Mr. Tan was Ok with the $675k HDB price!

[Kianbeng]

ya thats true. Probably they ran a credit check on him and found he wasn't likely able to service a 500+k loan.

 

But I find prices of HDBs quite high now. can't imagine paying that much for a flat.

[Boyboy]

bro, even with 2.6% interest rate and at 30yrs of loan tenure, the instalments would be approx $2400-2500.

 

actually, if he gets all his other finances in order, still can leh. $6000 (officially ) minus 3k is $3k leh.. can surive on 3k

 

but maybe not very confidence inspiring to HDB

[Boyboy]

one thing ah, HDB loan is pretty low interest. if spread out payment over 30 yrs, shd be ok right? just pay quite a bit in interest la, even with the 2.6% rate

 

Bro dont be suprised when HDB increase the loan rates. Why? Cos now HDB cost of funds from CPF is close to 5%, that is what they are paying us for amounts <60k in our CPF balance. Dont assume HDB rate will always be 2.6% wor

 

that SUCKS

 

wonder if i shd piah my loan.. wait n see

[Felipe]

bro, even with 2.6% interest rate and at 30yrs of loan tenure, the instalments would be approx $2400-2500.

 

Never take a 30yr loan tenure.

 

because, you will pay more for interest then the principle.

 

in short, 60-75% of your repayment monthly, goes to servicing your INTERESTS, not your PRINCIPLE.

 

50-50% break is less then 20yr tenure. Somehting to think about.

 

Simple means, this 645k HDB will cost....... 1.5mil after 30yrs.. yippesssss.....

 

we have another millionaire!!!

 

the upside of property is in 30 years, due to land scarce SG, it's very unlikely things will remain the same. but im only skeptical of a 99 year 600+ HDB only. After 30 yrs, left 69 yrs, its very hard to justify the million plus price tag. that's why i think ppl paying for that kinda price should go for private freehold or at worse, a 99 yr condo and hope for enbloc. in any case, its still better than car loan which is lose lose.

[Yeokiwi]

Mr Tan may be thinking of using the media to pressurise the developer to return him the full option fee.

 

Obviously, he had discovered that Cityview was not that hot and he was paying a high price for a unit.

 

The developer should deduct 25% of his option fee to give him a good lesson in financial planning.

[Jtis]

You pay 5% of the selling price to the developer as the option fee. You submit the HLE application form with income documents to the marketing agent HSR when you sign the option form and pay the 5%.

 

I think that's taking things too much for granted. You can also choose to be more kaisu and on the ball, and obtain the HLE letter before you go down to sign the option form.

[Adrianlim13]

Oh so this is part private then. Cos from what i know, for 'normal' HDB, you must obtain the HLE before you can proceed..

 

I feel that's the best approach, so people like Mr Dumb will not be caught offguard.

[Jtis]

I guess if you don't do your homework, and expect to be hand held your way through your home buying process, this is what happens.

[Madsumm]

IMHO, its always never a good idea to give bank 100% of your loan for doing nothing.. hahaha

 

Valuation of your house will not be 100%.... so.. u paid 1.5mil at the end of the year and u r hardly a millionaire... keke funny right?

[Curahee]

ok wat...i oso work a few yrs then buy flat. it is not a given that flat px sure up if u don't get house asap. just ask those who bought in '97.

 

as long as u can afford it, not much of an issue to get a flat/ house.

 

problem comes abt only when they chew off more than they can swallow.

 

I agree with u. My friend recently quickly rush into the mkt to buy flat. I ask them why wanna buy at the peak? He say if dun buy future flat price will be expensive. I dunno whether his theory is right or not

[Curahee]

Sengkang punggol jurong west flat will be even more ex in future due to the recent waterfront living thingy and the jurong CBD development. They make it very ex for ppl to buy even for even new district flat nowadays. Feel tat if they wanna come up with such developments for the heartland, den at the same time dun increase the price of the flat. Imo i juz need an affordable flat with basic facilities near by. Tats all. Dun give me those things like hotel, offices, mega shopping malls, water front living, etc. I dun need as i juz need a shelter tat i can afford.

[Zakuii]

Lets not be too judgemental and hard on him. It is his money and his choice of lifestyle.

 

when he goes broke, he will seek for public assistance. that is money from the taxes i paid. i'd rather my contribution goes to more deserving people.

[Gearoil]

KNN $33k option fee still need to borrow from relatives......still YAYA TOK KOK says he can afford the HDB. He deserved to lose the $8000 penalty fee!

He is over confident in stretching the concept of spending future money now!

30 years old already still living in the More Good Years Dream!!!

 

 

http://www.tnp.sg/news/story/0,4136,165321,00.html?

 

Search for dream home turns into nightmare

Couple can't buy flat and may forfeit $8,000 in fees because they can't get housing loan

By Desmond Ng

 

May 21, 2008

 

 

AFTER several failed attempts to get a new HDB flat, he was ready to give up and pay more for a private property.

 

A preview of CityView @ BoonKeng, which will be ready in 2011. -- ST File picture

Then, home-buyer Dave Tan had a stroke of luck - or so it seemed. He found a new five-room HDB flat at City View @ Boon Keng.

 

This is the second public housing project to be built and sold by private developers. Hoi Hup Sunway Development is the developer.

 

Even though it cost a whopping $675,000 - not cheap for a new HDB flat - Mr Tan was okay with the price.

But his happiness was short-lived.

 

The 30-year-old and his fiancee, who are getting married next year, found out that they may not be able to finance their new home.

 

PENALTY

 

They are having difficulties securing a home loan and may even have to pay a penalty to give up the flat.

