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)
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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
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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
Wednesday, September 16, 2009
Saturday, September 5, 2009
Invest in Singapore property using CPF
Singapore Property Investor and CPF funds for second property
CPF is abbreviation for Central Providend fund. It is similar to the American 301k plan. CPF funds are supposed to be saved for retirement.
Every Singaporean must contribute 20% of their income into CPF. Therefore Singapore’s CPF has billions of dollars of funds. Singapore property investor and Singapore property buyer also have lots of fund and liquidity, unlike other markets. The Singapore market is more about confidence than about liquidity.
About Property Buyer Contact Property Buyer
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
CPF causes you to overpay?
Singapore government likes to get maximum value for its land. If too many people can afford Housing, it is time to raise prices. In other circumstances, we can say it’s market forces or free market as supply and demand are determined by private enterprise. But not in this case.
HDB Government Housing market is Not a free market
But in Singapore’s case, government housing (HDB) is a controlled market, www.propertybuyer.com.sg is often critical of the way some policies are dished out, to the disadvantaged of the Singapore property buyers.
Many people along with us also see the setting of prices as arbitrary, because the government controls much the state land and there is no question of supply, but rather that of demand and affordability. The government can freely control supply to set prices.
CPF funds adds to affordability
Allowing the use of CPF funds for HDB and property in general raises the affordability.
With this new found liquidity, the government can then raise the selling prices of HDB, by putting in more frills and of course enhancing the construction industry producing more value add.
Of course, ultimately the home buyers and the Singapore property investors are the ones that pay for it through sapping up their retirement funds in CPF.
Raising prices of HDB flats is a means to sap liquidity out of the individual’s CPF account into the government coffers through land sales.
Since the Singapore property investor – buyer may have limited cash, the Singapore government allows the use of individual’s CPF funds to pay for their government “subsidized” housing. As a result properties become more and more expensive, effectively becoming an indirect tax.
Coupled with more funds (through the use of CPF) money, plus low interest rate environment, many Singapore banks cannot reduce rates much more rather they start to come out with newer terminology and features. Comparing Singapore Home loan has become much more tedious exercise, it is prudent to engage www.PropertyBUYER.com.sg mortgage consultants to help. They can be contacted at +65-6100-0608.
Refinancing home loan can also be tedious.
Singaporeans have lesser and lesser CPF money for retirement
Singaporeans have lesser and lesser CPF monies left for their retirement as they pay for ever more expensive properties. At some stage, we have to say, “Mr. Government, stop eying our CPF money!!!”
Since so many people are resigned to the fact that they will never really see their CPF money as cash as more and more rules are put in place to tap into their CPF.
Even after retirement age at 55 years, there is the minimum sum that you have to set aside. Currently (as at 2009) the minimum sum is $117,000 for retirement. This is the minimum sum that a person must have in the account. You can only withdraw any CPF funds in excess of the minimum sum upon retirement age.
Many Singaporeans have already given up on hoping to see their CPF money. As a result, many Singaporeans and PR used CPF to buy their second property before 1st July, 2006.
Can I use my CPF to purchase more than one property?
(Source: www.cpf.gov.sg)
Yes, you may use your CPF to purchase more than one property.
However, if you already own a property (HDB flat or private property) bought with your CPF savings and wishes to buy another property with CPF savings from 1 July 2006, you will be able to do so only after setting aside in your Ordinary and Special Accounts (including the amount used for investment from the Special Account) the prevailing Minimum Sum cash component if you are below 55 years, or the Minimum Sum cash component shortfall if you are aged 55 and above.
If you currently own more than one property bought with CPF savings before 1 July 2006, you need not set aside the prevailing Minimum Sum cash component unless you subsequently buy another property using your CPF savings on or after 1 July 2006.
Please note that this is not applicable if you are applying to use your CPF to purchase a second or subsequent property with non-related singles. Non-related singles can only jointly use their CPF to purchase their one and only property (private property or HDB flat).
Your first property can be used as a pledge for half the monies required under the Minimum sum. This means that if you with to use CPF for your second property (as at 2009), you must have at least $58,500 ($117,000 x 50%). Any CPF above $58,500 can be used for your second property.
Is Singapore Market over Leveraged?
Although Singapore is no where near as dangerous as other markets where there are plentiful “no cash down” home loans. With CPF being allowed to make up the 15% down-payment on the purchase price and only 5% is cash down-payment, we at www.PropertyBUYER.com.sg would consider the Singapore market rather leveraged compared to the early say 5 years ago or pre-2000.
The current property boom in 2009 lacks fundamentals (Refer to Property Buyer update July 2009 in the article section of www.PropertyBUYER.com.sg/articles/article.php) as its underpinnings, so it is still hard to say whether sentiments will change the economic fundamentals or economic fundamentals will eventually bring the sentiments back in line.
