Government's Latest Move To Curb Property Speculation

[Phantom 1]

Don't think so. Just check and still fairly high.. But those are like nearer to town or old airport road..

[bepgof 20]

The newspaper reported that COV had reduced due to the measures...... is it true?

Dust's still flying ard, yet to settle down. Too early to conclude.

Immediate effects for sure:

1. Transaction volume down, you wait I wait, u see i sees, all wait & see.

2. Less seller & less buyer cos of rules....

3. COV get "squeezed" first.

4. Depend on valuation bodies got "conspire" with gov, purposely down the valuation.

Newspaper just takes opportunity to take a "case" or 2 to report on, everybody aware NOW is too early to conclude. Gov though has the first hand info on demand & supply data, it can only "agar agar" and built those BTO/DBSS/EC, GLS to pte developers for pte homes. Then wait & see the market forces react , then play a bit of wulo & tarik here and there, as & when necessary.

For sure, Singapore homes are comparative much cheaper than in HK, ROC, major cities of China, India, Jakatar.... So, ....

Edited September 28, 2010 by bepgof

[icer 0]

Saw some ads. The COVs seem to be more reasonable now. Before the measures it was really unreasonable amount. Of course it's still pretty high as compared to like 2 years ago.

Now my dillemma is should I go for a flat or condo? I am a first time buyer above 35 years old so I can buy a resale flat or a condo. If I buy a condo, I will not be able to buy a flat unless I sell my condo. If I buy a flat now, then I can still buy a condo after 5 years.

Dust's still flying ard, yet to settle down. Too early to conclude.

Immediate effects for sure:

1. Transaction volume down, you wait I wait, u see i sees, all wait & see.

2. Less seller & less buyer cos of rules....

3. COV get "squeezed" first.

4. Depend on valuation bodies got "conspire" with gov, purposely down the valuation.

Newspaper just takes opportunity to take a "case" or 2 to report on, everybody aware NOW is too early to conclude. Gov though has the first hand info on demand & supply data, it can only "agar agar" and built those BTO/DBSS/EC, GLS to pte developers for pte homes. Then wait & see the market forces react , then play a bit of wulo & tarik here and there, as & when necessary.

For sure, Singapore homes are comparative much cheaper than in HK, ROC, major cities of China, India, Jakatar.... So, ....

[Plastic3 0]

Saw some ads. The COVs seem to be more reasonable now. Before the measures it was really unreasonable amount. Of course it's still pretty high as compared to like 2 years ago.

Now my dillemma is should I go for a flat or condo? I am a first time buyer above 35 years old so I can buy a resale flat or a condo. If I buy a condo, I will not be able to buy a flat unless I sell my condo. If I buy a flat now, then I can still buy a condo after 5 years.

I feel it is good to buy HDB before upgrading to Private homes, but it also depends on the kind of lifestyle you are looking for.

[bepgof 20]

Saw some ads. The COVs seem to be more reasonable now. Before the measures it was really unreasonable amount. Of course it's still pretty high as compared to like 2 years ago.

Now my dillemma is should I go for a flat or condo? I am a first time buyer above 35 years old so I can buy a resale flat or a condo. If I buy a condo, I will not be able to buy a flat unless I sell my condo. If I buy a flat now, then I can still buy a condo after 5 years.

Conclusion: Best to have both. Which first?, how big? where? Type? Don't know it is fortunate or unfortunate, singapore resident kena spoilt with so many choices.

I always bear this in mind: As a sinagporean/citizen- giving up rights to own a hdb unit is completely "insance" (especially "subsidised" one). Must hold and have one, whether for own stay or subletting. When one grows & has "excess resources" then can "fight" with PRs/foreigners over the pte pty, whether for gains or for next generation.

Yardstick:

Rule #1 - Higher living standard pays more, can you now bear to pay more? How more? For a 119sqm hdb vs 119sqm L99 pte full facilities, can save abt $200 over "maintenance fee".

Rule #2 - Want 3 bananas in morning, 4 in evening with sweet dream over the night, or, 4 bananas in morning, 3 in evening, get hungry midnight & can't sleep. What'll happen next morning?

Comments:

- L99 pte indifferent from hdb Normal/BTO/DBSS/EC, except pay more $ for maintenance.

- F/H pty has higher chance for enbloc, next generation or next when land become scare.

- Landed/ GCB ?? No experience. Late father owned "zince roof" landed home with big land, kena acquired by gov for land redevelopement. Really missed those kampong days.

Edited October 6, 2010 by bepgof

[tweety3334 0]

I think should buy HDB first and save enough money to buy pte at good location 5 years later.

[chia90 0]

I think should buy HDB first and save enough money to buy pte at good location 5 years later.

yup. agreed. And if possible, try to keep the hdb when u buy the pte.

[blue_skies 3]

yup. agreed. And if possible, try to keep the hdb when u buy the pte.

And should try to use cash to buy the HDB so that you can use your CPF to pay for the private coz private will need more cash upfront plus also the monthly repayment.

[Warrior88 0]

And should try to use cash to buy the HDB so that you can use your CPF to pay for the private coz private will need more cash upfront plus also the monthly repayment.

Har ?

[chia90 0]

Har ?

yup. this one i also dun quite agree.

