality
Property meeting their budget
Property meeting their lifestyle
Investment reasons – Income (very few)
Many people stated Capital appreciation as a reason
Interest rates are very low Not many people told us this was their main reason for considering property purchase.
We have a sample size of 50 clients over the past many months , population of 5 million people, 90% of people did not state interest rates being low as buying criteria (only 10% stated low mortgage interest rates as property buying criteria).
Based on a statistical tool at (://www.surveysystem.com/sscalc.htm) we have arrived at a figure of 90% +/- 8.32% using a 95% confidence level.
Property investors ARE NOT BUYING DUE TO LOW Property LOANS RATES!!! (We are 95% certain) - Based on our 30min rough estimation
People that bother to read our research material are typically skewed towards private properties, their range do vary a lot, from property purchase between $1m to $10m. And as these people are not related, we can therefore assume that they are fairly homogeneous and representative of Singapore’s Private property buyers.
We can say with a 95% confidence level that between 81.68% to 98.32% of people buying properties in Singapore , they are buying for reasons other than low interest rates. Between 3% and 1% bank interest rate, it makes little difference to their property buying intentions. Of course it would still make a difference to them if interest rates are between 10% and 1% (But historically unlikely as it has only happened once within this 20 years) . Of course there are between 1.68% to 18.32% @ 95% confidence level are buying due to low interest rate reasons.
So low interest rates is one of the many factors that cause property asset prices to rise, but only a small reason .
Low interest rates don't mean that banks can grant you loans, you must pass the bank affordability test
Singapore Banks practice a safety threshold for property mortgage loans interest rates. Therefore only those who have a healthy income (cash flow) minus off their liabilities meeting a certain debt servicing ratio (typically 50%) are granted a loan.
Singapore banks generally set a property loans interest threshold at between 3.5% to 5% at this point in time. Even if the prevailing interest rates are 1% or less on your home loans, you will be tested for your servicing ability at between 3.5% to 5% home loans rates. You must pass the bank's credit department test to get a loan . As there is some buffer between existing rates and the bank's threshold, there is some time lag .
Therefore singapore bank residential interest rate is INELASTIC to creating property demand when interest rates are low.
So if you cannot pass the affordability test, you cannot buy a property using bank's financing, so how will you add to the demand to force property prices to rise?
Singapore's SIbor interest rates have peaked at about 3.6% within the last ten years. And the banks usually Lag in increasing interest rate means threshold.
When banks set their threshold for interest rates, they look at historical interest rates. No matter how low the prevailing rates are, they will still keep it at a higher level just to make sure that you can afford to repay the loan.
Therefore dropping Sibor from 3.5% to 1% or thereabouts is INELASTIC to create any demand and hence will NOT push up Singapore property prices.
Therefore your affordability do NOT increase with lowering interest rates in Singapore. It's whether the bank will lend to you, or NOT (if you fail the cash flow criteria).
The interest rates from about 3.5% to 1% is inelastic to actual demand in Singapore's context aided by bank's interest threshold setting.
Third point - IF PROPERTY INTEREST RATES ARE HIGH AND YOU NEED A PLACE, WITHIN THE INELASTICITY RANGE OF INTEREST RATES YOU WILL STILL BUY (If you can afford it)
Say you need a place to stay, you will still buy a place even if interest rates increases. So interest rates increases beyond a certain (will cause the bank to raise their safety threshold interest rates even higher) and eventually cause people to shun away from buying a property.
But Low interest rates alone do not do the opposite. It may not cause people to want to buy a property. When the rates are low, it could be more of a need based demand.
As there is a safety threshold, however low the interest rates go, the bank's safety Sibor interest rate threshold typically do not fall further. (But it is the bank's decision).
novice property investors cannot simply believe in news reports and rumours
We are not Singapore economists, we are mindful and wary of generic motherhood statements . Because this is how most news work. They report something that is easy to read and digest.
Though the print media always try to get things right, because some of them are under a lot of time pressure to churn out sensational news on a daily basis, therefore it is also prone to dishing out generic motherhood statements that does nothing to help the investor.
So, Sibor must raise significantly (say several percentage points say 2 to 3% ) before it dampens property buying sentiment and ease the rising property prices. Singapore government got it wrong again leading to the treasury coffers swelling due to high prices for land sales. But nonetheless, we think policy levers are more effective than interest rates.
