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Showing posts with label Invest Singapore. Show all posts
Showing posts with label Invest Singapore. Show all posts
Sunday, June 28, 2009
Invest in Singapore property: Goldenhill park condominium
http://picasaweb.google.com/lh/photo/TllSASfS9lp6zp0CbMl6OA?feat=directlink
Wednesday, May 20, 2009
Invest in Singapore Property: Singapore Property Stamp Duty
Invest in Singapore Property: Singapore Property Stamp Duty
Courtesy of http://www.PropertyBUYER.com.sg
http://www.propertybuyer.com.sg/viewnews.php?article=105
ABOUT US Contact us
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
http://www.propertybuyer.com.sg/contactus.php
Stamp duty for Property Purchase for Singapore Properties
Conveyance: Purchase Price or Market Value, whichever is higher
For the First $180,000 - 1% = $1,800
For the next $180,000 - 2% = $3,600
Thereafter, - 3%
Before you even consider a property or a Home loan mortgage, you should
first assess whether you can afford a property.
If the property is valued at or transacted at $1,000,000, your stamp duty will
be: -
For the First $180,000 - 1% = $ 1,800
For the next $180,000 - 2% = $ 3,600
For the next $ 640,000 - 3% = $19,200
The Stamp duty = $24,600
If you are able to get a 90% loan to a property valuation, you will need 10%
downpayment, plus roughly 3% for Stamp duty.
For a 90% loan to valuation, for a $1,000,000 property, you will need to
standby for downpayment: -
* $124,600
This is the minimum amount required.
Problems with 90% Loan to valuation
Since 90% loans become available, this affordability has led to property
becoming more affordable. But due to this affordability, it has created an
increased number of people being able to afford Private properties. On top
of that, banks are increasing their number of years of loan tenure from 20 to
25 to 30 and even 35 or 40 years in some cases.
This has the effect of reducing the monthly installment, leading to more
people chasing after properties and eventually elevated property prices.
We are very worried about this development. The false sense of affordability
will surely come back to haunt the person or the Singapore economy when
they hit their CPF withdrawal limits.
We will talk about that in the next article.
www.PropertyBUYER.com.sg is a Research-Focused Mortgage Advisory that do NOT emphasize Cheap rates, but balance risks versus possible savings and structure the best fit mortgage packages based on the Home Owner's personal circumstances. On top of that, we help buyers check the property valuations and recommend a safe bid price for their properties and help them in getting a Home Loan approved-in-principle before they go into a property price negotiation and before they pay a 1% option to purchase.
Contact us
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
Contact us
http://www.propertybuyer.com.sg/contactus.php
Read More articles
http://www.propertyBUYER.com.sg/articlesnews.php
Courtesy of http://www.PropertyBUYER.com.sg
http://www.propertybuyer.com.sg/viewnews.php?article=105
ABOUT US Contact us
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
http://www.propertybuyer.com.sg/contactus.php
Stamp duty for Property Purchase for Singapore Properties
Conveyance: Purchase Price or Market Value, whichever is higher
For the First $180,000 - 1% = $1,800
For the next $180,000 - 2% = $3,600
Thereafter, - 3%
Before you even consider a property or a Home loan mortgage, you should
first assess whether you can afford a property.
If the property is valued at or transacted at $1,000,000, your stamp duty will
be: -
For the First $180,000 - 1% = $ 1,800
For the next $180,000 - 2% = $ 3,600
For the next $ 640,000 - 3% = $19,200
The Stamp duty = $24,600
If you are able to get a 90% loan to a property valuation, you will need 10%
downpayment, plus roughly 3% for Stamp duty.
For a 90% loan to valuation, for a $1,000,000 property, you will need to
standby for downpayment: -
* $124,600
This is the minimum amount required.
Problems with 90% Loan to valuation
Since 90% loans become available, this affordability has led to property
becoming more affordable. But due to this affordability, it has created an
increased number of people being able to afford Private properties. On top
of that, banks are increasing their number of years of loan tenure from 20 to
25 to 30 and even 35 or 40 years in some cases.
This has the effect of reducing the monthly installment, leading to more
people chasing after properties and eventually elevated property prices.
We are very worried about this development. The false sense of affordability
will surely come back to haunt the person or the Singapore economy when
they hit their CPF withdrawal limits.
We will talk about that in the next article.
www.PropertyBUYER.com.sg is a Research-Focused Mortgage Advisory that do NOT emphasize Cheap rates, but balance risks versus possible savings and structure the best fit mortgage packages based on the Home Owner's personal circumstances. On top of that, we help buyers check the property valuations and recommend a safe bid price for their properties and help them in getting a Home Loan approved-in-principle before they go into a property price negotiation and before they pay a 1% option to purchase.
