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Thread: Primo Residences (D19, Jln Pelikat, Novelty Group, Freehold)

  1. #31
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    $200 psf is just a rule of thumb for the price difference for FH versus LH, some would use $100 psf. No right answer but there's really a difference between LH and FH pricing right? I use the range of $100 to $200 psf as the premium.

    which in your case, $200k extra for that FH status. What is a $200k after 10 to 20 years? When LH 99 is depreciating and FH is safe. Inflation will push up your $200k. Remember to hold long long and all you need is another willing buyer.

    Gd Luck!

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    Thank you so much experts!!! I had sleepless nights and had also pressured my hubby to give up 25% booking fee cos I am worried that in future the loss will be greater. Now I felt much better and peace to my family again. I will keep it, thank you!!!!

  3. #33
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    In the grand scheme of things, $12000 is nothing really, think of it as a fee for one to buy time to decide.

    Have you driven round your surroundings, walked around a bit to see the environment during work week and weekends?



    First, for own stay properties you must always always be very comfortable with the area that you will be staying in - the traffic, the environment, the amenities etc. Do not get taken in by agents until you really check out the area for yourself.

    If you're comfortable with it, then look at the pricing. Go to Streetsine.com or other places to get a historical benchmark of prices of properties close to your location. From this, you will be able to tell if you are paying at the peak, or median, or below value. Find out how much premium you are paying, then discount the historical median PSF for the area. That is the amount of money you risk in a downturn.

    If you can afford that gap, and this is for own stay and you love the locality, then by all means there is never a wrong choice in such scenarios.
    Attached Images Attached Images

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    Just to share my personal experiences, when I bgt my first property in D19 during 2003 (7 years back), it was at a peak. Thereafter, market correction, and prices went down by as much as 17%. I thought it was a foolish act and will be stucked with it till I RIP. But just last year, I sold it at a proft of 60%!!! If I have waited and sell this year, profit margin will be 70%!!!

    So think on the bright side, maybe a few months / years down the road, you won't even find a private property below $1000 psf or $1M. Property prices will always go up in the long term amidst short term corrections. The price gap between public housing and private housing will widen further given our government is more focused to protect public housing prices to make them affordable for newly weds / new graduates who do not have the income / savings capacity for private housing.

    Due to increasing number of working parents and graduates + influx of foreigners. On the average, most household can make >$8K per month after working for several years. Therefore, with CPF, for them to service a housing instalment of $4K per mth is going to become popular. These translates to purchases of above $1M properties at normalised interest rate of 3 to 4%.

    In fact, I think our public housing is still lowly priced. Most of my friends staying in HDB don't even need to use cash to service HDB loan. CPF itself is enough to pay for the monthly instalment. There will come a time when people need to wake up to face reality. The reality of paying cash (or one may call it a permanent pay-cut) to service housing loan if they want to stay in private housing vs public housing.

    So don't waste your deposit, go ahead to complete the purchase, then just need to hold onto your balls and don't let them slip.
    Last edited by Blue; 23-03-10 at 14:23.

  5. #35
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    balls and boobs....

    Business Times - 25 Nov 2009


    Buying a home: freehold vs leasehold
    NICHOLAS MAK examines how both tenures perform in rising and falling markets as well as in collective sales THE question of whether to own freehold or leasehold property seems a perennial one, with pros and cons shifting with market cycles and new trends. Here, we examine the issue from the perspective of both a home owner and investor, and see how both tenures perform in rising and falling markets as well as in collective sales.

    The chief attraction of 99-year leasehold property is that it is typically priced lower than a comparable freehold property. As a result, they are popular with HDB upgraders as entry-level private properties. Most mass-market homes are 99-year leasehold condominiums, with prices ranging from $500 per sq ft to $900 per sq ft. A typical family-size apartment could cost anything from $600,000 to $1.2 million.
    For investors, leasehold properties usually offer a higher rental yield because of their lower capital cost. However, the higher yield merely compensates the owner for the decaying lease.

