silverkris 0 Report post Posted January 14, 2011 From what I see in these 2 years of properties movement, especially in HDB. I forsee a serious problem: Unless you are super-rich, you will have a hard time to do upgrading in the future, and your current HDB flat might be your final home. Reasons: 1. Supply and demand of new flats: The government keeps on supplying new flats and EC now, and far above what the market is demanding. Now people still buying because it is their 1st home, so what happens when all the homes are ready and people have already lived beyond their Minimum period of 5 years, most probably in 2014-2016. There is so much supply and no one is interested in buying resale then. What happens to the HDB owners then? they definitely cannot sell high, maybe just sell enough to cover their loans. 2. Upgrading to Privates from HDB: At 4 rooms going at $300k now, most people need to use most of their CPF money to pay for the HDB, and 30 years too. This new rule of need to pay 40% from cash/cpf is already enough to put the new generation out of private. A $1M condo will need $400K from CPF/Cash, and since ALL CPF already gone into current flat, where to get the $400K then. Share this post Link to post Share on other sites
bepgof 20 Report post Posted January 14, 2011 (edited) Can someone enlighten me on whats "individual" and whats "non individual"? If im buying the 2nd property with my partner, what happens? Individual = human non individuals = non human = companies, trusts or some collective investment schemes. Edited January 14, 2011 by bepgof Share this post Link to post Share on other sites
Jgal 0 Report post Posted January 14, 2011 2. Upgrading to Privates from HDB: At 4 rooms going at $300k now, most people need to use most of their CPF money to pay for the HDB, and 30 years too. This new rule of need to pay 40% from cash/cpf is already enough to put the new generation out of private. A $1M condo will need $400K from CPF/Cash, and since ALL CPF already gone into current flat, where to get the $400K then. I think you got it wrong. If you are not going to keep the flat when you purchase the condo, you still can take 80% loan. Actually , upgrading will be easier if prices stablises in the next few mths. Share this post Link to post Share on other sites
chia90 0 Report post Posted January 14, 2011 (edited) No impact to the super rich lor. yup... will not impact those rich (not necessarily super rich bah) with view > 4 yrs. Edited January 14, 2011 by chia90 Share this post Link to post Share on other sites
chia90 0 Report post Posted January 14, 2011 Interesting to note that the super rich are not the ones that are inflating the mkt. High-end housing is still moving slowly. It's the mass mkt buyers that are buying in hope that prices will go up and make some $$ out of it . agreed. think govt is targeting the 'flippers'.... as for the lower loan, they probably trying to make sure the mass mkt are not over stretching when everyone is trying to get a bit of action during this property upward cycle. think their intention is to slow down the price increase, not to bring down the prices bah... Share this post Link to post Share on other sites
silverkris 0 Report post Posted January 14, 2011 I think you got it wrong. If you are not going to keep the flat when you purchase the condo, you still can take 80% loan. Actually , upgrading will be easier if prices stablises in the next few mths. You will need to sell your HDB first then before buying the condo, and while the condo is building, where do you stay then for the period of 3 years? Even 80% loan will mean a 200k downpayment. Unless the flats can appreciate so much ....... Just my point of view. Share this post Link to post Share on other sites
godloveyou 0 Report post Posted January 14, 2011 (edited) Interesting to note that the super rich are not the ones that are inflating the mkt. High-end housing is still moving slowly. It's the mass mkt buyers that are buying in hope that prices will go up and make some $$ out of it . Interested to know where/how did you get the data abt super rich not the ones inflating the mkt. They do invest, for short or long term. They are opportunists too! With excess cash, they are at upper hand to "in & out" anytime as long as make profit, contributing effects of price inflation. To them, these rules are "chicken feet". Edited January 14, 2011 by godloveyou Share this post Link to post Share on other sites
neubie 2 Report post Posted January 14, 2011 Interested to know where/how did you get the data abt super rich not the ones inflating the mkt. They do invest, for short or long term. They are opportunists too! With excess cash, they are at upper hand to "in & out" anytime as long as make profit, contributing effects of price inflation. To them, these rules are "chicken feet". They will try to punt the market like stocks, can exit with contra gain then it's good for them. If garment policy goes against them, then LLST, involuntarily becomes long term investor. Haaaa Share this post Link to post Share on other sites
godloveyou 0 Report post Posted January 14, 2011 (edited) agreed. think govt is targeting the 'flippers'.... as for the lower loan, they probably trying to make sure the mass mkt are not over stretching when everyone is trying to get a bit of action during this property upward cycle. think their intention is to slow down the price increase, not to bring down the prices bah... Precisely ! Gov's legislation influents product price. This is an intended intervention with "good" intentions..... 1. Got money then buy. 2. Not enough money, not enough "credit", not allowed to loan and buy. 3. USA's subprime was poor people also could borrow from banks, till one day they can't afford to pay installment, then default lor, who "die" in the end? Edited January 14, 2011 by godloveyou Share this post Link to post Share on other sites
godloveyou 0 Report post Posted January 14, 2011 (edited) You will need to sell your HDB first then before buying the condo, and while the condo is building, where do you stay then for the period of 3 years? Even 80% loan will mean a 200k downpayment. Unless the flats can appreciate so much ....... Just my point of view. As singaporeans, MUST keep HDB, sametime and buy pte. Wait till got money then buy lah, now can see & dream only. Why kill the goden goose to get the golden egg? Edited January 14, 2011 by godloveyou Share this post Link to post Share on other sites
godloveyou 0 Report post Posted January 14, 2011 They will try to punt the market like stocks, can exit with contra gain then it's good for them. If garment policy goes against them, then LLST, involuntarily becomes long term investor. Haaaa Ya lor, either to cut "limbs" to get back some money or to hold on & wait still chance comes lor. Share this post Link to post Share on other sites
