Compare Singapore home loans with NOT the BEST Mortgage consultant
Article contributed by www.PropertyBUYER.com.sg, 6100 - 0608, SMS 9782 - 8606
If you want to invest in Singapore properties, it is important to work with NOT the best home loan consultant.
By the way, have you ever noticed, we (at www.propertybuyer.com.sg) never say we are the BEST HOME LOAN Consultancy and we simply do NOT use the word BEST very much?
Are you crazy? Why work with NOT THE BEST HOME LOAN Consultancy?
This is because we are not the best and we are still trying to improve with your feedback.
And there are at least 5 to 10 other out there than claimed they are the BEST. As far as we understand, BEST means number 1, so rather than join them in claiming we are also the BEST, we would rather say outright now to set the record straight. We are NOT THE BEST Home loan consultancy in Singapore.
We are not the best home loan consultancy out there, but we do try very hard and we have a methodology to try to fit your needs.
Why use a Mortgage Consultant if you want to invest in Singapore properties?
In many economic cycles of boom and bust, the retail banking sector has evolved with the time. As more and more banks came into the home loan market, the bank’s margins became challenging.
As banks only mark up slightly above their cost of funds, this liberation of credit and financing fueled investments and asset prices. This included property prices inflation.
Singapore home loans margins are very little. But why do banks still do it?
Banks still lend out for home loans because in any economy, residential home loans form a large part of a country’s economic activity. This is a high volume activity despite the low margins.
Many rounds of cost cutting and retrenchments meant that the banks are really short of staff. Helplines are no longer manned by real people, instead you will go through endless hours of wait while listening to, “Your call is important to us, please hold on, our consultants will attend to your call soon.” And worst of all, “Please press * to hang up or call us back between 9 to 5pm.” Bank tellers are replaced by ATM machines.
Singapore banks retrench bankers to stay lean
In order to cope with the uncertain demand, banks have outsourced the front end banking. They pay Singapore mortgage consultants like us a fee for handling the advice, processing and follow up of the home loans. This way, they minimize the issue of a hire and fire culture at the banks, not that the banks cared, at the end of the day, it’s about profitability.
Banks do not really like home loan consultants that much. As a mortgage consultant works for the client’s interest and that means we represent the client rather than the banks. So it is in a way, a twisted outcome from the bank’s promotional activity. Banks prefer to work with property agents which has less concerns for their clients.
Service Satisfaction drops with retail bankers
Service satisfaction with banks soon dropped, banking loyalty which were in the past held by people to people relationship no longer holds as there is simply not enough bankers. But the banks will not start employing bankers as they want to stay lean.
Staying lean means that you cannot expect to maintain professional long term relationship with any banker.
With mortgage consultants such as us, SMS +65-9782-8606 or loans@propertyBUYER.com.sg, our customers have gradually become our friends. We maintain a long term professional relationship and friendship where we understand your unique requirements. We do not simply compare Singapore home loans or take out the Singapore mortgage calculator. The key step is first to establish the investment objective, not the mortgage calculator or comparing mortgage rates.
Our focus is on:
Doing the right things, right.
Right things = setting the objectives and setting it right.
Right = doing things correctly. So if you do the right things, wrong, it’s no use.
And what is worst? Doing the wrong things, right. (This means you have set the wrong objectives and you have successfully executed upon wrong targets and arrived at achieving the wrong targets)
So how did Singapore mortgage consultants come about?
Initially banks wanted the consultants to market only their home loans. However mortgage consultants like us have signed up with many banks and pick up the best features and packages from each bank. Property Buyer mortgage consultants at loans@propertybuyer.com.sg or sms us at +65-9782-8606 we will pick out the best few packages and highlight the pros and cons of each package. The clients will then pick from them.
Of course banks still need to stay profitable
In order to stay competitive while also profitable, banks came up with many possible combinations. While property buyer mortgage consultants are working for the benefit for the client, we are not against banks making money. And we are not advocating that banks cut rates or prices outright. Ultimately the banks will still need to make money. So we strongly encourage the Singapore banks to be innovative and create unique and useful features matches the client’s needs.
As more and more packages became available, the layman will have problems sifting through hundreds of home loans. So property buyer mortgage consultants can help you to compare Singapore home loans.
Refinance home loan Singapore or Get housing loans Singapore
Not Simply Cheap, but what Fits.
