What Is A Reasonable Cov?

[gimz63251073 0]

Whether Citizen or PR, as long as illegal subletting, must shoot to HDB.

hopefully new ministar would outsource the checking of illegal subletting to corporate companies, just like how they catch illegal parking.

otherwise, i wonder how the HDB can do a proper check.

last news report was that they caught only 40 illegal subletting cases. its a real joke can...

[schiz0id 0]

Hi all,

Thanks for all the insights and great advice. Thought I should update here that we are giving that unit a miss and moving along, hoping to find something better.

[pantieileen 2]

hopefully new ministar would outsource the checking of illegal subletting to corporate companies, just like how they catch illegal parking.

otherwise, i wonder how the HDB can do a proper check.

last news report was that they caught only 40 illegal subletting cases. its a real joke can...

ya precisely. i even tip off personal friends (singaporeans) who bought their flat purely for renting purposes and then still stay in parents' bungalows semiD etc. there's so many of them around me and it's not fair to those who really need a place to call home. it's just morally wrong and selfish even though it gives the best investment yield. if they have no intention to stay then don't join in the competition

[friends78 0]

Hi all,

Thanks for all the insights and great advice. Thought I should update here that we are giving that unit a miss and moving along, hoping to find something better.

Hope u can get a better unit. Previously, I also lost a bidding war with an unit in mcnair who also insisted on 80k COV. Was quite sad when we failed to get it...Anyway, we can't afford anything above $60k. However, all is not lost as we managed to find one which is even nearer to my inlaws & baby within 2 weeks. A blessing in disguise!! So good luck to u:)

[schiz0id 0]

Hope u can get a better unit. Previously, I also lost a bidding war with an unit in mcnair who also insisted on 80k COV. Was quite sad when we failed to get it...Anyway, we can't afford anything above $60k. However, all is not lost as we managed to find one which is even nearer to my inlaws & baby within 2 weeks. A blessing in disguise!! So good luck to u:)

Wow, good for you!

Thanks Hope to find something soon too. Currently market sprouting many EM units being put up for sale, not so much for EAs and Jumbos. Will press on and hope we don't have to rent. Nothing beats having your own place.

[random_username 0]

just a general question on COV's:

the focus seems to be on the amount of COV than the overall selling price of a unit. Why so? I understand that the COV needs to be paid in cash, but, the rest of the selling price will need to be paid by the buyer eventually (ie. even with a loan, the buyer still needs to pay it). Am i missing something?

[gimz63251073 0]

just a general question on COV's:

the focus seems to be on the amount of COV than the overall selling price of a unit. Why so? I understand that the COV needs to be paid in cash, but, the rest of the selling price will need to be paid by the buyer eventually (ie. even with a loan, the buyer still needs to pay it). Am i missing something?

not very difficult to understand... COV must pay with cash, while the valuation can take loan to pay.

To them, they don't feel the "pain" in paying through a loan as the payment is stretched and paid using CPF monies which cannot be withdrawn.

Almost akin to paying for medical bills using medisave. Most people would not feel the pinch. But u get a screaming patient if he has to pay it by cash.

Yes, it does seems irrational, but many people are more irrational than they think they are.

Looking at total cost is important, but many would not bother to think so far. THe decision to purchase a house would affect the lifestyle decisions for many years ahead, so one wrong step could fill your days ahead with regrets.

[bepgof 20]

Valuation report serves only as a "yardstick" to the "worth" of the property, and technically speaking, this report is to facilitate the arrangement/application of mortgage loan. No more and no less.

For private resale, valuation report is mostly done by BUYERS after the SELLING price has been negotiated and agreed upon between seller & buyer. Only the buyer concerned know the "COV" he has paid for after he receives the report. To my understanding till this point of time, the valuers assigned by banks, very "funny", always put the valuation price very close to the agreed selling price.

Not too sure if those valuers assigned by HDB, while doing valuation, refer to the past "valuation price" or "selling price" of the nearby properties. Look to me more like based on "selling price".

Khaw Boon Wan may, at any time, instruct to:

1. Current valuation based on "past valuations", not past "selling price".???

2. HDB to follow pte's current practise = buyer, seller negotiate price, sign black & white, then do valuation.

Possible? Good?

just a general question on COV's:

the focus seems to be on the amount of COV than the overall selling price of a unit. Why so? I understand that the COV needs to be paid in cash, but, the rest of the selling price will need to be paid by the buyer eventually (ie. even with a loan, the buyer still needs to pay it). Am i missing something?

[friends78 0]

Bepgof, good! Cos nowadays hdb sellers tend to set the selling price as valuation plus a high COV...