Contact us
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
Contact us
http://www.propertybuyer.com.sg/contactus.php
Read More articles
http://www.propertyBUYER.com.sg/articlesnews.php
Sunday, May 17, 2009
HDB Loan: Pay down your HDB loan slowly
HDB Loan: Pay down your HDB loan slowly
Article Contributed by www.PropertyBUYER.com.sg
Tel : 6100 0608
SMS : 9782 8606
Email : loans@propertyBUYER.com.sg
Contact us : http://www.PropertyBUYER.com.sg/contactus.php
In the recent months, we have come across many individuals calling us up trying to get cash out of their HDB homes.
This person, let's call him Mr. Tan. He bought a HDB property for $400,000. The HDB property is worth $450,000 he reckons.
Bought at :$400,000
Current estimated value :$450,000
CPF/HDB interest rate :2.6%
The outstanding loan size :$120,000
PAYING DOWN YOUR HDB LOAN?
Just 2 years ago, Mr. Tan used $50,000 from his CPF to reduce the outstanding loan amount. This wiped out his entire CFP ordinary account savings.
Mr. Tan's home loan installment is ~$1000 a month. $500 each him and $500 from his wife.
However Mr. Tan recently lost his job and his CPF has totally run out. This leaves him having to pay $500 cash for his HDB flat.
Mr. Tan came to enquire with us. He would like to refinance his HDB and get CASH OUT.
Since his house is only owing very little. Assuming that the price is $450,000 with a debt of $120,000, the equity in the HDB flat should be $330,000.
That was what Mr. Tan thought. He needed some cash to tide him over the financial crisis.
HDB flats have NO (ZERO) Equity for Term Loan
What many people forget is that HDB flats have no equity in the refinance market. Under current HDB rules, banks cannot give term loans to HDB flats.
DEBT is BAD???
For those people on HDB preferential loan of 2.6%, DEBT is not a bad thing. If they took their time to pay for the installment, the cash held in ordinary account would be earning 2.5% while the debt is payable at 2.6%. This represents a very small spread of 0.1%. This is hardly anything. For $100,000 this is just $100 dollars.
Of course if the couple had the money, they should pay off the debt so that it is cheaper in the long run. (even though it is very marginal)
In this case, DEBT is not a bad thing. Debt is better than having no food on the table.
What Should Mr. Tan have done? (If he met us earlier)
We would have advised Mr. TAN not to use his $50,000 from CPF ordinary account to pay down his loan. Sure, the extra 0.1% cost (pay 2.6% while earning 2.5% interest) would cost him roughly $50 a year. But that is a very small price to pay, it is similar to buying insurance.
With CPF savings of $50,000, Mr. Tan should have kept at least $12,000 from his CPF ordinary account to stand-by for at least 12 months worth of HDB installment/repayment.
This way, in case he did not have an income, at least he does not need to fork out more money to maintain the house.
Unfortunately we cannot help him this time and we are saddened by this and the several incidents that came before Mr. Tan.
In case you are in Mr. Tan's position, even when you still have a job, we see no rush in paying back your HDB loan in double quick time and paint yourself into a corner.
If you haven't done it yet, we strongly encourage you to give yourself some breathing room of at least 12 to 24 months. Keep 24 months worth of HDB repayment in your CPF ordinary account in case of emergency.
REFER a FRIEND TO US
Contact us : 6100 0608
SMS : 9782 8606
Email : loans@propertybuyer.com.sg
http://www.PropertyBUYER.com.sg/contactus.php
Article Contributed by www.PropertyBUYER.com.sg
Tel : 6100 0608
SMS : 9782 8606
Email : loans@propertyBUYER.com.sg
Contact us : http://www.PropertyBUYER.com.sg/contactus.php
In the recent months, we have come across many individuals calling us up trying to get cash out of their HDB homes.
This person, let's call him Mr. Tan. He bought a HDB property for $400,000. The HDB property is worth $450,000 he reckons.
Bought at :$400,000
Current estimated value :$450,000
CPF/HDB interest rate :2.6%
The outstanding loan size :$120,000
PAYING DOWN YOUR HDB LOAN?
Just 2 years ago, Mr. Tan used $50,000 from his CPF to reduce the outstanding loan amount. This wiped out his entire CFP ordinary account savings.
Mr. Tan's home loan installment is ~$1000 a month. $500 each him and $500 from his wife.
However Mr. Tan recently lost his job and his CPF has totally run out. This leaves him having to pay $500 cash for his HDB flat.
Mr. Tan came to enquire with us. He would like to refinance his HDB and get CASH OUT.
Since his house is only owing very little. Assuming that the price is $450,000 with a debt of $120,000, the equity in the HDB flat should be $330,000.
That was what Mr. Tan thought. He needed some cash to tide him over the financial crisis.
HDB flats have NO (ZERO) Equity for Term Loan
What many people forget is that HDB flats have no equity in the refinance market. Under current HDB rules, banks cannot give term loans to HDB flats.
DEBT is BAD???
For those people on HDB preferential loan of 2.6%, DEBT is not a bad thing. If they took their time to pay for the installment, the cash held in ordinary account would be earning 2.5% while the debt is payable at 2.6%. This represents a very small spread of 0.1%. This is hardly anything. For $100,000 this is just $100 dollars.
