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Thread: Would there be Negative Yield Eventually or Soon?

  1. #71

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    Quote Originally Posted by Laguna View Post
    She is talking without knowing enbloc process.
    Developers buying enbloc is paying the sellers upfront, and no way to wait for the launch. (5:53)...

    give up listening...
    Technically, she sounded a little "off track" to most people on en bloc sale since developers will need to secure financing to pay en bloc sellers upon completion date. However, some developers launch their new developments while the sellers still staying there like the developer for Uber 388 at Upper East Coast Road. Many developers launch their en bloc fast to generate cash flow to reduce their borrowings (for the project itself) or to embark on other projects. In this aspect, she was right that developers use the money from the sale of the redevelopment site to "pay off" the en bloc sellers. Cash flow management does not necessarily means using the same money collected but it about timing and cash in cash out for the entire project life.


  2. #72

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    Quote Originally Posted by Amber Woods View Post
    Technically, she sounded a little "off track" to most people on en bloc sale since developers will need to secure financing to pay en bloc sellers upon completion date. However, some developers launch their new developments while the sellers still staying there like the developer for Uber 388 at Upper East Coast Road. Many developers launch their en bloc fast to generate cash flow to reduce their borrowings (for the project itself) or to embark on other projects. In this aspect, she was right that developers use the money from the sale of the redevelopment site to "pay off" the en bloc sellers. Cash flow management does not necessarily means using the same money collected but it about timing and cash in cash out for the entire project life.
    Sound like me when I cash out, Bank tell me cannot use money to buy property but I ask myself how they know the money is their money or my money.


  3. #73

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    Quote Originally Posted by Amber Woods View Post
    Technically, she sounded a little "off track" to most people on en bloc sale since developers will need to secure financing to pay en bloc sellers upon completion date. However, some developers launch their new developments while the sellers still staying there like the developer for Uber 388 at Upper East Coast Road. Many developers launch their en bloc fast to generate cash flow to reduce their borrowings (for the project itself) or to embark on other projects. In this aspect, she was right that developers use the money from the sale of the redevelopment site to "pay off" the en bloc sellers. Cash flow management does not necessarily means using the same money collected but it about timing and cash in cash out for the entire project life.
    During the bull period, some banks may even willing to lend developers who secured good land with good project concepts the financing for the land purchase and using the same land as collateral. To business entities, their concept of money and cash flow defer from the individual and they consider the land purchase settled as long as financing is in place.

    Many investors also leverage on financing to buy their investment properties even at inflated prices because they are using tenant's money to pay for their assets.

    Having said that, individuals using the business model of businesses in money and cash flow management for their own investments can get into a lot of troubles if the tide is against them. For business, at most they loss the land, the work-in-progress developments or worst case the business fold but the bosses remain rich. However, the individuals will become bankrupt.
    Last edited by Amber Woods; 1 Week Ago at 10:25 AM.


  4. #74
    Junior
    Join Date
    Dec 2008
    Posts
    3,715

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    Quote Originally Posted by Kelonguni View Post
    Yes, I am aware of your condo. It is a good buy for store of value and appreciation (due to its implied land price and ultra-long lease), but not so much for rental yield. The location at the moment is not too ideal. With West Coast MRT coming up, it might have a stronger rental demand.
    There will be a lot of supply coming up in that west coast cluster. MRT or not there won't be enough demand from the surrounding commercial cluster.


  5. #75

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    Quote Originally Posted by Amber Woods View Post
    During the bull period, some banks may even willing to lend developers who secured good land with good project concepts the financing for the land purchase and using the same land as collateral. To business entities, their concept of money and cash flow defer from the individual and they consider the land purchase settled as long as financing is in place.

    Many investors also leverage on financing to buy their investment properties even at inflated prices because they are using tenant's money to pay for their assets.

    Having said that, individuals using the business model of businesses in money and cash flow management for their own investments can get into a lot of troubles if the tide is against them. For business, at most they loss the land, the work-in-progress developments or worst case the business fold but the bosses remain rich. However, the individuals will become bankrupt.
    If you treat all investment as a form of business, I think even as individuals, you will calculate the risks before lunging right in. All businesses face the risk of losses so if anyone is not keen to bear it or even face it should not even go into it. I think those who run their own businesses and invest in property have an advantage of 'sleeping with one eye open'. The problem has and will always be greed. One do not know when to stop and keep bumping up their risks in either going in at the wrong time and price or get led along without doing their own analysis.


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