Singapore takes new steps to cool housing market

[ysyap]

Cool market is short term. Real intention is to force people to marry younger (hopefully have children younger) and get their BTO flat early so that can upgrade to condo before 35 yo. Hahaha...

Intentions not very apparent leh! It is to tell UOB to sleep with their 50yr tenure... Lol!

[4wheels]

This is from MAS web site @ http://www.mas.gov.sg/News-and-Publi...roperties.aspx



This one is clear. Both Individual and non-individual borrowers cannot loan more than 35 years.



See if my understanding is correct.....

Individuals taking loan > 30 years can only loan 60% for 1st property and 40% of 2nd property.

Individuals taking loan extends beyond the retirement age of 65 year can only loan 60% for 1st property and 40% of 2nd property.

Individuals taking loan < 30 years can still loan 80% for 1st property and 60% of 2nd property.

Individuals taking loan that DOES NOT extends beyond the retirement age of 65 year can still loan 80% for 1st property and 60% of 2nd property.



This one I don't get it. This one seems to apply to non-individual borrower? Does non-individual borrower means >= 2 buyers or names for 1 property? Can someone explain this?

bro, how was this derive from? Pai Seh, I am a bit slow on this.

[CP5211]

Hello, need some advice.

I bought a unit at Kovan Regency for about $1.25 million last Sat for investment
LTV @ 60%, loan tenure 30 years. Have not sign S&P yet.
Seems like market foresee prices to soften.
Should I forfeit my 1.25% booking fee and buy later?
If I buy later, my LTV is still 60% but loan tenure 25 years (rental may not be able to cover mortgage installment but I am fine to top up using savings)

Would appreciate any advice! Thank you

[Ringo33]

If you guys can recall sometime back I posted this thread. Was glad that I decided to pay the 3% absd instead of waiting. This is the 2nd time I escape the ltv revision Liao. Last time was in early jan 2011. Must go temple later.

http://www.condosingapore.com/forums...ad.php?t=13696

[hyenergix]

If you guys can recall sometime back I posted this thread. Was glad that I decided to pay the 3% absd instead of waiting. This is the 2nd time I escape the ltv revision Liao. Last time was in early jan 2011. Must go temple later.

http://www.condosingapore.com/forums...ad.php?t=13696

The bar to own a pte condo is just raised. Congrats.

ECs should be enjoying a bit more interest now.

[Ringo33]

Hello, need some advice.

I bought a unit at Kovan Regency for about $1.25 million last Sat for investment
LTV @ 60%, loan tenure 30 years. Have not sign S&P yet.
Seems like market foresee prices to soften.
Should I forfeit my 1.25% booking fee and buy later?
If I buy later, my LTV is still 60% but loan tenure 25 years (rental may not be able to cover mortgage installment but I am fine to top up using savings)

Would appreciate any advice! Thank you

For investment you shoud take advantage of the 30years loan to gnerate some cash flow. Preferable take up a loan package where you could afford not to refinance. If you wait there is no guarantee that price will come down or no further cooling measures for investment property.

[UltimateAro888]

800K loan, 17yrs, 1.5%.... S$4445/month...

960K loan, 17yrs, 1.5%.... S$5334/month...

Maybe that will push up rental too????

[UltimateAro888]

siao liao....this measure is going to make youngsters cheong for ppty because if they wait and grow older, the restrictions will apply.

The threshold seems to be 35 yrs old:

Best case scenario is 35 yrs, take a 30 yr loan (with no o/s loan) then can still get 80% right? because the restrictive LTV of 40%/60% applies only if tenure of loan is >30 yrs.

Of coz, if you are old man and cash rich, then no worries.

Maybe a sudden surge buy for age grp 34-35??? Otherwise they will miss the boat to get higher loan quantum......

[Laguna]

In fact, this CM hit very hard on
1. those who want to equity term loans, as most of these people are older
2. those in their 40s+ and 50s+, and want to buy second property.

The latest round of the heat in market, quite a high number should be in their 40s, so hit.

But I am surprised that no CM for commercial and industrial

[Laguna]

Hello, need some advice.

I bought a unit at Kovan Regency for about $1.25 million last Sat for investment
LTV @ 60%, loan tenure 30 years. Have not sign S&P yet.
Seems like market foresee prices to soften.
Should I forfeit my 1.25% booking fee and buy later?
If I buy later, my LTV is still 60% but loan tenure 25 years (rental may not be able to cover mortgage installment but I am fine to top up using savings)

Would appreciate any advice! Thank you

You are half-hearted.The fundamental question you need to ask yourself is whether you like the unit or not.
If don't like, gone the $15,000+
If like, then just keep it...and don't think further
Who know the unknown?

[UltimateAro888]

Maybe a sudden surge buy for age grp 34-35??? Otherwise they will miss the boat to get higher loan quantum......

Maybe long queue at property launched this weekend fuel by buyer 35 year old in coming birthday....

[UltimateAro888]

Maybe that will push up rental too????

making revenue from rental then limit to super rich.. rich get richer..

Lesser people can afforf to buy and rent..hence less available unit for rent... drive rental up..

[hyenergix]

In fact, this CM hit very hard on
1. those who want to equity term loans, as most of these people are older
2. those in their 40s+ and 50s+, and want to buy second property.

The latest round of the heat in market, quite a high number should be in their 40s, so hit.