We Research, You Save!
Tel: 6100 - 0608
SMS: 9782 - 8606
Email: loans@propertyBUYER.com.sg
Showing posts with label Invest Singapore property. Show all posts
Showing posts with label Invest Singapore property. Show all posts
Wednesday, November 11, 2009
Sunday, October 18, 2009
Invest in Singapore Properties: Property investor review Oct 2009
Singapore property investor - buyer review Oct 2009
Singapore property investor
Singapore Q3, 2009 figures showed that "Singapore's economy grew 0.8% in the three months to September from a year ago". (Source: AFP)
Singapore is technically out of recession with two consecutive quarters of positive growth in Q2 and Q3.
"A clear but modest recovery is under way globally, at least for the next three or four quarters," but "One-off factors such as restocking activities and fiscal stimulus measures will continue to support growth in the near term."
"Manufacturing, which accounts for almost a quarter of Singapore's GDP, grew 8.3 percent in third quarter from a year ago and expanded 34.9 percent on a quarterly basis. The services industry shrank 2.4 percent on the year but expanded 9.5 percent on a quarterly basis. The construction sector surged 12.4 percent year-on-year but fell 0.6 percent from the previous three months." (Source: AFP)
These one off inventory restocking factors are what we are afraid were the primary reasons of Q3, 2009 recovery.
Singapore gets out of recession BUT Singapore property market cools.
We think that the Singapore government didn't expect that their positive media spin, easy credit largely kicked started by DBS and short term constriction of property supply (by property developers) has led to an almost 10 to 20% rise in valuation within one quarter. The Singapore government has therefore had to imposed anti-speculative measures recently in September for fear of a property bubble building up.
But the anti-speculative measures were imposed at a time when the market is already showing signs of slower volumes. It is strange, people buy when there are no fundamentals and slow down in buying when economic fundamentals improve.
Singapore economy recovers with Q3 figures up yet again
Q3, 2009 Singapore economic figures have improved, this means that the economy has firmed up a little and on the path to a slow recovery.
There is a likelihood that this is a recovery that is built for the ramp up to Q4 Christmas sales demand and re-stocking of inventories activities.
But the recovery (growth of Gross domestic product GDP) is likely to be a recovery without job growth at least for the short term.
Unemployment rate may still trend upwards while GDP growth resumes. In all likelihood, the recovery will likely be very mild and fraught with uncertainties and risks.
Possible risks to Singapore property market in 2010
1. Run out of stimulus funding in the US and elsewhere may lead to economy dropping back again.
2. China's stimulus funding (for their own domestic economy) is showing signs of fatigue. China's exports have also dropped. There are worries of stimulus funding being wasted on useless projects just to stimulate the economy.
3. Massive inflation. (The US Federal reserve has kept interest rates at 0.25% while it relied massively on foreign governments to lend it money (by buying it's treasury bonds) to fund it's massive deficit of around US$1 Trillion. The global community has started to lose confidence in the US. USD has started to fall relative to other currencies. The US may be forced to raise rates to attract lending. Other countries may not be interested to lend US the money and see the value of their lending fall.
The options are dire for the USA.
The US may continue to offer low rates and print more money without an actual offset through borrowings or it must raise rates.
Raising rates now will kill a still weak economy. Printing more money will infuriate America's lenders and lead to a cascade of USD falling + interest rates hikes.
Any upswing is likely to be moderate as developers have massive Singapore property supply in the years 2011 through 2015.
Possible positive factors to Singapore property market in 2010
Singapore must hold it's election latest by around June 2011. The economy must hold up well for the PAP to win another election.
Apart from the economy recovering (although very slowly), casinos are also ready in 2010. Media spin: The state controlled press' recent reports have always picked up and accentuated the positives (whether rightly or wrongly), despite the generally very weak economy. The press can single-handedly improve consumer sentiments. These can work in your favour or against you.
Improved sentiments may lead to more aggressive lending by banks, leading to the market over-heating. (remember, banks are usually pro-cyclical, they lend when markets are hot and they cut lending when everyone needs money). Singapore home loans rate may rise, but banks may sacrifice their margins to offer attractive rates which could stimulate the housing market. You will then be able to compare Singapore home loans across many banks who are very eager to lend you money.
Invest in Singapore properties now?
Generally we think that anytime is a good time to look for a property. It's a matter of getting the right price. There are good deals and bad deals in all economic cycles.
