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Leeds
10-11-12, 16:00
Game Over? New Property Cooling Measures Restrict Mortgages
By guest contributor Gerald Tay
On 5th October, Friday, the Monetary Authority of Singapore (MAS) announced that it was capping the length of a home loan at 35 years. With effect from 6th October, 2012:

1. All residential property loans will be subjected to a maximum of 35 years loan tenure, including HDB mortgage loan tenures.

2. Tighter rules will apply to borrowers taking loans longer than 30 years, or who want to have their loan periods extend beyond the retirement age of 65.

3. If they already have an existing mortgage and want to take another one that require these tighter rules for another property, the cash down payment is 60 per cent, instead of the current 40 per cent.

4. Same rules apply for refinancing loans.

5. Non-individual borrowers now subject to 40% loan limit (down from 50%)

Reasons for Fresh Round of Property Cooling Measures

1. To curb upward pressure on property prices from the current low interest rate worldwide, and the rapid credit growth driven by the US’ latest round of quantitative easing (QE3). “Monetary conditions world-wide are far from normal,” said MAS chairman Tharman Shanmugaratnam.

2. To prevent prices from spiking beyond sustainable levels, so that the eventual correction “which will hurt borrowers and destabilise our financial system” can be softened, if not avoided.

3. To prevent “false confidence” from buyers and lenders that the property can always be sold off for a profit if the loan becomes difficult to service.

4. A response to the 50-year home loan offered by United Overseas Bank (UOB), which drew the ire of National Development Minister Khaw Boon Wan, who described it as a “gimmick”.

Impact on Property Market

MAS is taking this step now to require more prudent lending and to curb over-bullishness in the property market. Singapore has signalled clearly that it will not lag behind the regulatory curve.

Hong Kong for example, moved to introduce mortgage curbs immediately after QE3 was announced. In its 5th round of property cooling measures, the Hong Kong Monetary Authority announced it would limit the maximum term of all new mortgages to 30 years. In addition, mortgage payments for investment properties cannot be more than 40% of the buyer’s monthly incomes, compared with 50% previously.

There is a debate if this new round of cooling measures will be effective in bringing property prices down to a more sustainable level. As in all previous cooling measures, the market seems to only cool for a while before continuing its upward climb. Official data showed that HDB resale prices rose 2% in Q3 from Q2, while private home prices gained 0.5% over the same period. Resale home prices of non-landed homes have risen 3.2% in Q3

The Straits Times reported showflats continue to see good traffic on Saturday, the day the mortgage-tightening measures were implemented. Potential buyers were also sniffing out if developers will offer special perks or discounts to buyers to take the sting out of the new restrictions. None did so far, and probably won’t do so unless demand drops to drastic levels over the next six months or so. Therefore, it is still premature for a knee-jerk reaction in the property market.

Impact on Home-Buyers

Except for much younger buyers who are able to take the full 35 year loan tenure, the older ones especially those in their forties and have been waiting for prices to fall to buy, will be disappointed. A 40-year old will now be only able to take up to 25-year loan tenure to enjoy the usual 20% down payment.

But if he were to take out the shorter 25-year loan of $800,000 for a $1 million property, this would now mean monthly payments of $3,051, at current interest rates of 1.1%. This is $400 more than if he were to take a 30-year loan. Older home buyers will take the hardest blow while the younger buyers should get away with just paying a shade more every month.


Impact on Investors

For Investors like me, the new rules would mean “Total Game Over” for the residential property market. For an investor who already have an existing mortgage on hand, finds a $1 million property that he wants, he would have to fork out a $600,000 as down payment in cash if he needed to take a loan exceeding 30 years or if the loan period extended beyond 65 years of age. This is down from 60% loan to value, on top of a potential existing 3% Additional Buyer’s Stamp Duty, plus a 4-year Seller Stamp Duty. Putting such a hefty sum locked in an illiquid asset with a minimum holding period of more than four years (to avoid seller’s stamp duty) plus having to pay taxes just to own one, it sure does not justify any savvy investor’s potential “Cost of Opportunity” in other more sensible assets to grow his net-worth by another zero.

For an investor who is already 50 years or older, even if he does not have any existing loan on hand, his monthly mortgage payments with only a 15 –year loan will be $4,823, likely more than his monthly rental yield.

Overall Assessment of the Residential Property Market

Unless much younger home buyers (30 years or younger) with no existing home loans represent the majority of the market (which is not likely due to current affordability issues), we will be looking at the peak and saturation of the residential property market. Fewer buyers would mean either a price stabilisation or a fall in near future. However, the steam from these latest mortgage restrictions may dissolve in no time like previous measures because:


1. According to the ‘Property Investor Profile Survey’ conducted by Ascendant Assets, the average age of a typical Singapore property investor is 46. Even before the new measures kick in, the buyer already knows that most banks will offer him maximum loan tenure of around 19 years based on his retirement age.

2. A low interest rate environment where ignorant investors still feel that putting their money in property is still a better better han in the bank.

3. A euphoric atmosphere where buyers continue their dreams of becoming rich because they believe property prices will always continue to go up.

4. The “Wealth illusion Effect” purported by the governments through rising property prices has already created a ‘Gangnam Style’ society in Singapore. Younger home buyers, who hope of living that ‘dream lifestyle’ will borrow to their max at low interest rates to buy new launches, hoping to stay in it or sell after 4 years when it T.O.Ps. There will also be those who cash out from their HDB, and use the profits to upgrade to private housing.

