Who bought, this year?

[DC33_2008]

risks s low in good times but not during times of uncertainty. This is over-leveraging. Did you ask them what will happen if market corrects 20% with the 5-6 million properties?

I do not mean equity as in shares.
I mean the equity(capital available) from the revalued property.

There's this trainer and his buddy from a seminar doing that.
They got only $1mil I guess.. and they have $5-6mil property thru' the buying more property as the property gets revalued and they take out the equity.

[amk]

A real case. A townhouse in D10 was bought in 2001 for abt 2mil. During 2007, valuation went up dramatically to 5mil. Took out equity loan and invested in another 2 pties. In 2009 crisis, bank did not ask for top up, probably because the downturn was too short to see any real crash.
Personal opinion : it really depends. For dramatic cases like this 2mil asset valued at 5mil, it would be quite an opportunity lost if you dun monetize it. Such dramatic appreciation was due to someting else non organic. However for a small appreciation say a few hundred k, the valuation at down time can drop a lot even without any real transaction to benchmark. To take out this few hundred k and leverage out will be risky.

[DC33_2008]

At least can sleep well without nightmare.

A real case. A townhouse in D10 was bought in 2001 for abt 2mil. During 2007, valuation went up dramatically to 5mil. Took out equity loan and invested in another 2 pties. In 2009 crisis, bank did not ask for top up, probably because the downturn was too short to see any real crash.
Personal opinion : it really depends. For dramatic cases like this 2mil asset valued at 5mil, it would be quite an opportunity lost if you dun monetize it. Such dramatic appreciation was due to someting else non organic. However for a small appreciation say a few hundred k, the valuation at down time can drop a lot even without any real transaction to benchmark. To take out this few hundred k and leverage out will be risky.

[focus]

risks s low in good times but not during times of uncertainty. This is over-leveraging. Did you ask them what will happen if market corrects 20% with the 5-6 million properties?

Can't be bothered with them
I just like attending all these foc seminars.
Seminar junkie.

[DC33_2008]

Quite a bit of Senior agents are doing this before the CMs. Some of these foc seminars should be audited by CEA. Lots of overselling. .

Can't be bothered with them
I just like attending all these foc seminars.
Seminar junkie.

[AK47]

I sold mine, in 2010 and 2011. Last few transacted prices for similar units about 30% higher. Property prices has indeed gone higher. I sold thinking that prices would stay flat or go down. I was wrong. Now I am unable to buy what I have sold at the same or lower price.

If you include the rental lost and losing. It will be even more substantial.

[Komo]

good time to reflect on some history?
1 semi-D + 1 cluster house = 1 flat and $700k loss

By Melissa Tan

IN 1995, Mr Zachary Tsai (not his real name) paid nearly $1.3 million for a second house. A general manager with a manufacturing company in his early 40s, he earned a five-figure salary and lived in a semi-detached house he owned in Upper East Coast with his wife and four children.

But pressured by his 'rich and successful' friends, he decided to pool his hard-earned savings of $300,000 with his sister to put down a deposit on a three-storey cluster house in Kew Gate, a 31-unit leasehold development in the Upper East Coast area.


Intending to sell it about 10 years later, and confident of being able to repay the mortgage and make a handsome profit, he took out a 90 per cent bank loan.

Any thought that he would lose his job and house prices would drop like a stone never occurred to him. But the unthinkable became an unpleasant reality.

In 2001, after his employer merged with another company, he lost his job.

He managed to cover monthly payments on the loan with the remnants of his savings, but that did not leave much for his family.

Desperate to make ends meet, he tried to sell the cluster house in which his sister and mother had been living, but for two long years was unable to do it.

Although he managed to secure a new job in 2003, his salary barely covered the monthly payments. Then the Sars crisis hit and property prices plunged further, recalls Mr Tsai, who is now an operational manager in his late 50s. He eventually disposed of the house at a bank foreclosure sale in 2003 for $680,000 - almost half of the original value and $300,000 below valuation. In total, he lost about $700,000 on the house.

The Tsais, who had to sell their semi-detached home to pay off the debt, now own and live in a five-room HDB flat - also in the Upper East Coast area - bought with Mr Tsai's Central Provident Fund savings. 'I've dreamed of owning private property again and going back to a semi-D. But next time I'm not going to think twice - I'm going to think three or four times,' Mr Tsai says.

Home owner M.K. Kung, 42, has also been hit by shrinking values.

She purchased a two-bedder at Yio Chu Kang condo Seasons Park in 1996 with her husband for about $700,000. They are still living there with their child, but she reckons the apartment is now worth only $650,000 or less.

