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Private property prices... Up or Down?


Kelfinity
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yes i agree. always leave some buffer. if cannot meet the budget, choose another places. there's so many condos in singapore, each with its own merits.

 

i always get the feeling that once contractor see that you are living in a condo, they will chop you. 

 

the ID, the electrician, the house movers.. etc.

 

Thanks again bro... can't up u again so soon...

 

Ya, I haven't thought deeper into the reno costs and dun hv much for this... most prob will engage a carpenter fren to do the woodwork n recomm a ID if needed...

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If your prospective boss says this, that is probably not a good fit for u, they obviously can't afford your salary

 

Oh but T2 said that u r only 30 years old, u must be a high flyer too

 

Haha like minds

Hello, i didnt say he is 30yrs old leh

He not so young lah, now i think at least 37, 38 already.....

 

Hhhhmmmm, actually still young....

Still bright future unlike me down and out

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That guy is already asking for so close to the last transacted as you say.. 

 

768psf vs 760psf.. i sincerely doubt  he would knock 100psf off since he is already willing to wait 1yr to sell the house...  

 

if he does.. then something is seriously wrong with that unit.. then u better be wary.. 

 

I suggest you look for a smaller unit bro.. prolly easier for you to close the deal within your budget  [:)]

 

 

PS i am against increasing your budget when you are lking to buy resale homes..  some require extensive repair work..  best to have a decent buffer for that.. than to be caught with a home you just bought and then you discover have some issues which need $$ to fix

 

Thanks bro for your frank thoughts..

 

Yup, we're flexible to go for smaller unit if the layout is OK.. budget comes before space... 

 

And yes, we haven't considered the reno costs in depth and this needs to be within the budget and not outside of it... 

 

Will see if the development has some gems or not....

 

* Yes, you're right in unit's location... Thanks!  [thumbsup]

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Thanks bro for your frank thoughts..

 

Yup, we're flexible to go for smaller unit if the layout is OK.. budget comes before space... 

 

And yes, we haven't considered the reno costs in depth and this needs to be within the budget and not outside of it... 

 

Will see if the development has some gems or not....

 

good luck!

house hunting is fun!  [:)]

 

imptly.. dont rush

Edited by SuPerBoRed
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Hello, i didnt say he is 30yrs old leh

He not so young lah, now i think at least 37, 38 already.....

 

Hhhhmmmm, actually still young....

Still bright future unlike me down and out

 

at least you had your glorious table wiping days to reminisce

 

me...crawling like a snail from start to now almost finishing

 

worse still... anytime can get stepped on by anybody and die also dunno how it happened

 

[sweatdrop]  [bigcry]

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at least you had your glorious table wiping days to reminisce

 

me...crawling like a snail from start to now almost finishing

 

worse still... anytime can get stepped on by anybody and die also dunno how it happened

 

[sweatdrop][bigcry]

Glorious?

Mai suan leh

 

Dirty oily smelly, where got glorious.

I think i want to be tennis coach like @Radx

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Thanks bro... Fun? [bigcry][nosebleed][furious] = [shakehead]

 

[laugh]

Bro, own stay vs investment the strategies should be quite different.

 

Important considerations are your family size, work and school locations, whether drive etc.

 

Do consider HDBs as well if eligible. Your Budget can get a decent huge mansionette if your family size is big, or a new private 2 BR, depending on your objectives.

 

Good luck!

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Bro, own stay vs investment the strategies should be quite different.

 

Important considerations are your family size, work and school locations, whether drive etc.

 

Do consider HDBs as well if eligible. Your Budget can get a decent huge mansionette if your family size is big, or a new private 2 BR, depending on your objectives.

 

Good luck!

Yes, and that's why we have million dollar HDBs - because they are more VFM... and we wonder why people are willing to drop a mil on them..

Good location, big homes and convenient spots... why not... at half the price of adjacent condos..  [thumbsup]

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Ok something has been bugging me and set me thinking about my own finances

 

A friend's friend says that he aims to have 100k in his bank account by 30 years old, is this even possible?

 

What are your thoughts?

 

@enye pls give your honest opinion hor

 

Yes very very very possible.