Jgal 0 Report post Posted January 14, 2011 was talking to a relative in hk regarding to the new policy. Apparently, there is a way to go ard it. Ppl in hk register a company and buy the property under the company. When its time to sell the pty, you simply transfer the ownership of the company, avoiding staggering stamp fee.. interesting... Share this post Link to post Share on other sites
Jgal 0 Report post Posted January 14, 2011 Interested to know where/how did you get the data abt super rich not the ones inflating the mkt. They do invest, for short or long term. They are opportunists too! With excess cash, they are at upper hand to "in & out" anytime as long as make profit, contributing effects of price inflation. To them, these rules are "chicken feet". Depends what is your level of super rich .. if you meant ppl that has nett worth of 1x mil, i think they are just rich. Share this post Link to post Share on other sites
neubie 2 Report post Posted January 14, 2011 property and bank counters in stock market yesterday kena whack big time, citydev, capland, kepland, dbs, uob, ocbc.... all not spared... BT 15/1/2011 Property stocks dented by cooling measures THE latest round of residential property cooling measures delivered a blow to the sector's listed plays, with some falling by almost 6 per cent. In particular, those with higher exposure to the residential property market bled. Allgreen Properties took the biggest hit, falling by 5.7 per cent to close at $1.15. Other big boys affected include City Developments, which slipped 4.6 per cent to $12.16, while Wing Tai Asia was down 4.5 per cent to $1.70. Pure-play, high-end residential developer SC Global saw a 4.8 per cent drop to $1.60. Players with more diversified exposure were not spared, though their drops were less steep. Keppel Land finished 3.1 per cent lower at $4.73, and CapitaLand shed 3.4 per cent to close at $3.71. UOL Group closed 0.8 per cent down at $5.00. Overseas Union Enterprise, however, defied gravity by edging up 0.8 per cent to $3.60. The knee-jerk reaction was also seen in property sales. The Loft@Holland, which reported that all 41 of its condominium units were snapped up during its soft launch on Thursday, had one buyer pull out of the transaction. But in what could be a sign that the market might recover after adjusting to the news, the buyer reversed her decision and decided to go ahead with the purchase, said developer Oxley Holdings. Analysts from key financial institutions rushed out reports yesterday to give their take on the latest property measures. The consensus is that property sales will fall immediately. Some, however, expect the market to recover after potential property buyers digest the latest rules. Still, they note that the steep increase in the sellers' stamp duty to a maximum of 16 per cent, from 3 per cent previously, could cast a shadow over the sector in the coming few months. Said Citi Investment Research & Analysis in a note: 'We expect a significant fall in transaction volume immediately and believe bids for residential sites, which have seen a strong rebound recently, will be more cautious.' While of the view that transactions will pick up after the market digests the latest property curbs, Citi believes they are unlikely to recover to pre-measures levels this time round. 'Prices are also likely to be capped following these measures,' said the Citi report. The view that sales will see an immediate drop is shared by property veterans, who say that launches that are scheduled for the next few months will likely see lower buying interest. But they also believe that the drop could be short-lived. Danny Yeo, group managing director of Knight Frank, says: 'Unlike in the past where many bought to make a quick buck, there have been many genuine buyers who are flush with cash and are parking their money in property market this time round.' Immediate launches coming on board and projects that have been partially launched will offer a quick reflection on home-buying interest, and could lead buying sentiment following the measures, said Ong Kah Seng, Cushman & Wakefield's senior manager for research. 'If home sales for ongoing projects see an abrupt fall, this will affect overall home-buying sentiment, although the innate interest for buying private residential properties remains strong.' Overall, buying sentiment is likely to be cautious - balanced by the strict new regulations and an overall positive economic environment flush with liquidity, he added. For now, some developers have indicated that they have no intention of holding back launches, though others say that they will monitor the market before making a decision. CapitaLand said that it will continue with its plan to launch 1,700 homes in Singapore this year. Oxley, too, is going ahead with its launch of its residential-cum-commercial development called Vibes@Kovan today. It will, however, monitor the market for opportune times to launch the rest of its projects. Far East Organization, a major residential property player that is not listed on the Singapore Exchange, said that it is assessing the situation. 'In response to the government's additional measures, we are presently reviewing some of our business programmes to build a stronger base of long-term buyers,' said the group's chief operating officer for property sales, Chia Boon Kuah. 'We will roll out our launches as and when ready.' Keppel Land declined to comment, though analysts note that it does not have any projects slated to be launched this year. CB Richard Ellis says that some developers are likely to hold back on project launches. 'Most can afford to begin construction and launch them when sentiment improves,' said Li Hiaw Ho, executive director of CBRE Research. Till the market adjusts to the latest measures, developers with high exposure to the residential segment could continue to see falling stock prices. Most analysts agree that developers such as Keppel Land and the UOL Group, which derive much of their value from commercial properties, are top picks. Others, including City Developments, which has a significant exposure to the residential market and is viewed as a proxy to the segment, could face the most selling pressure. Most have also raised the red flag on Allgreen Properties and Wing Tai. UBS Investment Research and CIMB Research both highlighted office landlords like Keppel Land and OUE as their preferred picks. Share this post Link to post Share on other sites
DarthRevan 0 Report post Posted January 15, 2011 What a pile of crap. Not sure what other forummers views are on this, but I'd say the measures won't cause the property prices to drop. It'll just stagnate, but unlikely to see a dip unless govt releases some bad news on recession or jobless rates etc. Their intention is not for the prices to drop, its to prevent flippers from making the prices go up higher and the masses cannot afford their 1st home, its done with good intentions. After all, if one is staying in a HDB and is buying for own stay, it shouldn't impact them unless these dwellers say one thing and do another Share this post Link to post Share on other sites
