Cov Reasonable ?

[getting-there 0]

Hi,

I am currently on OT and considering buying a flat in an old estate .

The issue is that the old estate is at AMK and the seller is bmuping up the COV by as much as 40K even though there is no renovation in the apt except the main living room tiles which are almost 20 yrs old. There were three owners in the past for this unit including the present owner

What is frustrating is that the main toilet is still the squat type and the owner refuse to budge into upgrading it to the seating type . Also even though the lift has been upgraded, the owner has not paid the bill for it and expect the buyer (myself) to pay for it.

Included in this expectation for the buyer to pay is also the HDB evaluation report.

Can anyone tell me for 40K is this a reasonable amount to fork out for COV ?

Should I use my OTP status (haven't confifirm although might lose 1K ) to pressure the agent/owner into paying for those stuffs ?

Any advice will be appreciated. Tks

[lilithfiend 0]

Hi,

I am currently on OT and considering buying a flat in an old estate .

The issue is that the old estate is at AMK and the seller is bmuping up the COV by as much as 40K even though there is no renovation in the apt except the main living room tiles which are almost 20 yrs old. There were three owners in the past for this unit including the present owner

What is frustrating is that the main toilet is still the squat type and the owner refuse to budge into upgrading it to the seating type . Also even though the lift has been upgraded, the owner has not paid the bill for it and expect the buyer (myself) to pay for it.

Included in this expectation for the buyer to pay is also the HDB evaluation report.

Can anyone tell me for 40K is this a reasonable amount to fork out for COV ?

Should I use my OTP status (haven't confifirm although might lose 1K ) to pressure the agent/owner into paying for those stuffs ?

Any advice will be appreciated. Tks

shouldn't u have thought about the COV before putting down the 1k? 40k COV is alot to pay, in my opinion...

HDB valuation report buyers always have to pay - that is the standard.

how big is the flat? maybe you can consider the amenities in the neighbourhood and distance to buses/MRT..what made you put down the 1k in the first place - what did u like about the place?

[therat 18]

For the lift upgrading bill.

If the invoice bill before 2nd appointment. Current owner pay

If the invoice bill after 2nd appointment. New owner pay.

That is mention in HDB web.

If you think 40K too much, why you place your 1k deposit?

And why should the owner upgrade the toilet bowl to sitting type?

It is not his responsible.

you bought the unit as-what-is-it

Should I use my OTP status (haven't confirm although might lose 1K ) to pressure the agent/owner into paying for those stuffs ?

either you exercise or not.

Owner don't lost anything.

If you choose not to exercise. Say bye bye to you 1k

If the owner return your 1k, you are very lucky.

[forgotten 1]

Use your 1K option to pressurise the seller to renovate toilet and pay upgrading fee for you? Sorry, fat hope lor. If you never exercise your option within 2 weeks, the owner can easily find another buyer for their unit. It is sellers' market now.

If the house is in a much better condition, I can tell you that its valuation price will also be higher than the one you are quoted now.

Edited June 24, 2010 by forgotten

[bepgof 20]

As to COV:

1. Some ppl suggest <10% of valuation as yardstick.

2. Some say, you like it, just pay for it.

3. One forumer, by the name of blueocean even described your situation as in a "cognitive resonance" phase. Buy already started comparing by asking ppl, so as to make yourself feel better, if you pay less.

4. I say: 1+2+3+ hope your decision is in line with "human self-reflection"

Believed you have already got a "inner ruler" within yr heart when placing the $1K.

Check dictionary for the meaning of human self-reflection. If you meet 1, 2, 3 & 4, then congrat ! Full mark.

Edited June 24, 2010 by bepgof

[gimz63251073 0]

if you like the place and can afford the 40k, what is stopping you?

COV is a measure of how much you like the place and how much you are able to pay. If you don't like the place, why get it simply becos of price? Living in a place you don't like is like marrying the wrong guy/ger!

[salavanun 0]

You still have time till option to exercise. Is 1k gone vs 39k savings whichever way u see it. I too lost 1k by being kan chiong. But in the end i made the right choice to forgo. expecting seller to pay upgrading and renovations u can simply kiss goodbye to that idea. take this time to search thoroughly another flat lower in price or atleast justifying the high COV u willing to pay..getting idea from here is juz a guideline for people before they put 1k but your case is already too late as the 1k in sellers pocket now..weigh options carefully ..cheers

[getting-there 0]

It's true - I still can decide before the option date. It is because the buyer's agent was hastening me to get the process done as quickly as possible which made me suspicious. The place is not near to MRT nearest is abt 1.1 Km away but there is a bus stop there although most of the buses are feeder buses. What got me ticking into putting down the OTP was because the price dropped in comparison with last month's evaluation price of the same area. Also the place is near some schools which will be handy when my daughter is ready for school. Other than that - I am mostly concerned whether the place could be too old or become less valuable after I purchase it. If that is so , it will be really $$ down the drain since I have to fork out toilet upgrading , lift upgrading - I feel.

