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.
Showing posts with label singapore mortgage consultants. Show all posts
Showing posts with label singapore mortgage consultants. Show all posts
Monday, June 21, 2010
Tuesday, December 22, 2009
Invest in Singapore Property carefully and avoid "Buyer" representation
Invest in Singapore property Carefully
by www.PropertyBUYER.com.sg Mortgage Consultants
Sometimes, it is often the sweetest of smiles that kills and the most beautiful faces that stabs you from behind.
We are glad that the Ministry of Home Affairs has finally appointed someone to regulate the Singapore property market. As it stands, Singapore property buyers do need some protection against unscrupulous Singapore property agents.
Many agents or agencies are openly claiming to be the Singapore buyer representatives. On the other hand, just click another link on their website, they will explain why they are also the best seller representatives.
Whether you are a first time property buyer or an experienced property buyer, it is good to know that your real estate agent has your best interests in mind as you select a home. You save all the hassle of going through the classifieds daily or surf the internet. This is a very common statement that property agents profess. Then the next moment, they are claiming to be seller representative and how they will get you the best selling prices.
But how do property agents perform?
• Do the Singapore property agents find you the best match?
• Do the Singapore property agents always seemed so positive about the ever rising property market and that the market will never fall? You feel so good about buying!
• Do the Singapore property agents say that there is en-bloc opportunity and that property is a good investment?
• How do they select the properties? From their stock of unsold properties?
• Do the property agents help you by showing you the option to purchase (OTP)? Do the agents tell you the unfair clauses in the Option to purchase (OTP) are standard clauses and that you needn’t worry?
Whose side are the property agents standing on? The seller side or your side?
Well, You can always draft your own Option to purchase (OTP) and tell the agent not to worry, just use yours.
Now, where are the facts? We would often ask them to show us the facts that property prices always appreciate and we can show you many that do not.
Do you want to know how property agents stage a nice show for you?
This is what we heard in the industry, not sure how many people other than Mr. Lim fell to this trick.
Mr. Lim found on the internet and called up a sweet looking property agent. She looked so sincere and innocent and very senior in position. After gaining his trust, she went to show him properties. After learning his needs and choice, she brought him to view properties.
Mr. Lim was surprised that so many properties that he saw, they were not ideal and did not meet his requirement. He saw 5 to 10 properties, but they were all not ideal. Then she brought out her trump card, the property she wanted to move.
Mr. Lim saw the property and Bingo. That was the closest match, maybe 80% match, it didn’t match everything, but the property agent convinced Mr. Lim that that unit is one of the best units available.
What Mr. Lim didn’t know was, what the property agent did, she kept a number of units and didn’t show it to Mr. Lim. Mr. Lim found out after accidentally calling up a few more agents out of curiosity. Surprisingly, Mr. Lim went for viewing and found much better units for cheaper price.
So what did the charming lady Property agent do to deceive Mr. Lim? Why did she do it?
The seller for the unit which was inferior was willing to pay 2% commission to the agent and it was not co-broke unit.
She only used the other other properties to show case and move her own 2% big fat commission property.
So now, the picture is fairly clear isn’t it?
We are eagerly looking forward to Institute of Estate Agents (IEA) to regulate the industry and set some ground rules.
Buying and selling agents must be separated and licensed on an individual basis, so that agents are careful not to be in cahoots with each other. Singapore Property Buyers can be more at ease if regulations are more comprehensive. Nonetheless Property buyers must always be vigilant, Buyers beware.
Propertybuyer.com.sg mortgage consultants and buyer advisors can be contacted at: -
6100 0608
sms 9782 8606
Contact PropertyBuyer.com.sg mortgage consultants
by www.PropertyBUYER.com.sg Mortgage Consultants
Sometimes, it is often the sweetest of smiles that kills and the most beautiful faces that stabs you from behind.
We are glad that the Ministry of Home Affairs has finally appointed someone to regulate the Singapore property market. As it stands, Singapore property buyers do need some protection against unscrupulous Singapore property agents.
Many agents or agencies are openly claiming to be the Singapore buyer representatives. On the other hand, just click another link on their website, they will explain why they are also the best seller representatives.
Whether you are a first time property buyer or an experienced property buyer, it is good to know that your real estate agent has your best interests in mind as you select a home. You save all the hassle of going through the classifieds daily or surf the internet. This is a very common statement that property agents profess. Then the next moment, they are claiming to be seller representative and how they will get you the best selling prices.
But how do property agents perform?
• Do the Singapore property agents find you the best match?
• Do the Singapore property agents always seemed so positive about the ever rising property market and that the market will never fall? You feel so good about buying!
• Do the Singapore property agents say that there is en-bloc opportunity and that property is a good investment?
• How do they select the properties? From their stock of unsold properties?
• Do the property agents help you by showing you the option to purchase (OTP)? Do the agents tell you the unfair clauses in the Option to purchase (OTP) are standard clauses and that you needn’t worry?
Whose side are the property agents standing on? The seller side or your side?
Well, You can always draft your own Option to purchase (OTP) and tell the agent not to worry, just use yours.
Now, where are the facts? We would often ask them to show us the facts that property prices always appreciate and we can show you many that do not.
Do you want to know how property agents stage a nice show for you?
This is what we heard in the industry, not sure how many people other than Mr. Lim fell to this trick.
Mr. Lim found on the internet and called up a sweet looking property agent. She looked so sincere and innocent and very senior in position. After gaining his trust, she went to show him properties. After learning his needs and choice, she brought him to view properties.
Mr. Lim was surprised that so many properties that he saw, they were not ideal and did not meet his requirement. He saw 5 to 10 properties, but they were all not ideal. Then she brought out her trump card, the property she wanted to move.
Mr. Lim saw the property and Bingo. That was the closest match, maybe 80% match, it didn’t match everything, but the property agent convinced Mr. Lim that that unit is one of the best units available.
What Mr. Lim didn’t know was, what the property agent did, she kept a number of units and didn’t show it to Mr. Lim. Mr. Lim found out after accidentally calling up a few more agents out of curiosity. Surprisingly, Mr. Lim went for viewing and found much better units for cheaper price.
So what did the charming lady Property agent do to deceive Mr. Lim? Why did she do it?
The seller for the unit which was inferior was willing to pay 2% commission to the agent and it was not co-broke unit.
She only used the other other properties to show case and move her own 2% big fat commission property.
So now, the picture is fairly clear isn’t it?
We are eagerly looking forward to Institute of Estate Agents (IEA) to regulate the industry and set some ground rules.
Buying and selling agents must be separated and licensed on an individual basis, so that agents are careful not to be in cahoots with each other. Singapore Property Buyers can be more at ease if regulations are more comprehensive. Nonetheless Property buyers must always be vigilant, Buyers beware.