Of course if the couple had the money, they should pay off the debt so that it is cheaper in the long run. (even though it is very marginal)
In this case, DEBT is not a bad thing. Debt is better than having no food on the table.
What Should Mr. Tan have done? (If he met us earlier)
We would have advised Mr. TAN not to use his $50,000 from CPF ordinary account to pay down his loan. Sure, the extra 0.1% cost (pay 2.6% while earning 2.5% interest) would cost him roughly $50 a year. But that is a very small price to pay, it is similar to buying insurance.
With CPF savings of $50,000, Mr. Tan should have kept at least $12,000 from his CPF ordinary account to stand-by for at least 12 months worth of HDB installment/repayment.
This way, in case he did not have an income, at least he does not need to fork out more money to maintain the house.
Unfortunately we cannot help him this time and we are saddened by this and the several incidents that came before Mr. Tan.
In case you are in Mr. Tan's position, even when you still have a job, we see no rush in paying back your HDB loan in double quick time and paint yourself into a corner.
If you haven't done it yet, we strongly encourage you to give yourself some breathing room of at least 12 to 24 months. Keep 24 months worth of HDB repayment in your CPF ordinary account in case of emergency.
REFER a FRIEND TO US
Contact us : 6100 0608
SMS : 9782 8606
Email : loans@propertybuyer.com.sg
http://www.PropertyBUYER.com.sg/contactus.php
Friday, May 15, 2009
Invest in Singapore Property: Jurong Lake District
Invest Singaore, Invest in Singapore's Own Lake District
Courtesy of http://www.PropertyBUYER.com.sg/articlesnews.php
"...National Development Minister Mah Bow Tan yesterday unveiled a vision for a revamped Jurong, starting with a new name: the Jurong Lake District.
The ambitious plan, to be implemented over the next 10 to 15 years, involves building new waterways, 1,000 private homes, 2,800 hotel rooms and adding 750,000 sq m of office and retail space.
The Jurong Lake District, which at 360ha is the size of Marina Bay, will consist of two precincts.
One is the 70ha Jurong Gateway, which will boast swanky new offices, condos and entertainment features, including an Olympic-size ice-skating rink, all set around Jurong East MRT station.
The other is Lakeside, which is being targeted as a hang-out for young families.
It will feature a bold new science centre, tourist attractions and parks complemented by water activities, all set around the Chinese Garden and Lakeside MRT stations.
Mr Mah told a 500-strong audience at an Urban Redevelopment Authority (URA) seminar yesterday that many Singaporeans saw Jurong as a suburban residential and industrial area 'located far away from the city centre'.
But he described it as a 'gem', with compelling reasons singling it out for redevelopment. It is near established towns, with a large labour force and a population catchment of more than one million residents...."
Source: Channel News Asia
http://www.channelnewsasia.com/stories/singaporelocalnews/view/339270/1/.html
Should we buy into the Jurong Lake District Dream?
For those of you who have been to the UK Lake District, you will know that
Singapore's Jurong Lake District will never match up. The air, the breeze
and even the rustle in the wind is different, not to mention the clean air free
of industrial pollutant.
And the above is the BEST CASE scenario assuming the beautiful scenario
comes true.
Will Jurong Lake District become reality?
Do you remember Minister Mah Bow Tan wanted Singapore to qualify for
World Cup in 2010? It's 2009, what do we have to show for it?
Remember what happened to Punggol 21?
http://www.mrbrownshow.com/2007/09/21/the-mrbrown-show-punggol-21-plus-plus/
Do you remember what happened to Punggol 21? The hype, the excitement
and the promise! So many people bought into the dream of a leisurely and
riverside lifestyle. They ended up buying into expensive HDB units which
were half occupied.
The place was so deserted that there were hardly any amenities and facilities. It took a good 10+ years and yet the promise is still not fulfilled.
Singapore's very own Lake District
Any chance of Jurong Lake District happening? We suspect the only people
laughing all the way to the bank are the developers who timed their property
launches after the government announces this publicity campaign.
The government's track record of fulfilling plans such as Punggol 21 and sengkang new town is not compelling. There were a lot of promises.
The industrial parks and the factories are not about to move out of Jurong
any time soon, pollution is still a problem. Although there are some logistics
park and some business parks, building houses around 2 lakes is hardly a dream, much less a beautiful dream.
Even if all the commercial activities do take off, we doubt the place will be a
truly enjoyable living experience as it will be over crowded. (You only need to
take a MRT ride to Boon Lay to experience it today).
Should you pay for your Home at an inflated price?
We would not hold our breath for Jurong Lake District, until more plans and
concrete action becomes available. Not more nice plans and announcements!!!
Should you hold your breath for it? It's up to you, if you already like the place
even before the hype, by all means go for it. But if you are buying into the
hype, we suggest you have at least 10 to 20 years of holding power.
