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Showing posts with label home loan singapore. Show all posts
Showing posts with label home loan singapore. Show all posts
Sunday, March 23, 2014
Sunday, March 9, 2014
Monday, June 21, 2010
Invest in Singapore: Be careful of tricks property agents play on Option to purchase
Invest in Singapore: be careful Tricks agents play on Option to purchase in Singapore
Option to purchase OTP in Singapore. An option to purchase is a prelude to buying a property in Singapore. An option to purchase gives the purchaser the right to buy a property within a given time window at an agreed price, but not the obligation to do.
Bad Property deal Practices by dishonest Property agents regarding OTP Option to purchase
We treat any act that puts the interest of the buyer and seller last as unethical and bad practices.
Some Bad Singapore Property agents want the seller to sign an Option to Purchase document leaving out the date and the price unfilled. This puts the seller at risks of selling accidentally below cost and gives a potential dishonest property agent a chance of a quick sale which could costs the Owner hundreds of thousands of dollars.
On the buying side , the unethical property agents trick the property buyers into making an offer, believing that the price is agreed.
In this scenario , Dishonest agent dupes buying into believing that the deal is sealed at $1.23m, and this is the agreed asking price.
So the Property buyer makes an offer and pays a deposit for the option to purchase of $12,300 for the property. The Dishonest property agent then banks this cheque into the property owner bank account . He/she forces or sweet talk the Seller into agreeing to the deal.
In case the Property seller refuses, the property buyer is stuck while his/her cheque is already cashed by the property seller. Then the Property agent uses delay tactics to delay returning the money.
This causes buyers much worry. When they are most anxious , the dishonest property agent will offer a solution to help negotiate with the seller.
Be really angry if you will because , during this time, the crooked property agent may ask for some fee for "doing you a favour".
In case this does not work, he/she may come back telling you that the property selling wants $1.31m instead of $1.23m. And since your Option to purchase money is stuck and the Dishonest property agent has no intention of returning you the money easily (even if it is not them who kept the money), some buyers may be tricked into paying more. BINGO, the deal is done! The deal is closed!!!
We are no match for the Dishonest Singapore Property agent, they are smooth
The common man or woman on the street is usually no match for the dishonest property agents as even very senior executives get cheated. Nothing to be ashamed of, because these people have an innocent face and are genuinely cunning. But of course, there are a small fraction of honest singapore agents out here, you just have to look very hard.
A new bad development in our opinion. This practice stems from a botched deals where smart buyers discovered last minute that something is not quite right and cancelled the cheque.
Since these buyers actually do outsmart the property agents and agencies, something needs to be done to protect the interests of the Property agencies and property agents.
So they came up with a document called OFFER TO PURCHASE. An offer to purchase may hold legal weight or it may simply function more like an acknowledgement slip. But the terms of the offer needs to be carefully evaluated.
Do check through on the terms and make sure that they are reasonable for an Offer to purchase and that you have the right to rescind the offer should it not be accepted within 3 days. If possible, post date your cheque. And that you must also specify your rights such as "the offer is valid upon a reasonable and satisfactory terms stated within the Option to purchase" or words to that effect.
What if a Buyer offers to purchase and it is accepted and the subsequent Option to purchase comes, but with terms that are UNFAIR and not acceptable? Does that mean that the Property Buyer has also accepted the terms and conditions of the Option to Purchase?
Will Dishonest property agents show you an Option to purchase OTP document for your review?
Try asking them to provide you a copy of the Option to purchase, 9 out of 10 will be most reluctant to show you. Since the agencies drafted the Option to purchase documents, it usually favours the agencies and the agents and sometimes to the detriment of the Property seller and buyers. Those rare agent who may be willing to show you may be new to the trade.
So if a Singapore Property agent asks you to offer a cheque and sign an OFFER to purchase, ask them to send you both documents for your review first. And have the terms and conditions of an Option to purchase included in the offer to purchase. Otherwise you may be signing a blank cheque.
If worried , you can sms Property Buyer Singapore Mortgage Consultants at +65 - 9782-8606 in Singapore or email them at loans@propertybuyer.com.sg to guide you through the minefield of Dishonest Singapore Property agents. They have crossed swords with property agents in protecting buyer's and seller's interests in many occasions.
Should the Property Buyer sign the Option to Purchase?