With this we conclude that low interest rates will not complicate housing demand or property asset bubble , but rather the shortage of housing due to poor timing and planning by the Singapore government is the cause of it.
Quotes -->
“Analysts say the Sibor drop may complicate recent government efforts to rein in rising asset prices, in particular a surging real estate market.” (David Roman and Gaurav Raghuvanshi, Dow Jones Newswires, online.wsj.com/article/BT-CO-20100519-718371.html
,19th May 2010)
"Property is the most interest-rate sensitive sector of the economy," said David Carbon, an economist with DBS. "The economy is growing very fast, rates are very low: You can draw your own conclusions." (David Roman and Gaurav Raghuvanshi, Dow Jones Newswires, online.wsj.com/article/BT-CO-20100519-718371.html
Some financial news reports or articles have been saying that Sibor at an all time low is making the situation more complex as low interest rates cause asset bubbles especially in the property market.
Though the statement looks correct universally and is more or less so, but if you bother to drill down, a lot of so called Universal truth is not so Universal afterall.
How much movement in interest rates before something happens? Is property most sensitive to interest rates? (Maybe but maybe not)
The general hypothesis is that when Interest rates are low, people can afford the properties, therefore bidding up the property prices . We are usually very careful about being a parrot and repeating statements such as these.
While in the extreme, that statement "Property is the most interest-rate sensitive sector of the economy" is usually true, but the degree of sensitivity of property to that is suspect.
Because if you look at 2007 to 2008, during the property boom, the run up in prices as well as interest rates are almost in tandem. It took quite a lot of interest rates hike (from about 2% home loans singapore rates to almost 5%) to slow down the property market. So there is a substantial lag effect.
And eventually it was the break-out of the global financial crisis that made people lose jobs and lose confidence that did the job or slowing the property market.
So how will Singapore condominium prices be affected by varying property loan singapore rates.
At Property Buyer Singapore Mortgage consultants, we like to research it and present the facts.
Tel: 6100 0608
Sms: 9782 8606
http://www.propertybuyer.com.sg/articles/about-us
Arguments FOR AND AGAINST " Low Interest rates complicate recent government efforts to rein in rising asset prices"
Our customers are buying for reasons that are NOT how much Singapore bank interest rates they have to pay.
Then they will check the repayment schedule, only then they will realize that they are over-stretching or not.
The cases that we have seen are very different.
It is often not just about the Home loans Singapore, it's more than that.
Property Buyers who are getting home loans in Singapore do so for the following reasons : -
Need a place to stay
Replacement for their renting
Property available in their locality
Property meeting their budget
Property meeting their lifestyle
Investment reasons – Income (very few)
Many people stated Capital appreciation as a reason
Interest rates are very low Not many people told us this was their main reason for considering property purchase.
We have a sample size of 50 clients over the past many months , population of 5 million people, 90% of people did not state interest rates being low as buying criteria (only 10% stated low mortgage interest rates as property buying criteria).
Based on a statistical tool at (://www.surveysystem.com/sscalc.htm) we have arrived at a figure of 90% +/- 8.32% using a 95% confidence level.
Property investors ARE NOT BUYING DUE TO LOW Property LOANS RATES!!! (We are 95% certain) - Based on our 30min rough estimation
People that bother to read our research material are typically skewed towards private properties, their range do vary a lot, from property purchase between $1m to $10m. And as these people are not related, we can therefore assume that they are fairly homogeneous and representative of Singapore’s Private property buyers.
We can say with a 95% confidence level that between 81.68% to 98.32% of people buying properties in Singapore , they are buying for reasons other than low interest rates. Between 3% and 1% bank interest rate, it makes little difference to their property buying intentions. Of course it would still make a difference to them if interest rates are between 10% and 1% (But historically unlikely as it has only happened once within this 20 years) . Of course there are between 1.68% to 18.32% @ 95% confidence level are buying due to low interest rate reasons.
So low interest rates is one of the many factors that cause property asset prices to rise, but only a small reason .