Or you can wait for the Singapore government to cook up another beautiful scenario
and remember to OFF LOAD your property at that time. During this time, the
rental in Jurong is uncertain at best.
This means you should avoid 99 years lease hold properties, because
capital values of 99 years properties do not hold so well when the number of
years remaining on the lease is shorter.
About www.PropertyBUYER.com.sg
www.PropertyBUYER.com.sg is a research-focused mortgage Advisory that do NOT simply emphasize cheap rates but rather what works best for the individual based on his/her circumstances to structure a balanced Risk versus Benefit home loan or refinancing package. The service is Free to you as banks pay them directly as banks save on staffing cost.
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
Contact us
http://www.propertybuyer.com.sg/contactus.php
Read More articles
http://www.propertyBUYER.com.sg/articlesnews.php
Refinance and Mortgages DIY steps
http://www.squidoo.com/Singapore-homeloan
Courtesy of http://www.PropertyBUYER.com.sg/articlesnews.php
"...National Development Minister Mah Bow Tan yesterday unveiled a vision for a revamped Jurong, starting with a new name: the Jurong Lake District.
The ambitious plan, to be implemented over the next 10 to 15 years, involves building new waterways, 1,000 private homes, 2,800 hotel rooms and adding 750,000 sq m of office and retail space.
The Jurong Lake District, which at 360ha is the size of Marina Bay, will consist of two precincts.
One is the 70ha Jurong Gateway, which will boast swanky new offices, condos and entertainment features, including an Olympic-size ice-skating rink, all set around Jurong East MRT station.
The other is Lakeside, which is being targeted as a hang-out for young families.
It will feature a bold new science centre, tourist attractions and parks complemented by water activities, all set around the Chinese Garden and Lakeside MRT stations.
Mr Mah told a 500-strong audience at an Urban Redevelopment Authority (URA) seminar yesterday that many Singaporeans saw Jurong as a suburban residential and industrial area 'located far away from the city centre'.
But he described it as a 'gem', with compelling reasons singling it out for redevelopment. It is near established towns, with a large labour force and a population catchment of more than one million residents...."
Source: Channel News Asia
http://www.channelnewsasia.com/stories/singaporelocalnews/view/339270/1/.html
Should we buy into the Jurong Lake District Dream?
For those of you who have been to the UK Lake District, you will know that
Singapore's Jurong Lake District will never match up. The air, the breeze
and even the rustle in the wind is different, not to mention the clean air free
of industrial pollutant.
And the above is the BEST CASE scenario assuming the beautiful scenario
comes true.
Will Jurong Lake District become reality?
Do you remember Minister Mah Bow Tan wanted Singapore to qualify for
World Cup in 2010? It's 2009, what do we have to show for it?
Remember what happened to Punggol 21?
http://www.mrbrownshow.com/2007/09/21/the-mrbrown-show-punggol-21-plus-plus/
Do you remember what happened to Punggol 21? The hype, the excitement
and the promise! So many people bought into the dream of a leisurely and
riverside lifestyle. They ended up buying into expensive HDB units which
were half occupied.
The place was so deserted that there were hardly any amenities and facilities. It took a good 10+ years and yet the promise is still not fulfilled.
Singapore's very own Lake District
Any chance of Jurong Lake District happening? We suspect the only people
laughing all the way to the bank are the developers who timed their property
launches after the government announces this publicity campaign.
The government's track record of fulfilling plans such as Punggol 21 and sengkang new town is not compelling. There were a lot of promises.
The industrial parks and the factories are not about to move out of Jurong
any time soon, pollution is still a problem. Although there are some logistics
park and some business parks, building houses around 2 lakes is hardly a dream, much less a beautiful dream.
Even if all the commercial activities do take off, we doubt the place will be a
truly enjoyable living experience as it will be over crowded. (You only need to
take a MRT ride to Boon Lay to experience it today).
Should you pay for your Home at an inflated price?
We would not hold our breath for Jurong Lake District, until more plans and
concrete action becomes available. Not more nice plans and announcements!!!
Should you hold your breath for it? It's up to you, if you already like the place
even before the hype, by all means go for it. But if you are buying into the
hype, we suggest you have at least 10 to 20 years of holding power.
Or you can wait for the Singapore government to cook up another beautiful scenario
and remember to OFF LOAD your property at that time. During this time, the
rental in Jurong is uncertain at best.
This means you should avoid 99 years lease hold properties, because
capital values of 99 years properties do not hold so well when the number of
years remaining on the lease is shorter.
About www.PropertyBUYER.com.sg
www.PropertyBUYER.com.sg is a research-focused mortgage Advisory that do NOT simply emphasize cheap rates but rather what works best for the individual based on his/her circumstances to structure a balanced Risk versus Benefit home loan or refinancing package. The service is Free to you as banks pay them directly as banks save on staffing cost.