Propertybuyer.com.sg mortgage consultants and buyer advisors can be contacted at: -
6100 0608
sms 9782 8606
Contact PropertyBuyer.com.sg mortgage consultants
Monday, December 14, 2009
Invest in Singapore properties: 10 things to know for first time private property buyers
10 Important things to know for 1st time Private Property Buyer on sub-sale units
By: Daphne of www.PropertyBUYER.com.sg mortgage consultants
TEL 6100 - 0608
SMS 9782 8606
As a recent property buyer, I started my search for my ideal apartment since November last year. I began my property hunt with absolutely zero knowledge on buying property in Singapore. I do not know the legal procedure involved, I do not know the tricks used by most property agents, and I do not know which area I should start with my property hunt, just to name a few. I missed the boat in making my purchase during the period from Jan- May when the property price was low as I was hoping that the price will go down even further and obviously being a first time inexperience property buyer, I was afraid to take the plunge.
I believe there are many people out there facing the same challenge as I did when I first started my property hunt. I was lucky to have friends who are experience in the property field to provide me with sound advice. I hope that this article can provide some useful insights on things one should take note of when purchasing a private property. The information provided is all base on my own accumulated knowledge and experience when I did my own property purchase.
1) Due Diligence
Buying a property is a big commitment and requires a lot of hard work in doing your own research. Never depend solely on agent’s recommendation as end of the day , the agent’s aim is to close the deal and get the commission. Research includes surfing through various property website to read up on property related articles and checking out the available units sold.
2) Do not depend solely on one agent to look for your apartment. Nothing beats
spreading the eggs into a few baskets and doing your own search. Talk to as many agents to learn and gather insights along the way. Experiencing unprofessional agents is part of the learning curve.
3) As a private property buyer, you do not pay any commission to the agent. And you should not no matter what he or she says. This is because they earn commission from the seller.
4) Stamp duty can be paid using CPF.
Buyer will have to fork out Hard cash first in paying the stamp duty. CPF will only reimburse the stamp duty back to the buyer upon completion of the property sales transaction which will take at least two months.
5) Stamp Duty fee calculation
1st S$180K is 1%
2nd S$180K is 2%
Remaining amount is 3%.
For example: if you are buying a property that cost S$600,000, the stamp duty will be as follow:
1st S$180,000 @ 1%- S$1,800
2nd S$180,000 @ 2%- S$3600
Remaining S$240,000 @ 3%- S$7,200
Total stamp duty is S$12600
6) Bank Valuation
Bank valuation on the property you wish to buy is very important. The bank valuation will help to determine how much cash upfront you need to fork out and whether you are buying an overprice unit or getting a good deal. Never take the Singapore property agent’s claimed valuation as final. Agents do cheat on valuation. Make sure to check with an independent third party such as a Singapore mortgage consultant or your own personal banker who can help you to make sure on getting a proper and correct valuation. Different banks often give different valuation for the same unit.
7) Bank Loan
Not all banks offer up to 90% bank loan. Some bank only offer up to a maximum of 80% of 85%. Thus if you wish to buy a unit with a 85% or 90% bank loan, your choice of bank selection will be limited. Its recommended that you talk to your mortgage consultant or bankers up front on your intention to get more than 80% loan.
8) One should also compare the various bank interest rates to secure the best bank
loan. Some loan package come with lock in period and others use Sor or Sibor rates. Property agents usually ask one of their most frequent use bankers to advise the buyer on the interest rate. Often they do not help the buyer to compare the rates and package from the various banks. It is up to the buyer’s due diligence to do so. The use of independent mortgage consultant will be helpful in this aspect.
9) Ensure that you can secure the bank loan before paying the 1% option to the seller. In the event that your bank loan is not approved, you will have to either top up the differences in cash or to forgo the purchase, end up losing the 1% payment.
10) If you are buying a sub sale unit that is still under construction, you will need to
pay another S$400 to S$428 administrative charges in cash to the developer for the paper work procedure fee.
By: Daphne of www.PropertyBUYER.com.sg mortgage consultants
TEL 6100 - 0608
SMS 9782 8606
As a recent property buyer, I started my search for my ideal apartment since November last year. I began my property hunt with absolutely zero knowledge on buying property in Singapore. I do not know the legal procedure involved, I do not know the tricks used by most property agents, and I do not know which area I should start with my property hunt, just to name a few. I missed the boat in making my purchase during the period from Jan- May when the property price was low as I was hoping that the price will go down even further and obviously being a first time inexperience property buyer, I was afraid to take the plunge.
I believe there are many people out there facing the same challenge as I did when I first started my property hunt. I was lucky to have friends who are experience in the property field to provide me with sound advice. I hope that this article can provide some useful insights on things one should take note of when purchasing a private property. The information provided is all base on my own accumulated knowledge and experience when I did my own property purchase.
1) Due Diligence
Buying a property is a big commitment and requires a lot of hard work in doing your own research. Never depend solely on agent’s recommendation as end of the day , the agent’s aim is to close the deal and get the commission. Research includes surfing through various property website to read up on property related articles and checking out the available units sold.
2) Do not depend solely on one agent to look for your apartment. Nothing beats
spreading the eggs into a few baskets and doing your own search. Talk to as many agents to learn and gather insights along the way. Experiencing unprofessional agents is part of the learning curve.
3) As a private property buyer, you do not pay any commission to the agent. And you should not no matter what he or she says. This is because they earn commission from the seller.
4) Stamp duty can be paid using CPF.
Buyer will have to fork out Hard cash first in paying the stamp duty. CPF will only reimburse the stamp duty back to the buyer upon completion of the property sales transaction which will take at least two months.
5) Stamp Duty fee calculation
1st S$180K is 1%
2nd S$180K is 2%
Remaining amount is 3%.
For example: if you are buying a property that cost S$600,000, the stamp duty will be as follow:
1st S$180,000 @ 1%- S$1,800
2nd S$180,000 @ 2%- S$3600
Remaining S$240,000 @ 3%- S$7,200
Total stamp duty is S$12600
6) Bank Valuation
Bank valuation on the property you wish to buy is very important. The bank valuation will help to determine how much cash upfront you need to fork out and whether you are buying an overprice unit or getting a good deal. Never take the Singapore property agent’s claimed valuation as final. Agents do cheat on valuation. Make sure to check with an independent third party such as a Singapore mortgage consultant or your own personal banker who can help you to make sure on getting a proper and correct valuation. Different banks often give different valuation for the same unit.