Low interest rates don't mean that banks can grant you loans, you must pass the bank affordability test
Singapore Banks practice a safety threshold for property mortgage loans interest rates. Therefore only those who have a healthy income (cash flow) minus off their liabilities meeting a certain debt servicing ratio (typically 50%) are granted a loan.
Singapore banks generally set a property loans interest threshold at between 3.5% to 5% at this point in time. Even if the prevailing interest rates are 1% or less on your home loans, you will be tested for your servicing ability at between 3.5% to 5% home loans rates. You must pass the bank's credit department test to get a loan . As there is some buffer between existing rates and the bank's threshold, there is some time lag .
Therefore singapore bank residential interest rate is INELASTIC to creating property demand when interest rates are low.
So if you cannot pass the affordability test, you cannot buy a property using bank's financing, so how will you add to the demand to force property prices to rise?
Singapore's SIbor interest rates have peaked at about 3.6% within the last ten years. And the banks usually Lag in increasing interest rate means threshold.
When banks set their threshold for interest rates, they look at historical interest rates. No matter how low the prevailing rates are, they will still keep it at a higher level just to make sure that you can afford to repay the loan.
Therefore dropping Sibor from 3.5% to 1% or thereabouts is INELASTIC to create any demand and hence will NOT push up Singapore property prices.
Therefore your affordability do NOT increase with lowering interest rates in Singapore. It's whether the bank will lend to you, or NOT (if you fail the cash flow criteria).
The interest rates from about 3.5% to 1% is inelastic to actual demand in Singapore's context aided by bank's interest threshold setting.
Third point - IF PROPERTY INTEREST RATES ARE HIGH AND YOU NEED A PLACE, WITHIN THE INELASTICITY RANGE OF INTEREST RATES YOU WILL STILL BUY (If you can afford it)
Say you need a place to stay, you will still buy a place even if interest rates increases. So interest rates increases beyond a certain (will cause the bank to raise their safety threshold interest rates even higher) and eventually cause people to shun away from buying a property.
But Low interest rates alone do not do the opposite. It may not cause people to want to buy a property. When the rates are low, it could be more of a need based demand.
As there is a safety threshold, however low the interest rates go, the bank's safety Sibor interest rate threshold typically do not fall further. (But it is the bank's decision).
novice property investors cannot simply believe in news reports and rumours
We are not Singapore economists, we are mindful and wary of generic motherhood statements . Because this is how most news work. They report something that is easy to read and digest.
Though the print media always try to get things right, because some of them are under a lot of time pressure to churn out sensational news on a daily basis, therefore it is also prone to dishing out generic motherhood statements that does nothing to help the investor.
So, Sibor must raise significantly (say several percentage points say 2 to 3% ) before it dampens property buying sentiment and ease the rising property prices. Singapore government got it wrong again leading to the treasury coffers swelling due to high prices for land sales. But nonetheless, we think policy levers are more effective than interest rates.
With this we conclude that low interest rates will not complicate housing demand or property asset bubble , but rather the shortage of housing due to poor timing and planning by the Singapore government is the cause of it.
Monday, March 1, 2010
Singapore property Buyers - Investors Beware : MM Lee says HDB prices should rise
Singapore Property Buyers - Investors Beware: MM Lee says HDB prices should rise
Contributed by: www.PropertyBUYER.com.sg
MM Lee's words often move markets. Afterall, MM Lee is often see as the supreme commander of Singapore.
Singapore Property Buyers may want to note that MM Lee often practice tough love. If you want property prices to stay low or drop, then prepared to have a third world Singapore.
If he positions thing this way, then the answer is, we want the economy to grow. And as a consequence we are wishing that property prices grow.
-------------------------------------------------------------------------------
Contact Property Buyer Singapore Mortgage Consultants
www.PropertyBUYER.com.sg
Tel: 6100 - 0608
SMS: 9782 - 8606
Email: loans@propertyBUYER.com.sg
All articles are the intellectual property of www.PropertyBuyer.com.sg. If you want to reproduce all or part of our articles, you must provide an active and working link back to http://www.propertyBuyer.com.sg
-------------------------------------------------------------------------------
HDB flats will be more expensive. “HDB flat value will rise as long as economy grows: MM Lee, By Asha Popatlal, Channel NewsAsia 13 December 2009”
“Responding to questions later on about young couples who are concerned about flat affordability, Mr Lee said this is linked to the country's growth - if the country is doing well, property prices will go up.