The residential property market holds the keys to wealth and credit in any country. When people feel rich through their home prices rising, everyone from consumers to business owners borrow. Credit is created and the ‘wealth effect’ leaks through the fabric of the economy, generating economic growth and investment for all countries. Governments do not want a bubble bursting in their own backyards. They only want consumers to borrow and spend. When will the bubble burst or prices fall? Only when the credit which fuels borrowing and spending comes to a complete halt because of fear and a mass ‘exodus’ from the market, will we then see “blood” on the streets.

Let the herd of “sheep” enjoy their grazing for now, while the hungry wolves are already waiting behind the bushes.

By guest contributor Gerald Tay, CEO and
Chief Trainer at CREi Academy Group.

radha08
10-11-12, 16:11
talk talk talk but market still cheong upwards....:doh:...in singapore got money if you dont buy house buy what...car...shares....go shopping...start business....go holiday....buy plasma tv...renovate your house....buy bonds....in my opinion...can afford just dump in property la....cannot afford 2million apt buy 1 million cannot afford 1 million buy 500k 1 bedder....in 10 years time when you look back i do not think you will regret.....but like i said....ONLY if you can afford...i.e got spare cash....:cheers5:

DKSG
10-11-12, 16:11
This person seldom go to showflats.

Double Confirm!

DKSG

carbuncle
10-11-12, 16:16
another MTB?

radha08
10-11-12, 16:18
This person seldom go to showflats.

Double Confirm!

DKSG

triple confirm...:cheers5:....everyday i pass by eco showflat cos my flat next door...still crowded...:scared-5:

Arcachon
10-11-12, 16:53
Game Over for those with more than one Private property. There are still a lot waiting with a fully pay HDB.

Shanhz
10-11-12, 16:56
talk talk talk but market still cheong upwards....:doh:...in singapore got money if you dont buy house buy what...car...shares....go shopping...start business....go holiday....buy plasma tv...renovate your house....buy bonds....in my opinion...can afford just dump in property la....cannot afford 2million apt buy 1 million cannot afford 1 million buy 500k 1 bedder....in 10 years time when you look back i do not think you will regret.....but like i said....ONLY if you can afford...i.e got spare cash....:cheers5:

Last time i never buy ppty, every other day backside itchy eat restaurant, buy gadget, think of changing car etc. now buy house leow, every day think of saving money to pay down the mortgage faster. Good or bad? I think good.

Buy property better lah. Huat ah.

Rysk
10-11-12, 17:01
Game over??
Game over been talking in 2008 when Luxus Hills $1.6m... Talk till now Luxus Hills $2.9m.. Still talking "Game over".. for MR B is it??:D

3C
10-11-12, 17:09
Last time i never buy ppty, every other day backside itchy eat restaurant, buy gadget, think of changing car etc. now buy house leow, every day think of saving money to pay down the mortgage faster. Good or bad? I think good.

Buy property better lah. Huat ah.
Congrats u found the right place to put your $. Good as long as you don't need to resort to eat roti prata everyday, every time wait for people to branja you, still can have quality life like going for tour.

amk
10-11-12, 17:24
another MTB?

The tone of this writer is SO SO SO MTB.... I was expecting a better write up , with some concrete analysis. Nope. This is just another kbkb complaint.

Leeds
10-11-12, 17:29
Game Over for those with more than one Private property. There are still a lot waiting with a fully pay HDB.

Your statement makes sense.

revhappy
10-11-12, 17:29
talk talk talk but market still cheong upwards....:doh:...in singapore got money if you dont buy house buy what...car...shares....go shopping...start business....go holiday....buy plasma tv...renovate your house....buy bonds....in my opinion...can afford just dump in property la....cannot afford 2million apt buy 1 million cannot afford 1 million buy 500k 1 bedder....in 10 years time when you look back i do not think you will regret.....but like i said....ONLY if you can afford...i.e got spare cash....:cheers5:


Depends on how much spare cash, if only 200k then better to invest in fixed income unit trusts, you will get 6% returns which is decent. Unless you have more than 50% to down, I wouldn't choose property for "investment" at these prices

DKSG
10-11-12, 17:34
Your statement makes sense.

What Office Boy can say is : if the 3% ABSD make u change your mind about buying the 3rd property, then in the first place, your choice of property is lousy. Office Boy always aim at least 30% profit before I consider buying, so 3% ABSD is never a problem.

If the 40% downpayment is the problem, then it is indeed game over.

There is a limit how many properties each person can buy la ... for a lowly Office Boy like me, the 3rd property is already a stretch. But if I see something worth buying the 3% more will not stop me one.

DKSG

3C
10-11-12, 17:46
His last sentence;"blood on the streets" really scare me.

CondoWE
10-11-12, 17:54
What Office Boy can say is : if the 3% ABSD make u change your mind about buying the 3rd property, then in the first place, your choice of property is lousy. Office Boy always aim at least 30% profit before I consider buying, so 3% ABSD is never a problem.

If the 40% downpayment is the problem, then it is indeed game over.

There is a limit how many properties each person can buy la ... for a lowly Office Boy like me, the 3rd property is already a stretch. But if I see something worth buying the 3% more will not stop me one.

DKSG

I'm on your side...so long you are cash rich, 3% ABSD is nothing..:D !