Random_username, COV will eat into disposable cash for buyers. That's y buyers r very concern about it rather than selling price. There are many reasons when one needs to buy a particular area/hse so no choice... at the mercy of the sellers...

Edited May 20, 2011 by friends78

[kalimantan 6]

I wish to point out a few things after reading the threads ..

a) Rimblock : not all citizens (eg me) treat their tenants badly. I sublet a hdb room for $450/pax for 3 years and still never increase rent or make life difficult for tenant. also i allow tenant to pay rental at end month rather than each month upfront. So she happy until now :-)

b) pantieleen : you should not blame PR for everything. If PR got business mind, it means they are smart. Unless you cannot stand anyone smarter than singaporeans, then i very worry that your children (if any) are to be fully protected by our govt. I do not allow my children to be fully protected by "too pro-singaporean" policy, this will make them worst off in the long run.

c) Rimblock : i've to disagree with you that PR / Citizen own only ONE residence in singapore. In financial concepts, property is a investment class too. It is up to INDIVIDUALS to decide their own financial plans. Eg i can only buy silver, but cannot buy gold ? Or i can buy stocks A, cannot buy stock B ? Therefore anyone can buy any number of properties and manage their risks.

d) Definition of illegal subletting - as long as they pay taxes and ensure tenants are legal with proper pass, what is illegal sublet ? Define illegal ? Does the tenants create neighbourhood problems ? Maybe the govt should "explain in clear cut" matter what constitute illegality ?In that way, jealous singaporean won't shoot here and there and keep the town councils busy.

[random_username 0]

Thanks gimz63251073 and friends78. I do see it eats into ready cash, but i would've thought, that a long term view for how manageable the overall selling price is would be given fair weight. This seemed consistent also with the intention to hold the house for a longer term, since for hdb there is the MOP and for pte, it's extra costly to sell it within certain time periods now.

schiz0id, are you looking only at jumbo flats (as in when built already was a jumbo flat), not the ones that were originally 2 flats then combined into one? I occassionally see listings for these "combined" flats in various areas that seem quite well located.

[gimz63251073 0]

off topic here, but human minds do work in strange ways. May i suggest u try to pick up a book called "predictably irrational". It gives insights into how our minds may decisions.

It does open perspectives and i do believe that we humans often make irrational decisions.

Cheers!

[schiz0id 0]

schiz0id, are you looking only at jumbo flats (as in when built already was a jumbo flat), not the ones that were originally 2 flats then combined into one? I occassionally see listings for these "combined" flats in various areas that seem quite well located.

Hi random,

Actually we are looking for anything with 4 decent sized bedrooms and a large kitchen. I notice some EAs (not those in Punggol though) seem to fit that bill. However, Jumbos tend to be a lil less tight. Not fussy whether they're combined or not, most important is the size of the rooms i guess.

Yup some people advertise jumbo as combined flats. Was very surprised to see amk adjoined flats going for 800k with valuation at 600+k. Gosh... But I guess mature estates have all the amenities blahblah... so they can command that kinda COV *shrugz*

[bepgof 20]

Why?

1. Most Singaporeans are cpf rich and cash poor. Should ask WHAT caused the young ones to "compete" in resale market?

Everybody knows "to spend with one's means", except those of unsound mind.. The Cash-Over-Valuation system has directly driven up the selling price. Know what Mah Bow Tan "thought" about COV system:

"Buyers should not be held hostage by sellers who wanted a high COV and to "shop around and get the best deal". Solid right? Wish all happy shopping!.

Remark: Basically all PRs are "talented" and cash rich, otherwise foreigne affairs would not have granted them the status.

just a general question on COV's:

the focus seems to be on the amount of COV than the overall selling price of a unit. Why so? I understand that the COV needs to be paid in cash, but, the rest of the selling price will need to be paid by the buyer eventually (ie. even with a loan, the buyer still needs to pay it). Am i missing something?

[bepgof 20]

Bro,

These have been well defined by HDB: rooms sublet, whole flat sublet. Just key in the questions:

http://askhdb.hdb.gov.sg/ifaq.asp

Only TA signed & stamped (letting IRAS know), landlord needs paying tax. Locked one room, landlord stays somewhere sure TA signed but not stamped, not to mention paying tax!

Rules of subletting in pty property are more "loosed", esp those "unsold" units but tenanted out by developers. Can check with URA, BCA, SLA. They like to play pinball game.

d) Definition of illegal subletting - as long as they pay taxes and ensure tenants are legal with proper pass, what is illegal sublet ? Define illegal ? Does the tenants create neighbourhood problems ? Maybe the govt should "explain in clear cut" matter what constitute illegality ?In that way, jealous singaporean won't shoot here and there and keep the town councils busy.