    One of the more apparent disadvantages of owning a 99-year leasehold property is that the length of the lease is contracting daily. All else being equal, this would result in falling property value. However, certain external factors could slow the decline in value, such as if the property is sought after by tenants or buyers. This could be due to a prime location, improving infrastructure (such as a proposed MRT station nearby), or good amenities or popular schools in the vicinity.

    When it comes to collective sales, there are usually fewer opportunities for them with 99-year homes. One reason is that many of them are still relatively new and in good condition. Thus, the owners do not feel any urgency to sell their homes collectively.

    A more pertinent reason is that the premium payable to the government to top up a 99-year lease is quite high, based on the existing formula. And since developers factor the premium as part of the total land cost, the higher the premium the less the owner of the ageing leasehold would get in any collective sale.

    As such, collective sales are not attractive to many owners of 99-year leasehold apartments unless the expense of maintaining their ageing properties are so high that a collective sale becomes the cheaper alternative.

    A key benefit of owning freehold real estate is that the land value does not generally depreciate in the long term. Although all properties are subject to market fluctuations, the price of freehold land tends to be more stable than that of leasehold land over time. However, the value of a freehold property could still decrease over time due to the depreciating value of the ageing building. Over the long term, while the value of freehold land may increase or remain little changed, the value of the building would decline.

    One factor that supports the value of freehold land in Singapore is its scarcity. Since all the land sold by the government is leasehold, the amount of freehold land would not increase. In fact, it might shrink over time if the government makes acquisitions of such land.
    Another advantage of owning a freehold property is the potential of a windfall from a collective sale. If the value of the freehold land increases while the value of the ageing building declines, it could reach a stage where the redevelopment value of the property is worth more than the utility value of the existing building. As a result, the property owners may find a collective sale of their property to a developer to be highly profitable.

    Some developers looking to acquire residential land for development may also prefer freehold land to ageing 99-year leasehold property because freehold land would not require the payment of a hefty premium for extending the lease.

    For all these reasons, freehold residential properties are generally priced higher than 99-year leaseholds. The price range of freehold non-landed properties is also wider than that of comparable leasehold properties. Depending on the location, freehold property prices could vary from $600 psf to $4,000 psf or more. The majority of high-end residential properties are freehold.

    For investors, one disadvantage of freehold property is the lower rental yield, a function of the higher cost of the property.
    Also, while freehold properties have a higher likelihood of a collective sale than their leasehold counterparts, that can prove to be a double-edged sword. The property boom of 2005 to 2008 whipped up a collective sale frenzy. But some property owners who sold for a windfall found they could not get a replacement home in the same location from their proceeds. As the collective sale boom was powered by surging property prices, by the time en-bloc property sellers received their proceeds, the prices of comparable replacement homes would have moved out of reach.
    Now, we look at the price performance of freehold and leasehold properties. Although freehold properties are usually priced higher than their leasehold counterparts, their rate of appreciation does not always outperform.

    There were two property cycles between end-1998 and mid-2009. The first market boom, which started at end-1998 and ended in mid-2000, was a bottom-up price recovery. Demand started in the mass-market sector and moved up to the mid-tier and finally the high-end segment.
    During this 18-month period, the average price of 99-year condominiums rose faster than that of freehold homes. The average price of freehold condominiums grew by 38.2 per cent, while the average price of 99-year leasehold condominiums surged by 46.2 per cent.
    But on the way down, leasehold home prices also fell more steeply. On the downcycle between mid-2000 and the first half of 2004, the average price of leasehold condominiums fell 26.1 per cent, steeper than the freehold price decline of 17.6 per cent.

    The most recent boom that lasted four years from mid-2004 to mid-2008 started with high-end property and gradually filtered down to the mass market.

    Even when the mass-market sector started to pick up in 2007, the momentum in the high-end segment did not let up. As a result, freehold condominium prices jumped by an impressive 64.7 per cent on average, while the average leasehold property price rose some 50 per cent.
    When the property market here started to contract in mid-2008 due to the global financial crisis, freehold condominium prices fell 26.5 per cent year on year, just slightly more than 99-year leaseholds, which dropped by 23.8 per cent.