Allthepies
10-11-12, 17:56
What Office Boy can say is : if the 3% ABSD make u change your mind about buying the 3rd property, then in the first place, your choice of property is lousy. Office Boy always aim at least 30% profit before I consider buying, so 3% ABSD is never a problem.

If the 40% downpayment is the problem, then it is indeed game over.

There is a limit how many properties each person can buy la ... for a lowly Office Boy like me, the 3rd property is already a stretch. But if I see something worth buying the 3% more will not stop me one.

DKSG

Excellent point, I make my house investment with 100% ROI in mind :cheers4:

dtrax
10-11-12, 19:52
Your statement makes sense.

Let me emphass.. game OVER for those with multiple properties, NO chewren[or < age 21] and in the 40ies. Confirm no need play

chestnut
10-11-12, 19:54
Let me emphass.. game OVER for those with multiple properties, NO chewren[or < age 21] and in the 40ies. Confirm no need play

Why???? :confused:

chestnut
10-11-12, 20:13
Let me emphass.. game OVER for those with multiple properties, NO chewren[or < age 21] and in the 40ies. Confirm no need play

Think I got it. :D was trying to figure out.... Hahahaha... Could not apply to me la.....

phantom_opera
10-11-12, 20:19
U can still play pay tax and cash with super low leverage so not attractive anymore, some will shift to leveraged bond play

minority
10-11-12, 20:41
talk talk talk but market still cheong upwards....:doh:...in singapore got money if you dont buy house buy what...car...shares....go shopping...start business....go holiday....buy plasma tv...renovate your house....buy bonds....in my opinion...can afford just dump in property la....cannot afford 2million apt buy 1 million cannot afford 1 million buy 500k 1 bedder....in 10 years time when you look back i do not think you will regret.....but like i said....ONLY if you can afford...i.e got spare cash....:cheers5:


can also spend $ invest in kids education wat. no need to buy all those stuff.

minority
10-11-12, 20:43
Depends on how much spare cash, if only 200k then better to invest in fixed income unit trusts, you will get 6% returns which is decent. Unless you have more than 50% to down, I wouldn't choose property for "investment" at these prices


unit trust? hah hah u trust that stuff? the fund mgr and mgmt fees will make them happy..

u are better off looking at other stuff.

minority
10-11-12, 20:45
Let me emphass.. game OVER for those with multiple properties, NO chewren[or < age 21] and in the 40ies. Confirm no need play


why not???????????????????????

dtrax
10-11-12, 20:48
why not???????????????????????

of cse if u cash gaogao need not apply

leesg123
10-11-12, 20:49
Let me emphass.. game OVER for those with multiple properties, NO chewren[or < age 21] and in the 40ies. Confirm no need play
Why?? Those with multiple property already played or rather is in the game already.

dtrax
10-11-12, 20:50
unit trust? hah hah u trust that stuff? the fund mgr and mgmt fees will make them happy..

u are better off looking at other stuff.

the sales fee can actually be offset if u buying from bank..i.e if bank tai u 2.5% for sales charge, they can also match with fix deposit with the same amount [for example DBS can offer 2mths 6.88% FD]..to offset the sales charge, so you will not be carrothead jialat jialat.. else go buy from fundsupermart

dtrax
10-11-12, 20:52
Why?? Those with multiple property already played or rather is in the game already.

oh just a clarification.. I dont really mean all no need play.. if you got 500k..millions of spare cash can still enter. I am referring to much people in a situation with 2 properties, no chewren [to buy under their name at 20% LTV, not extra stamp duty] and very little cash reserves

roly8
10-11-12, 20:59
Game Over for those with more than one Private property. There are still a lot waiting with a fully pay HDB.

how are they affected?

Rysk
10-11-12, 20:59
Game Over for those with more than one Private property. There are still a lot waiting with a fully pay HDB.
You are wrong! Game over is for those with only one pty..
Like you said.. out there a lots been waiting & waiting & waiting.. to buy another one .. that's why these few year those who have 2 or more HUAT BIG BIG.. As for those with only 1.. only sit by the side & watch other ppl HUAT BIG BIG! :D

dtrax
10-11-12, 21:04
Why?? Those with multiple property already played or rather is in the game already.

I guess the context of "gameover" or how i interpret is those who have multiple units and waiting to buy more.. imo to play the property game, need 2 condos at anyone time[including homestay]. For sufficient passive income, you need a min of 3 condos[including selfstay]. So those with 2 and waiting to get 3rd or those with 3 maybe wanna hoot 4th will be game over?

andy
10-11-12, 21:52
I guess the context of "gameover" or how i interpret is those who have multiple units and waiting to buy more.. imo to play the property game, need 2 condos at anyone time[including homestay]. For sufficient passive income, you need a min of 3 condos[including selfstay]. So those with 2 and waiting to get 3rd or those with 3 maybe wanna hoot 4th will be game over?

Yes min of 2 properties including homestay is requried to play. More diffcult to get the 3rd property with all the CMs. I think to rent 2 or more properties out these days with min tenant problems and maximum occupancy period is rather difficult, unless new properties.....

Can still play if got 50% cash...or wait for kids to be >21

Allthepies
10-11-12, 22:01
Sell old one buy new one to continue the property game.....

minority
10-11-12, 22:04
the sales fee can actually be offset if u buying from bank..i.e if bank tai u 2.5% for sales charge, they can also match with fix deposit with the same amount [for example DBS can offer 2mths 6.88% FD]..to offset the sales charge, so you will not be carrothead jialat jialat.. else go buy from fundsupermart


Nah u forgot the spread and also the yrly mgmt charge. plus fundsupermart now have platform charges.