'We have been thinking of upgrading, but it's not easy to sell something when you know you're going to make a loss on it,' says the public accounting executive.

Mr Tsai and Mrs Kung - along with thousands of others - had bought into what PropNex chief executive officer Mohamed Ismail terms 'the myth that prices would only keep going up'.

'Prior to that we had little experience of prices being crushed. Queueing up for two, three days was common, and queue spots were changing hands for $15,000 to $30,000,' he says. Some property analysts draw parallels with the upbeat market we have today, but are keen to point out differences between the last property crash and today's situation.

DTZ's head of South-east Asia research Chua Chor Hoon says: 'The market right now is reminiscent of 1996 in atmosphere with the queues, the packed showrooms and good take-up rates for popular projects.

'But the level of speculation now has not reached the feverish state seen in 1996 and it's still too early to tell whether it will turn out the same way.''

Dr Chua Yang Liang, head of Southeast Asia research at Jones Lang LaSalle, agrees: 'It seems that there is a market euphoria that is quite similar to that in 1996...but the market fundamentals are quite different.'

What may cut the danger of another crash is the fact that properties in many areas are still worth less than at the time of their launch, while others have made only relatively small gains. Prices still have a lot of catching up to do, just to make up for inflation over the years.

Recent transaction data from the Urban Redevelopment Authority website shows that suburban properties launched in 1996 lost more value over the past 13 years than those in prime districts, some of which have actually risen in value.

Prices at Seasons Park, where Mrs Kung lives, have fallen from $610-$670 per sq ft (psf) at launch to around $520 psf now. And Hougang Green units now fetch around $520 psf, down from their average launch price of $560 psf.

At Ardmore Park in Orchard, however, the 2,885 sq ft apartments, launched at an average of $1,850 psf in 1996, have been selling for $1,976-$2,513 psf since August last year.

'The average price of resale leasehold suburban properties in the second quarter of this year was about a quarter below that in the second quarter of 1996; whereas the average price of resale freehold properties in prime districts in the second quarter of this year was about 5 to 10 per cent above that in the second quarter of 1996,' Ms Chua points out.

Ms Tay Huey Ying, director for research and consultancy at Colliers International, explains: 'Prime district prices recovered in the property boom of 2007 but the mass market recovery came later and was short-lived due to the United States sub-prime mortgage crisis.'

Current launches in suburban areas, such as Optima in Tanah Merah and Centro Residences in Ang Mo Kio, have sold for about $810 psf and around $1,170 psf respectively, on average. These are record prices in their districts.

Asked whether such new launches are overvalued, Dr Chua says: 'It's hard to tell now. There are no signs pointing to a major correction...but I don't think the current rate of price increase is sustainable if it is not supported by economic growth.'

This article was first published in The Straits Times.

[CondoWE]

Seasons Park & Hougang Green per sqft is around 700-900 since when it's lower than 5xx ?

When was this article posted?

[danntbt]

good time to reflect on some history?
1 semi-D + 1 cluster house = 1 flat and $700k loss

By Melissa Tan

IN 1995, Mr Zachary Tsai (not his real name) paid nearly $1.3 million for a second house. A general manager with a manufacturing company in his early 40s, he earned a five-figure salary and lived in a semi-detached house he owned in Upper East Coast with his wife and four children.

But pressured by his 'rich and successful' friends, he decided to pool his hard-earned savings of $300,000 with his sister to put down a deposit on a three-storey cluster house in Kew Gate, a 31-unit leasehold development in the Upper East Coast area.


Intending to sell it about 10 years later, and confident of being able to repay the mortgage and make a handsome profit, he took out a 90 per cent bank loan.

Any thought that he would lose his job and house prices would drop like a stone never occurred to him. But the unthinkable became an unpleasant reality.

In 2001, after his employer merged with another company, he lost his job.

He managed to cover monthly payments on the loan with the remnants of his savings, but that did not leave much for his family.

Desperate to make ends meet, he tried to sell the cluster house in which his sister and mother had been living, but for two long years was unable to do it.

Although he managed to secure a new job in 2003, his salary barely covered the monthly payments. Then the Sars crisis hit and property prices plunged further, recalls Mr Tsai, who is now an operational manager in his late 50s. He eventually disposed of the house at a bank foreclosure sale in 2003 for $680,000 - almost half of the original value and $300,000 below valuation. In total, he lost about $700,000 on the house.

The Tsais, who had to sell their semi-detached home to pay off the debt, now own and live in a five-room HDB flat - also in the Upper East Coast area - bought with Mr Tsai's Central Provident Fund savings. 'I've dreamed of owning private property again and going back to a semi-D. But next time I'm not going to think twice - I'm going to think three or four times,' Mr Tsai says.