For Singapore property investors, now is a good time to look at Singapore property investments. The quieter property market means that there is less hype and more rational sellers. There is a much higher likelihood to get a better deal if you are careful and do your research before buying a properly. If you can find a property with consistent good yield at a good price, you may be able to use sentiments to your advantage when the hype builds up again in 2010 nearing election.
Holding power is still very important during this time as the economic fundamentals have not fully recovered and cash is still king.
Should Singapore property investor simply consider economic fundamentals?
As a Singapore property buyer - investor who wants to also profit from not just fundamentals but also sentiments. It is then important to recognise the sentiments in play.
For example, despite the fact that the market is really not as positive than it really is, but due to the SPIN from the media and other factors, that can work in your favour or against you. But also bear in mind that the media is something you have no control over.
For example, Singapore Aspen heights condo was trading at $1000 psf for units over 1300 sq feet in May 2009 and by July and August the prices have moved to around $1200 psf.
If any economic shocks occur, the property prices could fall. If you bought a property at $1200 psf and it drops back to 1000 psf, that would wipe out your 20% downpayment.
SUMMARY OF SINGAPORE PROPERTY MARKET Q3, Q4 2009
Going forward, economic recovery is going to be slow and bumpy. There exists much uncertainty and risks on the downside as well as some potential upside domestic surprises. Overall economy has stabilized with reduced risks of major economic shocks. There could also be a risk of the economy slipping back into the red, but this should be viewed as an opportunity to cheery pick.
Potential property market bubble curbed. Singapore government's land sales with it's more favourable terms and longer time to completion means developers are likely to bid higher.
Higher land prices are likely to translate higher selling prices (if there is holding power). Incomes are not recovering as fast, therefore the most likely outcome is smaller housing units selling at higher prices.
More and more property developers are likely to launch smaller size units to achieve their margins and meet the budget of the Singapore population. This could potentially lead to oversupply risks of smaller sizes units few years down the road.
Again we recommend that investors buy with caution and should have some cash buffer and holding power to limit the potential risks and to make sure to buy at the right price. If valuations drop and banks ask for equity top-up, most people will be caught unprepared.
Read More Singapore Property Investment articles
http://www.PropertyBUYER.com.sg/articles/article.php
TEL: 6100 - 0608
SMS: 9782 - 8606
Email: loans@propertyBUYER.com.sg
Singapore property investor
Singapore Q3, 2009 figures showed that "Singapore's economy grew 0.8% in the three months to September from a year ago". (Source: AFP)
Singapore is technically out of recession with two consecutive quarters of positive growth in Q2 and Q3.
"A clear but modest recovery is under way globally, at least for the next three or four quarters," but "One-off factors such as restocking activities and fiscal stimulus measures will continue to support growth in the near term."
"Manufacturing, which accounts for almost a quarter of Singapore's GDP, grew 8.3 percent in third quarter from a year ago and expanded 34.9 percent on a quarterly basis. The services industry shrank 2.4 percent on the year but expanded 9.5 percent on a quarterly basis. The construction sector surged 12.4 percent year-on-year but fell 0.6 percent from the previous three months." (Source: AFP)
These one off inventory restocking factors are what we are afraid were the primary reasons of Q3, 2009 recovery.
Singapore gets out of recession BUT Singapore property market cools.
We think that the Singapore government didn't expect that their positive media spin, easy credit largely kicked started by DBS and short term constriction of property supply (by property developers) has led to an almost 10 to 20% rise in valuation within one quarter. The Singapore government has therefore had to imposed anti-speculative measures recently in September for fear of a property bubble building up.
But the anti-speculative measures were imposed at a time when the market is already showing signs of slower volumes. It is strange, people buy when there are no fundamentals and slow down in buying when economic fundamentals improve.
Singapore economy recovers with Q3 figures up yet again
Q3, 2009 Singapore economic figures have improved, this means that the economy has firmed up a little and on the path to a slow recovery.
There is a likelihood that this is a recovery that is built for the ramp up to Q4 Christmas sales demand and re-stocking of inventories activities.
But the recovery (growth of Gross domestic product GDP) is likely to be a recovery without job growth at least for the short term.
Unemployment rate may still trend upwards while GDP growth resumes. In all likelihood, the recovery will likely be very mild and fraught with uncertainties and risks.
