SINGAPORE: The Government has introduced two new measures that will take effect Saturday to temper sentiments and pre-empt a property bubble from forming in the private residential market.
It said they will help to ensure a stable and sustainable property market.
The first is a Seller's Stamp Duty on all residential properties and residential lands that are bought after Friday and sold within one year from the date of purchase. The stamp duty will be applied at the standard ad valorem stamp duty rates for the conveyance, assignment or transfer of property.
Housing and Development Board (HDB) flats will not be subjected to the stamp duty as they are already subject to a minimum occupation period of at least one year.
The Ministry of National Development (MND) said the objective of this new tax measure is to discourage short-term speculative activity that could distort underlying prices. It stressed that it is not targeted at the purchase of properties for owner occupation or longer term investment.
The housing loan limit will also be capped at 80 per cent of the private property's value, instead of the current 90 per cent.
The 80 per cent Loan-To-Value limit will apply to all housing loans granted by financial institutions for private residential properties, Executive Condominiums, HUDC flats and HDB flats, including those under the Design, Build and Sell Scheme.
Loans granted by the HDB for flats - including those under the Design, Build and Sell Scheme - will still have a cap of 90 per cent.
MND said this is because HDB flats are already subject to other criteria to prevent speculation and encourage financial prudence, such as minimum owner occupation period and restriction on ownership to one flat per household.
Explaining the rationale for the measures, MND said there is a risk that the market could overheat in the next few months, given the optimism fuelled by the economic recovery and low global interest rates.
However, it noted that the current level of speculative activity is still lower than what it was at the height of the property market boom. Overall price levels are below the previous peak.
MND warned that any excessive exuberance will make the property market vulnerable to the continuing risks in the global economy.
The Government described the new measures as "calibrated", saying it prefers to take small steps early, rather than be forced to impose more drastic measures after a bubble has formed.
It will continue to ensure that there is adequate supply of housing to meet demand. Sites that can yield 10,550 private housing units have already made available in the Confirmed and Reserve List of the Government Land Sales (GLS) Programme in the first half of 2010.
This is the highest supply quantum in the history of the GLS Programme.
- CNA/sc
(Source: Channel News Asia, 19 Feb 2010)
Showing posts with label Singapore mortgage refinance. Show all posts
Showing posts with label Singapore mortgage refinance. Show all posts
Friday, February 19, 2010
Friday, July 3, 2009
Singapore SIBOR Home loan mortgage
Courtesy of www.PropertyBUYER.com.sg
Singapore Interbank Borrowing Rate is commonly referred to as SIBOR.
Sibor is traded amongst banks at the Association of
Banks Singapore (ABS)
Contact us
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
http://www.propertybuyer.com.sg/contactus.php
The Singapore economy is still hurting, however the absolute worst may be over.
Given that the economy has stabilized, the Sibor and SOR tends to stay low
in a weak economy.
Reduced Risk of Major melt down.
So in short, the major risks of credit crisis or financial meltdown is much
reduced. Sibor and SOR should not hike due to panic.
Risk of Inflation
Each medicine comes at a price. The price is a hang-over or side-effects lasting
several years.
Obama's massive fiscal stimulus and that of many countries are going to hit
the fan soon.
Is the USA printing money
You cannot create something out of nothing. What the USA did by pumping
the economy is similar to creating 1+ Trillion dollars out of thin air.
The only reason why it is not a PURE "PRINTING money" exercise is
because the "Printing" is financed through debt.
The extra + 1 Trillion is created, but debt is created to finance it, so there is
minus - 1 Trillion. So +1 trillion - 1 trillion in debt = 0 (not printing).
But when you add 1 trillion to a 14 trillion dollars economy, that is something
like 7% of US GDP. Surely after some of the deflationary pressures are
sorted out, if the US do not pull this money out, a serious inflation may
appear.
So far, the US government have reiterated that they have plans in place to suck up the
excess liquidity. We think that would be tough. Take it away too soon, economy falls
back into recession.
SOR and SIBOR is quite directly affected by US Fed funds rates and policies.
If the US suffers from inflation, the world's economy may suffer as well. And
Sibor and SOR may shoot up too. We cannot rule out this possibility.
Get Home Loan or Refinance Home loan with www.PropertyBUYER.com.sg
We never emphasize cheap loans, we never emphasize we are the best
home loan company.
What we do is a research focused approach to help
busy home owners sort out the home loans and refinance home loans
balancing risk and rewards for each possible option they choose.
ABOUT US Contact us
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
Contact us
Download FREE Property Checklist / Guide (Kiasu Property Checklist)
Sunday, June 28, 2009
Singapore mortgage refinance update 2009
Singapore Mortgage refinance update June 2009
Courtesy of www.PropertyBUYER.com.sg
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
http://www.propertybuyer.com.sg/contactus.php
SIbor and SOR rate was all the rage in 2008
Around 2008, Sibor and SOR based home loan rates were all the rage.
Interest rates were SKY HIGH as recent as April to June in 2008. Many
people got their hands burnt by bank's variable rate packages.
As a result of that, many people switched to Sibor or SOR based home loan
rates as it is more transparent.
Many people were Burnt by Variable rate home loan or refinance packages
Variable rates are pegged to the bank's internal reference and typically the
way in which the banks raise rates are somewhat arbitrary. Banks have also
created many reference pegs such as, "mortgage rates", Home loan rate",
board rate; you name it...
SIBOR is transparent, but also Volatile
Sibor on the other hand is very transparent, but it is also volatile, as it can
swing wildly in times of crisis.
Banks Keep raising rates... Until...
Before Sep to Oct 2008, some of the best packages are Sibor + 0.6% to
0.7%. This means that bank's gross lending margin is only 0.6% to 0.7%.
By Oct 2008, some banks have raised their Sibor based lending from Sibor
+ 0.7% to Sibor + 1.25%.
In short, banks have decided that the credit crisis is so bad, if they are going
to lend you at all, they want an arm and a leg to compensate them for the
risks.
We warned in FEB 2009 that Banks will yet again raise rates
For those who remember, we have warned people around Feb 2009 that in
Mar 2009, banks will raise rates again. True enough, most banks raised their
SIBOR or SOR based lending rate from Sibor + 1.25% to around Sibor +
1.75%.
Strangely the banks are not really competing in Mar 2009, many banks soon
fall in line.
Maybank fired the first warning shot by dropping rates
Then suddenly Maybank fired a warning shot by dropping their first year
rates to 1.6% in March 2009.
However it was very targeted at higher credit quality customers with loan to
valuation of only 70%.
We were expecting many banks to change course can start competing to
give consumer a better benefits. That did not materialized in March.
Another foreign bank try to steal Maybank's thunder.
Later in March, another foreign bank kept pace with Maybank by matching
their rates, although the terms were different.
During this time, the local banks did not bite, instead preferring to keep their
rates high. At this time, it was mainly the foreign banks that are lending,
although the processing time has increased from 2 to 3 days to as long as 7
days in some cases.
During this time, some banks launched their relationship based lending
rates.
The local banks did not jump in to compete for a long time and sat at the
sidelines watching.
People expect that Maybank will soon terminate their package and rates will
rise.