7) Bank Loan
Not all banks offer up to 90% bank loan. Some bank only offer up to a maximum of 80% of 85%. Thus if you wish to buy a unit with a 85% or 90% bank loan, your choice of bank selection will be limited. Its recommended that you talk to your mortgage consultant or bankers up front on your intention to get more than 80% loan.
8) One should also compare the various bank interest rates to secure the best bank
loan. Some loan package come with lock in period and others use Sor or Sibor rates. Property agents usually ask one of their most frequent use bankers to advise the buyer on the interest rate. Often they do not help the buyer to compare the rates and package from the various banks. It is up to the buyer’s due diligence to do so. The use of independent mortgage consultant will be helpful in this aspect.
9) Ensure that you can secure the bank loan before paying the 1% option to the seller. In the event that your bank loan is not approved, you will have to either top up the differences in cash or to forgo the purchase, end up losing the 1% payment.
10) If you are buying a sub sale unit that is still under construction, you will need to
pay another S$400 to S$428 administrative charges in cash to the developer for the paper work procedure fee.
Invest in Singapore Ethics framework for Property agents - Not more exams
Head of Property agent need to focus on ethics, not exams
Article by: www.PropertyBUYER.com.sg
We applaud the creation of a regulatory body to regulate the Singapore Property agents.
The below is an excerpt from a news published by the Asiaone.com.sg on 13th Dec 2009.
"MND in October shared some details of the new regulatory framework that it is proposing for the real estate industry, which includes the creation of a new government agency to take on enhanced regulatory powers.
We are a Research-focused Singapore Mortgage Consultant which helps you compare Singapore Home loans either for new home loans or refinance home loans, we balance risks versus rewards for each home loan to match your risk profile and financing needs.
Contact Singapore mortgage Consultants
Tel: 6100 - 0608
SMS: 9782 - 8606
Contact a Singapore mortgage Consultant
...
The move came as property agents here have come under increasing fire over the last few years for not having the right qualifications and for unethical practices. Minister for National Development Mah Bow Tan commented in March this year that the status quo was 'not tenable' and that the whole system was 'not satisfactory'.
Legislative enactment is expected by the second half of next year once the key elements are unveiled.
With the planned changes, agents' activities will be monitored more closely and rules enforced more keenly. For example, real estate agents will no longer be allowed to be freelancers (agents who are not contracted with any accredited agencies). They will also be prevented from representing more than one agency.
Agents must also pass an industry examination and be accredited by a new accreditation body (to be set up next year) before they can practise."
http://business.asiaone.com/Business/News/My%2BMoney/Story/A1Story20091211-185327.html
There seems to be an overly keen focus on Examinations
There is a lot of talk about agents will be monitored more closely and they cannot represent more than one agency. These protect the rights of the Agencies.
The only thing that is mentioned that perhaps have a slight influence on protecting the consumer is Examination and improving professionalism.
What is the real challenge?
Many agents are already very knowledgeable. It is not a matter of full-time or part-time. Did MND know that many of the Singapore property agent cheaters are very professional and have many years of experience?
It's just that some of these people are simply unethical.
Now, examinations will NOT solve the problem. By enforcing more and more examinations which we are afraid MND will impose, would have missed the point completely.
By having examinations, you would remove some agents from the field, this would make long time agents stronger and give them more business. This is a rather stupid and potentially dangerous way of regulating, if it really comes to that. We are hopeful it will not end up this way. Do note that some of the dishonest agents are the experienced ones.
Just like there are wolfs out there. We don't throw sheeps to the wolfs so that these wolfs will become less hungry and tame.
So by feeding a Dishonest Singapore property agent who can also be very senior and very professional (knowledge wise) by eliminating less experienced agents, this is like throwing sheep to wolves.
How can we ever satisfy their greed?
So we urge MND and the new Head of Property agent regulator to focus on creating a framework that monitors ethics and removing conflicts of interests.
Some of these agents even work with rogue mortgage consultants which are tied up with lawyers to charge property buyers more for law fees so as to get a commission.
Some of the unethical Singapore Property agents' behaviours: -
* Cheating on valuation, working with roger valuers who stick their heads out for higher valuation so as to cheat the banks.
* Lying about the property transaction and staging a show to squeeze more commission
* Illegal kick backs from rogue loan consultants which are tied to lawyers.
* Illegal kick backs from lawyers.
* Running away with cheques, giving fake identidy.
* Recommending loans where they are not expert in.
* Cornering property launches and buying them up for sub-sale.
* Cheating the selling into letting go their property cheaply. Buys the Option of purchase and then immediately transfer of nominees (names) for Option to purchase.
o This involves cheating an owner into disposing a property at below the fair value. Then the agent goes into the market to re-sell the option to purchase for easily 50k to 100k more as there will be takers.
* The list goes on.
We are a Research-focused Singapore Mortgage Consultant which helps you compare Singapore Home loans either for new home loans or refinance home loans, we balance risks versus rewards for each home loan to match your risk profile and financing needs.
Buying property is a serious affair, we do NOT advocate a Greed or fear based buying approach, we emphasize that you need to check your property home loan affordability. Check out the mortgage calculators.
Not Simply Cheap, but what Fits. We Research, You Save!
Contact Singapore mortgage consultants
Tel: 6100 - 0608
SMS: 9782 - 8606
Article by: www.PropertyBUYER.com.sg
We applaud the creation of a regulatory body to regulate the Singapore Property agents.
The below is an excerpt from a news published by the Asiaone.com.sg on 13th Dec 2009.
"MND in October shared some details of the new regulatory framework that it is proposing for the real estate industry, which includes the creation of a new government agency to take on enhanced regulatory powers.
We are a Research-focused Singapore Mortgage Consultant which helps you compare Singapore Home loans either for new home loans or refinance home loans, we balance risks versus rewards for each home loan to match your risk profile and financing needs.
Contact Singapore mortgage Consultants
Tel: 6100 - 0608
SMS: 9782 - 8606
Contact a Singapore mortgage Consultant
...
The move came as property agents here have come under increasing fire over the last few years for not having the right qualifications and for unethical practices. Minister for National Development Mah Bow Tan commented in March this year that the status quo was 'not tenable' and that the whole system was 'not satisfactory'.
Legislative enactment is expected by the second half of next year once the key elements are unveiled.
With the planned changes, agents' activities will be monitored more closely and rules enforced more keenly. For example, real estate agents will no longer be allowed to be freelancers (agents who are not contracted with any accredited agencies). They will also be prevented from representing more than one agency.
Agents must also pass an industry examination and be accredited by a new accreditation body (to be set up next year) before they can practise."
http://business.asiaone.com/Business/News/My%2BMoney/Story/A1Story20091211-185327.html
There seems to be an overly keen focus on Examinations
There is a lot of talk about agents will be monitored more closely and they cannot represent more than one agency. These protect the rights of the Agencies.