There are good and bad deals in every property cycle, please exercise your own good judgement.
About Property Buyer Contact Property Buyer
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
CPF is abbreviation for Central Providend fund. It is similar to the American 301k plan. CPF funds are supposed to be saved for retirement.
Every Singaporean must contribute 20% of their income into CPF. Therefore Singapore’s CPF has billions of dollars of funds. Singapore property investor and Singapore property buyer also have lots of fund and liquidity, unlike other markets. The Singapore market is more about confidence than about liquidity.
About Property Buyer Contact Property Buyer
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
CPF causes you to overpay?
Singapore government likes to get maximum value for its land. If too many people can afford Housing, it is time to raise prices. In other circumstances, we can say it’s market forces or free market as supply and demand are determined by private enterprise. But not in this case.
HDB Government Housing market is Not a free market
But in Singapore’s case, government housing (HDB) is a controlled market, www.propertybuyer.com.sg is often critical of the way some policies are dished out, to the disadvantaged of the Singapore property buyers.
Many people along with us also see the setting of prices as arbitrary, because the government controls much the state land and there is no question of supply, but rather that of demand and affordability. The government can freely control supply to set prices.
CPF funds adds to affordability
Allowing the use of CPF funds for HDB and property in general raises the affordability.
With this new found liquidity, the government can then raise the selling prices of HDB, by putting in more frills and of course enhancing the construction industry producing more value add.
Of course, ultimately the home buyers and the Singapore property investors are the ones that pay for it through sapping up their retirement funds in CPF.
Raising prices of HDB flats is a means to sap liquidity out of the individual’s CPF account into the government coffers through land sales.
Since the Singapore property investor – buyer may have limited cash, the Singapore government allows the use of individual’s CPF funds to pay for their government “subsidized” housing. As a result properties become more and more expensive, effectively becoming an indirect tax.
Coupled with more funds (through the use of CPF) money, plus low interest rate environment, many Singapore banks cannot reduce rates much more rather they start to come out with newer terminology and features. Comparing Singapore Home loan has become much more tedious exercise, it is prudent to engage www.PropertyBUYER.com.sg mortgage consultants to help. They can be contacted at +65-6100-0608.
Refinancing home loan can also be tedious.
Singaporeans have lesser and lesser CPF money for retirement
Singaporeans have lesser and lesser CPF monies left for their retirement as they pay for ever more expensive properties. At some stage, we have to say, “Mr. Government, stop eying our CPF money!!!”
Since so many people are resigned to the fact that they will never really see their CPF money as cash as more and more rules are put in place to tap into their CPF.
Even after retirement age at 55 years, there is the minimum sum that you have to set aside. Currently (as at 2009) the minimum sum is $117,000 for retirement. This is the minimum sum that a person must have in the account. You can only withdraw any CPF funds in excess of the minimum sum upon retirement age.
Many Singaporeans have already given up on hoping to see their CPF money. As a result, many Singaporeans and PR used CPF to buy their second property before 1st July, 2006.
Can I use my CPF to purchase more than one property?
(Source: www.cpf.gov.sg)
Yes, you may use your CPF to purchase more than one property.
However, if you already own a property (HDB flat or private property) bought with your CPF savings and wishes to buy another property with CPF savings from 1 July 2006, you will be able to do so only after setting aside in your Ordinary and Special Accounts (including the amount used for investment from the Special Account) the prevailing Minimum Sum cash component if you are below 55 years, or the Minimum Sum cash component shortfall if you are aged 55 and above.
If you currently own more than one property bought with CPF savings before 1 July 2006, you need not set aside the prevailing Minimum Sum cash component unless you subsequently buy another property using your CPF savings on or after 1 July 2006.
Please note that this is not applicable if you are applying to use your CPF to purchase a second or subsequent property with non-related singles. Non-related singles can only jointly use their CPF to purchase their one and only property (private property or HDB flat).
Your first property can be used as a pledge for half the monies required under the Minimum sum. This means that if you with to use CPF for your second property (as at 2009), you must have at least $58,500 ($117,000 x 50%). Any CPF above $58,500 can be used for your second property.
Is Singapore Market over Leveraged?
Although Singapore is no where near as dangerous as other markets where there are plentiful “no cash down” home loans. With CPF being allowed to make up the 15% down-payment on the purchase price and only 5% is cash down-payment, we at www.PropertyBUYER.com.sg would consider the Singapore market rather leveraged compared to the early say 5 years ago or pre-2000.
The current property boom in 2009 lacks fundamentals (Refer to Property Buyer update July 2009 in the article section of www.PropertyBUYER.com.sg/articles/article.php) as its underpinnings, so it is still hard to say whether sentiments will change the economic fundamentals or economic fundamentals will eventually bring the sentiments back in line.