Only the rightful sellers needs to sign the option to purchase. There is no need for property buyers to sign the Option to purchase. The property buyer only needs to have the original signed copy of the option to purchase in their possession. Do not leave the original copy with the Property agent!!!
Beware of letting your agent handle your original option to purchase document. They can easily sub-sale your property without you knowing about it, simply by filling in the name of the buyers if it is not filled in.
During property hype , we have heard that some agents who held copies of the original option to purchase managed to flip the properties for higher price making the difference. When the original buyers wanted to exercise option, they did not want to HAND OVER the ORIGINAL option to purchase. The buyers have no recourse as they do not have the original OTP and cannot exercise the option.
Some of the option to purchase contains a section called "And / or nominees". If the names of the buyer and the and /or nominee section is NOT filled up, then the BUYER needs to hold the original copy of the option to purchase OTP.
Some crooked Singapore Property agents may take your original OTP , make copies and then submit it to many banks to try and secure property loans from their favourite bankers and lawyers from which they have an under-table deal. These rogued lawyers then over-charge you and pay the dishonest agent a commission , which is illegal.
Is your Singapore Property agent too eager to introduce to you a bank, a banker to you? RUN for your life.
Is your property realtor too eager to recommend a lawyer or law firm? RUN for your life.
Is your Singapore property agent too keen to recommend you a contractor? RUN for your life.
Singapore property agents don't do things for free, just try asking them to give you some comparisons and some paperwork, they will try all ways to turn it away. Many are lazy and yet want to make money. If they are too keen, something's fishy. Just tell them firmly, NO thank you. We will find our own contractors, our own bankers, our own mortgage consultants and our own lawyers. Check with your close friends who are not agents to find out.
Many people in Singapore do not buy property regularly , so naturally, you may need a Singapore Mortgage Consultant at loans@propertyBuyer.com.sg who has no stake and no commission in property buying. Propertybuyer.com.sg offers free mortgage advice and property buying guidance for free. They offer their services for free to property buyers in selecting home loans as they fill the role of independent and unbiased outsourced bankers. Banks would need to incur staffing cost if not for mortgage consultants, therefore this service is offered to you free of charge at sms (text) +65 9782 8606.
Option to purchase OTP in Singapore. An option to purchase is a prelude to buying a property in Singapore. An option to purchase gives the purchaser the right to buy a property within a given time window at an agreed price, but not the obligation to do.
Bad Property deal Practices by dishonest Property agents regarding OTP Option to purchase
We treat any act that puts the interest of the buyer and seller last as unethical and bad practices.
Some Bad Singapore Property agents want the seller to sign an Option to Purchase document leaving out the date and the price unfilled. This puts the seller at risks of selling accidentally below cost and gives a potential dishonest property agent a chance of a quick sale which could costs the Owner hundreds of thousands of dollars.
On the buying side , the unethical property agents trick the property buyers into making an offer, believing that the price is agreed.
In this scenario , Dishonest agent dupes buying into believing that the deal is sealed at $1.23m, and this is the agreed asking price.
So the Property buyer makes an offer and pays a deposit for the option to purchase of $12,300 for the property. The Dishonest property agent then banks this cheque into the property owner bank account . He/she forces or sweet talk the Seller into agreeing to the deal.
In case the Property seller refuses, the property buyer is stuck while his/her cheque is already cashed by the property seller. Then the Property agent uses delay tactics to delay returning the money.
This causes buyers much worry. When they are most anxious , the dishonest property agent will offer a solution to help negotiate with the seller.
Be really angry if you will because , during this time, the crooked property agent may ask for some fee for "doing you a favour".
In case this does not work, he/she may come back telling you that the property selling wants $1.31m instead of $1.23m. And since your Option to purchase money is stuck and the Dishonest property agent has no intention of returning you the money easily (even if it is not them who kept the money), some buyers may be tricked into paying more. BINGO, the deal is done! The deal is closed!!!
We are no match for the Dishonest Singapore Property agent, they are smooth
The common man or woman on the street is usually no match for the dishonest property agents as even very senior executives get cheated. Nothing to be ashamed of, because these people have an innocent face and are genuinely cunning. But of course, there are a small fraction of honest singapore agents out here, you just have to look very hard.
A new bad development in our opinion. This practice stems from a botched deals where smart buyers discovered last minute that something is not quite right and cancelled the cheque.