If want to touch trust better off looking at ETF.

wind30
10-11-12, 22:19
You are wrong! Game over is for those with only one pty..
Like you said.. out there a lots been waiting & waiting & waiting.. to buy another one .. that's why these few year those who have 2 or more HUAT BIG BIG.. As for those with only 1.. only sit by the side & watch other ppl HUAT BIG BIG! :D

yup that is why I say many singaporeans would want to see property prices fall.

A lot of people say government will not let hdb prices fall because 80% of people own hdb, blah blah blah... But if those people only have one hdb and nothing else, they will love the prices to fall because then they can upgrade to condo or but 2nd property for rental.

phantom_opera
10-11-12, 22:28
i dun mind property price falling if

1. price of air ticket falls
2. price of kopi fall
3. price of rice fall
4. price of hospital charges fall
5. price of university fees fall
6. price of COEs fall

is that even possible? :rolleyes:

Allthepies
10-11-12, 22:31
i dun mind property price falling if

1. price of air ticket falls
2. price of kopi fall
3. price of rice fall
4. price of hospital charges fall
5. price of university fees fall
6. price of COEs fall

is that even possible? :rolleyes:

WW3 ? :scared-4:

Leeds
10-11-12, 22:39
yup that is why I say many singaporeans would want to see property prices fall.

A lot of people say government will not let hdb prices fall because 80% of people own hdb, blah blah blah... But if those people only have one hdb and nothing else, they will love the prices to fall because then they can upgrade to condo or but 2nd property for rental.

Nice to hear something difference and logical. It is difficult not to agree with you.

radha08
10-11-12, 22:45
Game Over for those with more than one Private property. There are still a lot waiting with a fully pay HDB.
who hah...:D:D:D:D

thomastansb
10-11-12, 23:06
Ai yo, if economy is good, stocks are going up, then property also go up.

If US crashes, Europe crashes, then our property also hong kan.

Simple as that. That has been the trend since we have an URA index. Cooling measures don't work and haven't work before either.

phantom_opera
10-11-12, 23:10
US GDP 0-1%, Europe 0.5-1.5% ... last another 4y during Gobama term I would think is 75% probability... 天下太平

Under stable external conditions, China will continue growing:

McKinsey study estimates that by 2025 China will have more than 220 cities with populations in excess of one million, versus 125 in 2010, and that 23 mega-cities will have a population of at least five million.

minority
10-11-12, 23:42
i dun mind property price falling if

1. price of air ticket falls
2. price of kopi fall
3. price of rice fall
4. price of hospital charges fall
5. price of university fees fall
6. price of COEs fall

is that even possible? :rolleyes:

nope no 1 will give up their margin. also when base cost increase can the customer accept daily rate?

hah hah today kopi 80c tomorrow 1.5 then day after 1.2?? ;)

minority
10-11-12, 23:43
WW3 ? :scared-4:

become more ex! u will have to pay with gold!

minority
10-11-12, 23:44
Ai yo, if economy is good, stocks are going up, then property also go up.

If US crashes, Europe crashes, then our property also hong kan.

Simple as that. That has been the trend since we have an URA index. Cooling measures don't work and haven't work before either.


CM are to dampen act as a damper. not to crash it. if u are looking for crash 4 sure CM is not it.

Arcachon
11-11-12, 00:14
how are they affected?

I was one of them, Bank give me a loan of 6 years with LTv 40%.

chestnut
11-11-12, 05:06
I was one of them, Bank give me a loan of 6 years with LTv 40%.

Bro, did u try other banks? With 40% ltv can loan to 70 or 75 depending on bank.

chestnut
11-11-12, 06:17
yup that is why I say many singaporeans would want to see property prices fall.

A lot of people say government will not let hdb prices fall because 80% of people own hdb, blah blah blah... But if those people only have one hdb and nothing else, they will love the prices to fall because then they can upgrade to condo or but 2nd property for rental.

Are u referring to majority or minority? If minority, I agree. If majority, I disagree.

Look at 1985, 1997, 2001, 2003 and even earlier 2008(Lehman bro), why didn't they buy?

You need to understand the human behavior.


:cheers4:

Leeds
11-11-12, 06:34
Are u referring to majority or minority? If minority, I agree. If majority, I disagree.

Look at 1985, 1997, 2001, 2003 and even earlier 2008(Lehman bro), why didn't they buy?

You need to understand the human behavior.


:cheers4:

The fear of run away prices make people to buy even at very high price. The fear of prices coming down further prevents people from buying even at much lower price. Most people behave this way when come to investment due to lack of investment knowledge and wisdom. However, their hope and aspiration are consistent with behavioural science.

chestnut
11-11-12, 06:46
The fear of run away prices make people to buy even at very high price. The fear of prices coming down further prevents people from buying even at much lower price. Most people behave this way when come to investment due to lack of investment knowledge and wisdom. However, their hope and aspiration are consistent with behavioural science.

That's why I asked majority or minority. Wind30 needs to be specific.

When major recession strikes, like 1997 and 2003, who in the hell has aspiration when everyone in survival mode :confused: :confused: :confused:

That's why shi huang ti made everyone work on the great wall. To fend off the barbarians and most important, when u are so busy working, u do not have time to think of a revolution. Hahahahaha this guy really know human behavior.