Many people expected that the Foreign banks will soon terminate their
promotional packages. By this time, June 2009, a local bank has woken up
from it's 6 months slumber and jumped into the fray to compete having been
dormant for almost 6 months. This will probably kick off a price war with
other local banks jumping in.
EVALUATE REFINANCING YOUR HOME LOAN
The rates are a 1.9% for 3 years fixed.
The rate is pretty good. Do give us a call at 6100-0608 or sms us at
9782-8606.
We do NOT charge a fee as banks pay us separately. Meanwhile,you can
just sit back and relax while we submit your application, follow-up on
approval, update you the progress, check the letter of offer
legal contract for major omissions. So would you rather do the work all my
yourself or would you rather sit back and relax and let us do the work for
you, for free?
loans@propertybuyer.com.sg
Will other banks now jump in to compete?
We think that the rates on offer is quite attractive considering that there
could be some risk of inflation given the massive fiscal stimulus in many
countries, locking-in for 3 years at low rates makes sense.
We don't know if other banks will jump in, but it is likely that other banks will
match or tweak it in a different way with some terms and conditions.
www.PropertyBUYER.com.sg is research-focused mortgage consultant. We do not emphasize Cheap loans, but help property buyers refinance home loans to get the best deal or get new home loans.
ABOUT www.PropertyBUYER.com.sg
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
Contact us
http://www.propertybuyer.com.sg/contactus.php
Property Checklist
http://www.propertybuyer.com.sg/viewnews.php?article=39
Read More articles
http://www.propertyBUYER.com.sg/articlesnews.php
Refinance and Mortgages DIY steps
http://www.squidoo.com/Singapore-homeloan
Follow us on Twitter
http://twitter.com/sg_homeloan
Follow us on Facebook
http://www.facebook.com/group.php?gid=7371258458
Courtesy of www.PropertyBUYER.com.sg
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
http://www.propertybuyer.com.sg/contactus.php
SIbor and SOR rate was all the rage in 2008
Around 2008, Sibor and SOR based home loan rates were all the rage.
Interest rates were SKY HIGH as recent as April to June in 2008. Many
people got their hands burnt by bank's variable rate packages.
As a result of that, many people switched to Sibor or SOR based home loan
rates as it is more transparent.
Many people were Burnt by Variable rate home loan or refinance packages
Variable rates are pegged to the bank's internal reference and typically the
way in which the banks raise rates are somewhat arbitrary. Banks have also
created many reference pegs such as, "mortgage rates", Home loan rate",
board rate; you name it...
SIBOR is transparent, but also Volatile
Sibor on the other hand is very transparent, but it is also volatile, as it can
swing wildly in times of crisis.
Banks Keep raising rates... Until...
Before Sep to Oct 2008, some of the best packages are Sibor + 0.6% to
0.7%. This means that bank's gross lending margin is only 0.6% to 0.7%.
By Oct 2008, some banks have raised their Sibor based lending from Sibor
+ 0.7% to Sibor + 1.25%.
In short, banks have decided that the credit crisis is so bad, if they are going
to lend you at all, they want an arm and a leg to compensate them for the
risks.
We warned in FEB 2009 that Banks will yet again raise rates
For those who remember, we have warned people around Feb 2009 that in
Mar 2009, banks will raise rates again. True enough, most banks raised their
SIBOR or SOR based lending rate from Sibor + 1.25% to around Sibor +
1.75%.
Strangely the banks are not really competing in Mar 2009, many banks soon
fall in line.
Maybank fired the first warning shot by dropping rates
Then suddenly Maybank fired a warning shot by dropping their first year
rates to 1.6% in March 2009.
However it was very targeted at higher credit quality customers with loan to
valuation of only 70%.
We were expecting many banks to change course can start competing to
give consumer a better benefits. That did not materialized in March.
Another foreign bank try to steal Maybank's thunder.
Later in March, another foreign bank kept pace with Maybank by matching
their rates, although the terms were different.
During this time, the local banks did not bite, instead preferring to keep their
rates high. At this time, it was mainly the foreign banks that are lending,
although the processing time has increased from 2 to 3 days to as long as 7
days in some cases.
During this time, some banks launched their relationship based lending
rates.
The local banks did not jump in to compete for a long time and sat at the
sidelines watching.
People expect that Maybank will soon terminate their package and rates will
rise.
Many people expected that the Foreign banks will soon terminate their
promotional packages. By this time, June 2009, a local bank has woken up
from it's 6 months slumber and jumped into the fray to compete having been
dormant for almost 6 months. This will probably kick off a price war with
other local banks jumping in.
EVALUATE REFINANCING YOUR HOME LOAN
The rates are a 1.9% for 3 years fixed.
The rate is pretty good. Do give us a call at 6100-0608 or sms us at
9782-8606.
We do NOT charge a fee as banks pay us separately. Meanwhile,you can
just sit back and relax while we submit your application, follow-up on
approval, update you the progress, check the letter of offer
legal contract for major omissions. So would you rather do the work all my
yourself or would you rather sit back and relax and let us do the work for
you, for free?
loans@propertybuyer.com.sg
Will other banks now jump in to compete?
We think that the rates on offer is quite attractive considering that there
could be some risk of inflation given the massive fiscal stimulus in many
countries, locking-in for 3 years at low rates makes sense.
We don't know if other banks will jump in, but it is likely that other banks will
match or tweak it in a different way with some terms and conditions.
www.PropertyBUYER.com.sg is research-focused mortgage consultant. We do not emphasize Cheap loans, but help property buyers refinance home loans to get the best deal or get new home loans.
ABOUT www.PropertyBUYER.com.sg
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
Contact us
http://www.propertybuyer.com.sg/contactus.php
Property Checklist
http://www.propertybuyer.com.sg/viewnews.php?article=39
Read More articles
http://www.propertyBUYER.com.sg/articlesnews.php
Refinance and Mortgages DIY steps
http://www.squidoo.com/Singapore-homeloan
Follow us on Twitter
http://twitter.com/sg_homeloan
Follow us on Facebook
http://www.facebook.com/group.php?gid=7371258458
Tuesday, June 23, 2009
Invest in Singapore property: affordability case study
Invest in Singapore property: Affordability case study
Mr. and Mrs Lim earns a monthly income of $3,100 and $3,250 respectively.
They have a car installment which has 5 years remaining and $800 each
month.
* 3100 + 3250 = $6,350
* Credit card liabilities = $0
* Car Liabilities = $800
* Net cash flow (incl cpf) = $5,550 Per month
Contact us
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
http://www.propertybuyer.com.sg/contactus.php
Their parents gave them $120,000, they have $90,000 of savings.
They are planning on buying a condominium: -
* Condo price = $ 875,000
* Loan amount = $ 700,000
* CASH AT HAND = $ 210,000
* Stamp duty = -$ 20,850
* Downpayment = -$ 175,000
* Cash left = $ 14,150
Based on a Loan Tenure of 30 years @ 2.5% interest rate
* 30 years = $2766 per month (295,704 interest paid out)
Based on a loan tenure of 35 years @ 2.5% interest rate
* 35 years = $2,502 per month (351,305 interest paid out)
Assuming a Debt servicing ratio to cash flow of 50%
(Note: this is just a guideline, different banks use different interest rates and slightly different DSR, buyers are encouraged to check with us to obtain an approval-in-principle home loan, call us at 6100-0608 or SMS us at 9782-8606 or email us at loans@propertybuyer.com.sg to check)
While they look for investment property in Singapore, they have to make sure that
their credit history is clean. Their income should qualify them for a loan amount of
$700,000.