Since these buyers actually do outsmart the property agents and agencies, something needs to be done to protect the interests of the Property agencies and property agents.
So they came up with a document called OFFER TO PURCHASE. An offer to purchase may hold legal weight or it may simply function more like an acknowledgement slip. But the terms of the offer needs to be carefully evaluated.
Do check through on the terms and make sure that they are reasonable for an Offer to purchase and that you have the right to rescind the offer should it not be accepted within 3 days. If possible, post date your cheque. And that you must also specify your rights such as "the offer is valid upon a reasonable and satisfactory terms stated within the Option to purchase" or words to that effect.
What if a Buyer offers to purchase and it is accepted and the subsequent Option to purchase comes, but with terms that are UNFAIR and not acceptable? Does that mean that the Property Buyer has also accepted the terms and conditions of the Option to Purchase?
Will Dishonest property agents show you an Option to purchase OTP document for your review?
Try asking them to provide you a copy of the Option to purchase, 9 out of 10 will be most reluctant to show you. Since the agencies drafted the Option to purchase documents, it usually favours the agencies and the agents and sometimes to the detriment of the Property seller and buyers. Those rare agent who may be willing to show you may be new to the trade.
So if a Singapore Property agent asks you to offer a cheque and sign an OFFER to purchase, ask them to send you both documents for your review first. And have the terms and conditions of an Option to purchase included in the offer to purchase. Otherwise you may be signing a blank cheque.
If worried , you can sms Property Buyer Singapore Mortgage Consultants at +65 - 9782-8606 in Singapore or email them at loans@propertybuyer.com.sg to guide you through the minefield of Dishonest Singapore Property agents. They have crossed swords with property agents in protecting buyer's and seller's interests in many occasions.
Should the Property Buyer sign the Option to Purchase?
Only the rightful sellers needs to sign the option to purchase. There is no need for property buyers to sign the Option to purchase. The property buyer only needs to have the original signed copy of the option to purchase in their possession. Do not leave the original copy with the Property agent!!!
Beware of letting your agent handle your original option to purchase document. They can easily sub-sale your property without you knowing about it, simply by filling in the name of the buyers if it is not filled in.
During property hype , we have heard that some agents who held copies of the original option to purchase managed to flip the properties for higher price making the difference. When the original buyers wanted to exercise option, they did not want to HAND OVER the ORIGINAL option to purchase. The buyers have no recourse as they do not have the original OTP and cannot exercise the option.
Some of the option to purchase contains a section called "And / or nominees". If the names of the buyer and the and /or nominee section is NOT filled up, then the BUYER needs to hold the original copy of the option to purchase OTP.
Some crooked Singapore Property agents may take your original OTP , make copies and then submit it to many banks to try and secure property loans from their favourite bankers and lawyers from which they have an under-table deal. These rogued lawyers then over-charge you and pay the dishonest agent a commission , which is illegal.
Is your Singapore Property agent too eager to introduce to you a bank, a banker to you? RUN for your life.
Is your property realtor too eager to recommend a lawyer or law firm? RUN for your life.
Is your Singapore property agent too keen to recommend you a contractor? RUN for your life.
Singapore property agents don't do things for free, just try asking them to give you some comparisons and some paperwork, they will try all ways to turn it away. Many are lazy and yet want to make money. If they are too keen, something's fishy. Just tell them firmly, NO thank you. We will find our own contractors, our own bankers, our own mortgage consultants and our own lawyers. Check with your close friends who are not agents to find out.
Many people in Singapore do not buy property regularly , so naturally, you may need a Singapore Mortgage Consultant at loans@propertyBuyer.com.sg who has no stake and no commission in property buying. Propertybuyer.com.sg offers free mortgage advice and property buying guidance for free. They offer their services for free to property buyers in selecting home loans as they fill the role of independent and unbiased outsourced bankers. Banks would need to incur staffing cost if not for mortgage consultants, therefore this service is offered to you free of charge at sms (text) +65 9782 8606.
Sunday, May 24, 2009
Singapore Home Loan: Property Affordability
Singapore Home Loan: Property Affordability
Courtesy of www.PropertyBUYER.com.sg
In order to stress test whether you can afford this property, we have worked
out the Monthly installments for Tenure ranging from 10 to 35 years.