You still have time till option to exercise. Is 1k gone vs 39k savings whichever way u see it. I too lost 1k by being kan chiong. But in the end i made the right choice to forgo. expecting seller to pay upgrading and renovations u can simply kiss goodbye to that idea. take this time to search thoroughly another flat lower in price or atleast justifying the high COV u willing to pay..getting idea from here is juz a guideline for people before they put 1k but your case is already too late as the 1k in sellers pocket now..weigh options carefully ..cheers

[sff 0]

It's true - I still can decide before the option date. It is because the buyer's agent was hastening me to get the process done as quickly as possible which made me suspicious. The place is not near to MRT nearest is abt 1.1 Km away but there is a bus stop there although most of the buses are feeder buses. What got me ticking into putting down the OTP was because the price dropped in comparison with last month's evaluation price of the same area. Also the place is near some schools which will be handy when my daughter is ready for school. Other than that - I am mostly concerned whether the place could be too old or become less valuable after I purchase it. If that is so , it will be really $$ down the drain since I have to fork out toilet upgrading , lift upgrading - I feel.

I suppose u have to consider again carefully. Not only cov and upgrading fees, you may also need to think abt reno cost and furniture. Have u view other units in that area? Just curious, which ave or st are u looking at?

Also will u be taking hdb or bank loan? Cos bank loan need to fork out extra 5% cash.

Edited June 24, 2010 by sff

[salavanun 0]

Dun be tricked by the agent. remember is you who is paying him. make full use of the 2 weeks and search for a better deal.u r paying more den 40k for the unit. even the owner change toilet bowl or pay upgrading, are u satisfied with other conditions of the house? all the things u request the owner at max will fall below 3 k.at 40k u r not even buying location for MRT is 1.1kM away..

[bepgof 20]

It's true - I still can decide before the option date. It is because the buyer's agent was hastening me to get the process done as quickly as possible which made me suspicious. The place is not near to MRT nearest is abt 1.1 Km away but there is a bus stop there although most of the buses are feeder buses. What got me ticking into putting down the OTP was because the price dropped in comparison with last month's evaluation price of the same area. Also the place is near some schools which will be handy when my daughter is ready for school. Other than that - I am mostly concerned whether the place could be too old or become less valuable after I purchase it. If that is so , it will be really $$ down the drain since I have to fork out toilet upgrading , lift upgrading - I feel.

Me again. Must realise some facts:

- Good opportunities are hard to come by, is the unit a "good opportunity" to you.

- Perceive any "better opportunity" in near future? Hurry to move?

- Parents sacrify for children, 1.1km is not good enoght for phase 2C registration.

- May I know which school?, I can roughly tell good or no good.

- HDB already provides guildline as to who to pay base on 2nd appt date. No arguments.

- I guess upgrading should be abt $5K, toilets (sq to sit)just about $200 x 2, total ~$5,200

- House prices will drop soon, from seller's mkt to buyer's mkt.

- Chinese ghost month is coming, transaction will drop, drop, drop, price will also drop, drop drop.

- Everybody, more or less already know what gov will do to property mkt after GE.

- Coffee shop talk - now who buy property are "seow", insane. What makes them said that?

Edited June 24, 2010 by bepgof

[getting-there 0]

That is quite true. In that case, will I have to pay the agent for any fees incurred during these two weeks or is the OTP penalisation all there is to ?

P.S. The agent tried to convince me that as it is a old block , the govt might do an en-bloc which may lead to preferential purchasing of second apt. But I doubt there will be any because of the recent lift upgrade there. Just my two pence.

Dun be tricked by the agent. remember is you who is paying him. make full use of the 2 weeks and search for a better deal.u r paying more den 40k for the unit. even the owner change toilet bowl or pay upgrading, are u satisfied with other conditions of the house? all the things u request the owner at max will fall below 3 k.at 40k u r not even buying location for MRT is 1.1kM away..

[blue_skies 3]

The OTP penalisation is all you are liable for. You shouldn't have to pay the agent anything.

[therat 18]

P.S. The agent tried to convince me that as it is a old block , the govt might do an en-bloc which may lead to preferential purchasing of second apt. But I doubt there will be any because of the recent lift upgrade there. Just my two pence.

AMK is an mature estate. Almost 80% of the block is old , can trace back to early 80

which blk.

I can est est tell you possible or not

If just did lift upgrade, chances of en-block.

My guess 0%

[salavanun 0]

That is quite true. In that case, will I have to pay the agent for any fees incurred during these two weeks or is the OTP penalisation all there is to ?

P.S. The agent tried to convince me that as it is a old block , the govt might do an en-bloc which may lead to preferential purchasing of second apt. But I doubt there will be any because of the recent lift upgrade there. Just my two pence.

u need not pay agent if u never sign anything on agent comm. lift upgrading cost a bomb for gahmen and en bloc defntly not in near future. seriously i doubt u got a good agent. is he representing sellers too? or even good frend of sellers agent? interest of conflcits? as someone said i agree prices are at the ceiling now and i can see high COVs flats still hanging especially those not near mrts or good amenties.