They are thinking of using 30 years instead of 35 years.
Because the interest paid out would be less.
Of course if everything goes smoothly, they would be able to go for the 30
year tenure. But in case something goes wrong, i.e. an accident, loss of
income, etc. They will be really cash strapped.
There are other incidentals associated with owning a private condo, such as
the following: -
*** $300 per month maintenance fees or $3600 per year.
*** Property tax, estimated at $18,000 per year, i.e. at owner occupier status
@ 4% = $720 per year or $60 per month.
So the monthly extra commitment is $360 due to the property.
So if we re-compute the fixed liabilities, the net cash position is...
* income 3100 + 3250 = $ 6,350
* Liabilities = $ 800 car (for 5 years)
* Liabilities = $ 360 condo related
* Credit card liabilities = $ 0
* Net cash = $ 5,190
Based on a Net cash position of $5190, paying out $2766 a month will be a
bit too tight for Mr. and Mrs. Lim.
So we recommended that Mr. Mrs Lim take a 35 years loan instead of a 30
years loan. This would be more comfortable on their monthly expenses.
ARE CAREERS AS SAFE AS THEY USED TO BE?
As careers are shorter with the new economic dynamics with technology and
business disruptions, many people will expect to change many jobs and
even change industries in which they work in their life times. From 1985 to
2009, we have encountered recessions in 1987, 1997, 2003, 2009, a
working adult should see major disruptions at least once every 5 years in
their life time. There is no guarantee of employment and salary stability.
So what is safer way for the Home loan tenure?
So just using a safer measure, we use a 20 year loan tenure @ 2.5% to
compute...The monthly installment is $3709 per month. Therefore Mr. and
Mrs. Lim should ideally be earning around $7,418 + $800 + $360 = $8,578
to more comfortably afford the Condo of $ 875,000.
So based on their current income, how much can they AFFORD?
Based on their current earning capacity, they should really be looking at a
property that is no more than, $480,000 loan or $600,000 property, based on
a 20 year loan.
Why work through www.PropertyBUYER.com.sg for mortgage home loans?
We help property buyers to look through each property's valuation to
establish a valuation range for any given unit. We have a unique
methodology to evaluate bargains for properties, we usually charge a fee for
property buying analysis service, we are offering this service free until Dec
2009.
-----------------------------------------------------------------------------
www.propertyBUYER.com.sg is a research-focused Singapore Mortgage
advisor that helps individuals get the best fit Singapore Home loans or to
refinance their properties, not simply the cheapest Singapore Home loans.
You can come to us for your Singapore Home Loan needs and we will do the
research work to compare all the bank's packages as well as assess the
best fit for you.
Contact us
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
http://www.propertybuyer.com.sg/contactus.php
Property Checklist (Very Kiasu one)
http://www.propertybuyer.com.sg/viewnews.php?article=39
Read More articles
http://www.propertyBUYER.com.sg/articlesnews.php
Refinance and Mortgages DIY steps
http://www.squidoo.com/Singapore-homeloan
Follow us on Twitter
http://twitter.com/sg_homeloan
Follow us on Facebook
http://www.facebook.com/group.php?gid=7371258458
Mr. and Mrs Lim earns a monthly income of $3,100 and $3,250 respectively.
They have a car installment which has 5 years remaining and $800 each
month.
* 3100 + 3250 = $6,350
* Credit card liabilities = $0
* Car Liabilities = $800
* Net cash flow (incl cpf) = $5,550 Per month
Contact us
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
http://www.propertybuyer.com.sg/contactus.php
Their parents gave them $120,000, they have $90,000 of savings.
They are planning on buying a condominium: -
* Condo price = $ 875,000
* Loan amount = $ 700,000
* CASH AT HAND = $ 210,000
* Stamp duty = -$ 20,850
* Downpayment = -$ 175,000
* Cash left = $ 14,150
Based on a Loan Tenure of 30 years @ 2.5% interest rate
* 30 years = $2766 per month (295,704 interest paid out)
Based on a loan tenure of 35 years @ 2.5% interest rate
* 35 years = $2,502 per month (351,305 interest paid out)
Assuming a Debt servicing ratio to cash flow of 50%
(Note: this is just a guideline, different banks use different interest rates and slightly different DSR, buyers are encouraged to check with us to obtain an approval-in-principle home loan, call us at 6100-0608 or SMS us at 9782-8606 or email us at loans@propertybuyer.com.sg to check)
While they look for investment property in Singapore, they have to make sure that
their credit history is clean. Their income should qualify them for a loan amount of
$700,000.
They are thinking of using 30 years instead of 35 years.
Because the interest paid out would be less.
Of course if everything goes smoothly, they would be able to go for the 30
year tenure. But in case something goes wrong, i.e. an accident, loss of
income, etc. They will be really cash strapped.
There are other incidentals associated with owning a private condo, such as
the following: -
*** $300 per month maintenance fees or $3600 per year.
*** Property tax, estimated at $18,000 per year, i.e. at owner occupier status
@ 4% = $720 per year or $60 per month.
So the monthly extra commitment is $360 due to the property.
So if we re-compute the fixed liabilities, the net cash position is...
* income 3100 + 3250 = $ 6,350
* Liabilities = $ 800 car (for 5 years)
* Liabilities = $ 360 condo related
* Credit card liabilities = $ 0
* Net cash = $ 5,190
Based on a Net cash position of $5190, paying out $2766 a month will be a
bit too tight for Mr. and Mrs. Lim.
So we recommended that Mr. Mrs Lim take a 35 years loan instead of a 30
years loan. This would be more comfortable on their monthly expenses.
ARE CAREERS AS SAFE AS THEY USED TO BE?
As careers are shorter with the new economic dynamics with technology and
business disruptions, many people will expect to change many jobs and
even change industries in which they work in their life times. From 1985 to
2009, we have encountered recessions in 1987, 1997, 2003, 2009, a
working adult should see major disruptions at least once every 5 years in
their life time. There is no guarantee of employment and salary stability.
So what is safer way for the Home loan tenure?
So just using a safer measure, we use a 20 year loan tenure @ 2.5% to
compute...The monthly installment is $3709 per month. Therefore Mr. and
Mrs. Lim should ideally be earning around $7,418 + $800 + $360 = $8,578
to more comfortably afford the Condo of $ 875,000.
So based on their current income, how much can they AFFORD?
Based on their current earning capacity, they should really be looking at a
property that is no more than, $480,000 loan or $600,000 property, based on
a 20 year loan.
Why work through www.PropertyBUYER.com.sg for mortgage home loans?
We help property buyers to look through each property's valuation to
establish a valuation range for any given unit. We have a unique
methodology to evaluate bargains for properties, we usually charge a fee for
property buying analysis service, we are offering this service free until Dec
2009.