:cheers4: :cheers5: :cheers6:

Secretariat
11-11-12, 07:34
The writer was talking about how the CMs have affected the game.

What game? The game of property speculation.


Simple example.

If an owner of HDB EM, which is showing an equity of $500,000, she sold the EM to realize the equity (a current price), and upgraded to a reale PC at $1.5 mil (a current price), is she playing the game of property speculation?

No.

However, if she bought a new launch of $1.5 mil (a future price), and intends to sell her EM flat at the time of TOP to move in, is she playing the game?

Yes.

Because in between the period until TOP, the prices of her EM can go up or down, whereas the price of PC is locked. She gains from the game, when both go up in prices upon TOP.

For an upgrader buying a resale, newly TOP'ed or not, it does not make financial sense to maximize the loan tenure (if there is financing). The approach will be bottom-up, by calculating the maximum monthly payment affordable, to shorten the loan tenure as much as possible.

In other words, making use of the low interest rate environment to expedite the pay down.

For speculators, the calculation is different. A speculator bets on the direction of price movement. It applies to any instruments; property, stock, etc.

If she thinks that the price of Apple is going up, then she buys the call option of Apple. The cost of speculating on the price gains is then the option price. Not the price of an Apple share.

For the game of property speculation, she will then want to structure her cost (of entering the game) as option-like as possible. This is why, until CM6 was announced, new launches were attractive because the lower cost of speculation.

CM6 trapped these speculators.

Post-CM6, the cost of speculation has been raised far too substantial, that it likely has killed the game of speculation. This is the conclusion of the writer.

Many people, especially newbies, do not understand the leverage of property financing. At 60LTV, this is just on par with the prevailing share margin financing (for stock market speculators). And after 6 times of CM. If you approach a banker for 60LTV of a bond (a fixed income instrument) purchase, then more likely than not, the banker will help making an appointment at IMH for you.

But speculators play a crucial role in a bull market, for they provide the needed volume & liquidity of an instrument. Price movements are always preceded by a volume increase.

Pikachu1245
11-11-12, 07:43
Congrats u found the right place to put your $. Good as long as you don't need to resort to eat roti prata everyday, every time wait for people to branja you, still can have quality life like going for tour.

Roti prata if eat everyday, expensive leh...
I only eat once in a while. Think most layman do not eat prata(many variety though-Cheese, Onion,Sardine etc.) daily.
Each meal cost around $10 esp at NEX.
Even neighbour prata with eggs no few dollars no talk unless eat at Malaysia or Indonesia.........:2cents:

Pikachu1245
11-11-12, 07:47
U can still play pay tax and cash with super low leverage so not attractive anymore, some will shift to leveraged bond play


Or can invest in overseas properties e.g. Australia, Malaysia, Thailand,Indonesia,US etc.(many now advertising in papers).:D

Draven005
11-11-12, 10:12
Property appreciates over time and it is good to buy one or two.

Those waited are regretting.


Last time i never buy ppty, every other day backside itchy eat restaurant, buy gadget, think of changing car etc. now buy house leow, every day think of saving money to pay down the mortgage faster. Good or bad? I think good.

Buy property better lah. Huat ah.

carbuncle
11-11-12, 10:13
its 11:11 on 11/11

DC33_2008
11-11-12, 10:17
I am many investors have already done that.
Or can invest in overseas properties e.g. Australia, Malaysia, Thailand,Indonesia,US etc.(many now advertising in papers).:D

Pikachu1245
11-11-12, 10:34
I am many investors have already done that.

No wonder many newspaper report on overseas state Phase 1 100% sold, now phase 2 selling fast....

Guess you help to contribute to these positive figure? :D

DC33_2008
11-11-12, 10:38
Typo error. Do not mean me.
No wonder many newspaper report on overseas state Phase 1 100% sold, now phase 2 selling fast....

Guess you help to contribute to these positive figure? :D

phantom_opera
11-11-12, 10:54
Amaya Egana Chopitea, 53, threw herself from the window of her apartment when representatives of Spanish bank La Caixa arrived with locksmiths to evict her yesterday morning, El Mundo reported. Egana and her husband’s mortgage debt of 164,000 euros (USD208,640) rose to 213,000 euros because of charges and interest payments, while their home had been auctioned for 190,000 euros, the newspaper said.

HDB will normally not do this :p

Lovelle
11-11-12, 10:57
Resale prices in the outside central region (OCR), where mass-market, suburban condos are located, rose 8.7 per cent to $902 psf. The next largest price jump was clocked by properties in the rest of central region (RCR), which rose 7.7 per cent to $1,152 psf; properties in the core central region (CCR) went up 3.2 per cent to $1,718 psf.


:cheers6::cheers6::cheers6::cheers6::cheers6:

seletar
11-11-12, 12:00
From Jan to Oct 2012, the transaction volume for non-landed private resale homes have dropped 10.2% from last year, and the average unit rental sees only a marginal increase of 0.5% according to SRX.

http://www.businesstimes.com.sg/premium/singapore/non-landed-private-homes-resale-prices-73-jan-oct-period-20121110

seletar
11-11-12, 12:28
With the poor economic climate, the big increase in supply of new non-landed private property and the tightening of foreign manpower, rental yield could plunge in the coming years. And this could lead to shrinking demand and a price correction for non-landed private resale homes. Transaction volume from Jan-Oct 2012 had already dropped 10.2% from the same period last year.


http://www.todayonline.com/Business/Property/EDC121110-0000093/Rental-yield-falls-for-non-landed-private-property

Rental yield falls for non-landed private property

Updated 08:06 PM Nov 10, 2012

SINGAPORE - The rental yield for non-landed private property went down by 0.2 percentage points in the last 10 months, compared to the same period last year.