 

The couple's combined income is about $6,000, said Mr Tan.

 

They put up an option fee of about $33,000 for the flat two months ago.

 

But the Housing Development Board (HDB) rejected their loan application for 90 per cent of the cost of the flat last month.

 

This is because Mr Tan's director's fee can't be used for credit assessment, and his fiancee didn't have the pre-requisite three months of continuous employment for the same company.

 

Mr Tan runs a serviced office business.

 

His fiancee quit her last job in February and started work as a personal assistant last month.

 

Upon appeal, HDB said they will be willing to give the couple a loan of about $150,000, but rest will have to be paid in cash and out of their CPF.

 

Mr Tan said: 'Where can I find so much money to pay for the flat?

 

'We were very happy when we managed to get the flat. But with this loan issue, I really doubt we can afford to get the place now.'

 

The 714-unit condo-like development will be ready only in2011.

 

Mr Tan said he and his fiancee had tried balloting for a new flat three times last year.

 

On two occasions, the flats they wanted were already taken up. On another occasion, they didn't get a chance to choose a unit because all were taken up.

 

Mr Tan said he had approached afew banks for loans, but the maximum they would lend was about $400,000, still about $270,000 shy ofthe purchase price.

 

To make matters worse, if he defaults on this flat purchase, he'll have to pay a penalty of about $8,000 to the developer. This is about 25 per cent of the option fee which he paid for the place.

 

'The developer said that since the sale didn't go through, we have to forfeit part of the option fee,' he said.

 

TEARS

 

'My girlfriend is so upset that she cried and lost so much sleep over the penalty. She said she has never lost so much money before in her life.'

 

The couple had borrowed the money to pay the option fee from their relatives.

 

A very frustrated Mr Tan thinks that it's unfair to be penalised because it wasn't a case of them not wanting to proceed with the deal.

 

Rather, they can't accept the deal now because of loan problems.

 

A spokesman for Hoi Hup said that in cases where the applicants do not meet the eligibility requirements for the flat, there will be a full refund of the option to purchase fee.

 

But if the withdrawal to buy the flat is due to other reasons, such as loan issues, the applicants face the prospect of forfeiting 25 per cent of their option fee.

 

The spokesman declined to comment on the above case and would only say they are reviewing MrTan's appeal to waive the penalty.

 

Dear 'Beng' Tan

 

I know every young punk can call himself Director nowaday of so and so business.

 

I know young punks and their partners nowadays are also very 'materialistic', so much so, that they think they can live in luxury and they think that everything can be obtain on 'loans'.

 

Mind you, when you need to get something on loan...it means you can't 'actually afford it'.

 

But if the above statement doesn't ring any jingle bells in your head...then you can always approach my buddies at Lorong 69 to get a 'friendly loan' at 25% interest per week!

 

One last thing, nobody gives a damn on your flaunting of wealth...if you REALLY can afford to do so..but don't come to Media Corpse to 'cow pay, cow bu' like some spolit brat just becos you find that the reality hits you right in your Ah Beng face...O.K?

 

Signed off

 

Lau Ah Beng

[Iridrium]

How much of your taxes you paid you think goes into the public assistance fund? 0.00001%?

 

How easy you think will it be to get free handout from the government?

 

I agree with all in the forum that he deserve what he is getting because he is not financial savvy and dumb enough to jumped into the huge committment without adequate homework.

 

I am sure we all made mistakes in our life. My point is, let's show a bit of empathy.

 

 

Life here will be more bearable that way.

[Mzrmazda3]

Boh Lui still dare to go opt for a S$675K

 

What is he thinking

he thinks his 6000 pay sibe big lar....

 

Really Sum Thin Long

[Octopus]

[reply]

Sengkang punggol jurong west flat will be even more ex in future due to the recent waterfront living thingy and the jurong CBD development. They make it very ex for ppl to buy even for even new district flat nowadays. Feel tat if they wanna come up with such developments for the heartland, den at the same time dun increase the price of the flat. Imo i juz need an affordable flat with basic facilities near by. Tats all. Dun give me those things like hotel, offices, mega shopping malls, water front living, etc. I dun need as i juz need a shelter tat i can afford.

 

Actually I feel sengkang and punggol would not get too ex in the future, might even be cheaper. Cos HDB built too much flats in that area, so near future will have an over supply. Furthermore the location is not convenient, too far from the city and its at the north east corner of S'pore.

 

The expressway there (TPE) will not be enough to cater for the huge population which the gov. is trying to squeeze there, therefore I predict the traffic condition there will be fustrating for the resident. Even with the mega shopping mall of water front living, unless the resident got a job in those industry, otherwise traveling to work will be difficult.

 

Most of the recent BTO is located there, I feel its bad planning. Some of the BTO the took up rate is only 65% ~ 75% as I remembered from a report few weeks ago, this show not many people want that area, yet HDB is building more units there.

Edited May 22, 2008 by Octopus

[Wind30]

Mr Tan may be thinking of using the media to pressurise the developer to return him the full option fee.

 

Obviously, he had discovered that Cityview was not that hot and he was paying a high price for a unit.

 

The developer should deduct 25% of his option fee to give him a good lesson in financial planning.

 

yup, I am quite surprised that the stupid paper actually put up this story.... crazy, there is totally no case for poor financial planning. if he cannot afford the house, forfeit the option lor. everybody does that, why should he be any different????

[Zakuii]

no doubt my tax contribution is insignificant, but no matter how insignificant it might be, i still want my 1 cent to go to those who really needs it.

 

my motto is spend within your means. therefore, why should i give chance to those who wants to show off although they have not make it there yet?