Jts: Think Carefully Before Paying For High Cov

[lynd3ralla 0]

Jus to share with you guys.

I OTP on May 2010 for Pasir Ris 5room on 9th floor at $17k. Val of flat was 420k.

We took the risk of revaluating the flat after we paid the $5k deposit.

2 weeks later, the report came out 426k, Means I saved 6k on my COV

You can consider this action if you are pretty tight on cash. But I must warn you this is also a risk to take.

I am considered lucky. I wasn't expecting such a jump. But most agents told me definitely will go up onee.e...

[bepgof 20]

Jus to share with you guys.

I OTP on May 2010 for Pasir Ris 5room on 9th floor at $17k. Val of flat was 420k.

We took the risk of revaluating the flat after we paid the $5k deposit.

2 weeks later, the report came out 426k, Means I saved 6k on my COV

You can consider this action if you are pretty tight on cash. But I must warn you this is also a risk to take.

I am considered lucky. I wasn't expecting such a jump. But most agents told me definitely will go up onee.e...

This tactic enables you to loan 6K more, end of the day you still have to pay this 6K+interest right? Not to mention to pay the additional $180 for revaluation report. It seems "smart" right now, eventually you are spending future money & pay MORE to it.

Edited June 27, 2010 by bepgof

[forgotten 1]

This tactic enables you to loan 6K more, end of the day you still have to pay this 6K+interest right? Not to mention to pay the additional $180 for revaluation report. It seems "smart" right now, eventually you are spending future money & pay MORE to it.

Sometimes it's no choice for singaporeans who are cpf rich but cash poor.

There're so many people around me who paid for their grand weddings with parents' money, paid for their houses' COVs with parents' money, paid for renovation with bank loan and paid for furnishing with instalments. And they have no intent to repay the coffin money to their parents. *Shake head*

My hubby and I are those who rather depend on ourselves for everything. Parents need their savings for their retirements.

Edited June 27, 2010 by forgotten

[jeda 0]

There're so many people around me who paid for their grand weddings with parents' money, paid for their houses' COVs with parents' money, paid for renovation with bank loan and paid for furnishing with instalments. And they have no intent to repay the coffin money to their parents. *Shake head*

My hubby and I are those who rather depend on ourselves for everything. Parents need their savings for their retirements.

i agree *shake head*

[therat 18]

There're so many people around me who paid for their grand weddings with parents' money, paid for their houses' COVs with parents' money, paid for renovation with bank loan and paid for furnishing with instalments. And they have no intent to repay the coffin money to their parents. *Shake head*

Hockkien got a statement to descrip this kind of person

eat waste rice

[forgotten 1]

i agree *shake head*

Sharing one ridiculous case I have seen... They insisted on having a pretty grand wedding with 80-tables banquet and 10K photoshoot. Their parents gave them 20K but it wasn't enough. Weeks before their wedding, they posted on their blogs to ask their friends for DONATIONS.

Edited June 27, 2010 by forgotten

[therat 18]

wah liao

Either their face very BIG or their skin very thick.

So.. did their friend DONATE?

[forgotten 1]

wah liao

Either their face very BIG or their skin very thick.

So.. did their friend DONATE?

Heard a few donated

[blue_skies 3]

Jus to share with you guys.

I OTP on May 2010 for Pasir Ris 5room on 9th floor at $17k. Val of flat was 420k.

We took the risk of revaluating the flat after we paid the $5k deposit.

2 weeks later, the report came out 426k, Means I saved 6k on my COV

You can consider this action if you are pretty tight on cash. But I must warn you this is also a risk to take.

I am considered lucky. I wasn't expecting such a jump. But most agents told me definitely will go up onee.e...

Totally understand how you must have felt when your valuation report came out higher than expected. My husband and I were in your shoes 2 yrs ago when we bought our resale 5I. The valuation report was also expiring already so we had to do a new one for the bank loan anyway. The new valuation came out to be much higher than what the agent and us expected. It was the same price as the selling price so we paid $0 COV. Every last cent counts when you are tight on cash....

[mel77 1]

Totally understand how you must have felt when your valuation report came out higher than expected. My husband and I were in your shoes 2 yrs ago when we bought our resale 5I. The valuation report was also expiring already so we had to do a new one for the bank loan anyway. The new valuation came out to be much higher than what the agent and us expected. It was the same price as the selling price so we paid $0 COV. Every last cent counts when you are tight on cash....