    What this study shows is that if the upswing in the property market is bottom-up, leasehold condominiums could outperform freehold ones. Conversely, if the boom is top down, freehold condominiums would deliver superior results. However, this study also illustrates that the faster the rise, the harder the fall. So in a top-down property boom, owners of freehold condominiums who had enjoyed a sharper price appreciation should be nimble enough to lock in their gains before the downtrend sets in.

    In comparing freehold and leasehold residential properties, there is no conclusive evidence to show that one is better than the other. Ultimately, the decision boils down to budget and preference.

    can talk so much with this kind of conclusion? Feel like kanna lectured!



    The writer is a real estate lecturer at Ngee Ann Polytechnic


    Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
    Last edited by Condorich; 23-03-10 at 15:48.

  6. #36
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    Price psf is not excessive as Casa Merah 2br already asking for >900psf and unlikely u are buying at the market peak. The key thing u should ask is whether you can afford it. Check you liabilities (how many children, how many cars, credit card loan) vs family income/asset (likelihood of better income etc, inheritance, other assets) ... if border line case (e.g. family income 8k but borrowing 800k with lots of liabilities) may be buying LH99 150-200psf less is a more prudent choice.

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    The problem with today's so-called FH apartment property is that they take 2 semi Ds, tear it down, and build 30-50 units on it and call it freehold. After you input plot ratio potential, and/or the actual amount of freehold land you strata share, I would rather go for old FH condos with low plot ratios and wide tracts of land (ie covered carparks), or stick with condos with excellent location regardless of tenure.

    Take landed for e.g... once upon a time is was sold on a basis of land area, with built up area playing a small component. Today it's entirely advertised on built up area.

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    Quote Originally Posted by ocoloco79, 23 March 2010 1.01 pm
    Thank you so much experts!!! I had sleepless nights and had also pressured my hubby to give up 25% booking fee cos I am worried that in future the loss will be greater. Now I felt much better and peace to my family again. I will keep it, thank you!!!!
    Nobody here can tell the future.

    Did you pay higher than low-mid-level CSR's $1,306 psf? If not, I believe you have made the right choice in buying a home for your family and yourself.
    Quote Originally Posted by Reporter, City Square Residences, 23 March 2010 3.58 pm
    1½ months later, City Square Residences has a nëw hïgh of $1,306 psf!


    City Square Residences
    Address ........................ psf ............... Area ........ Price ......... Contract Date
    6 Kitchener Link #13-07 .... $1,306 psf .... 570 sqft .... $745,000 .... 9 Mar 10

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    Quote Originally Posted by Reporter
    Nobody here can tell the future.

    Did you pay higher than low-mid-level CSR's $1,306 psf? If not, I believe you have made the right choice in buying a home for your family and yourself.
    City square residence is considered prime district ma, of course expensive! Honesty I m reali grateful to you guys

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    Quote Originally Posted by jitkiat
    Price psf is not excessive as Casa Merah 2br already asking for >900psf and unlikely u are buying at the market peak. The key thing u should ask is whether you can afford it. Check you liabilities (how many children, how many cars, credit card loan) vs family income/asset (likelihood of better income etc, inheritance, other assets) ... if border line case (e.g. family income 8k but borrowing 800k with lots of liabilities) may be buying LH99 150-200psf less is a more prudent choice.
    We are actually HDB upgraders. Not sure of we reali can sustain in terms of liabilities in the long run. Initially my budget is $600K for min 2 brm, anything above is considered out of reach to me. I had been searching around for sometime but nothing matched my budget and price kept increasing like crazy. So we increase our budget to $800K max which could be a little tight on us, but it is easier to find. Then suddenly for dunno what reason we actually committed to this particular unit after the agents sweet talk. Both my hubby and I are civil servants with monthly household income of 10K plus abit only. Our liability would be our HDB flat loan at abt $800+ per month deducted from cpf, plus car loan at abt $600. No other liabilities unless you consider giving parents abt $800 a month is counted as one. Our current monthly savings is abt 3 to 4K per month, which can fluctuate...Once we paid the initial 20% downpayment in cash, we become poor le

