New Flats' Prices Increase By 30%

[vicenzo70 0]

PRICES are driven by market forces. A seller can set high prices, but if there are no takers, then.. no deal. No one force buyers to accept the high price. It is optimistic/speculative buyers who drive the prices up.

The market forces of resale properties are driven up by RICH PRs. Its a lose-lose situation for Sporeans. They cannot afford resale units coz the COV is exorbitant. If they want new flats from HDB, they have to wait it out.

The winners in this situation are prop agents, the sellers & the govt.

Vince

[raincole 0]

Those who gotten new HDB flats are also winners cos when they sell their flat in the mkt, they gained.

[Ptro 0]

Those who gotten new HDB flats are also winners cos when they sell their flat in the mkt, they gained.

True only if they downgrade to a housing which is of a lower price then their selling price. Like what TYM said earlier,

sell high, buy higher, unless downgrade or change location. Only profit on paper

This profit will most probably never materialise into cash flow.

Cheers,

Ptro

[gohkm 1]

The market forces of resale properties are driven up by RICH PRs. Its a lose-lose situation for Sporeans. They cannot afford resale units coz the COV is exorbitant. If they want new flats from HDB, they have to wait it out.

The winners in this situation are prop agents, the sellers & the govt.

Vince

Hi Vicenzo70,

U summarize very correctly..........allow me to expand abit......

I feel only 3 types of people should buy new/ resale flat in today property market. The 3 types are:

1.) Those enbloc people....no matter how high new/resale flat are they can still buy...... cos they got deep pockets after the enbloc money comes in.......

2.) Those people who already owned a first flat. Sell that first flat and sell high too. So buy high price new/resale flat also not much pain........of cos u sell high, u will expect to buy high too.......

3.) Those rich people or those very high income people..........where $100,000 to 1 million are just shillings to them.......

If you dont belong to the above 3 categories and wish to buy a new/ resale flat.....allow me to advice alittle further.......go stay wif your parents....it cannot, rent a place to stay in............wait for the property game to cool down then go in........buying such expensive new/ resale flat in today property market will put you in financial stress..........

Above is just my personal opinion.............do correct me if i am wrong

Rgds,

James

[tatlee 0]

if really need a flat urgently, just get a small 3-4rm resale first. next time then upgrade.

cannot afford then adjust expectations.

[Brainstorm 0]

if really need a flat urgently, just get a small 3-4rm resale first. next time then upgrade.

cannot afford then adjust expectations.

Yap... I started off with resale 3 room too, pay a little on COV... but get HDB loan (low interest), take HDB grant, reduce the loan amount to the lowest. With both partners working, very likely can pay up the loan in ~5years, plus minus a year or two, depending on your income. This will prevent you from paying too much interest (for a $240k loan over 30 years, every month pay $1k installment. Of which $500 will go to interest and the other $500 for the loan...so don't get suck in!). After 5 years, your carreer more stable, have deeper pockets, then sell the 3 room and upgrade to 5 room or EA at a cheaper location. Just need to loan around $50-80k, very fast pay up, ~2years. (Total 7 years loan) Much better then if you start off with a big house and pay for 30 years.... die..... Just my 2 cents. Cheers.

[zirhk3355 1]

Yap... I started off with resale 3 room too, pay a little on COV... but get HDB loan (low interest), take HDB grant, reduce the loan amount to the lowest. With both partners working, very likely can pay up the loan in ~5years, plus minus a year or two, depending on your income. This will prevent you from paying too much interest (for a $240k loan over 30 years, every month pay $1k installment. Of which $500 will go to interest and the other $500 for the loan...so don't get suck in!). After 5 years, your carreer more stable, have deeper pockets, then sell the 3 room and upgrade to 5 room or EA at a cheaper location. Just need to loan around $50-80k, very fast pay up, ~2years. (Total 7 years loan) Much better then if you start off with a big house and pay for 30 years.... die..... Just my 2 cents. Cheers.

Provided you had bought the 3-rm for very low and managed to sell at very high?

[alister 0]

Yap... I started off with resale 3 room too, pay a little on COV... but get HDB loan (low interest), take HDB grant, reduce the loan amount to the lowest. With both partners working, very likely can pay up the loan in ~5years, plus minus a year or two, depending on your income. This will prevent you from paying too much interest (for a $240k loan over 30 years, every month pay $1k installment. Of which $500 will go to interest and the other $500 for the loan...so don't get suck in!). After 5 years, your carreer more stable, have deeper pockets, then sell the 3 room and upgrade to 5 room or EA at a cheaper location. Just need to loan around $50-80k, very fast pay up, ~2years. (Total 7 years loan) Much better then if you start off with a big house and pay for 30 years.... die..... Just my 2 cents. Cheers.