-----------------------------------------------------------------------------
www.propertyBUYER.com.sg is a research-focused Singapore Mortgage
advisor that helps individuals get the best fit Singapore Home loans or to
refinance their properties, not simply the cheapest Singapore Home loans.
You can come to us for your Singapore Home Loan needs and we will do the
research work to compare all the bank's packages as well as assess the
best fit for you.
Contact us
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
http://www.propertybuyer.com.sg/contactus.php
Property Checklist (Very Kiasu one)
http://www.propertybuyer.com.sg/viewnews.php?article=39
Read More articles
http://www.propertyBUYER.com.sg/articlesnews.php
Refinance and Mortgages DIY steps
http://www.squidoo.com/Singapore-homeloan
Follow us on Twitter
http://twitter.com/sg_homeloan
Follow us on Facebook
http://www.facebook.com/group.php?gid=7371258458
Thursday, June 18, 2009
Invest in Singapore property: Strange things happen when property buying
Singapore Property Investor: Seller is different person
www.propertyBUYER.com.sg
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
http://www.propertybuyer.com.sg/contactus.php
Strange things do happen in property investment in Singapore.
The property buyer has decided to bid on the property which they liked.
What happens during this phase, the property agent usually tries to convince
the buyer that a loan is obtainable and valuation can be matched.
This raises the price and the cost for the buyer.
What is the risk to property buyer if he/she does not check the valuation?
Because if the buyer does not check the valuation prior to committing to a
property, there may be just 1 bank which can support the high valuation.
The property investor may be left with only one choice for their home loan.
They end up paying for a more expensive home loan.
When placing Option to purchase, should I simply give a cheque?
Giving a cheque without first checking who you are paying to is a common
industry practice. However this exposes the property investor to risks.
How do you know the cheque you pay out is indeed the property seller?
You won't know unless you insist on seeing their name and NRIC on the
option to purchase. And you should consider asking the agent to show you
the prove of ownership.
Here is a True story
Our client came to us and they wanted to place an option to purchase. We
helped them to check who the owner was.
On 08th June 2009, we check: -
Owner Name search
We found that the person is a person, XXX. As you can see above, the
instrument of change of proprietor and address was due to "Transfer xxxx
registered on xxxx 2003"
1 day later
1 day later our client was ready to sign on the option to purchase. When
they saw the property owner name does NOT TALLY.
Then our client asked the Singapore property agent to prove that the person
is indeed the rightful owner.
The property agent went to check, we can see it's done on the 9 June 2009.
The name on the certificate of title is indeed the correct person.
But if you check the instrument, it states "Transmission upon Death, registered on 09
June 2009." Wow, we are amazed at the coincidence.
On the 8th June 2009, it is one owner and once our client have decided to
purchase the property, on the 9th June 2009, it is another owner.
This got us worried!!! It was only a casual and routine check and we found something...
We then realized that the previous owner had died last year in 2008.
The previous owner had died. And the place of death was also clearly
stated.
So we now know the truth
The previous owner had died and his/her assets was transferred to the
current owner. We felt that the property agent was not upfront with it and we
did not feel comfortable with it. The cause of death was not stated, but it was
rumoured that the previous owner had died of unnatural death
circumstances upon checking with our friends.
What did www.PropertyBUYER.com.sg do?
We duly informed our client about this. We told them that we don't mind if
they change their minds about investing in the property. But ultimately the
choice is up to them.
Depending on what religion they believe in, they may want to check with
their respective authority on spiritual matters to bless the property.
Our client has decided not to continue the deal. And we lost a mortgage
deal. But we are glad we did it.
www.PropertyBUYER.com.sg is research-focused mortgage advisory. We do not emphasize Cheap loans, but help property buyers get home loans or refinance home loans that fits.
http://www.propertybuyer.com.sg/contactus.php
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
Contact us
http://www.propertybuyer.com.sg/contactus.php
Property Checklist
http://www.propertybuyer.com.sg/viewnews.php?article=39
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
www.propertyBUYER.com.sg
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
http://www.propertybuyer.com.sg/contactus.php
Strange things do happen in property investment in Singapore.
The property buyer has decided to bid on the property which they liked.
What happens during this phase, the property agent usually tries to convince
the buyer that a loan is obtainable and valuation can be matched.
This raises the price and the cost for the buyer.
What is the risk to property buyer if he/she does not check the valuation?
Because if the buyer does not check the valuation prior to committing to a
property, there may be just 1 bank which can support the high valuation.
The property investor may be left with only one choice for their home loan.
They end up paying for a more expensive home loan.
When placing Option to purchase, should I simply give a cheque?
Giving a cheque without first checking who you are paying to is a common
industry practice. However this exposes the property investor to risks.
How do you know the cheque you pay out is indeed the property seller?
You won't know unless you insist on seeing their name and NRIC on the
option to purchase. And you should consider asking the agent to show you
the prove of ownership.
Here is a True story
Our client came to us and they wanted to place an option to purchase. We
helped them to check who the owner was.
On 08th June 2009, we check: -
Owner Name search
We found that the person is a person, XXX. As you can see above, the
instrument of change of proprietor and address was due to "Transfer xxxx
registered on xxxx 2003"
1 day later
1 day later our client was ready to sign on the option to purchase. When
they saw the property owner name does NOT TALLY.
Then our client asked the Singapore property agent to prove that the person
is indeed the rightful owner.
The property agent went to check, we can see it's done on the 9 June 2009.
The name on the certificate of title is indeed the correct person.
But if you check the instrument, it states "Transmission upon Death, registered on 09
June 2009." Wow, we are amazed at the coincidence.
On the 8th June 2009, it is one owner and once our client have decided to
purchase the property, on the 9th June 2009, it is another owner.
This got us worried!!! It was only a casual and routine check and we found something...
We then realized that the previous owner had died last year in 2008.
The previous owner had died. And the place of death was also clearly
stated.
So we now know the truth
The previous owner had died and his/her assets was transferred to the
current owner. We felt that the property agent was not upfront with it and we
did not feel comfortable with it. The cause of death was not stated, but it was
rumoured that the previous owner had died of unnatural death
circumstances upon checking with our friends.
What did www.PropertyBUYER.com.sg do?
We duly informed our client about this. We told them that we don't mind if
they change their minds about investing in the property. But ultimately the
choice is up to them.
Depending on what religion they believe in, they may want to check with
their respective authority on spiritual matters to bless the property.
Our client has decided not to continue the deal. And we lost a mortgage
deal. But we are glad we did it.
www.PropertyBUYER.com.sg is research-focused mortgage advisory. We do not emphasize Cheap loans, but help property buyers get home loans or refinance home loans that fits.
http://www.propertybuyer.com.sg/contactus.php
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
Contact us
http://www.propertybuyer.com.sg/contactus.php
Property Checklist
http://www.propertybuyer.com.sg/viewnews.php?article=39
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, June 7, 2009
Invest in Singapore property: Select right property
Invest in Singapore property: Selecting the right property
Courtesy of www.propertyBUYER.com.sg
http://www.propertybuyer.com.sg/viewnews.php?article=109
There are many things to consider in property investment. Financing is one of them
First of all, let us clarify, we are NOT property agents, so we have no vested
interest in what property you select. We are merely writing this based on our
experience. We are Singapore Mortgage Brokers who help you get home
loans or to refinance your property.