According to statistics from the Singapore Real Estate Exchange (SRX), this brings the rental yield to 4.03 per cent.

This is even though average rental rose by two per cent in the first 10 months, to reach about S$3.80 per square foot. In October alone, the average monthly rental was about S$3.89 per square foot.

Analysts said this is due to rental being unable to catch up with rising property prices.

With more private properties expected to be completed next year and the Government's tightening of foreign manpower, analysts said rental yield will continue to fall. This as the economy slows and demand for private property decreases.

The rental yield for October alone was 3.87 per cent and analysts expect it to dip to 3.5 per cent in June next year.


CHANNEL NEWSASIA

roly8
11-11-12, 12:33
With the poor economic climate, the big increase in supply of new non-landed private property and the tightening of foreign manpower, rental yield could plunge in the coming years. And this could lead to shrinking demand and a price correction for non-landed private resale homes. Transaction volume from Jan-Oct 2012 had already dropped 10.2% from the same period last year.

make sense..

more competitive rental rate for the years to come :tongue3::tongue3:

Arcachon
11-11-12, 14:04
Bro, did u try other banks? With 40% ltv can loan to 70 or 75 depending on bank.

I have outstanding loan of HDB 100k, 2 Bedroom 1,000,000 and 3 Bedroom 750,000 with a salary of $44,000 a year. You mean there are Bank who can still loan me.

Laguna
11-11-12, 14:15
I have outstanding loan of HDB 100k, 2 Bedroom 1,000,000 and 3 Bedroom 750,000 with a salary of $44,000 a year. You mean there are Bank who can still loan me.

yes, if u can prove u have $'m in cash

Arcachon
11-11-12, 14:27
I can 10 years later.

carbuncle
11-11-12, 14:42
by then u mabbe borrow max 10yrs

carbuncle
11-11-12, 14:44
aiya every time the news come out yield drop yield drop. in the end price still cheong. based on today's buy in price of coz yield sux la zzzzz

DC33_2008
11-11-12, 14:45
Have you sold SB? Have people offering $1.8 million.
I have outstanding loan of HDB 100k, 2 Bedroom 1,000,000 and 3 Bedroom 750,000 with a salary of $44,000 a year. You mean there are Bank who can still loan me.

Arcachon
11-11-12, 15:01
Have you sold SB? Have people offering $1.8 million.

Nope. I will sell if someone offer 1.8 to me. Was thinking of selling my 5 room and buy a 1 bedroom at Sky Green.

DC33_2008
11-11-12, 15:04
Thought you were only looking at 1.5xxmil previously. I am sure it has passed that offer price now. Why buy sky green?
Nope. I will sell if someone offer 1.8 to me. Was thinking of selling my 5 room and buy a 1 bedroom at Sky Green.

roly8
11-11-12, 15:09
Have you sold SB? Have people offering $1.8 million.
sell and retire liao :p

might also use for passive income, actually... :o

Arcachon
11-11-12, 15:12
I was thinking of selling my 5 room HDB for 535,000 in 2006.

Then in 2012 I was thinking of selling my 5 room for 650,000.

Then I start to do some math.

$2400x12=28,800

rental yield = 4.43%

Then I think my 5 room worth more than 650,000.

Same goes to SB.

Arcachon
11-11-12, 15:14
Thought you were only looking at 1.5xxmil previously. I am sure it has passed that offer price now. Why buy sky green?

Looking for retirement home, need to be small.

Also only project with sky garden. Most with penthouse on the top floor.

heehee
11-11-12, 15:41
Properties seem to be going the way like Gold - People buy as a store of value & heck care yield because if there is positive yield, properties better than gold which has negative yield. :beats-me-man:


With the poor economic climate, the big increase in supply of new non-landed private property and the tightening of foreign manpower, rental yield could plunge in the coming years. And this could lead to shrinking demand and a price correction for non-landed private resale homes. Transaction volume from Jan-Oct 2012 had already dropped 10.2% from the same period last year.


http://www.todayonline.com/Business/Property/EDC121110-0000093/Rental-yield-falls-for-non-landed-private-property

Rental yield falls for non-landed private property

Updated 08:06 PM Nov 10, 2012

SINGAPORE - The rental yield for non-landed private property went down by 0.2 percentage points in the last 10 months, compared to the same period last year.

According to statistics from the Singapore Real Estate Exchange (SRX), this brings the rental yield to 4.03 per cent.

This is even though average rental rose by two per cent in the first 10 months, to reach about S$3.80 per square foot. In October alone, the average monthly rental was about S$3.89 per square foot.

Analysts said this is due to rental being unable to catch up with rising property prices.

With more private properties expected to be completed next year and the Government's tightening of foreign manpower, analysts said rental yield will continue to fall. This as the economy slows and demand for private property decreases.

The rental yield for October alone was 3.87 per cent and analysts expect it to dip to 3.5 per cent in June next year.