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
Contact us
http://www.propertybuyer.com.sg/contactus.php
Read More articles
http://www.propertyBUYER.com.sg/articlesnews.php
Refinance and Mortgages DIY steps
http://www.squidoo.com/Singapore-homeloan
Monday, May 4, 2009
Invest in Singapore Properties: Credit may be easing
A recent interview with Warren Buffet, he thinks the credit crisis is largely under control. Though there is no free lunch, massive stimulus injected now may have consequences of massive inflation down the road, but Buffet felt that what the US administration did now is correct, because it "pulled the economy out of the quick sand".
Friday, May 1, 2009
Invest in Singapore Properties: Protect yourselves from Rogue Dishonest agents
Singapore Property Investor: Protect yourselves from Rogue Dishonest agents
Courtesy of www.PropertyBUYER.com.sg
Contact them
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
http://www.propertybuyer.com.sg/contactus.php
In an article by Straits Times, April 8, 2009.
"Eric Heng Jit Siang (left) conned 127 people, mainly foreigners and permanent residents...
Heng would pose as the owner of a property seeking to rent it out, milking the tenant for a deposit on the rent, and then pulling a disappearing act.
Using both landed properties and flats he had rented, the 33-year-old conned over $242,500 in rental deposits between last April and January out of 127 people.
The court heard that he rented 10 properties across Singapore, got hold of the keys and then placed advertisements in newspapers and in train stations seeking tenants.
When people responded to his advertisements, he posed as the owner of these properties and arranged to show them the units.
When the tenancy agreement was signed - and each unit was 'rented' out to more than one house-hunter - he collected money from each of them as a deposit on the rent or the utility bill."
(Source: The Straits Times, "http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_361167.html, Esther Tan")
HOW SOME SINGAPORE PROPERTY AGENTS BEHAVE
When you go to an agent, he/she brings you to see a property. He/she
always emphasize "Bring your cheque book". This is because in the heat of
the moment, sometimes you can get influenced into making a rash decision.
A rash decision is what an agent wants. Because no matter the house is
sold or not, he/she still gets his/her commission, while if you do not proceed,
you forfeit your Option to purchase deposit of 1% of the House price.
You can pay for a property that is NOT worth that much and eventually the
bank will not loan you the full amount you want to borrow or worse, you get
cheated.
Agents always tell you, it's best for them to negotiate on your behalf. Many times,
this is the worst scenario. We will talk about that in the next article.
PLACING AN OPTION TO PURCHASE
Usually the agent will ask you to place the cheque first for an amount.
But the agent did NOT get an agreement from the seller to sell at the
particular price. The agent will then use this cheque to dangle in front of the
seller inducing him/her to sell.
WHAT IS THE PROBLEM WITH GIVING A CHEQUE?
Usually, the agent will take your cheque without asking you to sign the
Option to purchase agreement.
There is No verification of who you are writing the cheque to.
If the property is $1m, 1% = $10,000.
Giving a cheque without proper verification is like passing someone your 1
CARAT Diamond ring without checking his identity.
In case the agent asks you to write to an "Imaginery owner" of the property
which is his/her friend, the agent can cash your cheque and run if he is
crooked.
Even if the agent is not crooked, giving your cheque without proper Identity
verification of the related parties is fraught with risks.
You Could consider the following Precautions: -
* Check NRIC: Of the agent
* Check NRIC of the property owner - With documents showing he/she
is indeed the owner of the property.
* Check through the Option to Purchase agreement for unfavourable
terms. (These contracts are usually worded to favour the
agent/agency, but you can negotiate to CHANGE them)
* Make sure that the owner gives you a photo-stated NRIC together with
documents stating ownership, i.e. a Bank Loan statement showing
his/her name on the loan as owner.
* Make sure that the Option to Purchase is duly signed by the Property
owner and DATED (Don't leave the DATE empty).
* If you have to give a cheque, post date it by a few days, so in case you
want to change your mind, you can quickly stop payment.
Even all these won't stop a rogue agent or a rogue Homeowner selling his
home multiple times to multiple buyers, but at least you have a slightly better
level of protection. Because at least you are sure you are dealing with the
Property Owner.
www.PropertyBUYER.com.sg is a research focused Mortgage Advisory that do not emphasize cheap loans. We balance risks with savings based on the individual's financial situation to find the best fit Home Loan.
Not only that, we help to make sure of the following: -
* Buyer is buying at the right price (we check multiple valuations to give a safe price)
* Because all these work takes a lot of time, if you commit to get your loan through us, we can
help you to check recent transaction around that block, or the particular unit's transaction
and price history.
* We can check and verify PROPERTY Seller details.
* When bank's letter of offer is given, we can check to verify the contract
details and make sure that it is as agreed.
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
Contact us
http://www.propertybuyer.com.sg/contactus.php
Read More articles
http://www.propertyBUYER.com.sg/articlesnews.php
Understand Property Investing and Sub-prime
http://astore.amazon.com/httpwwwpro0ad-20?%5Fencoding=UTF8&node=55
Refinance and Mortgages DIY steps
http://www.squidoo.com/Singapore-homeloan
Courtesy of www.PropertyBUYER.com.sg
Contact them
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
http://www.propertybuyer.com.sg/contactus.php
In an article by Straits Times, April 8, 2009.
