Search For Dream Home Turns Into Nightmare

[yoongf 11]

8k should be possible to grant the loan. 2k short is alot.

Think 8K also a long shot for 90% loan.

Assume 90% loan of 675K = $607.5K

90% loan Int Rate say.. 4% = $2.025K a month

Principal repayment = 30 yrs = $1.68K a month

% of income = $3.71K/$8K = 46%

While many ppl got undeclared assets and income, end of the day.. the loan officer still must demonstrate standard calculations on declared figures.

[phoenix 0]

Understand that guy is a director of his own firm, he maybe declare less earning but in actual fact he is getting more.

if thats the case... then IRAS will come knocking on his door sooner or later. i doubt its a case of undeclaring income lah. coz in the 1st place, if income very big, probably means a lot of cash savings and have the ability to place a larger downpayment, so why wanna take out 90% loan.

aiya, anyways, nowadays, everyone also can be 'director'... juz go ROC, register a company, print namecard and put the designation 'director' under the name... then viola! become 'director' liao. kekeke...

what kind of director have such poor financial planning?

how did this case made it to the news? if the couple made a complain thinking that the media will help them, they might be so wrong.

there are so many other stuff to plan and think about besides juz purchasing an expensive flat/condo. say...if their loan went thru, whats next? hse no need to do reno ah? so take reno loan? no need to purchase furnishings?? oh... nevermind, got a few CC can max them out. all these are also heavy expenses. how about monthly expenses like bills and such...and car loan if any?? money related issues/problems is 1 of the top causes for breaking up a marriage.

if in the future one or both of them loses their job, get pay cut, dunno what will happen. at the end of the day... its the parents/relatives that will suffer. coz at that time, they will have to borrow more $ again, $ that they would probably have difficulty repaying.

in the news it says hdb only willing to loan 150K. and the banks they approached only willing to loan them abt 60%. i'm certain they did credit assessment of the couple before lah...and probably found some bad credit history.

Edited May 23, 2008 by phoenix

[phoenix 0]

the problem here i believe is not whether their combine income is 6K or 8K. But the issue hdb and banks are concerned with is that they wanna take out a 90% loan. 90% loan are not granted automatically i believe and is granted only in special cases on case to case basis.

moreover, when u're doing your own business, your risks are higher. 90% of businesses do not make it, especially if its a young business of less then 3 yrs. even successful businesses take an avg of 2 yrs to breakeven. then whats worst is the gf is now working in his company. if touchwood, his company goes down, means both will be outta job.

i think they cannot fault hdb or the banks for not wanting to loan them. coz if its the other way around, will they wanna take this type of risks?

[MaCe 3]

i own a company also - I multitask as the chairman, director, GM, Regional Sales Director, HUman resource director, office cleaner, despatch rider ...bla bla bla

[Assassin 0]

Haha serve him right. I know this guy. Fifi, his service office business is actually at our previous work place area We rented office space from him but he increased the rental this year and we decided not to renew and shift out I understand the reason why he chose Boon Keng is because its nearby his business what

What cantona said its true. He definitely under report his income so there is no reason to pity him at all.

[Fifi 0]

Haha serve him right. I know this guy. Fifi, his service office business is actually at our previous work place area We rented office space from him but he increased the rental this year and we decided not to renew and shift out I understand the reason why he chose Boon Keng is because its nearby his business what

What cantona said its true. He definitely under report his income so there is no reason to pity him at all.

wow!! world so small!

so actually his business is quite good??

then what's the need to complain?

[chronograph 0]

A director?

A director needs to borrow 33k from relatives for option fee and needs to take 90% loan? No bank is willing to loan a director 600k, at most only 400k? What kind of director is he??

It is purely a case of "not so big head want to wear a hat bigger than his head".

[Assassin 0]

wow!! world so small!

so actually his business is quite good??

then what's the need to complain?

Business good or not I dont know. When I 1st knew him He was providing internet services to office users and then after that move on to service office business. Actually is not difficult to start such business. Just rent one big raw unit from the original landlord, cut them into different sizes for office purposes,

do some renovation and can start subletting out. But the start up cost is high. But I assume he did borrowed from bank to do that.

chronograph, what he said to the press may not be true. Even if it is, it is common for them to borrow money from bank or anyone to roll more money. Moreover any sole proprietor can give himself the title director very easily for any business. It does not mean director=rich and powerful

[chronograph 0]

chronograph, what he said to the press may not be true. Even if it is, it is common for them to borrow money from bank or anyone to roll more money. Moreover any sole proprietor can give himself the title director very easily for any business. It does not mean director=rich and powerful

Agreed.

8k is a good lesson for this director.

[raincole 0]

I tot the penalty involved is a lot of $$ since this case made to the newspaper.

[TYM 0]

Agreed.

8k is a good lesson for this director.

8k is an expensive lesson.

[chronograph 0]

8k is an expensive lesson.

Expensive meh??? No, No, a "director" can well afford 8k.

[yokine9a 1]

Expensive meh??? No, No, a "director" can well afford 8k.

Cannot say this, a company's chairman like brother MaCe also says $$ not enough

Anyway, that director is probably not as poor as we thought initially, since he owns a company and also collects office rent from tenants.

[Phantom 1]

Think 8K also a long shot for 90% loan.

Assume 90% loan of 675K = $607.5K

90% loan Int Rate say.. 4% = $2.025K a month

Principal repayment = 30 yrs = $1.68K a month

% of income = $3.71K/$8K = 46%

While many ppl got undeclared assets and income, end of the day.. the loan officer still must demonstrate standard calculations on declared figures.

Assuming both applicants 30years old

Earning $4,000 Gross Monthly Salary.

Monthly CPF OA = $920.05

90% Loan of 675k = $607,500

Monthly Repayment @ 4.5%p.a. for 30 years = $3,078.11

$3,078.11/$8,000

=38.5% (as long as below 51%. should be approved)

Pass - definately no longshot.

(Assuming there are NO other commitments)

Edited May 29, 2008 by Phantom

[JCase 0]

Wah, 6K combined income buying 600K flat!!

Expensive houses like those in Boon Keng are not really meant for first owner who has no current flat to offset the diff.

Silly decision... Truly speaking, they are not alone... I have a colleague, not sure abt his combined income with the wife, currently living in a 4-room flat, planning to upgrade themselves to private condo liao.

All these people think that buying a house is an investment, can sell good price later...

It is a good investment provided you bought at at the right price. Let go also then what? Most likely have to downgrade.

Assuming both applicants 30years old

Earning $4,000 Gross Monthly Salary.

Monthly CPF OA = $920.05

90% Loan of 675k = $607,500

Monthly Repayment @ 4.5%p.a. for 30 years = $3,078.11

$3,078.11/$8,000

=38.5% (as long as below 51%. should be approved)

Pass - definately no longshot.

(Assuming there are NO other commitments)

Agree but I think that's cutting it very thin especially with volatile economy. Doesn't leave much for semi-comfortable retirement.