The only thing that is mentioned that perhaps have a slight influence on protecting the consumer is Examination and improving professionalism.
What is the real challenge?
Many agents are already very knowledgeable. It is not a matter of full-time or part-time. Did MND know that many of the Singapore property agent cheaters are very professional and have many years of experience?
It's just that some of these people are simply unethical.
Now, examinations will NOT solve the problem. By enforcing more and more examinations which we are afraid MND will impose, would have missed the point completely.
By having examinations, you would remove some agents from the field, this would make long time agents stronger and give them more business. This is a rather stupid and potentially dangerous way of regulating, if it really comes to that. We are hopeful it will not end up this way. Do note that some of the dishonest agents are the experienced ones.
Just like there are wolfs out there. We don't throw sheeps to the wolfs so that these wolfs will become less hungry and tame.
So by feeding a Dishonest Singapore property agent who can also be very senior and very professional (knowledge wise) by eliminating less experienced agents, this is like throwing sheep to wolves.
How can we ever satisfy their greed?
So we urge MND and the new Head of Property agent regulator to focus on creating a framework that monitors ethics and removing conflicts of interests.
Some of these agents even work with rogue mortgage consultants which are tied up with lawyers to charge property buyers more for law fees so as to get a commission.
Some of the unethical Singapore Property agents' behaviours: -
* Cheating on valuation, working with roger valuers who stick their heads out for higher valuation so as to cheat the banks.
* Lying about the property transaction and staging a show to squeeze more commission
* Illegal kick backs from rogue loan consultants which are tied to lawyers.
* Illegal kick backs from lawyers.
* Running away with cheques, giving fake identidy.
* Recommending loans where they are not expert in.
* Cornering property launches and buying them up for sub-sale.
* Cheating the selling into letting go their property cheaply. Buys the Option of purchase and then immediately transfer of nominees (names) for Option to purchase.
o This involves cheating an owner into disposing a property at below the fair value. Then the agent goes into the market to re-sell the option to purchase for easily 50k to 100k more as there will be takers.
* The list goes on.
We are a Research-focused Singapore Mortgage Consultant which helps you compare Singapore Home loans either for new home loans or refinance home loans, we balance risks versus rewards for each home loan to match your risk profile and financing needs.
Buying property is a serious affair, we do NOT advocate a Greed or fear based buying approach, we emphasize that you need to check your property home loan affordability. Check out the mortgage calculators.
Not Simply Cheap, but what Fits. We Research, You Save!
Contact Singapore mortgage consultants
Tel: 6100 - 0608
SMS: 9782 - 8606
Monday, December 7, 2009
Invest in Singapore Double Bay residences: Value Analysis
Invest in Singapore Double Bay Residences: Value analysis
Contributed by: www.PropertyBUYER.com.sg
In china, most residential property comes with leases of 70 years. Let's take a look at the valuation dynamics of 99 years lease-hold properties in Singapore.
We are a Research-focused Singapore Mortgage Consultant which helps you compare Singapore Home loans either for new home loans or refinance home loans, we balance risks versus rewards for each home loan to match your risk profile and financing needs.
Buying property is a serious affair, we do NOT advocate a Greed or fear based buying approach, we emphasize that you need to check your property home loan affordability. Check out the mortgage calculators.
According to SLA’s leasehold land premium calculation and valuation of 99 years lease hold land.
Singapore SLA 99 lease hold valuation
(Adapted from SLA’s Differential Premium valuation calculation)
SLA's valautions for 99 year leasehold properties are a structured way in which to calculate the depreciation of an existing 99 years lease-hold property which is being proposed for upgrade, re-build, renewal or re-zoning. This nonetheless forms a basis of how a 99 year leasehold property in Singapore is valued across the board if you consider that Singapore Land Authority is the Authority in these matters.
Of course, how the property is valued and what price it is being sold for may differ. SLA's valuations of such properties do not take into account the various differences in the conditions of the properties.
Condition of 20 years and 30 years buildings (Free hold and 99 years leasehold)
The conditions of 20 year to 30 years buildings are already quite poor. Most will have issues such as leaking from pipes, minor cracks, electrical systems malfunctioning and possibly other structural issues. Tenants always like new properties with new amenities. Therefore as properties age, the rental value deteriorate. And hence the price of these properties trade at a discount to other properties.
Double Bay Residences in Simei Singapore
A building consists of 2 major components
· Building cost (plus other building related costs) - ~$350
· Land cost - ~$296
Land cost for Double Bay residences - Simei Singapore = $296 per square foot per plot ratio (psf ppr)
(Source: Straits times - http://www.asiaone.com/Business/Story/A1Story20080724-78562.html)
“'A PARTNERSHIP between UOL Group and Kheng Leong – both companies linked to banker Wee Cho Yaw – emerged as the top bidder for a residential site at Simei Street 4 at the close of the tender yesterday....
The two companies’ bid, which was the highest of three bids, came to $236.1 million, or some $296 per square foot per plot ratio (psf ppr).Right now, developers can bid up to about $200-250 per square foot of potential gross floor area at most for suburban condo sites, which translates to breakeven costs of $650-700 psf. However, if construction costs continue to go up and selling prices continue to drop, there's not much else you can do except to lower your land bids. The question is what is the government's threshold for pain?' a seasoned developer said.” (http://www.asiaone.com/Business/Story/A1Story20080724-78562.html, By Kalpana Rashiwala
Building cost for Double Bay residences - Simei Singapore
According to a Straits times report published in July 2008, construction costs for medium-quality condominiums are in the $260 psf of GFA to $320 psf of GFA in Q1, 2008 and in Q2, it has increased from $280 to $350 psf of GFA range. This is in line with analysts expectations of a breakeven cost of $650 to $700 psf ppr.
"Construction cost consultancy Rider Levett Bucknall (RLB). said: 'Construction prices for medium-quality condominiums indicatively range from $260 psf of GFA to $320 psf of GFA in Q1 2008, and prices have risen further to $280 to $350 psf of GFA for Q2 2008,' it said. 'High demand and competition for limited resources, the lack of tendering capacity among contractors, sub-contractors and suppliers, and volatile commodity prices have contributed significantly to building tender price escalation,' the firm added." (Source: Straits times, http://www.asiaone.com/Business/Story/A1Story20080724-78562.html)
Assumptions For Depreciation of Double Bay Residences in Singapore: -
· Depreciate the building more slowly with the 1st 10 years depreciating less and gradually more in the second 10 years and so on.
· Depreciate land more slowly in the earlier years and then depreciate faster in the later years.
This is just an illustration and represents our views only, buyers please exercise your own judgement.