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
http://www.propertybuyer.com.sg/contactus.php
The key things to consider in Property Investments are: -
* Affordability and holding power
* Rental yield
* Capital appreciation
Affordability and Holding Power
Ideally, you should not purchase an investment that is way beyond what you
can Safely Afford.
You should also have good holding power to withstand Mortgage home loan
interest rates fluctuation as well as have enough cash flow set aside for up
to 24 months of Mortgage Home loan installment.
This is important as market condition can become volatile and the last thing
you want to do is to sell your investment property at a huge loss in a
Singapore Property market stricken with panic.
You can check your affordability with us: -
Email: loans@propertybuyer.com.sg
Rental yield and Income
Rental yield is important in a property investment. However rental yield
cannot be over-emphasized.
What is important is the Return on Invested Capital (ROIC), most commonly
referred to as ROI.
Rental yield is: -
Annual Rental divide by Property purchase price
Return of Invested Capital (ROIC): -
[Annual Rental - (Interest financing cost) - (Maintenance & Misc Cost)] divided by Invested Capital
By looking simply looking at a property investment and comparing yield can
be very mis-leading. It is similar to looking at P/E for shares. As rental prices
fluctuate, so does property prices.
Buying based only on investment yield is the of the most foolish mistakes a
property buyer/investor can make.
RENTAL DEMAND
Singapore's rental demands are mainly derived from foreign expatriates as
most Singapore citizens own their own homes.
RENTAL SUPPLY
Property stock do not stay the same, as Property Developers will likely get
first hand information from Governmental development plans in order to add
to the supply.
PROPERTY VACANCY RATE
Singapore's property vacancy rate have traditionally stayed at around 6 to
8%. This means that 6 to 8% of all private properties remain vacant.
From the recent late 2006, 2007 and 2008 experience, especially in 2008,
population grew up around 5.5% to 4.8m. The bulk of the population growth
is through foreigners coming to Singapore to work or stay. This drives the
vacancy rate downwards to around 3 to 4%. Rental prices start to shoot
upwards when vacancy rate drops to around 3 to 4% as this indicates
severe shortage.
In order for vacancy rate to go from 7% to 3% (within a year), based on the
property stock of ~ 300,000 units of private property, that is 12,000 units of
additional rental demand needs to be created.
Given that property developers are adding to the stock all the time, in 2008
forecast supply growth is around 4%.
That means for 2009, there needs to be 24,000 rental demand (within a
year) in order to SQUEEZE the rental market. Of course certain locations
will be more SQUEEZED than the others and start to rise first.
Otherwise, the rental market will remain very SLACK and without direction.
What happens when RENTAL yields go up?
When rental rates go up, the yield increase. When the yield increase, the
property prices go up.
So it is important to look at YIELD for a rolling 2 to 5 years instead of simply
the latest and most recent yield.
As an illustration, a Property with a 4% Rental yield.
In 2006
$3,000 per month or $36,000 per year ------> $ 900,000
In 2007
$3,500 per month or $42,000 per year ------> $1,050,000
In 2008
$4,500 per month or $55,000 per year -------> $1,375,000
In 2009 and Beyond???
$3,000 per month or $36,000 per year -------> $ 900,000
Given that property developers usually hold out till rental prices are good
before they launch so as to capture the BULK of the VALUE. And because
the property developers time it so well, the BULK of the VALUE created for
their company is from you and paid for BY YOU.
The average yield for SIngapore Properties is around 3 to 5%. At 4%, it
represents a 25 times leverage.
For every $100 increase in monthly rental, it leads to $1200 rise in annual
rental and hence $30,000 more for a property!!!
MAJOR RISK BUYING AT HEIGHT OF RENTAL PRICES
If you go in at 2008 thinking that a property is NOT BAD at 4% yield, it is
worth it to pay $1,375,000, you are exposing yourselves to a huge risk,
because if rental values cannot keep up or falls back, you are looking at a
$475,000 of capital loss.
WHAT IF BANKS ASKS YOU TO TOP UP CASH
And in case the banks exercise their clause to ASK YOU TO TOP UP your
equity in the home / property since the valuation has FALLEN, you will face
severe hardship!!!
CAPITAL APPRECIATION POTENTIAL
Some Singapore properties such as River Valley, Orchard road as well as
Singapore properties around District 9, 10, 11 and 15 have highly volatile
rental prices.
For example a yield of 10%, (formula 1 / 0.1 = 10) the leverage is 10 times.
For a rental of $12,000 a year, this leads to a
Capital value of $120,000
For a yield of 4%, (formular 1/0.04 = 25) the leverage is 25 times.
For a rental of $12,000 a year, this leads to a
Capital value of $300,000
So it is important to compare and get the yield from a Rolling 3 year
average, 5 year average from which to do your calculation. Otherwise you
are prone to make the "Mistakes of small numbers", by basing your decision
on a particular short span of track record of the property market and it's
possible income (rental).
Strata Title
No matter where you go, buying a condominium unit will entitle you to a
share of the land where the condominium is located. The higher the
Condominium go, the less land share you have.
As an illustration: -
Land of Estate = 200,000 sq feet
Plot ratio is 3 = 600,000 sq feet
That means that that entire plot of land builds up to 600,000 of space that
can be SOLD to public.
That can be either 3 storeys x 200,000 sq feet or 6 storeys x 100,000 sq feet
or 24 storeys x 25,000 sq feet each floor. Developers will build higher or
lower depending on regulatory requirements.
Let's say 600,000 sq feet is built into 600 condominium units of 1,000 sq feet
each.
If you own a 1 condo unit, your share of PHYSICAL LAND is only 333 sq
feet.
This is vastly different from owning a landed property where you own the lot.
Strata title risks.
Strata title land has some risks of collective decision making. For example if
80% or 90% (depending on age of property) decides to sell to an en-bloc
developer, even if you disagree, you will have to sell.
En-bloc may not necessarily be a good thing in some circumstances.
Landed Title risks
Landed title do not have the risks of Collective decision being imposed on
you. But it holds other risks. Due to the smaller cost for the government to
acquire your land under Urban redevelopment Authority's land acquisition
act, in case the government wants to build a road through your house, your
house will be forcibly acquired. And although the government pays a market
price (or so they claim) for your property, most people whose property had
been acquired has never been really happy with the compensation. And the
government do time their purchase at a time when the market values are
low, leading to home owners capitalising the losses.
Should we go as high as possible?
Typically NO. Taller buildings have a higher maintenance cost over the longer term. Not only that, you are paying more for a building rather than the Land.
Over time, the building deteriorates. And if the land's appreciate does not
offset the price drop of the aging building, the Capital appreciation could be
moderated.
Should we go as low as possible?
Yes, generally true as you own more of the "Physical Land". But if you want
to own a condominium which has less than 6 storeys high, you may miss out
on speculative demand from Foreign buyers.
6 Storey High Properties
Foreigners cannot buy landed property or property whose development has
less than 6 storeys high. This is to prevent hedge funds and wealthy
individuals from cornering and hence controlling Singapore's domestic
economy through LAND.