But I am surprised that no CM for commercial and industrial

If a person is more than 40 years old, will the bank allow more than 30 years loan period? I thought it will hit those in their 30s most.

[hovivi]

Am I the only one that think that impact would be muted over the longer term?

Most sensible people would not stretch loan to more than 65 years anyway

It's more physiological and weeding out those risk takers that couldn't afford in the first place with unreasonable risk tenure

[Super]

bro, how was this derive from? Pai Seh, I am a bit slow on this.

That's how I read the MAS doc. It said greater than 30 years then 60% for 1st property and 40% for second. I assume less than 30 years then should be the same as today aka 80% for 1st property and 60% for second. I might be wrong.

[UltimateAro888]

If you guys can recall sometime back I posted this thread. Was glad that I decided to pay the 3% absd instead of waiting. This is the 2nd time I escape the ltv revision Liao. Last time was in early jan 2011. Must go temple later.

http://www.condosingapore.com/forums...ad.php?t=13696

Morale of story: never wait Otherwise miss the boat again and again.. last ship sampan also must sail.... never know whether the port will be there the next day for u to board..

[Laguna]

If a person is more than 40 years old, will the bank allow more than 30 years loan period? I thought it will hit those in their 30s most.

Yes, there are couple of banks, the loan can go up to 75 years old.

[Kanarazu]

Am I the only one that think that impact would be muted over the longer term?

Most sensible people would not stretch loan to more than 65 years anyway

It's more physiological and weeding out those risk takers that couldn't afford in the first place with unreasonable risk tenure

Tv news said that average loan tenure is 29 years. Am surprised, that's rather high isn't it.

[Kanarazu]

Cool market is short term. Real intention is to force people to marry younger (hopefully have children younger) and get their BTO flat early so that can upgrade to condo before 35 yo. Hahaha...

Since this new rule is pegged to the retirement age, now govt cannot suka suka raise retirement age...

[hyenergix]

Yes, there are couple of banks, the loan can go up to 75 years old.

The banks must have done their due diligence to agree lending out to these buyers. I believe these buyers are mostly long-term investors with their 2nd/3rd properties. MAS may be hitting the wrong group and inevitably prevent upgraders in their 30s from owning a pte condo.

The right group to hit should be the commercial and industry properties investors as they are the ones responsible for raising rentals and inflation. This is a very poor move by the government.

[radha08]

Since this new rule is pegged to the retirement age, now govt cannot suka suka raise retirement age...

bro outstanding you think like a world class opposition party leader...

[DC33_2008]

Eco/KR Not affected if buyers signthe OTP beofre 6 oct 2012. Properties launch this weekend onwards will be badly affected Rich will be richer.

They forget to say about joint borrowers, what I suspect is the strictest apply ... e.g. you are 40y old your wife 30y old, then the stricter rule will apply to the 40y old



The rich can still buy don't worry. This effectively only lower the leverage for them and kill those borderline buyers.

Jialat, lots of return units for ECO/KR as many have not secure a loan

[Kanarazu]

such a phenomenal news, bro kana only play English? wheres my chinese one..

Since you ask... Here it is:

"The return of the 借貸＂

[Ringo33]

Morale of story: never wait Otherwise miss the boat again and again.. last ship sampan also must sail.... never know whether the port will be there the next day for u to board..

morale of the story is, think long term, stick to your investment plan, and build your network of bankers and property agents to feed you information.

[Laguna]

MAS may be hitting the wrong group and inevitably prevent upgraders in their 30s from owning a pte condo.

The right group to hit should be the commercial and industry properties investors as they are the ones responsible for raising rentals and inflation. This is a very poor move by the government.

Yes, I FULLY agreed with you on this. Economy as a whole, shall bring down the cost of business and thus inflation.

I think, lots of 30s and 40s are going to be very unhappy, it is very difficult for them to save the additional 20%.

[zeamybro]

Hello, need some advice.

I bought a unit at Kovan Regency for about $1.25 million last Sat for investment
LTV @ 60%, loan tenure 30 years. Have not sign S&P yet.
Seems like market foresee prices to soften.
Should I forfeit my 1.25% booking fee and buy later?
If I buy later, my LTV is still 60% but loan tenure 25 years (rental may not be able to cover mortgage installment but I am fine to top up using savings)

Would appreciate any advice! Thank you

There is no certainty that prices will be softened, but one thing certained is that your loan tenure would be reduced by 5 yrs.

After this new cm, unlikely there will be many more new launches sprouting up in the near future. If u give up yr KR now, do u foresee any other projects/sites which u might be keen?

[Ringo33]

Yes, I FULLY agreed with you on this. Economy as a whole, shall bring down the cost of business and thus inflation.

I think, lots of 30s and 40s are going to be very unhappy, it is very difficult for them to save the additional 20%.

with this new policy, it will be very difficult to generate passive income from property liao.

[avo7007]

But I am surprised that no CM for commercial and industrial

I think this will come eventually. It's very frothy at the moment.

[radha08]

Yes, I FULLY agreed with you on this. Economy as a whole, shall bring down the cost of business and thus inflation.

I think, lots of 30s and 40s are going to be very unhappy, it is very difficult for them to save the additional 20%.

i great "MAN" once said...."contentment is priceless"...

[radha08]

with this new policy, it will be very difficult to generate passive income from property liao.

why if i am a multi millionare with hordes of cash like my ex-landlord why not....heard he owns a few properties fully paid....shake leg collect tens of thousands rental every month....