Allow me to share similar story.

I bought my 1st flat which is an announced SERS affected 3 room unit. Got a below mkt rate bank loan (interest lower than HDB 5 yrs ago) without paying COV. When the bank interest move up to HDB rate in yr 3, I paid up fully using CPF money.

Now just shifted to my new 4 room flat at fabulous location. Decide not to incur any interest, so paid up fully. Do u know that if u loan max amt @ max years, the interest u pay is roughly 40% ? The price I paid for the HDB flat has appreciated at least 40% compare to the current ballot pricing, and we are not talking abt resale price in future.

Back then, it was only my wife & me, so we bought 3 room flat. Now with 2 kids, the timing is just nice for us to shift to the 4 room flat.

Moral of the story - TIMING, location & LIVE WITHIN UR MEANS

New couples might want to consider this as one of their options

[jusnel 0]

Hi Vicenzo70,

U summarize very correctly..........allow me to expand abit......

I feel only 3 types of people should buy new/ resale flat in today property market. The 3 types are:

1.) Those enbloc people....no matter how high new/resale flat are they can still buy...... cos they got deep pockets after the enbloc money comes in.......

2.) Those people who already owned a first flat. Sell that first flat and sell high too. So buy high price new/resale flat also not much pain........of cos u sell high, u will expect to buy high too.......

3.) Those rich people or those very high income people..........where $100,000 to 1 million are just shillings to them.......

If you dont belong to the above 3 categories and wish to buy a new/ resale flat.....allow me to advice alittle further.......go stay wif your parents....it cannot, rent a place to stay in............wait for the property game to cool down then go in........buying such expensive new/ resale flat in today property market will put you in financial stress..........

Above is just my personal opinion.............do correct me if i am wrong

Rgds,

James

there are still cheap resale flats around.... just to look harder, than just depend on agents' hearsays.......

agents of course will tell you COVs all v high, coz its their bloody commission that they are after......

the truth is COVs are never so high...... only a few flats that appear in newspapers that really sold for high COVs........

the rest of flats in the market are affordable.

so dun get conned by agents.... First Rule of flat hunting

flat hunters have to hunt more than before and NEVER depend on agents...... they will only recommend you those high prices and high COVs.......

[raincole 0]

Allow me to share similar story.

I bought my 1st flat which is an announced SERS affected 3 room unit. Got a below mkt rate bank loan (interest lower than HDB 5 yrs ago) without paying COV. When the bank interest move up to HDB rate in yr 3, I paid up fully using CPF money.

Now just shifted to my new 4 room flat at fabulous location. Decide not to incur any interest, so paid up fully. Do u know that if u loan max amt @ max years, the interest u pay is roughly 40% ? The price I paid for the HDB flat has appreciated at least 40% compare to the current ballot pricing, and we are not talking abt resale price in future.

Back then, it was only my wife & me, so we bought 3 room flat. Now with 2 kids, the timing is just nice for us to shift to the 4 room flat.

Moral of the story - TIMING, location & LIVE WITHIN UR MEANS

New couples might want to consider this as one of their options

Agreed with you that should buy one that suit your financial means and not complaining xxxx all the time.

[zirhk3355 1]

there are still cheap resale flats around.... just to look harder, than just depend on agents' hearsays.......

agents of course will tell you COVs all v high, coz its their bloody commission that they are after......

the truth is COVs are never so high...... only a few flats that appear in newspapers that really sold for high COVs........

the rest of flats in the market are affordable.

so dun get conned by agents.... First Rule of flat hunting

flat hunters have to hunt more than before and NEVER depend on agents...... they will only recommend you those high prices and high COVs.......

Very true.

Check up the meaning of an "agent" - they are merely a facilitator of your property transactions. While they may act in your interest because you employ their services (and because you might refer business to them later), however the foremost objective is the commission. Anything that undermines that objective will be of secondary interest to them. Always remember that.

[alister 0]

Heard this storey abt an agent.

There's this seller who has an agent. He got a high offer from a buyer agent who is very interested. Seller agent decides not to take up the offer b'cos he dun want to co-broke.

Seller agent eventually sells the flat to a buyer at lower price b'cos he represents the buyer as their agent as well.

Moral - agent does not nec act in your interest

[Sam Lee Poh Huat 0]

Actually i wonder wld HDB reduce their selling price (which was peg with resale market) when there is a downturn. Like balloted now at a price n during collection of flat, say, in 2010 (assume downturn) with a reduced selling price pegged with resale market.

Edited April 25, 2008 by FD1976