"Eric Heng Jit Siang (left) conned 127 people, mainly foreigners and permanent residents...
Heng would pose as the owner of a property seeking to rent it out, milking the tenant for a deposit on the rent, and then pulling a disappearing act.
Using both landed properties and flats he had rented, the 33-year-old conned over $242,500 in rental deposits between last April and January out of 127 people.
The court heard that he rented 10 properties across Singapore, got hold of the keys and then placed advertisements in newspapers and in train stations seeking tenants.
When people responded to his advertisements, he posed as the owner of these properties and arranged to show them the units.
When the tenancy agreement was signed - and each unit was 'rented' out to more than one house-hunter - he collected money from each of them as a deposit on the rent or the utility bill."
(Source: The Straits Times, "http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_361167.html, Esther Tan")
HOW SOME SINGAPORE PROPERTY AGENTS BEHAVE
When you go to an agent, he/she brings you to see a property. He/she
always emphasize "Bring your cheque book". This is because in the heat of
the moment, sometimes you can get influenced into making a rash decision.
A rash decision is what an agent wants. Because no matter the house is
sold or not, he/she still gets his/her commission, while if you do not proceed,
you forfeit your Option to purchase deposit of 1% of the House price.
You can pay for a property that is NOT worth that much and eventually the
bank will not loan you the full amount you want to borrow or worse, you get
cheated.
Agents always tell you, it's best for them to negotiate on your behalf. Many times,
this is the worst scenario. We will talk about that in the next article.
PLACING AN OPTION TO PURCHASE
Usually the agent will ask you to place the cheque first for an amount.
But the agent did NOT get an agreement from the seller to sell at the
particular price. The agent will then use this cheque to dangle in front of the
seller inducing him/her to sell.
WHAT IS THE PROBLEM WITH GIVING A CHEQUE?
Usually, the agent will take your cheque without asking you to sign the
Option to purchase agreement.
There is No verification of who you are writing the cheque to.
If the property is $1m, 1% = $10,000.
Giving a cheque without proper verification is like passing someone your 1
CARAT Diamond ring without checking his identity.
In case the agent asks you to write to an "Imaginery owner" of the property
which is his/her friend, the agent can cash your cheque and run if he is
crooked.
Even if the agent is not crooked, giving your cheque without proper Identity
verification of the related parties is fraught with risks.
You Could consider the following Precautions: -
* Check NRIC: Of the agent
* Check NRIC of the property owner - With documents showing he/she
is indeed the owner of the property.
* Check through the Option to Purchase agreement for unfavourable
terms. (These contracts are usually worded to favour the
agent/agency, but you can negotiate to CHANGE them)
* Make sure that the owner gives you a photo-stated NRIC together with
documents stating ownership, i.e. a Bank Loan statement showing
his/her name on the loan as owner.
* Make sure that the Option to Purchase is duly signed by the Property
owner and DATED (Don't leave the DATE empty).
* If you have to give a cheque, post date it by a few days, so in case you
want to change your mind, you can quickly stop payment.
Even all these won't stop a rogue agent or a rogue Homeowner selling his
home multiple times to multiple buyers, but at least you have a slightly better
level of protection. Because at least you are sure you are dealing with the
Property Owner.
www.PropertyBUYER.com.sg is a research focused Mortgage Advisory that do not emphasize cheap loans. We balance risks with savings based on the individual's financial situation to find the best fit Home Loan.
Not only that, we help to make sure of the following: -
* Buyer is buying at the right price (we check multiple valuations to give a safe price)
* Because all these work takes a lot of time, if you commit to get your loan through us, we can
help you to check recent transaction around that block, or the particular unit's transaction
and price history.
* We can check and verify PROPERTY Seller details.
* When bank's letter of offer is given, we can check to verify the contract
details and make sure that it is as agreed.
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
Contact us
http://www.propertybuyer.com.sg/contactus.php
Read More articles
http://www.propertyBUYER.com.sg/articlesnews.php
Understand Property Investing and Sub-prime
http://astore.amazon.com/httpwwwpro0ad-20?%5Fencoding=UTF8&node=55
Refinance and Mortgages DIY steps
http://www.squidoo.com/Singapore-homeloan
Thursday, April 30, 2009
Invest in Singapore: Risks of Dollar Cost Averaging
Singapore investment: Risks of Dollar-cost-averaging
Contributed by
www.PropertyBUYER.com.sg
(Authors or websites, if you would like us to post your articles, please drop us a note)
Contact them:
Tel: 6100 - 0608
sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
http://www.propertybuyer.com.sg/contactus.php
What is dollar-cost-averaging?
Many people mistake investing in Singapore as naturally given them safety. In fact, no
matter where you invest in, you will still need to do your home work.
In shares, dollar-cost-averaging is used to lower the average cost of your
purchase.