Double Bay residences Simei Singapore
In the absence of external factors, on an intrinsic value basis, double bay residences valuation could continue to drop in the years ahead. Of course, the actual prices does not necessarily have to follow this pattern if there are external factors at play.
What external factors could affect Double Bay residences value?
Developments, lifestyle, Population, etc.
Positive external factors could also be in the form of Free Hold land value in the vicinity of double bay leading to the base value of the land increasing. For Double bay, the land cost is $296 per square feet per plot ratio, if free hold land price has increased dramatically in the same area to $500 psf ppr 10 years later. Then by inference, the remainder 89 years of the lease of a 99 years lease hold property land will also increase in value. This increase in the land value could either partially offset the depreciation in the building value or completely offset it and increase in selling prices.
Sentiments
Sentiments drive up prices, leading to price distortions and anomalies. This factor is very pertinent in 99 years lease-hold investing. Developers and Singapore property agents alike have very compelling arguments promoting the sale of 99 years lease-hold properties. If enough people believe in it, the price gap will narrow between a 99 years leasehold property and a free hold property.
Government policies and changes in Differential premium
Government policies could impact the base value of future 99 years lease-hold land and consequently affect the remainder lease of any lease-hold land.
So for double bay residences in Simei Singapore, the best form of increase in value stems mostly from increase in land prices. As far as en-bloc potential, it is almost NIL if the price increase in Free Hold land is not significant and the differential premium (by SLA), is not reduced from 75% to a lower figure.
Construction cost and raw materials
If construction costs go up, a similar or new replacement property would likely be more expensive, therefore any existing buildings still in fairly good condition will therefore fetch better prices. However, if the cost of construction go down, then it would be cheaper to build more units onto the market depressing (or moderating the increase of) the prices of existing units.
So property investors can still make money from any swing up in sentiment. But if fundamentals remained unchanged, it will be more a matter of the greater fool theory.
What lessons could we learn from Double Bay Residences - Simei Singapore?
In the case of Double Bay residences in Simei Singapore, the building cost is high. And buildings do depreciate fairly quickly. Usually, buildings after 30 years would be in fairly bad shape despite whether it is safe to stay in. These properties would be practically undesirable as rental properties.
Given that the total base value of this property is 54% of the total cost of the property and that buildings depreciate faster than 99 lease hold land. This property will likely lose value quickly. The land value of this property would also along with time, lose it's value.
So Should we buy more expensive properties?
Generally yes, if you can afford it. But buy value, not price!!!
Buying a Singapore property is a personal choice as much as it is a matter of affordability. When the government made credit easily available by lowering the cash downpayment requirement, the end result is that people will have to pay higher prices for smaller properties. So there really is not much choice if affordability is an issue and you will most likely end up with smaller units. That also mean that you will not get a very good deal as small units trade at a more expensive price.
For Example, if we look at other places where the land could be $1000 psf ppr (Free Hold) and we add a luxuriously fitted building at $500 psf ppr. The building is only 33% of the total value. The total psf ppr price would then be $1500.
Assume that with a mark up, you buy it at $2000 psf ppr. In this case, the building portion of the value will continue to depreciate, while the Free hold land value tends to increase in line with inflation and/or population growth. You could be paying more, but you are sitting on valuable land which can potentially more than offset any reduction in building prices.
Expensive land stays expensive or it could even become more expensive.
And the more expensive the land, the more incentive it is to build luxuriously and beautifully in order to optimize usage in prime land. With more and more such buildings in any particular area, the vibrancy will increase, leading to better overall facilities and amenities. This creates a positive reinforcing cycle which supports the property values. In the case of building cost to land cost ratio, as long as it can be built luxuriously enough with good utility, as a rule of thumb, the lower the ratio, the better it is in keeping the value of the property as a large part in the value is vested in the land itself, while the building itself depreciates.
You can contact a Singapore mortgage consultant to evaluate home loan affordability.
Contributed by: www.PropertyBUYER.com.sg
In china, most residential property comes with leases of 70 years. Let's take a look at the valuation dynamics of 99 years lease-hold properties in Singapore.
We are a Research-focused Singapore Mortgage Consultant which helps you compare Singapore Home loans either for new home loans or refinance home loans, we balance risks versus rewards for each home loan to match your risk profile and financing needs.
Buying property is a serious affair, we do NOT advocate a Greed or fear based buying approach, we emphasize that you need to check your property home loan affordability. Check out the mortgage calculators.
According to SLA’s leasehold land premium calculation and valuation of 99 years lease hold land.
Singapore SLA 99 lease hold valuation
(Adapted from SLA’s Differential Premium valuation calculation)
SLA's valautions for 99 year leasehold properties are a structured way in which to calculate the depreciation of an existing 99 years lease-hold property which is being proposed for upgrade, re-build, renewal or re-zoning. This nonetheless forms a basis of how a 99 year leasehold property in Singapore is valued across the board if you consider that Singapore Land Authority is the Authority in these matters.
Of course, how the property is valued and what price it is being sold for may differ. SLA's valuations of such properties do not take into account the various differences in the conditions of the properties.
Condition of 20 years and 30 years buildings (Free hold and 99 years leasehold)
The conditions of 20 year to 30 years buildings are already quite poor. Most will have issues such as leaking from pipes, minor cracks, electrical systems malfunctioning and possibly other structural issues. Tenants always like new properties with new amenities. Therefore as properties age, the rental value deteriorate. And hence the price of these properties trade at a discount to other properties.
Double Bay Residences in Simei Singapore
A building consists of 2 major components
· Building cost (plus other building related costs) - ~$350
· Land cost - ~$296
Land cost for Double Bay residences - Simei Singapore = $296 per square foot per plot ratio (psf ppr)
(Source: Straits times - http://www.asiaone.com/Business/Story/A1Story20080724-78562.html)
“'A PARTNERSHIP between UOL Group and Kheng Leong – both companies linked to banker Wee Cho Yaw – emerged as the top bidder for a residential site at Simei Street 4 at the close of the tender yesterday....
The two companies’ bid, which was the highest of three bids, came to $236.1 million, or some $296 per square foot per plot ratio (psf ppr).Right now, developers can bid up to about $200-250 per square foot of potential gross floor area at most for suburban condo sites, which translates to breakeven costs of $650-700 psf. However, if construction costs continue to go up and selling prices continue to drop, there's not much else you can do except to lower your land bids. The question is what is the government's threshold for pain?' a seasoned developer said.” (http://www.asiaone.com/Business/Story/A1Story20080724-78562.html, By Kalpana Rashiwala
Building cost for Double Bay residences - Simei Singapore
According to a Straits times report published in July 2008, construction costs for medium-quality condominiums are in the $260 psf of GFA to $320 psf of GFA in Q1, 2008 and in Q2, it has increased from $280 to $350 psf of GFA range. This is in line with analysts expectations of a breakeven cost of $650 to $700 psf ppr.