CHANNEL NEWSASIA

Arcachon
11-11-12, 15:55
In Singapore land will be cheaper because they built Billion dollar project on island.

Construction cost is getting cheaper because they try to increase productivity and eat less.

Material cost is getting cheaper because they can source outside the small island.

Conclusion property price in the small island will be cheaper, Right or Wrong time will tell.

DC33_2008
11-11-12, 16:53
Developer will say construction cost is going up but use cheaper material like glass for partition or dry wall to replace labour intensive blockwall like in the recent project by dragage. Sound, strength and durability of such dry wall is much poorer but owners still pay over $12xxpsf. Developer make more profit. :o
In Singapore land will be cheaper because they built Billion dollar project on island.

Construction cost is getting cheaper because they try to increase productivity and eat less.

Material cost is getting cheaper because they can source outside the small island.

Conclusion property price in the small island will be cheaper, Right or Wrong time will tell.

chestnut
11-11-12, 17:04
I have outstanding loan of HDB 100k, 2 Bedroom 1,000,000 and 3 Bedroom 750,000 with a salary of $44,000 a year. You mean there are Bank who can still loan me.

Bro, did u include in rental income? They look at IR 8A leh. How many bank u tried?

If u tried all, I nothing to say.

roly8
11-11-12, 17:07
Developer will say construction cost is going up but use cheaper material like glass for partition or dry wall to replace labour intensive blockwall like in the recent project by dragage. Sound, strength and durability of such dry wall is much poorer but owners still pay over $12xxpsf. Developer make more profit. :o

yea lor...

can squeeze $ out... will sure do it until nothng left:beats-me-man:

sh
11-11-12, 17:12
In Singapore land will be cheaper because they built Billion dollar project on island.

Construction cost is getting cheaper because they try to increase productivity and eat less.

Material cost is getting cheaper because they can source outside the small island.

Conclusion property price in the small island will be cheaper, Right or Wrong time will tell.

huh?

land will be cheaper? had never happened... ok there's a couple of dips in crisis but it came back stronger.... Will a person holding land ever sell it for less than his neighbour?

Construction cost is getting cheaper... construction cost is dependent on labour cost, supply of foreign labour is controlled by government. with all the complaints but foreigners, the supply can only get tighter. Improvements in productivity is only to reduce reliance on foreign labour, but it not cheaper, otherwise, the contractors would have done it already without the government pushing for it.

Material cost getting cheaper because it's sourced outside.... it's already sourced outside... that's part of the problem... remember the sand embargo from first malaysia, then indonesia and who knows where else?

How can it get cheaper????

chestnut
11-11-12, 17:42
Bro, I think he being sarcastic. Take it w a pinch of salt.

minority
11-11-12, 17:48
In Singapore land will be cheaper because they built Billion dollar project on island.

Construction cost is getting cheaper because they try to increase productivity and eat less.

Material cost is getting cheaper because they can source outside the small island.

Conclusion property price in the small island will be cheaper, Right or Wrong time will tell.

Don't understand

peterng8
11-11-12, 18:38
The tone of this writer is SO SO SO MTB.... I was expecting a better write up , with some concrete analysis. Nope. This is just another kbkb complaint.


NEXT year onwards if nothing serious from US will be a year of commercial proeprty bull RUN !!!! :p :p :p now commercial is at the stage of yr 2010 residential property stage...MARK my words:p

3C
11-11-12, 19:00
I have outstanding loan of HDB 100k, 2 Bedroom 1,000,000 and 3 Bedroom 750,000 with a salary of $44,000 a year. You mean there are Bank who can still loan me.

wa lau a... With such loan and salary still want to continue to play game,
you r surely not simple. must have some hidden blackjack

DKSG
11-11-12, 20:03
wa lau a... With such loan and salary still want to continue to play game,
you r surely not simple. must have some hidden blackjack

Maybe got the 2 Spade for Chua Tai Di !

DKSG

Arcachon
11-11-12, 21:29
Don't understand

Lots of people tell me Singapore property will be cheaper in future, I also don't understand.

One of my colleague sold his HDB and wait for Singapore property price to fall????? He told me I don't understand what goes up will come down.

Arcachon
11-11-12, 21:37
Bro, did u include in rental income? They look at IR 8A leh. How many bank u tried?

If u tried all, I nothing to say.

In 2010, so long you pay 40% don't need to see IR8A.

In 2012, 40% also can get loan for only 6 years.

All the bank belong to MAS, sing the same song.

chestnut
11-11-12, 21:44
In 2010, so long you pay 40% don't need to see IR8A.

In 2012, 40% also can get loan for only 6 years.

All the bank belong to MAS, sing the same song.

For extension of loan, u need to down 60%. Banks can loan to 70/75 depending on bank.

Arcachon
11-11-12, 21:47
https://lh4.googleusercontent.com/-qw7ZHutQ4AI/UJ-0dzvv6MI/AAAAAAAAJdY/3g_yHGHa6F8/s855/2012-11-11+14.22.34.jpg

https://lh4.googleusercontent.com/-_91QHit3eAM/UJ-0mBrkU7I/AAAAAAAAJdk/CM4NeAAJnzI/s855/2012-11-11+14.22.58.jpg

https://lh4.googleusercontent.com/-QCXmjlvpjzk/UJ-0zLS884I/AAAAAAAAJdw/SIiuUYHYQq4/s855/2012-11-11+14.23.21.jpg

https://lh3.googleusercontent.com/-ee0EfGAubbI/UJ-093zi9lI/AAAAAAAAJd8/n6_8e8Cf4iM/s855/2012-11-11+14.23.38.jpg

https://lh4.googleusercontent.com/-thcEzlueNqY/UJ-1GIIOgtI/AAAAAAAAJeI/Ytgy8EP79Jg/s855/2012-11-11+14.23.57.jpg

Rysk
11-11-12, 22:15
Lots of people tell me Singapore property will be cheaper in future, I also don't understand.