But if the economy goes down, unemployment goes up but incomes and property values decline.”
So you can almost forget about HDB prices staying cheap and affordable. Poor people can have harder lives if they can't keep up.
SUPPLY AND DEMAND OF HDB FLATS IN SINGAPORE
If the total number of physical properties remain the same and consumers are making more money, and you do not build more HDBs then you have a problem.
More money and people needing housing chasing after a limited number of will end up in HDB prices shooting up in price.
So if you finally earn much more and everyone else is also earning much more, then the extra money you have will not be able to buy you more goods and services. This is because of inflation. If it is not HDB prices being more expensive, then it is others, food, fancy restaurants, cars, travel, foreign goods, etc.
HDB as a result wants to be able to price their homes using resale properties as standard.
PRIVATE Property House owners Investing in HDB Sustains HDB VALUE
Have you any idea that property owners who own private condomimiumns can buy HDB flats?
By allowing Singapore property buyers who owns private estates to buy HDB flats, the prices of HDB should improve. Though there is at the moment no meaningful date to evaluate. The segment of private property owners buying HDB flats may still be insignificant, as our contacts with many property buyers and people who refinance with us did not show us such cases.
We really hope that HDB, together with it's land issuing body can keep close to it's Social charter to provide cheap and affordable housing to Singaporeans and not view itself as a profit and loss centre.
HDB gives the impression that it is keen to get in on the hot property action and maximize profits.
Despite the fact that in most economies, it is normal to increase prices when you earn more. We were hopeful that things could be different and more compassionate in Singapore.
The next issue, we will look at whether HDB supply is enough in the face of massive increase of foreign immigration into Singapore.
What is our worry for Recent Property Purchasers?
In the case of a new graduate couple making a total domestic income of $4000. The HDB real estate charges for a four room HDB flat is easily $400,000. This is 8.33 times of yearly income.It is essential for salary to keep pace along with the raise in HDB property prices.
Not only does HDB seem interested in your money, dishonest property agents are also on stand-by to sell you stuff.
After that, there are hundreds of Singapore property loans to sort through. Sometimes dishonest property agents even bring you home loan application forms and tie up with bankers as well as lawyers which will give them a commission. These conveyancing lawyers having to pay the dishonest property agents, then make it back from you by charging higher conveyancing prices for your home loans.
Contributed by: www.PropertyBUYER.com.sg
MM Lee's words often move markets. Afterall, MM Lee is often see as the supreme commander of Singapore.
Singapore Property Buyers may want to note that MM Lee often practice tough love. If you want property prices to stay low or drop, then prepared to have a third world Singapore.
If he positions thing this way, then the answer is, we want the economy to grow. And as a consequence we are wishing that property prices grow.
-------------------------------------------------------------------------------
Contact Property Buyer Singapore Mortgage Consultants
www.PropertyBUYER.com.sg
Tel: 6100 - 0608
SMS: 9782 - 8606
Email: loans@propertyBUYER.com.sg
All articles are the intellectual property of www.PropertyBuyer.com.sg. If you want to reproduce all or part of our articles, you must provide an active and working link back to http://www.propertyBuyer.com.sg
-------------------------------------------------------------------------------
HDB flats will be more expensive. “HDB flat value will rise as long as economy grows: MM Lee, By Asha Popatlal, Channel NewsAsia 13 December 2009”
“Responding to questions later on about young couples who are concerned about flat affordability, Mr Lee said this is linked to the country's growth - if the country is doing well, property prices will go up.
But if the economy goes down, unemployment goes up but incomes and property values decline.”
So you can almost forget about HDB prices staying cheap and affordable. Poor people can have harder lives if they can't keep up.
SUPPLY AND DEMAND OF HDB FLATS IN SINGAPORE
If the total number of physical properties remain the same and consumers are making more money, and you do not build more HDBs then you have a problem.
More money and people needing housing chasing after a limited number of will end up in HDB prices shooting up in price.
So if you finally earn much more and everyone else is also earning much more, then the extra money you have will not be able to buy you more goods and services. This is because of inflation. If it is not HDB prices being more expensive, then it is others, food, fancy restaurants, cars, travel, foreign goods, etc.