It is very easy to over-commit and end up buying a property you will have a
hard time to pay for in subsequent years.
Contact them
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
http://www.propertybuyer.com.sg/contactus.php
Retirement Age from 55 years to 65 years old leads to longer Home
loan tenure
In the past, retirement age is 55 years. That means that if you are 30 years
old, you can only borrow up to 25 years for your home loan.
Since some time ago, Singapore's retirement age has been raised to 65
years old. That makes 35 years tenure Singapore Home Loan possible.
But by having 30 years and 35 years home loan tenures, this also mean that
the monthly installment is reduced.
Easy Financing Inflates Property prices
This makes properties more affordable (From a purchasing stand-point), but
allows properties to become expensive. Property developers can then raise
prices because more people can afford the purchase.
Hence the main beneficiaries are the Property Developers and the
government. Why? Because more people can afford, the property
developers can raise prices. Because the prices are raised, the government
can earn more taxes from development charges and property taxes.
Home Buyers are the Biggest Losers
The biggest losers are home buyers! They can be expected to be CHAINED
to their properties or home loans for 35 years. Let's say this is modern day
slavery. But you have a choice not to be a big loser.
500k Home Loan Scenario
Property Price : $625,000
Interest rates Assumption : 3%
Salary requirement assumption : 2 x Monthly installment
35 years Tenure Home Loans
For a Singapore home loan of 500,000, at 35 years tenure, the monthly
installment is $1,925, this requires a salary of $3,850 to be able to sustain it.
30 Years Tenure Home Loans
For a Singapore Home loan o 500,000 at 30 years tenure, the monthly
installment is $2,110, this requires a salary of $4,220 to be able to sustain it.
Committing to an expensive Home loan Means No savings
As the salary requirement assumption is based on 2x installment, the debt
servicing ratio is already 50%. The other 50% is normally used for costs and
consumption, therefore it is expected that the person will have very little
savings.
A salary of $4,220 per month (single person) is about in line with Singapore
average salary. Assume a joint income of $5,000 per month (both person).
In case any one of the couple becomes unemployed, they will face hardship
in servicing the Home Loan.
There is no way to guarantee anyone stays gainfully employed until 65 years
old. In reality, due to a more dynamic economic environment and global
trade, we can expect to see 3 to 5 major recessions in our working lives.
What this means is that, the age of lifelong employment is no more. Many
people can expect to be retrenched within their working lives and the risks
becomes bigger for those who are in their 40s and 50s, who can become
semi-employed or outright unemployed for years.
What will happen to those people who has taken a 35 year loan when they
are 30 years old and become unemployed when they reach 50 years old?
They still have some 15 years of home loan to pay up.
CPF Withdrawal limit
Not only that, when they hit their CPF withdrawal limit for their properties,
they will need to fork out cash. That will cause more severe distress to
Home owners.
Singapore's mean wage is about $4,000 per month. Lower salaried jobs are
more easily found than certain higher salaried jobs, therefore the is a good
likelihood of finding another job.
800k Home Loan Scenario
Property Price : $1,000,000
Interest rates Assumption : 3%
Salary requirement assumption : 2 x Monthly installment
It is so easy to be emotionally drawn into buying your "DREAM" home. In
this case, you may only need an income of around $7,000. If this $7,000
consists of 2 x $3,500 income, it seems affordable, but a safer salary would
be around $7590 or $8880.
Understanding your Home Loan risks
A higher income and a higher priced property has more risks than a lower
income and lower priced property. The reason is because it is not as easy to
replace one high paying job with another high paying job in the event of a
loss of job.
Of course we are happy if more people come to us to look for home loans.
But we strongly urge you to consider not to buy a property that is more
expensive than what you can safely afford. We emphasize "safely afford",
not simply "afford". What that means is, borrow within your means and do
not get swayed by fanciful property agents or nice property brochures.
www.PropertyBUYER.com.sg is a research-focused mortgage Advisory, we do not emphasize cheap loans, but balances risks versus savings to structure the best fit home loan for individuals. We work with many banks, we receive a fee from the banks when you choose to deal through us, therefore we have decided not to charge for this service. Please the "about us" to know more about us.
Email: loans@propertyBUYER.com.sg
Courtesy of www.PropertyBUYER.com.sg
In order to stress test whether you can afford this property, we have worked
out the Monthly installments for Tenure ranging from 10 to 35 years.