Singapore mortgage advisor like us to help you go through many valuations
and recommend a SAFE price to bid for your property. That drags out the
buying time.
Why work through www.PropertyBUYER.com.sg for mortgage home loans?
We help property buyers to look through each property's valuation to
establish a valuation range for any given unit. And based on that, we
recommend a bid price for the buyer.
www.propertyBUYER.com.sg is a research-focused Singapore Mortgage
Advisor that helps individuals get the best fit Singapore Home loans or to
refinance their properties, not simply the cheapest Singapore Home loans.
You can come to us for your Singapore Home Loan needs and we will do the
research work to compare all the bank's packages as well as assess the
best fit for you.
ABOUT US Contact us
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
Contact us
http://www.propertybuyer.com.sg/contactus.php
Property Checklist
http://www.propertybuyer.com.sg/viewnews.php?article=39
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
http://www.propertybuyer.com.sg/viewnews.php?article=109
There are many things to consider in property investment. Financing is one of them
First of all, let us clarify, we are NOT property agents, so we have no vested
interest in what property you select. We are merely writing this based on our
experience. We are Singapore Mortgage Brokers who help you get home
loans or to refinance your property.
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
http://www.propertybuyer.com.sg/contactus.php
The key things to consider in Property Investments are: -
* Affordability and holding power
* Rental yield
* Capital appreciation
Affordability and Holding Power
Ideally, you should not purchase an investment that is way beyond what you
can Safely Afford.
You should also have good holding power to withstand Mortgage home loan
interest rates fluctuation as well as have enough cash flow set aside for up
to 24 months of Mortgage Home loan installment.
This is important as market condition can become volatile and the last thing
you want to do is to sell your investment property at a huge loss in a
Singapore Property market stricken with panic.
You can check your affordability with us: -
Email: loans@propertybuyer.com.sg
Rental yield and Income
Rental yield is important in a property investment. However rental yield
cannot be over-emphasized.
What is important is the Return on Invested Capital (ROIC), most commonly
referred to as ROI.
Rental yield is: -
Annual Rental divide by Property purchase price
Return of Invested Capital (ROIC): -
[Annual Rental - (Interest financing cost) - (Maintenance & Misc Cost)] divided by Invested Capital
By looking simply looking at a property investment and comparing yield can
be very mis-leading. It is similar to looking at P/E for shares. As rental prices
fluctuate, so does property prices.
Buying based only on investment yield is the of the most foolish mistakes a
property buyer/investor can make.
RENTAL DEMAND
Singapore's rental demands are mainly derived from foreign expatriates as
most Singapore citizens own their own homes.
RENTAL SUPPLY
Property stock do not stay the same, as Property Developers will likely get
first hand information from Governmental development plans in order to add
to the supply.
PROPERTY VACANCY RATE
Singapore's property vacancy rate have traditionally stayed at around 6 to
8%. This means that 6 to 8% of all private properties remain vacant.
From the recent late 2006, 2007 and 2008 experience, especially in 2008,
population grew up around 5.5% to 4.8m. The bulk of the population growth
is through foreigners coming to Singapore to work or stay. This drives the
vacancy rate downwards to around 3 to 4%. Rental prices start to shoot
upwards when vacancy rate drops to around 3 to 4% as this indicates
severe shortage.
In order for vacancy rate to go from 7% to 3% (within a year), based on the
property stock of ~ 300,000 units of private property, that is 12,000 units of
additional rental demand needs to be created.
Given that property developers are adding to the stock all the time, in 2008
forecast supply growth is around 4%.
That means for 2009, there needs to be 24,000 rental demand (within a
year) in order to SQUEEZE the rental market. Of course certain locations
will be more SQUEEZED than the others and start to rise first.
Otherwise, the rental market will remain very SLACK and without direction.
What happens when RENTAL yields go up?
When rental rates go up, the yield increase. When the yield increase, the
property prices go up.
So it is important to look at YIELD for a rolling 2 to 5 years instead of simply
the latest and most recent yield.
As an illustration, a Property with a 4% Rental yield.
In 2006
$3,000 per month or $36,000 per year ------> $ 900,000
In 2007
$3,500 per month or $42,000 per year ------> $1,050,000
In 2008
$4,500 per month or $55,000 per year -------> $1,375,000
In 2009 and Beyond???
$3,000 per month or $36,000 per year -------> $ 900,000
Given that property developers usually hold out till rental prices are good
before they launch so as to capture the BULK of the VALUE. And because
the property developers time it so well, the BULK of the VALUE created for
their company is from you and paid for BY YOU.
The average yield for SIngapore Properties is around 3 to 5%. At 4%, it
represents a 25 times leverage.
For every $100 increase in monthly rental, it leads to $1200 rise in annual
rental and hence $30,000 more for a property!!!
MAJOR RISK BUYING AT HEIGHT OF RENTAL PRICES
If you go in at 2008 thinking that a property is NOT BAD at 4% yield, it is
worth it to pay $1,375,000, you are exposing yourselves to a huge risk,
because if rental values cannot keep up or falls back, you are looking at a
$475,000 of capital loss.
WHAT IF BANKS ASKS YOU TO TOP UP CASH
And in case the banks exercise their clause to ASK YOU TO TOP UP your
equity in the home / property since the valuation has FALLEN, you will face
severe hardship!!!
CAPITAL APPRECIATION POTENTIAL
Some Singapore properties such as River Valley, Orchard road as well as
Singapore properties around District 9, 10, 11 and 15 have highly volatile
rental prices.
For example a yield of 10%, (formula 1 / 0.1 = 10) the leverage is 10 times.
For a rental of $12,000 a year, this leads to a
Capital value of $120,000
For a yield of 4%, (formular 1/0.04 = 25) the leverage is 25 times.
For a rental of $12,000 a year, this leads to a
Capital value of $300,000
So it is important to compare and get the yield from a Rolling 3 year
average, 5 year average from which to do your calculation. Otherwise you
are prone to make the "Mistakes of small numbers", by basing your decision
on a particular short span of track record of the property market and it's
possible income (rental).
Strata Title
No matter where you go, buying a condominium unit will entitle you to a
share of the land where the condominium is located. The higher the
Condominium go, the less land share you have.
As an illustration: -
Land of Estate = 200,000 sq feet
Plot ratio is 3 = 600,000 sq feet
That means that that entire plot of land builds up to 600,000 of space that
can be SOLD to public.
That can be either 3 storeys x 200,000 sq feet or 6 storeys x 100,000 sq feet
or 24 storeys x 25,000 sq feet each floor. Developers will build higher or
lower depending on regulatory requirements.
Let's say 600,000 sq feet is built into 600 condominium units of 1,000 sq feet
each.
If you own a 1 condo unit, your share of PHYSICAL LAND is only 333 sq
feet.
This is vastly different from owning a landed property where you own the lot.
Strata title risks.
Strata title land has some risks of collective decision making. For example if
80% or 90% (depending on age of property) decides to sell to an en-bloc
developer, even if you disagree, you will have to sell.
En-bloc may not necessarily be a good thing in some circumstances.