Possible risks to Singapore property market in 2010
1. Run out of stimulus funding in the US and elsewhere may lead to economy dropping back again.
2. China's stimulus funding (for their own domestic economy) is showing signs of fatigue. China's exports have also dropped. There are worries of stimulus funding being wasted on useless projects just to stimulate the economy.
3. Massive inflation. (The US Federal reserve has kept interest rates at 0.25% while it relied massively on foreign governments to lend it money (by buying it's treasury bonds) to fund it's massive deficit of around US$1 Trillion. The global community has started to lose confidence in the US. USD has started to fall relative to other currencies. The US may be forced to raise rates to attract lending. Other countries may not be interested to lend US the money and see the value of their lending fall.
The options are dire for the USA.
The US may continue to offer low rates and print more money without an actual offset through borrowings or it must raise rates.
Raising rates now will kill a still weak economy. Printing more money will infuriate America's lenders and lead to a cascade of USD falling + interest rates hikes.
Any upswing is likely to be moderate as developers have massive Singapore property supply in the years 2011 through 2015.
Possible positive factors to Singapore property market in 2010
Singapore must hold it's election latest by around June 2011. The economy must hold up well for the PAP to win another election.
Apart from the economy recovering (although very slowly), casinos are also ready in 2010. Media spin: The state controlled press' recent reports have always picked up and accentuated the positives (whether rightly or wrongly), despite the generally very weak economy. The press can single-handedly improve consumer sentiments. These can work in your favour or against you.
Improved sentiments may lead to more aggressive lending by banks, leading to the market over-heating. (remember, banks are usually pro-cyclical, they lend when markets are hot and they cut lending when everyone needs money). Singapore home loans rate may rise, but banks may sacrifice their margins to offer attractive rates which could stimulate the housing market. You will then be able to compare Singapore home loans across many banks who are very eager to lend you money.
Invest in Singapore properties now?
Generally we think that anytime is a good time to look for a property. It's a matter of getting the right price. There are good deals and bad deals in all economic cycles.
For Singapore property investors, now is a good time to look at Singapore property investments. The quieter property market means that there is less hype and more rational sellers. There is a much higher likelihood to get a better deal if you are careful and do your research before buying a properly. If you can find a property with consistent good yield at a good price, you may be able to use sentiments to your advantage when the hype builds up again in 2010 nearing election.
Holding power is still very important during this time as the economic fundamentals have not fully recovered and cash is still king.
Should Singapore property investor simply consider economic fundamentals?
As a Singapore property buyer - investor who wants to also profit from not just fundamentals but also sentiments. It is then important to recognise the sentiments in play.
For example, despite the fact that the market is really not as positive than it really is, but due to the SPIN from the media and other factors, that can work in your favour or against you. But also bear in mind that the media is something you have no control over.
For example, Singapore Aspen heights condo was trading at $1000 psf for units over 1300 sq feet in May 2009 and by July and August the prices have moved to around $1200 psf.
If any economic shocks occur, the property prices could fall. If you bought a property at $1200 psf and it drops back to 1000 psf, that would wipe out your 20% downpayment.
SUMMARY OF SINGAPORE PROPERTY MARKET Q3, Q4 2009
Going forward, economic recovery is going to be slow and bumpy. There exists much uncertainty and risks on the downside as well as some potential upside domestic surprises. Overall economy has stabilized with reduced risks of major economic shocks. There could also be a risk of the economy slipping back into the red, but this should be viewed as an opportunity to cheery pick.
Potential property market bubble curbed. Singapore government's land sales with it's more favourable terms and longer time to completion means developers are likely to bid higher.
Higher land prices are likely to translate higher selling prices (if there is holding power). Incomes are not recovering as fast, therefore the most likely outcome is smaller housing units selling at higher prices.
More and more property developers are likely to launch smaller size units to achieve their margins and meet the budget of the Singapore population. This could potentially lead to oversupply risks of smaller sizes units few years down the road.
Again we recommend that investors buy with caution and should have some cash buffer and holding power to limit the potential risks and to make sure to buy at the right price. If valuations drop and banks ask for equity top-up, most people will be caught unprepared.
Read More Singapore Property Investment articles
http://www.PropertyBUYER.com.sg/articles/article.php
TEL: 6100 - 0608
SMS: 9782 - 8606
Email: loans@propertyBUYER.com.sg
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