It is very easy to over-commit and end up buying a property you will have a
hard time to pay for in subsequent years.
Contact them
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
http://www.propertybuyer.com.sg/contactus.php
Retirement Age from 55 years to 65 years old leads to longer Home
loan tenure
In the past, retirement age is 55 years. That means that if you are 30 years
old, you can only borrow up to 25 years for your home loan.
Since some time ago, Singapore's retirement age has been raised to 65
years old. That makes 35 years tenure Singapore Home Loan possible.
But by having 30 years and 35 years home loan tenures, this also mean that
the monthly installment is reduced.
Easy Financing Inflates Property prices
This makes properties more affordable (From a purchasing stand-point), but
allows properties to become expensive. Property developers can then raise
prices because more people can afford the purchase.
Hence the main beneficiaries are the Property Developers and the
government. Why? Because more people can afford, the property
developers can raise prices. Because the prices are raised, the government
can earn more taxes from development charges and property taxes.
Home Buyers are the Biggest Losers
The biggest losers are home buyers! They can be expected to be CHAINED
to their properties or home loans for 35 years. Let's say this is modern day
slavery. But you have a choice not to be a big loser.
500k Home Loan Scenario
Property Price : $625,000
Interest rates Assumption : 3%
Salary requirement assumption : 2 x Monthly installment
35 years Tenure Home Loans
For a Singapore home loan of 500,000, at 35 years tenure, the monthly
installment is $1,925, this requires a salary of $3,850 to be able to sustain it.
30 Years Tenure Home Loans
For a Singapore Home loan o 500,000 at 30 years tenure, the monthly
installment is $2,110, this requires a salary of $4,220 to be able to sustain it.
Committing to an expensive Home loan Means No savings
As the salary requirement assumption is based on 2x installment, the debt
servicing ratio is already 50%. The other 50% is normally used for costs and
consumption, therefore it is expected that the person will have very little
savings.
A salary of $4,220 per month (single person) is about in line with Singapore
average salary. Assume a joint income of $5,000 per month (both person).
In case any one of the couple becomes unemployed, they will face hardship
in servicing the Home Loan.
There is no way to guarantee anyone stays gainfully employed until 65 years
old. In reality, due to a more dynamic economic environment and global
trade, we can expect to see 3 to 5 major recessions in our working lives.
What this means is that, the age of lifelong employment is no more. Many
people can expect to be retrenched within their working lives and the risks
becomes bigger for those who are in their 40s and 50s, who can become
semi-employed or outright unemployed for years.
What will happen to those people who has taken a 35 year loan when they
are 30 years old and become unemployed when they reach 50 years old?
They still have some 15 years of home loan to pay up.
CPF Withdrawal limit
Not only that, when they hit their CPF withdrawal limit for their properties,
they will need to fork out cash. That will cause more severe distress to
Home owners.
Singapore's mean wage is about $4,000 per month. Lower salaried jobs are
more easily found than certain higher salaried jobs, therefore the is a good
likelihood of finding another job.
800k Home Loan Scenario
Property Price : $1,000,000
Interest rates Assumption : 3%
Salary requirement assumption : 2 x Monthly installment
It is so easy to be emotionally drawn into buying your "DREAM" home. In
this case, you may only need an income of around $7,000. If this $7,000
consists of 2 x $3,500 income, it seems affordable, but a safer salary would
be around $7590 or $8880.
Understanding your Home Loan risks
A higher income and a higher priced property has more risks than a lower
income and lower priced property. The reason is because it is not as easy to
replace one high paying job with another high paying job in the event of a
loss of job.
Of course we are happy if more people come to us to look for home loans.
But we strongly urge you to consider not to buy a property that is more
expensive than what you can safely afford. We emphasize "safely afford",
not simply "afford". What that means is, borrow within your means and do
not get swayed by fanciful property agents or nice property brochures.
www.PropertyBUYER.com.sg is a research-focused mortgage Advisory, we do not emphasize cheap loans, but balances risks versus savings to structure the best fit home loan for individuals. We work with many banks, we receive a fee from the banks when you choose to deal through us, therefore we have decided not to charge for this service. Please the "about us" to know more about us.
Email: loans@propertyBUYER.com.sg
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