Home owner M.K. Kung, 42, has also been hit by shrinking values.

She purchased a two-bedder at Yio Chu Kang condo Seasons Park in 1996 with her husband for about $700,000. They are still living there with their child, but she reckons the apartment is now worth only $650,000 or less.

'We have been thinking of upgrading, but it's not easy to sell something when you know you're going to make a loss on it,' says the public accounting executive.

Mr Tsai and Mrs Kung - along with thousands of others - had bought into what PropNex chief executive officer Mohamed Ismail terms 'the myth that prices would only keep going up'.

'Prior to that we had little experience of prices being crushed. Queueing up for two, three days was common, and queue spots were changing hands for $15,000 to $30,000,' he says. Some property analysts draw parallels with the upbeat market we have today, but are keen to point out differences between the last property crash and today's situation.

DTZ's head of South-east Asia research Chua Chor Hoon says: 'The market right now is reminiscent of 1996 in atmosphere with the queues, the packed showrooms and good take-up rates for popular projects.

'But the level of speculation now has not reached the feverish state seen in 1996 and it's still too early to tell whether it will turn out the same way.''

Dr Chua Yang Liang, head of Southeast Asia research at Jones Lang LaSalle, agrees: 'It seems that there is a market euphoria that is quite similar to that in 1996...but the market fundamentals are quite different.'

What may cut the danger of another crash is the fact that properties in many areas are still worth less than at the time of their launch, while others have made only relatively small gains. Prices still have a lot of catching up to do, just to make up for inflation over the years.

Recent transaction data from the Urban Redevelopment Authority website shows that suburban properties launched in 1996 lost more value over the past 13 years than those in prime districts, some of which have actually risen in value.

Prices at Seasons Park, where Mrs Kung lives, have fallen from $610-$670 per sq ft (psf) at launch to around $520 psf now. And Hougang Green units now fetch around $520 psf, down from their average launch price of $560 psf.

At Ardmore Park in Orchard, however, the 2,885 sq ft apartments, launched at an average of $1,850 psf in 1996, have been selling for $1,976-$2,513 psf since August last year.

'The average price of resale leasehold suburban properties in the second quarter of this year was about a quarter below that in the second quarter of 1996; whereas the average price of resale freehold properties in prime districts in the second quarter of this year was about 5 to 10 per cent above that in the second quarter of 1996,' Ms Chua points out.

Ms Tay Huey Ying, director for research and consultancy at Colliers International, explains: 'Prime district prices recovered in the property boom of 2007 but the mass market recovery came later and was short-lived due to the United States sub-prime mortgage crisis.'

Current launches in suburban areas, such as Optima in Tanah Merah and Centro Residences in Ang Mo Kio, have sold for about $810 psf and around $1,170 psf respectively, on average. These are record prices in their districts.

Asked whether such new launches are overvalued, Dr Chua says: 'It's hard to tell now. There are no signs pointing to a major correction...but I don't think the current rate of price increase is sustainable if it is not supported by economic growth.'

This article was first published in The Straits Times.

Who is this Melissa Tan anyway? Has she checked the URA data to verify the 'Mrs Kung' claim that Season Park is worth only $610-$670psf? None on the URA site show anything below $720psf except for 1 or two in the last 12 months, with recent transaction from $770-$800+....ST journalist or ST Fictional Novelist?

Anyway check here:
http://www.squarefoot.com.sg/trends-...p=seasons-park

only those sold before 2011 made a lost....

[danntbt]

....and Hougang Green at$520 psf????

http://www.squarefoot.com.sg/trends-...=hougang-green


.....in reality: INDICATIVE PRICE RANGE / AVERAGE*
$675 - $745 PSF / $698 PSF

or did KOMO rugged out some really old articles fro pre-2011?

[danntbt]

...my apologies to Melissa Tan....just realised her article was in property guru dated Aug 2009....some blur sotong, probably trying hard to find negative news....got some stale news......or was not clear in expressing his intention that the market do crash in the past.

[DC33_2008]

Things to learn from this old article: property is bought to be kept; never over leverage; and need to have holding power.

[carbuncle]

and never bite off more than you can chew much less be influenced by show off friends

[phantom_opera]

and never bite off more than you can chew much less be influenced by show off friends

I like your honesty unlike some ppl boasting about 500k income yet tcss in this forum

[carbuncle]

thanks bro I am honest and can tcss in this forum becoz I have no income ha ha ha

nothing to lose when you have nothing...