There are good and bad deals in every property cycle, please exercise your own good judgement.
About Property Buyer Contact Property Buyer
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
Friday, September 4, 2009
Invest in Singapore SME: SME Loans
Small medium enterprise SME loans - Small Business Loans
A small and medium enterprise businesses needs capital to survive. Many SME will scrimp for funds during the down turn to survive and struggle to find funds during the boom cycle to expand. Worst still, during boom times, the cost of funds are much more expensive, this further limits the growth potential of small and medium enterprise.
How do banks determine whether to lend your company the money?
Banks want to lend money to winners or perceived winners. This is because they want to know that they will get their money back.
Banks will put the SME through a lot of tests and requirements to make sure that these SME will survive and that the bank’s funds are safe.
Why do banks insist on the company putting up so much collateral?
I have so much collateral and the bank still ask for this and that proof. This is really annoying. I have more that enough assets to pay off the loan, why does the bank keep harassing me to pay up on time?
The bank is not an asset trader. The bank have no wish to seize your assets or collateral. The bank’s core business is making a spread on the money they lend out. The collateral is used as a backing or guarantee for the money which they lend out. Only in the worst situation will the bank want to sell your collateral or take control of your collateral.
Banks may even want to see your business plan
Some banks may even want to see your business plans. This is because it is not wise for banks to lend to businesses that will fail as this will only cause a credit bubble. This credit bubble will artificially keep an otherwise dead company alive on life support, only to die later when credit is exhausted. Let’s put it bluntly, a company needs to have a good business plan and good execution to survive.
So how does can my Singapore Small Medium size (SME) company qualify for a business loan?
Therefore there are some ground rules which banks set for SMEs in Singapore.
The Basic criteria to qualify for SME Loans are: -
• Registered in Singapore for at least 3 years
• >50% shareholdings held by Singaporeans
• Business run by same director/owner for at least 2 years
Standard Chartered Loan → Spring Singapore Bridging - Micro Loan
Unsecured term loan
Loan amount possible is between $50K - $600K
Loan tenor 1-4 years
Interest rate (effective) 5%-9%, (flat) 2.25%-5%
No processing fee for loan >$100K, else $500 processing fee
No early redemption/partial repayment penalty
Documents required For Application:
• Directors' ID copies
• Last 6 months operating bank account statements
• Last financial year Management A/C (Balance Sheet & P&L) *for loan >100K
• Last 3 years audited/management A/C *for loan >300K
You can contact a Standard Chartered Banker directly at
scb.ben@propertyBUYER.com.sg
A small and medium enterprise businesses needs capital to survive. Many SME will scrimp for funds during the down turn to survive and struggle to find funds during the boom cycle to expand. Worst still, during boom times, the cost of funds are much more expensive, this further limits the growth potential of small and medium enterprise.
How do banks determine whether to lend your company the money?
Banks want to lend money to winners or perceived winners. This is because they want to know that they will get their money back.
Banks will put the SME through a lot of tests and requirements to make sure that these SME will survive and that the bank’s funds are safe.
Why do banks insist on the company putting up so much collateral?
I have so much collateral and the bank still ask for this and that proof. This is really annoying. I have more that enough assets to pay off the loan, why does the bank keep harassing me to pay up on time?
The bank is not an asset trader. The bank have no wish to seize your assets or collateral. The bank’s core business is making a spread on the money they lend out. The collateral is used as a backing or guarantee for the money which they lend out. Only in the worst situation will the bank want to sell your collateral or take control of your collateral.
Banks may even want to see your business plan
Some banks may even want to see your business plans. This is because it is not wise for banks to lend to businesses that will fail as this will only cause a credit bubble. This credit bubble will artificially keep an otherwise dead company alive on life support, only to die later when credit is exhausted. Let’s put it bluntly, a company needs to have a good business plan and good execution to survive.
So how does can my Singapore Small Medium size (SME) company qualify for a business loan?
Therefore there are some ground rules which banks set for SMEs in Singapore.
The Basic criteria to qualify for SME Loans are: -
• Registered in Singapore for at least 3 years
• >50% shareholdings held by Singaporeans
• Business run by same director/owner for at least 2 years
Standard Chartered Loan → Spring Singapore Bridging - Micro Loan
Unsecured term loan
Loan amount possible is between $50K - $600K
Loan tenor 1-4 years
Interest rate (effective) 5%-9%, (flat) 2.25%-5%
No processing fee for loan >$100K, else $500 processing fee
No early redemption/partial repayment penalty
Documents required For Application:
• Directors' ID copies
• Last 6 months operating bank account statements
• Last financial year Management A/C (Balance Sheet & P&L) *for loan >100K
• Last 3 years audited/management A/C *for loan >300K
You can contact a Standard Chartered Banker directly at
scb.ben@propertyBUYER.com.sg
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