HDB as a result wants to be able to price their homes using resale properties as standard.
PRIVATE Property House owners Investing in HDB Sustains HDB VALUE
Have you any idea that property owners who own private condomimiumns can buy HDB flats?
By allowing Singapore property buyers who owns private estates to buy HDB flats, the prices of HDB should improve. Though there is at the moment no meaningful date to evaluate. The segment of private property owners buying HDB flats may still be insignificant, as our contacts with many property buyers and people who refinance with us did not show us such cases.
We really hope that HDB, together with it's land issuing body can keep close to it's Social charter to provide cheap and affordable housing to Singaporeans and not view itself as a profit and loss centre.
HDB gives the impression that it is keen to get in on the hot property action and maximize profits.
Despite the fact that in most economies, it is normal to increase prices when you earn more. We were hopeful that things could be different and more compassionate in Singapore.
The next issue, we will look at whether HDB supply is enough in the face of massive increase of foreign immigration into Singapore.
What is our worry for Recent Property Purchasers?
In the case of a new graduate couple making a total domestic income of $4000. The HDB real estate charges for a four room HDB flat is easily $400,000. This is 8.33 times of yearly income.It is essential for salary to keep pace along with the raise in HDB property prices.
Not only does HDB seem interested in your money, dishonest property agents are also on stand-by to sell you stuff.
After that, there are hundreds of Singapore property loans to sort through. Sometimes dishonest property agents even bring you home loan application forms and tie up with bankers as well as lawyers which will give them a commission. These conveyancing lawyers having to pay the dishonest property agents, then make it back from you by charging higher conveyancing prices for your home loans.
Wednesday, February 17, 2010
Master Lynn Yap Tiger Year Feng Shui Forecast 2010
Predict2010 1
View more presentations from Property Buyer Singapore.
Feng Shui forecast for Tiger year 2010 by Master Lynnyap
We are grateful for the support Master Lynn Yap have always given to this website.
Master Lynn Yap never ask for any favours in return for her help. And we at Property Buyer are truly honoured to have Master Lynn Yap as our Anchor Feng Shui master for this website.
It is of no surprise that Master Lynn Yap is well liked and popular because she is not only good in Feng Shui, but has a personality.
Here is her forecast for 2010.
Master Lynn Yap Feng Shui Forecast for Tiger year 2010.
Tuesday, February 16, 2010
Invest in Singapore Property: The Shore residences, Greenwood Terrace
Singapore Property buyer Investors Can buy Freehold land and sell as Leasehold
Contributed By www.PropertyBUYER.com.sg
Our blog is happy to receive articles and materials and publish them for you. In return, we will acknowledge your article with a working link back to your site.
In the last issue http://www.propertybuyer.com.sg/articles/singapore-property-investor-buyer/singapore-property-developers-buys-free-hold-land-and-sells-as-103-years-lease-hold/,
we investigate the possible implications of Singapore Property developers buying freehold land, developing it and then selling it as 103 years leasehold strata titled Condominium.
The Recent Launches such as (but not limited to) Far East's "The Shore residences" in the east coast as well as "Greenwood Terrace" in the prestigious greenwood vicinity of District 10 are such examples of the Singapore property developer buying Freehold land and launching as 103 years leasehold strata titled land.
Why do Singapore Property Buyers and Investors need to know?
Singapore property buyers and Investors need to know this because the future value of their condominium and cluster landed properties with Strata titles will be affected some 20 to 30 years down the road when the development becomes run-down.
What about Singapore property owners with Freehold or 999 Leasehold land titles?
For current Singapore property owners who owned landed properties with freehold or 999 leaasehold land titles, this means a potential future bonanza. Please read on, we have got the reply from Singapore land authority.
Reply from Singapore Land Authority (SLA) On Freehold land being sold as Leasehold strata titled developments.
"www.PropertyBUYER.com.sg:
We are doing a research for the benefit of our readers. Our website is at www.PropertyBUYER.com.sg and our readers have been urging us to enquire about how Far East and numerous others have been able to acquire FREE HOLD land from the government (could be SLA) and then develop and sell the properties as a 99 years property. Could you please help us understand under what circumstances are Developers allowed to buy Free Hold land and re-sell as Lease hold land? We appreciate if you could point us to any such literature, web link, sites which explains these in greater details.