One of my colleague sold his HDB and wait for Singapore property price to fall????? He told me I don't understand what goes up will come down.
Aiyo! Don't anyhow sold away your roof over his head leh..:doh:
I do understand what goes up will come down.. Last time the 5-rm from $100k went up to $500k today.. Tell your friend to wait for the same 5-rm come down back to $100k.. So this is called "what goes up must come down" rite!!:D

Arcachon
11-11-12, 23:15
Aiyo! Don't anyhow sold away your roof over his head leh..:doh:
I do understand what goes up will come down.. Last time the 5-rm from $100k went up to $500k today.. Tell your friend to wait for the same 5-rm come down back to $100k.. So this is called "what goes up must come down" rite!!:D

I try and he say I don't understand???????

DKSG
11-11-12, 23:25
The "what goes up will come down" theory has a very fundamental assumption. That money is the same today and next year.

But if I tell you money is flooding the market now and people are getting obscenely rich nowadays due to property prices increasing in the last few years and the fact that US, Japan, Europe are all creating money EVERY MONTH, you will realise very very soon that $$500K in 2006 is probably worth $300K now.

My Office people call this INFLATION!

DKSG

Arcachon
11-11-12, 23:37
The "what goes up will come down" theory has a very fundamental assumption. That money is the same today and next year.

But if I tell you money is flooding the market now and people are getting obscenely rich nowadays due to property prices increasing in the last few years and the fact that US, Japan, Europe are all creating money EVERY MONTH, you will realise very very soon that $$500K in 2006 is probably worth $300K now.

My Office people call this INFLATION!

DKSG

535,000 is now worth 1,500,000 and rental is 49,200 a year.

smpeh
12-11-12, 01:16
Arch, is the photos in Paris? Didn't see it in Nice but some in Milan. Have any place there's all of them? Tks! :D

Arcachon
12-11-12, 03:31
La Teste De Buch, France.

45 minutes from Bordeaux.

http://www.panoramio.com/photo/81956131

Arcachon
12-11-12, 03:33
Arch, is the photos in Paris? Didn't see it in Nice but some in Milan. Have any place there's all of them? Tks! :D

where are you now.

Laguna
12-11-12, 03:55
The "what goes up will come down" theory has a very fundamental assumption. That money is the same today and next year.

But if I tell you money is flooding the market now and people are getting obscenely rich nowadays due to property prices increasing in the last few years and the fact that US, Japan, Europe are all creating money EVERY MONTH, you will realise very very soon that $$500K in 2006 is probably worth $300K now.

My Office people call this INFLATION!

DKSG

I don't understand " EVERY MONTH, you will realise very very soon that $$500K in 2006 is probably worth $300K now."

$500,000 in 2006, I could buy two units of 4 bedroom at One Amber with 80% loans. And the two units now worth $2.7m.

Arcachon
12-11-12, 04:06
5:05 Monday (SGT) - Time in Singapore

Good night, Wake up so early. Going to sleep soon

22:06 Sunday (CET) - Time in France

Next week got lots of sunshine.

http://fr.weather.com/weather/10day-La-Teste-de-Buch-33260

For instance, an apartment on the 13th floor of one of the four 23-storey tower blocks has changed hands twice. The 958 sq ft apartment was sold in a sub-sale at $1,038 psf in June. Before that, the property changed hands for $958,000 or $1,000 psf in July last year. The original owner purchased the property for $760,000 or $793 psf when it was launched in 2006.


http://aboutsingaporeproperty.wordpress.com/2009/07/13/one-amber-sub-sale-prices-hit-the-1000-psf-range/

Secretariat
12-11-12, 06:04
People who are harping on money printing, don't know what QE is about.

Yes, there will be slight leakage from the QE program, some get into the non-QE system, but the central bank puts in measures to control external fund inflow, including creating a low interest rate environment.

Shanhz
12-11-12, 08:34
Lots of people tell me Singapore property will be cheaper in future, I also don't understand.

One of my colleague sold his HDB and wait for Singapore property price to fall????? He told me I don't understand what goes up will come down.

what goes up WILL come down.
question is - when?
go up 50% come down 20%?

for investment ppty, it does not matter if you time the mkt. at most back to square one, you still hv a roof over your head.

for the 1st roof over your head (ie: your colleague).... good luck to him.

carbuncle
12-11-12, 08:51
there's a reason why sg govt don't penalize citizen having two properties (1hdb 1pvt ). this has become the minimum requirement for basic retirement today.

Shanhz
12-11-12, 08:53
there's a reason why sg govt don't penalize citizen having two properties (1hdb 1pvt ). this has become the minimum requirement for basic retirement today.

this was the unwritten rule from the govt since donkey yrs ago. that's why the earlier generations - the smart ones, already own minimum 2 pptys for retirement.

someone here mentioned b4.. govt rather you be self sufficient than to keep going back to them for aid