"Construction cost consultancy Rider Levett Bucknall (RLB). said: 'Construction prices for medium-quality condominiums indicatively range from $260 psf of GFA to $320 psf of GFA in Q1 2008, and prices have risen further to $280 to $350 psf of GFA for Q2 2008,' it said. 'High demand and competition for limited resources, the lack of tendering capacity among contractors, sub-contractors and suppliers, and volatile commodity prices have contributed significantly to building tender price escalation,' the firm added." (Source: Straits times, http://www.asiaone.com/Business/Story/A1Story20080724-78562.html)
Assumptions For Depreciation of Double Bay Residences in Singapore: -
· Depreciate the building more slowly with the 1st 10 years depreciating less and gradually more in the second 10 years and so on.
· Depreciate land more slowly in the earlier years and then depreciate faster in the later years.
This is just an illustration and represents our views only, buyers please exercise your own judgement.
Double Bay residences Simei Singapore
In the absence of external factors, on an intrinsic value basis, double bay residences valuation could continue to drop in the years ahead. Of course, the actual prices does not necessarily have to follow this pattern if there are external factors at play.
What external factors could affect Double Bay residences value?
Developments, lifestyle, Population, etc.
Positive external factors could also be in the form of Free Hold land value in the vicinity of double bay leading to the base value of the land increasing. For Double bay, the land cost is $296 per square feet per plot ratio, if free hold land price has increased dramatically in the same area to $500 psf ppr 10 years later. Then by inference, the remainder 89 years of the lease of a 99 years lease hold property land will also increase in value. This increase in the land value could either partially offset the depreciation in the building value or completely offset it and increase in selling prices.
Sentiments
Sentiments drive up prices, leading to price distortions and anomalies. This factor is very pertinent in 99 years lease-hold investing. Developers and Singapore property agents alike have very compelling arguments promoting the sale of 99 years lease-hold properties. If enough people believe in it, the price gap will narrow between a 99 years leasehold property and a free hold property.
Government policies and changes in Differential premium
Government policies could impact the base value of future 99 years lease-hold land and consequently affect the remainder lease of any lease-hold land.
So for double bay residences in Simei Singapore, the best form of increase in value stems mostly from increase in land prices. As far as en-bloc potential, it is almost NIL if the price increase in Free Hold land is not significant and the differential premium (by SLA), is not reduced from 75% to a lower figure.
Construction cost and raw materials
If construction costs go up, a similar or new replacement property would likely be more expensive, therefore any existing buildings still in fairly good condition will therefore fetch better prices. However, if the cost of construction go down, then it would be cheaper to build more units onto the market depressing (or moderating the increase of) the prices of existing units.
So property investors can still make money from any swing up in sentiment. But if fundamentals remained unchanged, it will be more a matter of the greater fool theory.
What lessons could we learn from Double Bay Residences - Simei Singapore?
In the case of Double Bay residences in Simei Singapore, the building cost is high. And buildings do depreciate fairly quickly. Usually, buildings after 30 years would be in fairly bad shape despite whether it is safe to stay in. These properties would be practically undesirable as rental properties.
Given that the total base value of this property is 54% of the total cost of the property and that buildings depreciate faster than 99 lease hold land. This property will likely lose value quickly. The land value of this property would also along with time, lose it's value.
So Should we buy more expensive properties?
Generally yes, if you can afford it. But buy value, not price!!!
Buying a Singapore property is a personal choice as much as it is a matter of affordability. When the government made credit easily available by lowering the cash downpayment requirement, the end result is that people will have to pay higher prices for smaller properties. So there really is not much choice if affordability is an issue and you will most likely end up with smaller units. That also mean that you will not get a very good deal as small units trade at a more expensive price.
For Example, if we look at other places where the land could be $1000 psf ppr (Free Hold) and we add a luxuriously fitted building at $500 psf ppr. The building is only 33% of the total value. The total psf ppr price would then be $1500.
Assume that with a mark up, you buy it at $2000 psf ppr. In this case, the building portion of the value will continue to depreciate, while the Free hold land value tends to increase in line with inflation and/or population growth. You could be paying more, but you are sitting on valuable land which can potentially more than offset any reduction in building prices.
Expensive land stays expensive or it could even become more expensive.
And the more expensive the land, the more incentive it is to build luxuriously and beautifully in order to optimize usage in prime land. With more and more such buildings in any particular area, the vibrancy will increase, leading to better overall facilities and amenities. This creates a positive reinforcing cycle which supports the property values. In the case of building cost to land cost ratio, as long as it can be built luxuriously enough with good utility, as a rule of thumb, the lower the ratio, the better it is in keeping the value of the property as a large part in the value is vested in the land itself, while the building itself depreciates.
You can contact a Singapore mortgage consultant to evaluate home loan affordability.
Wednesday, September 16, 2009
Invest in Singapore Properties: But Novice Singapore Property investors beware of Singapore Property agents
Invest in Singapore Properties: Novice property investors beware of Property agents.
Singapore Property agents cheat HDB Home buyer
Today we watched in horror another Singapore property agent attempts to cheat hdb property buyer. He asked for deposit of $1000 as money for option to purchase but gives the home buyer only an empty option to purchase form that is unsigned. (source: tv channel 8 news, 12 Sep 2009)
Article contributed by www.PropertyBUYER.com.sg (Other authors, if you wish to contribute articles, please contact me)
-----------------------------------------------------------------------------------------------
About Property Buyer Contact Property Buyer for Singapore housing loan
www.PropertyBUYER.com.sg
We are a Research-focused Singapore Mortgage Consultant which helps you compare Singapore Home loans either for new home loans or refinancing, we balance risks versus rewards for each home loan to match your risk profile and financing needs.
Buying property is a serious affair, we do NOT advocate a Greed based buying approach, we emphasize that you need to check your affordability and do your sums right. If you are unsure, we are happy to help you check.
Not Simply Cheap, but what Fits. We Research, You Save!
Tel: 6100 - 0608
SMS: 9782 - 8606
loans@propertyBUYER.com.sg
-----------------------------------------------------------------------------------------------
This is a time to be extremely careful, dishonest property agents in Singapore are out on the loose again. A hot property Market has the same effect as changi prison not locking opening it's gates. Yes, the effect is criminals running amok.
During a hot property market dishonest Singapore property agents run amok. They find many preys as people are generally guided by fear and greed.
FEAR AND GREED ARE DISHONEST PROPERTY AGENT’S BEST FRIEND
Fear that the Property market will run away with hefty price rises! This cuts short the thinking process, things are not thought through in detail.