  11. #41
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    Quote Originally Posted by ocoloco79
    We are actually HDB upgraders. Not sure of we reali can sustain in terms of liabilities in the long run. Initially my budget is $600K for min 2 brm, anything above is considered out of reach to me. I had been searching around for sometime but nothing matched my budget and price kept increasing like crazy. So we increase our budget to $800K max which could be a little tight on us, but it is easier to find. Then suddenly for dunno what reason we actually committed to this particular unit after the agents sweet talk. Both my hubby and I are civil servants with monthly household income of 10K plus abit only. Our liability would be our HDB flat loan at abt $800+ per month deducted from cpf, plus car loan at abt $600. No other liabilities unless you consider giving parents abt $800 a month is counted as one. Our current monthly savings is abt 3 to 4K per month, which can fluctuate...Once we paid the initial 20% downpayment in cash, we become poor le

    Assuming monthly combined income of 10k... it can be quite risky for both of you.. work your sums right.. should have at least $50k or $100k cash after the 20% to be on the safe side... unless you have fairy god mothers to bail you out in case of emergencies.

    I presume that you have a HDB to finance.... the sums could be right if you sell your HDB and transfer the loan liability to the new purchase. However, you have to bear with the rental cost for 2 to 3 years before TOP. Not to mention reno expense.

    Think carefully.. one wrong move and you could be trapped for life. As always.... buy within your means... a fire sale is a costly mistake.

  12. #42
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    Quote Originally Posted by ocoloco79
    We are actually HDB upgraders. Not sure of we reali can sustain in terms of liabilities in the long run. Initially my budget is $600K for min 2 brm, anything above is considered out of reach to me. I had been searching around for sometime but nothing matched my budget and price kept increasing like crazy. So we increase our budget to $800K max which could be a little tight on us, but it is easier to find. Then suddenly for dunno what reason we actually committed to this particular unit after the agents sweet talk. Both my hubby and I are civil servants with monthly household income of 10K plus abit only. Our liability would be our HDB flat loan at abt $800+ per month deducted from cpf, plus car loan at abt $600. No other liabilities unless you consider giving parents abt $800 a month is counted as one. Our current monthly savings is abt 3 to 4K per month, which can fluctuate...Once we paid the initial 20% downpayment in cash, we become poor le
    i think u should keep yr purchase. maybe few years down the road u will be thankful to the agent who pushed u. thou i am not an expert but i do believe that property price will increase in long run. furthermore yours is a freehold. i believe when u decide to put down the downpayment u must have like it in the first place since u are buying for own stay. trust yr first instinct and keep it. don worry too much and have sleepless nite. buying a pte property is everyone's dream. now u have realise yrs....so be HAPPY!! CHEERS!!!

  13. #43
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    Quote Originally Posted by Condorich
    Assuming monthly combined income of 10k... it can be quite risky for both of you.. work your sums right.. should have at least $50k or $100k cash after the 20% to be on the safe side... unless you have fairy god mothers to bail you out in case of emergencies.

    I presume that you have a HDB to finance.... the sums could be right if you sell your HDB and transfer the loan liability to the new purchase. However, you have to bear with the rental cost for 2 to 3 years before TOP. Not to mention reno expense.

    Think carefully.. one wrong move and you could be trapped for life. As always.... buy within your means... a fire sale is a costly mistake.
    Agree on the risky part. We are thinking of renting out our 5 room hdb instead of selling it away. It seems more worthwhile to do so.. That is why I am worried these few days.. alot of things on mind.. however after hearing all experts view, I decided to keep it and try to hold it as long as I can...

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    Quote Originally Posted by ocoloco79
    We are actually HDB upgraders.... Both my hubby and I are civil servants with monthly household income of 10K plus abit only. Our liability would be our HDB flat loan at abt $800+ per month deducted from cpf, plus car loan at abt $600. No other liabilities unless you consider giving parents abt $800 a month is counted as one. Our current monthly savings is abt 3 to 4K per month, which can fluctuate...Once we paid the initial 20% downpayment in cash, we become poor le
    Hmm ... your hdb not yet fully repaid coz the installment only $800 correct? So using cpf for both hdb (for any balance if keeping it) plus the condo? If you sell your hdb maybe not so tight - would that help?