For me, i would prefer that HDB flat's deduction from CPF and fully redeem after yr5. And in the meantime, park some cash saving in Aus$ or NZ$ and save as much as possible... and start looking around on yr4.... and hopefully be able to execute the plan on yr6 onwards.....

[bepgof 20]

And should try to use cash to buy the HDB so that you can use your CPF to pay for the private coz private will need more cash upfront plus also the monthly repayment.

Should use as much cpf as possible to redeem hdb first lah, keep cash. Accumulate cpf again then "Go" as timing is right.

Some rules of thumb:

- Spend only <40% of "disposable income"(cash)on mortgage loan(s).

- Use as much as cpf to "tong" the loan(s) with (cash =40% of DI). Of course some "buffer" in OA for JIC.

- Best OA still can grow at pace of ~ 10%per month after each monthly instalment. So can plan for "partial redemption" when time comes.

- DI amount is subjective(not take-home pay hor). I think MBT definite DI=THP. He "forgets" those milk powder, car instalment, insurance premiums, all taxes, oversea holidays, school text bk/uniform/fees/projects, electricity/water/gas, clothing, comestic/hair cut/harido, eating, parents allowance....

- Anyway, allow at least 10% cash grow per month after all these "costs and wants".

Assume combined THP=$5,000. 10% cash + 10% cpf = $1,0000.

$1,000 per month x 17 yrs ~ $200K! Not enough right?, then increase to 20%+20% by tighten the belt & biting the bullets lor.

Edited October 8, 2010 by bepgof

[bepgof 20]

yup. this one i also dun quite agree.

For me, i would prefer that HDB flat's deduction from CPF and fully redeem after yr5. And in the meantime, park some cash saving in Aus$ or NZ$ and save as much as possible... and start looking around on yr4.... and hopefully be able to execute the plan on yr6 onwards.....

5Yr? (with now's price still can make it within 5yr?) I made full redemption at 6th yr in 1998, thought I'm very tokong, got ppl more tokong than me.

Wait till foreign currencies' timed deposit (say 3 month) go to 5% and above then worth consideration. Aus currency too strong now (parties unstable). Aus50k, 3, 12 month = 2.97% & 3.74%, respective. NZ quite low now, can consider, but NZ50k, 3, 12 month = 1.51%, 2.24% respectively. Had put NZ50k for 3months timed deposit before at 8% interest pa. Monthly took back ~ NZ333, just enought for son's school monthly fee! I love UOB, because no transaction fees on this.

Edited October 8, 2010 by bepgof

[chia90 0]

5Yr? (with now's price still can make it within 5yr?) I made full redemption at 6th yr in 1998, thought I'm very tokong, got ppl more tokong than me.

Wait till foreign currencies' timed deposit (say 3 month) go to 5% and above then worth consideration. Aus currency too strong now (parties unstable). Aus50k, 3, 12 month = 2.97% & 3.74%, respective. NZ quite low now, can consider, but NZ50k, 3, 12 month = 1.51%, 2.24% respectively. Had put NZ50k for 3months timed deposit before at 8% interest pa. Monthly took back ~ NZ333, just enought for son's school monthly fee! I love UOB, because no transaction fees on this.

opps... must have dreams mah...

Maybank's isavvy foreign deposit rates seems quite good leh... check it out.

Edited October 8, 2010 by chia90

[tweety3334 0]

Ya lor, difficult to repay in 5 years. I personally will use CPF for HDB. Save cash for downpayment for pte 5 years later.

For pte,

If I am going to stay in pte and rent out hdb, then use additional cash to repay pte.

If I am going to rent out pte and stay in hdb, then use additional cash to repay HDB or for other investment.

The reason is that for property with rental income, it is preferred that there is more interest expense for tax deuctible purpose but it also depends on the interest rate for your hdb and pte. Currently interest rate for pte is low and HDB higher so better repay HDB loan....need to reassess after 5 years.

[blue_skies 3]

Should use as much cpf as possible to redeem hdb first lah, keep cash. Accumulate cpf again then "Go" as timing is right.

Some rules of thumb:

- Spend only <40% of "disposable income"(cash)on mortgage loan(s).

- Use as much as cpf to "tong" the loan(s) with (cash =40% of DI). Of course some "buffer" in OA for JIC.

- Best OA still can grow at pace of ~ 10%per month after each monthly instalment. So can plan for "partial redemption" when time comes.

- DI amount is subjective(not take-home pay hor). I think MBT definite DI=THP. He "forgets" those milk powder, car instalment, insurance premiums, all taxes, oversea holidays, school text bk/uniform/fees/projects, electricity/water/gas, clothing, comestic/hair cut/harido, eating, parents allowance....

- Anyway, allow at least 10% cash grow per month after all these "costs and wants".

Assume combined THP=$5,000. 10% cash + 10% cpf = $1,0000.

$1,000 per month x 17 yrs ~ $200K! Not enough right?, then increase to 20%+20% by tighten the belt & biting the bullets lor.

Wow I think I cannot fulfil your above criteria! Especially the OA part and 10% cash grow per month.

If my cash can grow like grass it would be perfect

Anyway now it's also more difficult to buy the 2nd or 3rd ppty coz of 70% bank loan. Need more cash upfront - Cash is King!