Just as an illustration using shares: -
Jan 2009 - 1000 shares at $5.00
Feb 2009 - 1000 shares at $4.00
Mar 2009 - 1000 shares at $2.00
The average cost of the above share = ($5.00 + $4.00 + $2.00 )/ 3 = $3.67
The aim of dollar-cost-averaging is to mitigate a wrong timing of purchase. If
you purchased something at $5.00, the prices have now fallen, in order to
lower your overall average cost of purchase, you will have to buy more at
the lowered prices.
RISKS of dollar-cost-averaging
When the shares have fallen, people who blindly believe in dollar-
cost-averaging will put more money into the company whose shares have
fallen.
Then the shares fall further, he/she buys more, it falls further, he/she buys
even more. So much so that the cost of the shares is very cheap. If the
share price rebounds, the person can become very rich.
INFORMATION ASSYMMETRY
However, in many cases, there is a reason why the share prices have fallen.
We almost always have to assume that the insiders know better than we do.
It can mean that the company is seriously in trouble.
Despite years of making the market more transparent, efficient and with
timely dissemination of information, it is still the insiders and their inner circle
that knows what is going on in a company best.
Buying the shares when insiders are dumping is the easiest way for a
person to loose an entire fortune.
SO WHAT SHOULD WE DO?
The best way to do is to re-assess the company's financial fundamentals,
macro and micro economic fundamentals to establish a NEW fair value for
the company's shares and it's potential.
Once you have established that, you can then decide whether to throw more
money into the company.
If you have thrown in money in the past and it is lost, you must be able to let
go. So the key thing to do is: -
When markets rise, do not greed. (Do not rush to buy more without proper homework)
When markets fall, do not fear. (But do not become a "rambo" either)
In both cases, do your homework, then act on it. And when we say ACT on
it, we don't just mean, BUY or SELL. It could also mean do Nothing.
Some people emphasize and quote Warren Buffet, "When others are greedy, be fearful,
when others are fearful, be greedy" this is simply a contrarian style of investing. Do
not go into it blindly. Because what you didn't know is, Warren Buffet's been watching
and observing certain shares for YEARS waiting for the right moment. These shares may
have been consistently over-priced, but are nonetheless good companies. When these
shares suddenly and without reason are being dumped because people are fearful of the
general market, that is when Warren Buffet acts.
Do not use Warren Buffet's maxim when you only know half the story and didn't do your
homework. You will BET YOUR FARM and LOSE IT.
The key thing is, never take one or two simple concepts and treat it as
universal truth and apply it indiscriminately to all situations. There is no free
lunch!
Luckily physical properties have less the the problems associated with shares when
applying Dollar cost averaging.
www.PropertyBuyer.com.sg
is a Researched Focused Mortgage Advisory that helps individuals
refinance or obtain the best fit home loans. We do not simply emphasize
cheap rates, but rather focus on a risk versus savings approach.
You can approach us to evaluate refinancing of your home loan. The service
is free to you as banks pay us separately. You can click on "About us" to
know more about us.
You have nothing to lose and everything to gain.
www.PropertyBuyer.com.sg
also focuses on helping property buyers get the right property investment by checking
checking and ensuring a fair valuation so that they do not overpay or get excited when
an agent tells them the property is hotly in demand.
Find the right home loan package that fits the needs of the home property buyer,
process the loan till approval.
When the loan is finally approved, www.PropertyBUYER.com.sg helps you to check the
letter of offer to make sure the terms are exactly as agreed prior to the offer and
spot major mistakes and omissions.
(Some home owners were promised some terms and pricing, but when the offer came, there were some mismatch. One of the home owners signed on it and only to realize months later that instead of a No-lock in period, he was locked-in for 3 years, with a penalty of 1.5% on FULL redemption. His property was 700k and his loan was only 400k. In case he were to get an offer to sell his property within 3 years, he would incur a $6,000 loss)
ABOUT US Contact us
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
Contact us
http://www.propertybuyer.com.sg/contactus.php
Read More articles
http://www.propertyBUYER.com.sg/articlesnews.php
Understand Property Investing and Sub-prime
http://astore.amazon.com/httpwwwpro0ad-20?%5Fencoding=UTF8&node=55
Refinance and Mortgages DIY steps
http://www.squidoo.com/Singapore-homeloan
Contributed by
www.PropertyBUYER.com.sg
(Authors or websites, if you would like us to post your articles, please drop us a note)
Contact them:
Tel: 6100 - 0608
sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
http://www.propertybuyer.com.sg/contactus.php
What is dollar-cost-averaging?
Many people mistake investing in Singapore as naturally given them safety. In fact, no
matter where you invest in, you will still need to do your home work.
In shares, dollar-cost-averaging is used to lower the average cost of your
purchase.
Just as an illustration using shares: -
Jan 2009 - 1000 shares at $5.00
Feb 2009 - 1000 shares at $4.00
Mar 2009 - 1000 shares at $2.00
The average cost of the above share = ($5.00 + $4.00 + $2.00 )/ 3 = $3.67
The aim of dollar-cost-averaging is to mitigate a wrong timing of purchase. If
you purchased something at $5.00, the prices have now fallen, in order to
lower your overall average cost of purchase, you will have to buy more at
the lowered prices.