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    Quote Originally Posted by ocoloco79
    Agree on the risky part. We are thinking of renting out our 5 room hdb instead of selling it away. It seems more worthwhile to do so.. That is why I am worried these few days.. alot of things on mind.. however after hearing all experts view, I decided to keep it and try to hold it as long as I can...
    You worry too much. Reason is because you have not done your h/w.

    Work out how much is your monthly installment - assume 800k loan with 2% interest - works out to be 3k.

    Work out how much cpf you can use.

    Work out if you rent out your hdb, how much income you will get (based on todays' rate and worst case senario.

    Once you have worked out all this, you will find that you have no problem in paying for your house.

    The only thing left for you now is to save as much as you can - in the event the property drops and banks do a recall of the loan and you are able to fund them. During the down turn, we were fortunate that the bank did not get us to top up. But be prepared for such events.

    Buying a property should not give you too much stress if not it is not worth it. Stress will be overcome when you work out your sums - then things become clearer.

  16. #46
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    Quote Originally Posted by cheerful
    Hmm ... your hdb not yet fully repaid coz the installment only $800 correct? So using cpf for both hdb (for any balance if keeping it) plus the condo? If you sell your hdb maybe not so tight - would that help?
    Yup.. that is wiser...

    Anyway good that you share...

    Normally, HDB upgraders would upgrade after that existing HDB is fully repaid or the arrears is $100k or less... with corresponding cash of $100k or above.

    If you can afford the downpayment in cash... since CPF is already tied up to finance HDB or dried up.. you should be alright.

    However if you are too stretched.... it is not wise...

    If you are comfortable to share your outstanding HDB loan amount, it is easier for us to give some assessment. However, it is really your call and it depends on your risk appetite.

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    We made a mistake by investing part of our cpf balances to fortress A fund which is making a loss now. hence our cpf do not have the min sum of 60K hence we cannot use cpf to fund the condo. However after TOP or slightly later, we will be able to accumulate enough min sum so that we can use cpf to fund both condo and hdb together. But still have to top up with cash. We bought our hdb 5 years ago, paying only $800 per month with 30yrs loan, so confirm have high outstanding loan. We are very gullible, as this is our first time buying pte property and we realli know nothing about properties. We actually do not even know that interest rate is consider so low now and can rise as high as 4%. We did our homework by calculating at current low interest rate of slightly lower than 2% and thought that this is the norm. So stupid! We also didn't know that we need to get a banker to assess our financial status before we purchase our property and we did it by ourselves using simple maths, which is ALL wrong. When we begin to know the real facts slowly, we panicked. we calculate all over again and realised that it could be tight, but we can still manage by sacrificing leisure. But we were hesitant on losing our booking fee.. Now upon hearing that it is not a wrong buy, I do not wish to give it up. We may struggle abit. Hope that there will never be margin calls... if not DIE!

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    actually, i feel that for civil servants earning combined more than 10k salary, you shouldn't have problems financing this purchase. depending on circumstances, it may be tight, but the options are there. i assumed your jobs are very safe even if pay increase from hereon is minimal.

    Quote Originally Posted by ocoloco79
    We made a mistake by investing part of our cpf balances to fortress A fund which is making a loss now. hence our cpf do not have the min sum of 60K hence we cannot use cpf to fund the condo. However after TOP or slightly later, we will be able to accumulate enough min sum so that we can use cpf to fund both condo and hdb together. But still have to top up with cash. We bought our hdb 5 years ago, paying only $800 per month with 30yrs loan, so confirm have high outstanding loan. We are very gullible, as this is our first time buying pte property and we realli know nothing about properties. We actually do not even know that interest rate is consider so low now and can rise as high as 4%. We did our homework by calculating at current low interest rate of slightly lower than 2% and thought that this is the norm. So stupid! We also didn't know that we need to get a banker to assess our financial status before we purchase our property and we did it by ourselves using simple maths, which is ALL wrong. When we begin to know the real facts slowly, we panicked. we calculate all over again and realised that it could be tight, but we can still manage by sacrificing leisure. But we were hesitant on losing our booking fee.. Now upon hearing that it is not a wrong buy, I do not wish to give it up. We may struggle abit. Hope that there will never be margin calls... if not DIE!