Now you got me thinking if i should re-value my new place. Valuation report will expire in a few weeks time.

1st appt is sometime in Oct. Hmm....

Bank loan secured already. If new valuation report indicate higher, can i produce it to the bank for he calculating? Would there be any cost to the loan agreement?

Edited July 8, 2010 by mel77

[mel77 1]

The experience i had during my search for a flat from late Apr'10 to finally settling for the EA 2 weeks back was quite an experience. The COVs asked for can be un-realistic for some sellers.

20yrs+ 4A flat @ Bukit Batok, little or no reno done. (meaning everything must re-do, don't even hv air-con) is asking for 50K COV. Was prepared to pay above value, but the owner & agent says it is move in condition. Kekekekek!!!

Then there are flats that needs minimum reno, within the same cluster asking for 45K COV also. So sellers expectation (or i should say Agent's expectation) must be managed carefully.

So from experience, COV is subjective and if you don't feel comfortable in paying then just walk away. Some how a flat that meets your budget and needs will come by. If it is Yours it will be Yours!

[mel77 1]

I encountered this particular flat. 3 bedrooms knocked to become 2 bedrooms. I didn't view, but renovation or view must be tok-kong in order to attract a 95k offer. Regardless, if I am a mere 5k short of my expected price, knowing I am already 95k up over valuation, I'll take it and run.

The agent sounded **** sian when I called, probably because the seller is testing water. When the valuations catch up to the offer prices, he'll not see such a fat COV already. Some people just don't know how to quit when they're ahead!

What you described actually happen to flat that i was very keen purchase. Seller's agent kept insisting that she already has a 50K COV, if i can offer higher then deal closed. My wife was even calculating how much to up. Then we sat down and do the maths and concluded it is agent testing our price comfort level.

We told the agent if she has a 50K offer tell the seller take and run. Same night the agent called back and tell us 45K can close. We decided to walk away from the flat and maintained our initial offer of 28K COV. 3 days later, agent called again to tell us 35K can close. Maintained 28K COV, take it or leave it.

Finally no deal and the seller missed the initial offer of 47K COV that they had from another couple.

[bepgof 20]

Now you got me thinking if i should re-value my new place. Valuation report will expire in a few weeks time.

1st appt is sometime in Oct. Hmm....

Bank loan secured already. If new valuation report indicate higher, can i produce it to the bank for he calculating? Would there be any cost to the loan agreement?

Hur? As i mentioned earlier, even if you manages to get a higher valuation( before resale & loan application), at end of the day, you're still need to pay this "extra" valuation & + interest, not to mention the extra $180 for the new valuation report.

Now you case is considered "dust settled". You can "blow" the dust up again by :

1. Cancel your 1st appointment, agents, seller agree?

2. "Renew" bankloan, should be foc, so long so you stick to the same bank, give yr assurance by letter.

3. Valuation report will be out 2 wk after valuation hor, & need to pay $180.

4. Re-quene for 1st appointment....

5. "touch wood" you got lower vaulation?

Edited July 8, 2010 by bepgof

[forgotten 1]

Now you got me thinking if i should re-value my new place. Valuation report will expire in a few weeks time.

1st appt is sometime in Oct. Hmm....

Bank loan secured already. If new valuation report indicate higher, can i produce it to the bank for he calculating? Would there be any cost to the loan agreement?

Just to add on 1 point.

What if the seller doesn't honour his words to sell the unit to you after his new valuation is out? The seller may get greedy and wants to sell it at a higher price to other buyer. Your previous OTP contract has already expired by then, so you can only sadly watch your deal disappear in smoke???

Edited July 8, 2010 by forgotten

[mel77 1]

Hur? As i mentioned earlier, even if you manages to get a higher valuation( before resale & loan application), at end of the day, you're still need to pay this "extra" valuation & + interest, not to mention the extra $180 for the new valuation report.

Now you case is considered "dust settled". You can "blow" the dust up again by :

1. Cancel your 1st appointment, agents, seller agree?

2. "Renew" bankloan, should be foc, so long so you stick to the same bank, give yr assurance by letter.

3. Valuation report will be out 2 wk after valuation hor, & need to pay $180.

4. Re-quene for 1st appointment....

5. "touch wood" you got lower vaulation?

We are taking minimum loan with plans to re-deem it after the lock-in.

Gut feel that very likely the valuation will go up. Pay $180 is ok! Lower the COV quantum mah!