RISKS of dollar-cost-averaging
When the shares have fallen, people who blindly believe in dollar-
cost-averaging will put more money into the company whose shares have
fallen.
Then the shares fall further, he/she buys more, it falls further, he/she buys
even more. So much so that the cost of the shares is very cheap. If the
share price rebounds, the person can become very rich.
INFORMATION ASSYMMETRY
However, in many cases, there is a reason why the share prices have fallen.
We almost always have to assume that the insiders know better than we do.
It can mean that the company is seriously in trouble.
Despite years of making the market more transparent, efficient and with
timely dissemination of information, it is still the insiders and their inner circle
that knows what is going on in a company best.
Buying the shares when insiders are dumping is the easiest way for a
person to loose an entire fortune.
SO WHAT SHOULD WE DO?
The best way to do is to re-assess the company's financial fundamentals,
macro and micro economic fundamentals to establish a NEW fair value for
the company's shares and it's potential.
Once you have established that, you can then decide whether to throw more
money into the company.
If you have thrown in money in the past and it is lost, you must be able to let
go. So the key thing to do is: -
When markets rise, do not greed. (Do not rush to buy more without proper homework)
When markets fall, do not fear. (But do not become a "rambo" either)
In both cases, do your homework, then act on it. And when we say ACT on
it, we don't just mean, BUY or SELL. It could also mean do Nothing.
Some people emphasize and quote Warren Buffet, "When others are greedy, be fearful,
when others are fearful, be greedy" this is simply a contrarian style of investing. Do
not go into it blindly. Because what you didn't know is, Warren Buffet's been watching
and observing certain shares for YEARS waiting for the right moment. These shares may
have been consistently over-priced, but are nonetheless good companies. When these
shares suddenly and without reason are being dumped because people are fearful of the
general market, that is when Warren Buffet acts.
Do not use Warren Buffet's maxim when you only know half the story and didn't do your
homework. You will BET YOUR FARM and LOSE IT.
The key thing is, never take one or two simple concepts and treat it as
universal truth and apply it indiscriminately to all situations. There is no free
lunch!
Luckily physical properties have less the the problems associated with shares when
applying Dollar cost averaging.
www.PropertyBuyer.com.sg
is a Researched Focused Mortgage Advisory that helps individuals
refinance or obtain the best fit home loans. We do not simply emphasize
cheap rates, but rather focus on a risk versus savings approach.
You can approach us to evaluate refinancing of your home loan. The service
is free to you as banks pay us separately. You can click on "About us" to
know more about us.
You have nothing to lose and everything to gain.
www.PropertyBuyer.com.sg
also focuses on helping property buyers get the right property investment by checking
checking and ensuring a fair valuation so that they do not overpay or get excited when
an agent tells them the property is hotly in demand.
Find the right home loan package that fits the needs of the home property buyer,
process the loan till approval.
When the loan is finally approved, www.PropertyBUYER.com.sg helps you to check the
letter of offer to make sure the terms are exactly as agreed prior to the offer and
spot major mistakes and omissions.
(Some home owners were promised some terms and pricing, but when the offer came, there were some mismatch. One of the home owners signed on it and only to realize months later that instead of a No-lock in period, he was locked-in for 3 years, with a penalty of 1.5% on FULL redemption. His property was 700k and his loan was only 400k. In case he were to get an offer to sell his property within 3 years, he would incur a $6,000 loss)
ABOUT US Contact us
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
Contact us
http://www.propertybuyer.com.sg/contactus.php
Read More articles
http://www.propertyBUYER.com.sg/articlesnews.php
Understand Property Investing and Sub-prime
http://astore.amazon.com/httpwwwpro0ad-20?%5Fencoding=UTF8&node=55
Refinance and Mortgages DIY steps
http://www.squidoo.com/Singapore-homeloan
Sunday, April 26, 2009
Singapore Investment: Understand your irrational investment behaviour
Singapore Investment: Understand your own irrational investment behaviour.
If you think you are rational every time you make a decision? You cannot be more wrong. The brain (specifically out brain) fools us most of the time. And almost predictably, like a computer program, our human decision making follows a certain pattern.
We think we are in control, but often the choices are made for us, without us even knowing it.
For example, you offer your child Milk or water, most child will likely choose Milk. But if you ask your child what he/she wants to drink, you are in trouble... It will end up with... "Waaa I want Cola, I want grape juice....!!!! I want the super duper power ranger drink because it gives the special doll."
Similarly, in finance and investments, you choices are often skewed by your brain.
You will also understand why people flock in herds, because people feel safer. Therefore in order to invest well, it is not about intelligence, it is also about temperament. Why some are more rational than the others? It's all got to do with how the brain is wired and how much of certain chemical signals we have in our brain that controls the Fight or flight response.
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