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    Agree with bargain hunter, both civil servants then the risk is lower. Selling away HDB near TOP at very good price might reduce your risk further. But you must have enough INSURANCE coverage !!! Buy 5-10y term insurance for both of you for accident, PTD, critical illness (min 300-600k depends on whether u have children), health / hospitalization & mortgage insurance is a must.

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    Quote Originally Posted by ocoloco79
    We made a mistake by investing part of our cpf balances to fortress A fund which is making a loss now. hence our cpf do not have the min sum of 60K hence we cannot use cpf to fund the condo. However after TOP or slightly later, we will be able to accumulate enough min sum so that we can use cpf to fund both condo and hdb together. But still have to top up with cash. We bought our hdb 5 years ago, paying only $800 per month with 30yrs loan, so confirm have high outstanding loan. We are very gullible, as this is our first time buying pte property and we realli know nothing about properties. We actually do not even know that interest rate is consider so low now and can rise as high as 4%. We did our homework by calculating at current low interest rate of slightly lower than 2% and thought that this is the norm. So stupid! We also didn't know that we need to get a banker to assess our financial status before we purchase our property and we did it by ourselves using simple maths, which is ALL wrong. When we begin to know the real facts slowly, we panicked. we calculate all over again and realised that it could be tight, but we can still manage by sacrificing leisure. But we were hesitant on losing our booking fee.. Now upon hearing that it is not a wrong buy, I do not wish to give it up. We may struggle abit. Hope that there will never be margin calls... if not DIE!
    how about using CPF to pay for your monthly instalments? There is no minimum to that (apart from your OA existing balance) - that should lessen your burden monthly

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    Quote Originally Posted by ocoloco79
    We made a mistake by investing part of our cpf balances to fortress A fund which is making a loss now. hence our cpf do not have the min sum of 60K hence we cannot use cpf to fund the condo. However after TOP or slightly later, we will be able to accumulate enough min sum so that we can use cpf to fund both condo and hdb together. But still have to top up with cash. We bought our hdb 5 years ago, paying only $800 per month with 30yrs loan, so confirm have high outstanding loan. We are very gullible, as this is our first time buying pte property and we realli know nothing about properties. We actually do not even know that interest rate is consider so low now and can rise as high as 4%. We did our homework by calculating at current low interest rate of slightly lower than 2% and thought that this is the norm. So stupid! We also didn't know that we need to get a banker to assess our financial status before we purchase our property and we did it by ourselves using simple maths, which is ALL wrong. When we begin to know the real facts slowly, we panicked. we calculate all over again and realised that it could be tight, but we can still manage by sacrificing leisure. But we were hesitant on losing our booking fee.. Now upon hearing that it is not a wrong buy, I do not wish to give it up. We may struggle abit. Hope that there will never be margin calls... if not DIE!
    Dear ocoloco79

    I presume you are born in the year 1979. I read your earlier post that you have set aside the cash for the full 20% for this purchase. So you+partner are able to buy if the loan is approved by the banks. If you want to exercise the option, do get the loan sorted out first before executing it. Which means loan approval from BANKS!

    Next, if you have high outstanding HDB loan.. why did you commit to a new purchase when you could use the cash to settle the outstanding or to wait until prices correct.. no harm waiting at the side lines.... bite only when the prices are attractive.

    Interest rates can go higher than 4%... nothing to compared to top up calls by banks or loan suspension.

    12k is nothing compared to 120k or above 240k losses... beware... they do happen.

    I am inclined to advise you to consult your financial planners on your affordability. My gut feeling is they would advise you to let your option lapse simply by virtue of affordability.. sorry to say that and its not that I look down on you or your partner. But if you have rich parents to fall back on... go ahead. If they depend on you, think doubly hard.