Greed, in that they want to get in quickly as the market is rising, the can buy and sell at a higher price.
YET ANOTHER TRUE STORY OF DISHONEST SINGAPORE PROPERTY AGENT CHEATING HOME BUYER
Recently around late august, a novice Singapore property investor Miss Yuen came to us to get a Singapore home loan for her studio apartment. She (the property buyer, Miss Yuen) recounted her interesting encounter with a Dishonest Singapore property Agent.
Property Buyer Views clementi property Singapore
She was looking for a 2 bedroom property around 890 sq feet in Clementi. A very professional groomed and pleasant looking Singapore property agent brought her to see the studio. Miss Yuen was very keen with the property, but she had a budget of $580k. The asking price was $650k. The price is quite steep for such a small unit which also happens to be 99 years lease hold too.
Property agent assured investor that UOB can match home loan valuation
The Property agent assured Miss Yuen that banks can match $650k.
She ask us to check the valuation, we came back with a valuation of $550k and the highest valuation we got was $550k.
We told miss Yuen our customer that no matter how we push UOB wouldn't move the valuation more than $560k.
Property Investor doubts our mortgage consulting abilities
Miss Yuen started to doubt www.PropertyBUYER.com.sg Mortgage Consultant’s ability to get the best and highest valuation. She said the Property agent promised her to get bank loan for her to match $650k. Miss Yuen was very tempted to just go ahead to place the 1% deposit for the option to purchase.
Property Investor Miss Yuen gave www.PropertyBUYER.com.sg a chance to check
Miss Yuen was very busy but she still gave us a chance to respond by calling us to verify.
We told her to ask the agent to give the name of the banker who promised $650k valuation so that we can verify the information.
So miss yuen asked the property agent for the name and the contact of the banker. The property agent gave the name and number of the banker without hesitation.
She looked to real and genuine. Miss Yuen was so convinced. She even called us and she said, “I’ll have to go with the agent’s home loan suggestions, her banker can match the valuation.”
We told Miss Yuen, “Why don’t you let us check with the UOB banker to verify the information? And if possible ask the UOB banker to put the valuation confirmation in writing.”
Property buyer Miss Yuen reluctantly agreed to give us a chance to Verify
Miss Yuen was so convinced by the Property agent that she reluctantly let us go and verify it, because she didn't see a need to.
She gave us the number of the UOB banker to call, we called the banker and he told us the valuation was $540k, but that was 3 weeks ago.
We asked the UOB banker, “Didn’t you tell the Property Agent that it was $650k for that particular condominium unit?”
The UOB banker said, “Nope, I never said that. She asked me to match $650k but I told her, sorry, NO WAY! The valuers said NO. I only told her it was $540K.”
www.PropertyBUYER.com.sg, “But the property agent claimed you said, $650k valuation is matched!”
UOB Banker: “Sorry, I did not say that, I said it can match $540k, that is the maximum. I told her no way to match $650k property valuation very clearly.”
We told Miss Yuen that the Valuation cannot match $650k
She asked us, "Are you sure? Agent says her banker can match $650k property valuation."
We asked her to go verify with the banker. If he says can match at $650k, ask for an email to confirm that.
Miss Yuen checks with Dishonest Singapore Property Agent
After this encounter, we asked Miss Yuen to check with the the Singapore property agent how she had known the valuation was $650k?
Miss Yuen, “How did you know that the valuation was $650k? UOB says cannot match valuation.”
Dishonest Property agent: “Did I ever say UOB can match? Sorry I must have made a mistake, it was my colleague who told me.”
Could the Property Agent have made an Honest mistake?
How could she not know the valuation of the property she is marketing?
By now, Miss yuen was fuming. She questioned the property agent and wanted her to explain.
Before the property buyer Miss Yuen could finish, the agent quickly hung up the phone.
Miss Yuen tried to call the property agent back many times, the property agent refused to pick up the call.
Dishonest Singapore Property Agents are Armed with Bank’s application forms at Launches or show rooms
These days, some property agents are armed with the bank’s application forms at the launches. They will try to ask you to sign up and apply for a loan on the spot.
Sometimes, that bank is the only bank that can match an over-priced property, that means if you buy, you are forced to go with 1 package. In the worst case, for some re-sale properties, the prices being asked cannot be matched, that means you will have to pay a CASH-OVER-VALUATION (COV) like in HDB case. That is a lot of extra cash to cough out.
In case you did not budget for this, you will have to let your option to purchase lapse and lose your 1% deposit.
If the property is $600k, you will lose $6000 just like that.
Property agents don’t care, they will still get 50% of the forfeited deposit, plus they can market the property again. If their commission is 1%, selling the property 2 times gives them 1.5% of commission. This is a good deal. If they sell the property three times, they will get (0.5% + 0.5% and 1% on final successful sale). They will get 2 times.
For many dishonest property agents out there, they CHURN the buyers. This is because listings are hard to get, so they don’t care.
Novice property investor must be extra careful. Some Dishonest Singapore property agents look very honest and professional. Be careful of a beautiful or handsome face. And it is sometimes the more experienced property agents that are more dangerous and cunning to deal with. CEHA only does so much to certify them for knowledge, but CEHA cannot guarantee their integrity especially when the agents are engaged in conflicts of interests (both selling and buying activities).
Your loss is Dishonest Singapore property agent’s bonus.
About Property Buyer Contact Property Buyer for Singapore housing loan
www.PropertyBUYER.com.sg
We are a Research-focused Singapore Mortgage Consultant which helps you compare Singapore Home loans either for new home loans or refinancing, we balance risks versus rewards for each home loan to match your risk profile and financing needs.
Buying property is a serious affair, we do NOT advocate a Greed based buying approach, we emphasize that you need to check your affordability and do your sums right. If you are unsure, we are happy to help you check.
Not Simply Cheap, but what Fits. We Research, You Save!
Tel: 6100 - 0608
SMS: 9782 - 8606
loans@propertyBUYER.com.sg
Singapore Property agents cheat HDB Home buyer
Today we watched in horror another Singapore property agent attempts to cheat hdb property buyer. He asked for deposit of $1000 as money for option to purchase but gives the home buyer only an empty option to purchase form that is unsigned. (source: tv channel 8 news, 12 Sep 2009)
Article contributed by www.PropertyBUYER.com.sg (Other authors, if you wish to contribute articles, please contact me)
-----------------------------------------------------------------------------------------------
About Property Buyer Contact Property Buyer for Singapore housing loan
www.PropertyBUYER.com.sg
We are a Research-focused Singapore Mortgage Consultant which helps you compare Singapore Home loans either for new home loans or refinancing, we balance risks versus rewards for each home loan to match your risk profile and financing needs.