Singapore Land Authority:
Developers can buy freehold land through the private market. You should approach the developers for details on your queries as these are all private transactions.
"www.PropertyBUYER.com.sg:
Thank you for your reply. We understand that developers can buy from the private market. But having said that, our readers would like to understand under what statute does it allow the developer to buy Free Hold land and then sell it as a 99 years lease? Hope you can point us in the right direction.
Singapore Land Authority:
We refer to your enquiry dated 11 Jan 2010.
Common Law provides that a smaller interest in land can be carved out from a larger interest in land, with the registered proprietor/developer retaining a reversionary interest.
The duration of this smaller interest is not governed by any statutory provision. Hence it is acceptable for a developer to retain the reversionary Freehold title in a development and merely sell the strata lots in the development with a 103-year lease or any determinate number of years out of the Freehold title.
"
Good News for Singapore Property Owners with Freehold land
Singapore land authority has clarified that "Common Law provides that a smaller interest in land can be carved out from a larger interest in land, with the registered propietor/develop retaining a reversionary interest."
This means that you can possibly sell your landed property on a 99 years lease or any numbers of years lease as you deem fit if you sort out the legal paperwork.
This would mean that you will be able to pass on wealth to your descendants while selling properties while retaining the reversionary rights to freehold land.
Maybe you are stting on 3 or 4 Semi-detaches or Bungalows, you can't really lease it out to get a good cashflow and yet you don't want to sell it as you may not be able to buy another property in a similar good location and you need to grow your business.
What could you do?
Perhaps you can sell one or two of your Semi-detaches as leasehold while you maximise and free up capital and at the same time share in the upside the land can possibly provide.
Sad day for Singapore Property buyers
For Singapore property buyers, it means that more and more property developers will likely get in on the strategy to retain the freehold title while selling developments as Strata title leasehold. Freehold land may gradually disappear into the hands of the well funded and rich property developers.
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 refinance home loans, we balance risks versus rewards for each home loan to match your risk profile and financing needs.
Buying property is a serious affair, we do NOT advocate a Greed or fear based buying approach, we emphasize that you need to check your property home loan affordability. Check out the mortgage calculators or call us so as to do your sums right.
Not Simply Cheap, but what Fits. We Research, You Save!
Tel: 6100 - 0608
SMS: 9782 - 8606
Email: loans@propertyBUYER.com.sg
Contributed By www.PropertyBUYER.com.sg
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In the last issue http://www.propertybuyer.com.sg/articles/singapore-property-investor-buyer/singapore-property-developers-buys-free-hold-land-and-sells-as-103-years-lease-hold/,
we investigate the possible implications of Singapore Property developers buying freehold land, developing it and then selling it as 103 years leasehold strata titled Condominium.
The Recent Launches such as (but not limited to) Far East's "The Shore residences" in the east coast as well as "Greenwood Terrace" in the prestigious greenwood vicinity of District 10 are such examples of the Singapore property developer buying Freehold land and launching as 103 years leasehold strata titled land.
Why do Singapore Property Buyers and Investors need to know?
Singapore property buyers and Investors need to know this because the future value of their condominium and cluster landed properties with Strata titles will be affected some 20 to 30 years down the road when the development becomes run-down.
What about Singapore property owners with Freehold or 999 Leasehold land titles?
For current Singapore property owners who owned landed properties with freehold or 999 leaasehold land titles, this means a potential future bonanza. Please read on, we have got the reply from Singapore land authority.
Reply from Singapore Land Authority (SLA) On Freehold land being sold as Leasehold strata titled developments.
"www.PropertyBUYER.com.sg:
We are doing a research for the benefit of our readers. Our website is at www.PropertyBUYER.com.sg and our readers have been urging us to enquire about how Far East and numerous others have been able to acquire FREE HOLD land from the government (could be SLA) and then develop and sell the properties as a 99 years property. Could you please help us understand under what circumstances are Developers allowed to buy Free Hold land and re-sell as Lease hold land? We appreciate if you could point us to any such literature, web link, sites which explains these in greater details.
Singapore Land Authority:
Developers can buy freehold land through the private market. You should approach the developers for details on your queries as these are all private transactions.