    You might want to consider some scenarios of
    1. Either one of your is out of job, call it quits
    2. New arrival babies
    3. Aged parents falling sick
    4. No rental from HDB
    5. Severe Market Correction
    6. Others

    A good buy is only a good buy if you and your partner can afford it.
    A good buy is a bad buy the moment installments are defaulted.

    I wish you GOOOOOD LUUUUUCK!

  22. #52
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    i'll prob get flamed but i am the eternal pessimist.

    based on your situ, i would not go ahead with this. $1k psf for a ph in this location, apt status, is too risky for my appetite

    always remember that in an upmarket like now, everyone is a guru and everyone is proven right

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    Yes, you are very observant .I am born in 1979. Bank loan has been approved already. I will be meeting the banker tomorrow and I will seek his advise. After hearing so much from the experts, I realli hope that I can keep the property. But if the risk of servicing is high, I may reali give this dream a miss. I thought of paying the hdb in full, but since it is so cheap at $800 per month, we decided to continue the loan.

    Possible scenarios of
    1. Either one of your is out of job, call it quits
    In our employment sector, there is always shortage of manpower and we are performing OK, so i pressume we are quite safe in that sense.
    2. New arrival babies
    Not possible, we do not want kids.
    3. Aged parents falling sick
    Possible, but our siblings can share.
    4. No rental from HDB
    Unlikely, if we are renting cheap. 5 room hdb should fetch at least 1.5K?But we can break even at 1K rental to cover monthly payment.
    5. Severe Market Correction
    Biggest risk would be margin call. but we only borrow 763000, not much compared to many other property owners, so this can only happens if the economy is hit very very hard?

  24. #54
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    Dec 2008
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    buying for investment or ownstay?

    can always sub-sale it out, no need forfeit deposit.. or wait until TOP and try to rent it out ~

  25. #55
    Join Date
    Nov 2008
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    158

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    You can consider staying in your HDB and renting out the condo. When things become more affordable, you may then do the reverse. If you can afford the 20%, you always have the option of selling when you find the going tough.

  26. #56
    Join Date
    Jul 2009
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    242

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    Quote Originally Posted by edwinleeap
    You can consider staying in your HDB and renting out the condo. When things become more affordable, you may then do the reverse. If you can afford the 20%, you always have the option of selling when you find the going tough.
    I think it will be difficult to rent out without making a loss.. We bought a penthouse with only 2 brms. Who will be in the right mind to pay $5K for rental? Max I think can only fetch 3K.. That is why I prefer to rent out hdb.. This purchase is bought for own stay...

  27. #57
    Join Date
    Jul 2009
    Posts
    242

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    Quote Originally Posted by gfoo
    i'll prob get flamed but i am the eternal pessimist.

    based on your situ, i would not go ahead with this. $1k psf for a ph in this location, apt status, is too risky for my appetite

    always remember that in an upmarket like now, everyone is a guru and everyone is proven right
    May i know why an apartment status is inferior? You mean condo more superior?

  28. #58
    Join Date
    Nov 2008
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    Quote Originally Posted by ocoloco79
    I think it will be difficult to rent out without making a loss.. We bought a penthouse with only 2 brms. Who will be in the right mind to pay $5K for rental? Max I think can only fetch 3K.. That is why I prefer to rent out hdb.. This purchase is bought for own stay...
    2 bedder PH? how big is your PES?

  29. #59
    Join Date
    Dec 2008
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    Quote Originally Posted by ocoloco79
    We made a mistake by investing part of our cpf balances to fortress A fund which is making a loss now. hence our cpf do not have the min sum of 60K hence we cannot use cpf to fund the condo.
    i thought for property purchase there is no need to set aside amt in ordinary a/c? sorry just asking bcos i not familiar with paying with CPF...

  30. #60
    Join Date
    Jul 2009
    Posts
    242

    Default

    Quote Originally Posted by august
    i thought for property purchase there is no need to set aside amt in ordinary a/c? sorry just asking bcos i not familiar with paying with CPF...
    Hi, for my case is different as this is my 2nd property so there is a min sum..

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