Landed Title risks
Landed title do not have the risks of Collective decision being imposed on
you. But it holds other risks. Due to the smaller cost for the government to
acquire your land under Urban redevelopment Authority's land acquisition
act, in case the government wants to build a road through your house, your
house will be forcibly acquired. And although the government pays a market
price (or so they claim) for your property, most people whose property had
been acquired has never been really happy with the compensation. And the
government do time their purchase at a time when the market values are
low, leading to home owners capitalising the losses.
Should we go as high as possible?
Typically NO. Taller buildings have a higher maintenance cost over the longer term. Not only that, you are paying more for a building rather than the Land.
Over time, the building deteriorates. And if the land's appreciate does not
offset the price drop of the aging building, the Capital appreciation could be
moderated.
Should we go as low as possible?
Yes, generally true as you own more of the "Physical Land". But if you want
to own a condominium which has less than 6 storeys high, you may miss out
on speculative demand from Foreign buyers.
6 Storey High Properties
Foreigners cannot buy landed property or property whose development has
less than 6 storeys high. This is to prevent hedge funds and wealthy
individuals from cornering and hence controlling Singapore's domestic
economy through LAND.
Singapore mortgage advisor like us to help you go through many valuations
and recommend a SAFE price to bid for your property. That drags out the
buying time.
Why work through www.PropertyBUYER.com.sg for mortgage home loans?
We help property buyers to look through each property's valuation to
establish a valuation range for any given unit. And based on that, we
recommend a bid price for the buyer.
www.propertyBUYER.com.sg is a research-focused Singapore Mortgage
Advisor that helps individuals get the best fit Singapore Home loans or to
refinance their properties, not simply the cheapest Singapore Home loans.
You can come to us for your Singapore Home Loan needs and we will do the
research work to compare all the bank's packages as well as assess the
best fit for you.
ABOUT US Contact us
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
Contact us
http://www.propertybuyer.com.sg/contactus.php
Property Checklist
http://www.propertybuyer.com.sg/viewnews.php?article=39
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, June 4, 2009
Dishonest Singapore property agent: Wants your money
Dishonest Singapore property agent wants your money
Article by: http://www.PropertyBUYER.com.sg
We are looking for articles and contributors, if you contribute your article, we will put a link back to your site.
Call Them
Tel: 6100 - 0608
sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
http://www.propertybuyer.com.sg/contactus.php
What some Singapore Property agents claim they do for you (FICTION)
- Help you sort through your priorities and concerns
- Assist in review purchase documents
- Loan counseling / qualifying
- Assist with home inspections
- Estimate closing costs, down payment and incidentals
- Check through Schools / areas / neighborhoods
- Property Appraisal
- Valuation
- And finally getting Banker Approval
Article located at: -
http://www.propertybuyer.com.sg/viewnews.php?article=108
What Singapore Property Agents actually do (REALITY)
Singapore property agents are always rushing to close deals. If you are a
foreigner, you will probably not know that. In Singapore, Singapore property
agents get their commission from the property seller. But if you are a
foreigner whose home country has a practice to pay the buying agent, they
will ask for a commission from the buyer as well.
* YOU SHOULD NEVER PAY THAT buyer commission.
The agent is hard pressed to close deals and to close it fast. It's a hit-and-run
industry and there is no reward for being honest in the Singapore property agent
business.
Most of the time, the agents claim to represent the sellers and the property seller's interests. In the very next moment, they claim to represent the Buyers and take care of the buyer's interests.
Property Seller
The best way for Singapore Property agent to get a commission is to ask
you to sell your property through them.
Property Buyer
Due to the dynamics of the market, the Singapore Property agent will only
get a split of the commission when he/she brings a buyer to see and
eventually buy a property.
Do Singapore Property agents get you the best Home Loan mortgage?
The faster they close the property purchase the better. The property agent
has no interest in dragging out the deal.
They are not dishonest in any way, it is just that they only tell you what you
want to hear to close deals. And they are just economical with the truth.
If they tell you too much, you may change your mind and decide not to
proceed. If you don't proceed, they don't get a commission. It's that simple.
So what Singapore property agents do with Mortgage home loans is the
same. They will find the higher valuation and ask you to check with the
banks. Singapore property agents will arrange the bank loans for you from
the banks that MAY NOT give the best rates and terms. Because they can
match the seller valuation.
WHY Singapore Property agents wants banks to match seller valuation?
Singapore property agents wants banks to match seller valuation
BECAUSE, this will close the gap between buying and selling price. And
when you are willing to pay much HIGHER, he/she can earn commission
from the property seller or he/she shares his/her commission with the seller's
agent.
Property agents can help you get banker approval???
The Singapore property agent is willing to bring you the bank forms to fill in
and even get in-principle approval. Why? This way, they can quickly make
sure you have a bank loan in hand and willing and ready to bid for a
property. And very possibly you have a bank approval-in-princple at a really
high valuation that will tend to lead you to over-pay for your property.
And... You will have a bank who is very very happy to match the
seller's asking price, not what they really think the property is worth.
(Banks can stretch valuations, within reason and sometimes reason can be elastic)
You are the person paying for the loan for years, if you overpay.
Property Buyer overpays for Singapore Property
The property agent pushes up the buying price to match the seller's asking
price, this way, the deal is easier to close and he/she makes the
commission.
Surely there are trust worthy and honest Singapore property agents, right?
Yes, there are. But because in Singapore, Property agents participate in
both buying and selling activities, there is a clear conflict of interests
between upholding your best interests and that of their commission.
On the one hand they say they will take care of the seller's interest and
moments later, they say they will take care of the buyer's interest. So who do
they really work for? They take care of their own interests we're afraid.
Property agents want to close deals quickly for fear of losing the deal. And this is a valid fear. Many Singapore property agents are not inherently dishonest, but the nature of the business and the lack of proper and effective regulation makes them this way.
So we would say, Singapore Property agents dishonesty is systemic in nature.
If you are willing to over-pay for your property, they are happy to close it for
you. As long as they do not give any outlandish comments, they are not
dishonest.
So Dishonest Singapore property agent don't really want you to go to a
Singapore mortgage advisor like us to help you go through many valuations
and recommend a SAFE price to bid for your property. That drags out the
buying time.
Why work through www.PropertyBUYER.com.sg for mortgage home loans?
We help property buyers to look through each property's valuation to
establish a valuation range for any given unit. And based on that, we
recommend a bid price for the buyer.
Are we www.PropertyBUYER.com.sg not afraid of losing the deals?
Yes, of course we are afraid of losing deals, but that cannot be helped. But
we strongly believe in integrity and word of mouth.
For us, we are very conservative, many times we advise our clients not to
proceed or bid at the lower range due to certain underlying factors. In which
cases, the chances of closure is small and we don't close the mortgage
home loan deal.
Why our clients come back to us the next round?
Simple, we could have done the deal but we did not because we felt the deal
was a bad deal for the buyer. That alone means a lot to many of our clients
as we saved them from over-paying for their properties.
Will the Buyers miss the boat if the market swings upwards?
Yes, there is a potential that the buyer may miss the boat on the upswing.