"www.PropertyBUYER.com.sg:
Thank you for your reply. We understand that developers can buy from the private market. But having said that, our readers would like to understand under what statute does it allow the developer to buy Free Hold land and then sell it as a 99 years lease? Hope you can point us in the right direction.
Singapore Land Authority:
We refer to your enquiry dated 11 Jan 2010.
Common Law provides that a smaller interest in land can be carved out from a larger interest in land, with the registered proprietor/developer retaining a reversionary interest.
The duration of this smaller interest is not governed by any statutory provision. Hence it is acceptable for a developer to retain the reversionary Freehold title in a development and merely sell the strata lots in the development with a 103-year lease or any determinate number of years out of the Freehold title.
"
Good News for Singapore Property Owners with Freehold land
Singapore land authority has clarified that "Common Law provides that a smaller interest in land can be carved out from a larger interest in land, with the registered propietor/develop retaining a reversionary interest."
This means that you can possibly sell your landed property on a 99 years lease or any numbers of years lease as you deem fit if you sort out the legal paperwork.
This would mean that you will be able to pass on wealth to your descendants while selling properties while retaining the reversionary rights to freehold land.
Maybe you are stting on 3 or 4 Semi-detaches or Bungalows, you can't really lease it out to get a good cashflow and yet you don't want to sell it as you may not be able to buy another property in a similar good location and you need to grow your business.
What could you do?
Perhaps you can sell one or two of your Semi-detaches as leasehold while you maximise and free up capital and at the same time share in the upside the land can possibly provide.
Sad day for Singapore Property buyers
For Singapore property buyers, it means that more and more property developers will likely get in on the strategy to retain the freehold title while selling developments as Strata title leasehold. Freehold land may gradually disappear into the hands of the well funded and rich property developers.
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 refinance home loans, we balance risks versus rewards for each home loan to match your risk profile and financing needs.
Buying property is a serious affair, we do NOT advocate a Greed or fear based buying approach, we emphasize that you need to check your property home loan affordability. Check out the mortgage calculators or call us so as to do your sums right.
Not Simply Cheap, but what Fits. We Research, You Save!
Tel: 6100 - 0608
SMS: 9782 - 8606
Email: loans@propertyBUYER.com.sg
Friday, August 21, 2009
Invest in Singapore Property: Sibor and Inflation
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Invest in Singapore Property: Sibor and inflation
Property Buyer Home Loan
Many people say that, what happens if the interest rates go up?
What will happen to my home loan installment? When interest rates go up, your loan repayment becomes more expensive.
Does Rising Sibor really hurt you?
The common answer is yes, it hurts you due to more expensive loan. However many people do NOT get hurt by Sibor rising.
The reason for this is because during times when interest rates are high, Inflation(CPI) is also high. If you have a
house, a job, shares and other assets, those values tend to rise as well. It is mostly a zero-sum game.
In some cases, those asset values rise faster than CPI rate or it could rise even more than the cost of your housing mortgage.
BANKS CANNOT LEND YOU AT LESS THAN THE CPI
The point is, banks cannot lend you money at a rate that is less than the CPI, otherwise their money will lose its value as those same money will only be able to Afford less goods and services.
WHEN DO BANKS REALLY MAKE MONEY?
Some say that in 2006 and 2007 banks make a lot of money. While they probably did make money, charging you 5% for your home loans, but CPI was at 6.5%, that means that their money is depreciating. In fact they are losing money
doing that. This is a very rare event in History.
SO DOES INFLATION AFFECT INTEREST RATES?
Absolutely YES!!! Inflation is the base line. If Inflation rises, everything rises along with it. Due to Inflation rises, Sibor or SOR will have to rise along side. If SIBOR or SOR rises, there is NO DOUBT that the bank’s floating rates will also have
to rise.
How fast they raise rates will depend on how benevolent the banks are. So what do you think the banks do?
Are banks benevolent? I think you know the answer.
Contact Property Buyer
www.PropertyBUYER.com.sg
We are a Research-focused Singapore Mortgage Consultant which helps you compare Home loans either for new loans or refinancing, we balance risks versus rewards for each 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.
Tel: 6100 - 0608
SMS: 9782 - 8606
loans@propertyBUYER.com.sg
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