[phantom_opera]

thanks bro I am honest and can tcss in this forum becoz I have no income ha ha ha

nothing to lose when you have nothing...

rental income from mm also income what, but guess cap appreciation is what all of us are after

[CondoWE]

I like your honesty unlike some ppl boasting about 500k income yet tcss in this forum

500K/mth..... !

[CP5211]

i have 7 properties, 1 self stay, 1 BUC, the other 5 all rented out.

agents have been asking me to sell but i don't see the need to because i am still young and selling is not really my exit strategy at this point in time. i did a simulation and i think i can still survive if i can simply rent 2 out of the 5 units. my properties are for passive income.

i am currently looking at some resales in D15 near to ERL or River Valley area. but thus far the prices i must say are not very convincing because I will have to put 40% downpayment CASH. currently i am exploiting the volatile markets to get ready the cash by sept and i will prob make a purchase in Sept/Oct when the transactions go down.

for those who want to wait, i would say 2013 is a better time to buy when all the Dragon leaves.

Hi Eastboy, I am looking at D15 for investment also. Since the exact location of ERL stations are not annoucned yet, care to share how u decide which projects to buy? Thank you

[CP5211]

I bought 8riversuites

Price is high indeed but there are lots of people with cash waiting at the sideline to come in.

Price may go up - good

Price go down - feeling is no good but no problem, i have holding power

Hi Hovivi, congrats on your purchase.
Assuming one has holding power, say 10~15 years and buy a new LH 99 pc near MRT now. say something went wrong (touch wood) and property prices go down and pick up again in 10 years time. Would this LH property be less attractive compared to new launches 10 years later. Just to borrow a post from ikan billis saying new launches are more expensive than older condos:
http://forums.condosingapore.com/sho...t=14560&page=3

[eng81157]

sold one at good price and bought another, also at a good price , within a week. have to hedge against inflation lah

[30years]

I also afraid of inflation, so last year I bought one acre of farmland and then another acre after that and then one more acre. About SGD 30K per acre. Can rent out for 5% yield. Of course not in Singapore. Paid cash, cannot take loan.

[phantom_opera]

I also afraid of inflation, so last year I bought one acre of farmland and then another acre after that and then one more acre. About SGD 30K per acre. Can rent out for 5% yield. Of course not in Singapore. Paid cash, cannot take loan.

30k per acre? that is about 70k RM ...in Malaysia? what is on the farm, oil palm?

[radha08]

30k per acre? that is about 70k RM ...in Malaysia? what is on the farm, oil palm?

thailand...chicken farm...

[phantom_opera]

Apartment rentals in Jakarta rise 14.6% in Q2

[JAKARTA] Apartment rental rates for Jakarta in the second quarter of the year increased by 14.61 per cent to US$18.23 per square metre on a yearly basis following strong demand from expatriates, local media reported yesterday.

[radha08]

Apartment rentals in Jakarta rise 14.6% in Q2

[JAKARTA] Apartment rental rates for Jakarta in the second quarter of the year increased by 14.61 per cent to US$18.23 per square metre on a yearly basis following strong demand from expatriates, local media reported yesterday.

try posting that in mr b's thread...

[phantom_opera]

据报道，7月卡塔尔总理阿勒萨尼曾看中纽约一套价值一亿美元（约6.35亿元人民币）、面积为10923平方英尺（约1015平方米）的豪宅。但他最终未买这套房子，是因为他认为，大厦内的两部电梯并不够他的两个妻子、15个孩子以及他的随从及贴身侍卫使用

http://money.163.com/photoview/50ST0...LQ27NH50ST0025

He (Qatar PM) liked the NYC apartment but did not buy this NYC apartment because 2 private lifts not enough for his 2 wives, 15 children and guards

[Vincegoh]

据报道，7月卡塔尔总理阿勒萨尼曾看中纽约一套价值一亿美元（约6.35亿元人民币）、面积为10923平方英尺（约1015平方米）的豪宅。但他最终未买这套房子，是因为他认为，大厦内的两部电梯并不够他的两个妻子、15个孩子以及他的随从及贴身侍卫使用

http://money.163.com/photoview/50ST0...LQ27NH50ST0025

He (Qatar PM) liked the NYC apartment but did not buy this NYC apartment because 2 private lifts not enough for his 2 wives, 15 children and guards

Qatar PM got oil well in his house issit. 100mil cheap cheap to him..

[30years]

30k per acre? that is about 70k RM ...in Malaysia? what is on the farm, oil palm?

Rice. Not in Malaysia. Cannot reveal too much. I also afraid IRAS come after me.