However we still err on the side of caution while we warn the property buyer
that they may have to bid higher than our recommended bid price if they are
in a hurry to buy the property. We also warn that If property buyer wait
longer, there is a chance they may miss out on the upswing, while there is
also a chance that they benefit from their patience by being able to buy lower.
Buyers are aware of the risks of each option.
Why we rank overpaying for Property as more serious than Missing the
upswing?
We consider overpaying for Singapore property as more serious than
missing the upswing.
Fear of Missing Upswing
The fear of missing out on a property upswing tends to be GREED DRIVEN
(though circumstances vary) and prone to emotional and irrational decision
making.
Fear of Overpaying
The fear of overpaying is conservative investing and while it is also a fear,
this fear is more prone to rational decision making. And people who are in
this category is more likely to make better decisions.
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www.propertyBUYER.com.sg is a research-focused Mortgage Advisor that
helps individuals get the best fit Singapore Home loans or to refinance their
properties, not simply the cheapest Singapore Home loans.
You can come to us for your Singapore Home Loan needs and we will do the
research work to compare all the bank's packages as well as assess the
best fit for you.
Article by: http://www.PropertyBUYER.com.sg
We are looking for articles and contributors, if you contribute your article, we will put a link back to your site.
Call Them
Tel: 6100 - 0608
sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
http://www.propertybuyer.com.sg/contactus.php
What some Singapore Property agents claim they do for you (FICTION)
- Help you sort through your priorities and concerns
- Assist in review purchase documents
- Loan counseling / qualifying
- Assist with home inspections
- Estimate closing costs, down payment and incidentals
- Check through Schools / areas / neighborhoods
- Property Appraisal
- Valuation
- And finally getting Banker Approval
Article located at: -
http://www.propertybuyer.com.sg/viewnews.php?article=108
What Singapore Property Agents actually do (REALITY)
Singapore property agents are always rushing to close deals. If you are a
foreigner, you will probably not know that. In Singapore, Singapore property
agents get their commission from the property seller. But if you are a
foreigner whose home country has a practice to pay the buying agent, they
will ask for a commission from the buyer as well.
* YOU SHOULD NEVER PAY THAT buyer commission.
The agent is hard pressed to close deals and to close it fast. It's a hit-and-run
industry and there is no reward for being honest in the Singapore property agent
business.
Most of the time, the agents claim to represent the sellers and the property seller's interests. In the very next moment, they claim to represent the Buyers and take care of the buyer's interests.
Property Seller
The best way for Singapore Property agent to get a commission is to ask
you to sell your property through them.
Property Buyer
Due to the dynamics of the market, the Singapore Property agent will only
get a split of the commission when he/she brings a buyer to see and
eventually buy a property.
Do Singapore Property agents get you the best Home Loan mortgage?
The faster they close the property purchase the better. The property agent
has no interest in dragging out the deal.
They are not dishonest in any way, it is just that they only tell you what you
want to hear to close deals. And they are just economical with the truth.
If they tell you too much, you may change your mind and decide not to
proceed. If you don't proceed, they don't get a commission. It's that simple.
So what Singapore property agents do with Mortgage home loans is the
same. They will find the higher valuation and ask you to check with the
banks. Singapore property agents will arrange the bank loans for you from
the banks that MAY NOT give the best rates and terms. Because they can
match the seller valuation.
WHY Singapore Property agents wants banks to match seller valuation?
Singapore property agents wants banks to match seller valuation
BECAUSE, this will close the gap between buying and selling price. And
when you are willing to pay much HIGHER, he/she can earn commission
from the property seller or he/she shares his/her commission with the seller's
agent.
Property agents can help you get banker approval???
The Singapore property agent is willing to bring you the bank forms to fill in
and even get in-principle approval. Why? This way, they can quickly make
sure you have a bank loan in hand and willing and ready to bid for a
property. And very possibly you have a bank approval-in-princple at a really
high valuation that will tend to lead you to over-pay for your property.
And... You will have a bank who is very very happy to match the
seller's asking price, not what they really think the property is worth.
(Banks can stretch valuations, within reason and sometimes reason can be elastic)
You are the person paying for the loan for years, if you overpay.
Property Buyer overpays for Singapore Property
The property agent pushes up the buying price to match the seller's asking
price, this way, the deal is easier to close and he/she makes the
commission.
Surely there are trust worthy and honest Singapore property agents, right?
Yes, there are. But because in Singapore, Property agents participate in
both buying and selling activities, there is a clear conflict of interests
between upholding your best interests and that of their commission.
On the one hand they say they will take care of the seller's interest and
moments later, they say they will take care of the buyer's interest. So who do
they really work for? They take care of their own interests we're afraid.
Property agents want to close deals quickly for fear of losing the deal. And this is a valid fear. Many Singapore property agents are not inherently dishonest, but the nature of the business and the lack of proper and effective regulation makes them this way.
So we would say, Singapore Property agents dishonesty is systemic in nature.
If you are willing to over-pay for your property, they are happy to close it for
you. As long as they do not give any outlandish comments, they are not
dishonest.
So Dishonest Singapore property agent don't really want you to go to a
Singapore mortgage advisor like us to help you go through many valuations
and recommend a SAFE price to bid for your property. That drags out the
buying time.
Why work through www.PropertyBUYER.com.sg for mortgage home loans?
We help property buyers to look through each property's valuation to
establish a valuation range for any given unit. And based on that, we
recommend a bid price for the buyer.
Are we www.PropertyBUYER.com.sg not afraid of losing the deals?
Yes, of course we are afraid of losing deals, but that cannot be helped. But
we strongly believe in integrity and word of mouth.
For us, we are very conservative, many times we advise our clients not to
proceed or bid at the lower range due to certain underlying factors. In which
cases, the chances of closure is small and we don't close the mortgage
home loan deal.
Why our clients come back to us the next round?
Simple, we could have done the deal but we did not because we felt the deal
was a bad deal for the buyer. That alone means a lot to many of our clients
as we saved them from over-paying for their properties.
Will the Buyers miss the boat if the market swings upwards?
Yes, there is a potential that the buyer may miss the boat on the upswing.
However we still err on the side of caution while we warn the property buyer
that they may have to bid higher than our recommended bid price if they are
in a hurry to buy the property. We also warn that If property buyer wait
longer, there is a chance they may miss out on the upswing, while there is
also a chance that they benefit from their patience by being able to buy lower.
Buyers are aware of the risks of each option.
Why we rank overpaying for Property as more serious than Missing the
upswing?
We consider overpaying for Singapore property as more serious than
missing the upswing.
Fear of Missing Upswing
The fear of missing out on a property upswing tends to be GREED DRIVEN
(though circumstances vary) and prone to emotional and irrational decision
making.
Fear of Overpaying
The fear of overpaying is conservative investing and while it is also a fear,
this fear is more prone to rational decision making. And people who are in
this category is more likely to make better decisions.
-------------------------------------------------------------------------------
www.propertyBUYER.com.sg is a research-focused Mortgage Advisor that
helps individuals get the best fit Singapore Home loans or to refinance their
properties, not simply the cheapest Singapore Home loans.
You can come to us for your Singapore Home Loan needs and we will do the
research work to compare all the bank's packages as well as assess the
best fit for you.
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