Buying property is a serious affair, we do NOT advocate a Greed based buying approach, we emphasize that you need to check your affordability and do your sums right. If you are unsure, we are happy to help you check.
Not Simply Cheap, but what Fits. We Research, You Save!
Tel: 6100 - 0608
SMS: 9782 - 8606
loans@propertyBUYER.com.sg
-----------------------------------------------------------------------------------------------
This is a time to be extremely careful, dishonest property agents in Singapore are out on the loose again. A hot property Market has the same effect as changi prison not locking opening it's gates. Yes, the effect is criminals running amok.
During a hot property market dishonest Singapore property agents run amok. They find many preys as people are generally guided by fear and greed.
FEAR AND GREED ARE DISHONEST PROPERTY AGENT’S BEST FRIEND
Fear that the Property market will run away with hefty price rises! This cuts short the thinking process, things are not thought through in detail.
Greed, in that they want to get in quickly as the market is rising, the can buy and sell at a higher price.
YET ANOTHER TRUE STORY OF DISHONEST SINGAPORE PROPERTY AGENT CHEATING HOME BUYER
Recently around late august, a novice Singapore property investor Miss Yuen came to us to get a Singapore home loan for her studio apartment. She (the property buyer, Miss Yuen) recounted her interesting encounter with a Dishonest Singapore property Agent.
Property Buyer Views clementi property Singapore
She was looking for a 2 bedroom property around 890 sq feet in Clementi. A very professional groomed and pleasant looking Singapore property agent brought her to see the studio. Miss Yuen was very keen with the property, but she had a budget of $580k. The asking price was $650k. The price is quite steep for such a small unit which also happens to be 99 years lease hold too.
Property agent assured investor that UOB can match home loan valuation
The Property agent assured Miss Yuen that banks can match $650k.
She ask us to check the valuation, we came back with a valuation of $550k and the highest valuation we got was $550k.
We told miss Yuen our customer that no matter how we push UOB wouldn't move the valuation more than $560k.
Property Investor doubts our mortgage consulting abilities
Miss Yuen started to doubt www.PropertyBUYER.com.sg Mortgage Consultant’s ability to get the best and highest valuation. She said the Property agent promised her to get bank loan for her to match $650k. Miss Yuen was very tempted to just go ahead to place the 1% deposit for the option to purchase.
Property Investor Miss Yuen gave www.PropertyBUYER.com.sg a chance to check
Miss Yuen was very busy but she still gave us a chance to respond by calling us to verify.
We told her to ask the agent to give the name of the banker who promised $650k valuation so that we can verify the information.
So miss yuen asked the property agent for the name and the contact of the banker. The property agent gave the name and number of the banker without hesitation.
She looked to real and genuine. Miss Yuen was so convinced. She even called us and she said, “I’ll have to go with the agent’s home loan suggestions, her banker can match the valuation.”
We told Miss Yuen, “Why don’t you let us check with the UOB banker to verify the information? And if possible ask the UOB banker to put the valuation confirmation in writing.”
Property buyer Miss Yuen reluctantly agreed to give us a chance to Verify
Miss Yuen was so convinced by the Property agent that she reluctantly let us go and verify it, because she didn't see a need to.
She gave us the number of the UOB banker to call, we called the banker and he told us the valuation was $540k, but that was 3 weeks ago.
We asked the UOB banker, “Didn’t you tell the Property Agent that it was $650k for that particular condominium unit?”
The UOB banker said, “Nope, I never said that. She asked me to match $650k but I told her, sorry, NO WAY! The valuers said NO. I only told her it was $540K.”
www.PropertyBUYER.com.sg, “But the property agent claimed you said, $650k valuation is matched!”
UOB Banker: “Sorry, I did not say that, I said it can match $540k, that is the maximum. I told her no way to match $650k property valuation very clearly.”
We told Miss Yuen that the Valuation cannot match $650k
She asked us, "Are you sure? Agent says her banker can match $650k property valuation."
We asked her to go verify with the banker. If he says can match at $650k, ask for an email to confirm that.
Miss Yuen checks with Dishonest Singapore Property Agent
After this encounter, we asked Miss Yuen to check with the the Singapore property agent how she had known the valuation was $650k?
Miss Yuen, “How did you know that the valuation was $650k? UOB says cannot match valuation.”
Dishonest Property agent: “Did I ever say UOB can match? Sorry I must have made a mistake, it was my colleague who told me.”
Could the Property Agent have made an Honest mistake?
How could she not know the valuation of the property she is marketing?
By now, Miss yuen was fuming. She questioned the property agent and wanted her to explain.
Before the property buyer Miss Yuen could finish, the agent quickly hung up the phone.
Miss Yuen tried to call the property agent back many times, the property agent refused to pick up the call.
Dishonest Singapore Property Agents are Armed with Bank’s application forms at Launches or show rooms
These days, some property agents are armed with the bank’s application forms at the launches. They will try to ask you to sign up and apply for a loan on the spot.
Sometimes, that bank is the only bank that can match an over-priced property, that means if you buy, you are forced to go with 1 package. In the worst case, for some re-sale properties, the prices being asked cannot be matched, that means you will have to pay a CASH-OVER-VALUATION (COV) like in HDB case. That is a lot of extra cash to cough out.
In case you did not budget for this, you will have to let your option to purchase lapse and lose your 1% deposit.
If the property is $600k, you will lose $6000 just like that.
Property agents don’t care, they will still get 50% of the forfeited deposit, plus they can market the property again. If their commission is 1%, selling the property 2 times gives them 1.5% of commission. This is a good deal. If they sell the property three times, they will get (0.5% + 0.5% and 1% on final successful sale). They will get 2 times.
For many dishonest property agents out there, they CHURN the buyers. This is because listings are hard to get, so they don’t care.
Novice property investor must be extra careful. Some Dishonest Singapore property agents look very honest and professional. Be careful of a beautiful or handsome face. And it is sometimes the more experienced property agents that are more dangerous and cunning to deal with. CEHA only does so much to certify them for knowledge, but CEHA cannot guarantee their integrity especially when the agents are engaged in conflicts of interests (both selling and buying activities).
Your loss is Dishonest Singapore property agent’s bonus.
About Property Buyer Contact Property Buyer for Singapore housing loan
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We are a Research-focused Singapore Mortgage Consultant which helps you compare Singapore Home loans either for new home loans or refinancing, we balance risks versus rewards for each home loan to match your risk profile and financing needs.
Buying property is a serious affair, we do NOT advocate a Greed based buying approach, we emphasize that you need to check your affordability and do your sums right. If you are unsure, we are happy to help you check.
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