 

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I have juniors who have gone on in life to do well. They come back and share with their teacher :

Business are the way. And if you can be an entrepreneur that's better

Second will be banking. A private banker can get up to one year salary in bonuses.

Forget lottery and all that.

 

What you said is true, but you also have to take a look at all the bodies lining the street.

Of the people that have joined the industry together with me like 15 years ago, i think only 10% left standing.

 

Top 1% make couple of million (not as management but as frontline), it is genuinely not uncommon for top RMs to make more than the boss.

But how many make it there? Short of doing laundry work?

 

Just to share.

Our side requires min USD5M to open account, and yet, my youngest client is all of 26 years old. (ok now 27)

Not doing anything illegal.Self made. Not inherited, detailed KYC done with IR8A and tax records obtained for last 4 years.

His income tax is about my income.

 

Feel small? Join the club. Me also. Actually no need to compare one.Cos once you have seen the depths of the ocean, you will know 99.99% of us are small fry.

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Spoken with wisdom and experience.

 

Indeed, most of us are small fry, that's the way the world is.

 

But still, it is not justifiable to set the bar at top 0.01% considered high income and 99.9% middle and lower income tio boh? If it is really GCB, the pricing structure will indeed be set at that level to cater to UHNWI. But here, talking about 500K loan, we are definitely not near that category.

 

Overall, the public to private housing ratio is set at 1:4 to 1:6. Roughly speaking, it will be fairer to look at the income level of the 20th percentile or so to determine affordability to house all and not just the top 1%, much less the top 0.01%.

 

 

 

What you said is true, but you also have to take a look at all the bodies lining the street.

Of the people that have joined the industry together with me like 15 years ago, i think only 10% left standing.

 

Top 1% make couple of million (not as management but as frontline), it is genuinely not uncommon for top RMs to make more than the boss.

But how many make it there? Short of doing laundry work?

 

Just to share.

Our side requires min USD5M to open account, and yet, my youngest client is all of 26 years old. (ok now 27)

Not doing anything illegal.Self made. Not inherited, detailed KYC done with IR8A and tax records obtained for last 4 years.

His income tax is about my income.

 

Feel small? Join the club. Me also. Actually no need to compare one.Cos once you have seen the depths of the ocean, you will know 99.99% of us are small fry.

 

Edited by Showster
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Yes.Here are 2 reasons for this this new property :

 

1. Interest rate

2. Currency

 

I cannot control interest rate, but can do currency play. A dollar less for SGD that helps to offset interest rate. That's the beauty. Whereas I can't do that in Singapore property. Pump more when currency down, and less when currency up.

Diff strokes for diff folks. Some invest overseas, while others prefer local, home ground advantage. [laugh]

 

Or maybe , do both? [sly] Good luck and huat ah! :D

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Low may go lower ....

no holding power means jia-lat liao ....

Low may go lower, high may also go higher.

 

The expensive of today, may be the cheap of tomorrow [sly] ... or may go even cheaper? [:p]

 

Huat ah! :D

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http://www.todayonline.com/business/two-tier-housing-market-likely-year

Two-tier housing market likely this year

Jan 6, 2017

 

Our forecast for housing prices to drop by 8 to 10 per cent in 2016 was off the mark. The Urban Redevelopment Authority’s (URA) private residential index turned out to be surprisingly resilient, dropping a mere 3 per cent for the whole of last year, while the Housing and Development Board’s (HDB) resale price index ended the year almost where it began.

 

While it appears that policy measures have managed to stabilise prices in the residential market, a deeper look at the numbers reveals that the overall B-grade result was achieved through A grades in a couple of subjects and B, C and D grades in other subjects. Examining the performance of the various regions and sub-types such as landed housing, we might conclude that 2016 was a directionless market. Several factors point to a continued search for direction in 2017.

 

 

ON ONE HAND, UPWARD PRESSURE ON PRICE INDICES

 

More than a dozen HDB flats transacted above the S$1 million mark in 2016 and many more set new area records above S$900,000 to help hold up the overall HDB resale index.

 

Developers also contributed to the upward shift in the private residential price index. A few projects that have gone quiet for more than a year started selling briskly when developers offered discounts and attractive payment schemes. Even with the discounts, the prices achieved for these relatively new apartments were higher than the average prices in their respective neighbourhoods, nudging the index upwards.

 

The Monetary Authority of Singapore and the Inland Revenue Authority have, as of January 1, implemented the Common Reporting Standard (CRS) with 46 countries, and the first automatic exchange of information will commence in 2018. This is an agreement among participating countries to share information about residents’ gross financial assets, a move to deter and detect tax evasion through the use of offshore bank accounts.

 

The key element in the exchange is the disclosure of the value of the bank accounts of high net worth individuals.

 

Some foreign high-net-worth individuals might not feel comfortable that their accounts are being disclosed to their home country’s taxman. We might therefore expect some of them to trade their financial assets for real assets such as luxury properties.

 

It seems that there is plenty of liquidity among high-net-worth investors and prudent owner-occupiers who did not place property bets in the frothy market three years ago. And perhaps these reasons contributed to the Government’s reluctance to relax the cooling measures.

 

 

On THE OTHER HAND, MORE DOWNWARD PRESSURE

 

Investors with little holding power have sold their properties with losses or defaulted on their mortgages. According to research by The Edge Property, the proportion of unprofitable deals rose from 10 per cent (447 of 4,687) in 2015 to 17 per cent (873 of 5,264) in 2016. These figures refer to resale transactions of condominiums and apartments where the previous caveats can be traced.

 

Defaults on residential mortgages increased from 2014 through to 2016 and are likely to rise further as retrenchments and vacancies increase, rentals decline and interest rates rise in 2017.

 

Developers avoiding penalties imposed for not selling out their new projects will probably slash prices for bulk investment deals, and offer attractive payment schemes and stamp duty absorption to clear the remaining units.

 

Adding to the pressure is an increasing supply in the second-hand market. An increasing number of families who treat HDB flats as investments are eligible to sell their flats after the five-year Minimum Occupation Period (MOP). Thus, resale values have declined, especially those in less desirable locations, such as Choa Chu Kang, Jurong West, Punggol, Sengkang and Woodlands.

 

The situation is similar for executive condominiums (EC), which have an MOP of five years, and for private residences, which are “discharged” from the four-year Seller’s Stamp Duty liability. Due to the massive ramp-up in residential developments after the Lehman crisis, the supply of resale HDB flats, ECs and private homes is expected to increase in the next few years, putting more downward pressure on prices.

 

This is good news for buyers who are looking for good-value picks. Property agents may also look forward to potentially higher transaction volumes.

 

 

A TWO-TIER MARKET LOOMS

 

Barring seismic shifts in global political and economic events, what might happen when the upward pressure of excess liquidity combines with the potential increase in the number of resale residences? Last year presented us with a hint: A two-tier market will develop in both the public and the private housing segments.

 

We expect the massive supply and weak rental demand in the outskirts of Singapore to bring prices down. Meanwhile, cash-rich investors looking for gems in the market will focus on centrally-located properties. We believe these trends will continue for the next three years and price gaps will widen.

 

As the market waits out the supply glut to be absorbed through population growth, investors might do well to appoint a property agent to help sift out the well-built, undervalued, freehold private residences in Districts 9 and 10. When the next economic boom hits Singapore, the value of these properties will jump. Bargaining power is enhanced with scarcity.

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Turbocharged

Dear Old Property Birds and Sifus in here...

 

Need to ask your kind advice and views...

 

If I'm looking for a owner occupied property, in a quiet District 5 corner, lets say the asking is $1M for a 1.3K sqft condo ($769 per sqft) .. Its not too new, Tenure 99 yrs & is about close to 20 yrs old now...  Saw the location not much sales transactions this year and prices are about this range ($760 PSF).. 

 

In terms of asking for discount from seller, how much is too much or too little? My budget is abt $850K and would be nice to have this 1.3K sqft but 1.1K sqft is acceptable if got another unit that fits my budget... So for this unit is abt $150K gap between expectations.. how can I gauge how much lesser the seller will bite? Or how much should I up my budget to get this unit?

 

Our combined income definitely is in the lowest 10% bracket as per your latest discussions [laugh] , so need your expert views on this issue.

 

Thanks a lot again.... ^_^  

 

Bro, did you check bank valuation  for the house you are looking at?

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