Solar Turbocharged November 13, 2008 Share November 13, 2008 Just read this off salary.sg Anyone having property loans getting stuck with the same prob? http://www.salary.sg/2008/margin-call-on-your-housing-loan/ i went to read the article again, but also read the related links.. http://www.expatsingapore.com/forum/index.php?topic=47498.0 seems like it affected the foreigners who financed their homes using sing dollars other than their own home currency.. should have the t&c spelt out when they took this up.. frankly speaking, not yet heard of anything like that in sg *touch wood* imagine suddenly one day our dear bank calls and ask you to make up the difference in 3 days.. sure going to spark another public outcry like the recent dbs-lehman saga ↡ Advertisement Link to post Share on other sites More sharing options...
Silver_blade Turbocharged November 13, 2008 Share November 13, 2008 Think that buyer bought mainly in cash. Hearsay only. Link to post Share on other sites More sharing options...
Roborovskii 4th Gear November 13, 2008 Author Share November 13, 2008 Hopefully margin calls won't be rampant here. If Silver_Blade's ex-neighbour kerna-ed, I think it means that they can do it here if they want to. Things to look out for is the health of the bank that you took your housing loan from... if they're not doing well, then better be prepared. Also a good pointer not to store cash savings in the same bank that you take your loans from (house or car). All those savings would disappear into thin air once they decide to do margin calls, or "force" you to pay up sooner, or if they change the terms... Link to post Share on other sites More sharing options...
Espire 1st Gear November 13, 2008 Share November 13, 2008 (edited) Just read this off salary.sgAnyone having property loans getting stuck with the same prob? http://www.salary.sg/2008/margin-call-on-your-housing-loan/ Yes this has been around for quite some time. In the 97 crisis, many landed owners have difficulty topping up their loan, datz y the price declined greatly due to many auctions and high interest rates. As of now, the property price had not slide to the point whereby there is a need to call for the bank to do a re-evaluation. In months to come, we shall wait and see. Edited November 13, 2008 by Espire Link to post Share on other sites More sharing options...
Solar Turbocharged November 13, 2008 Share November 13, 2008 look at those financing given out to foreigners servicing their house loans...those in forum are probably a tip of the iceberg.. our local banks dare say their subprime exposure is minimal? maybe there's a whole big can of worms waiting to be opened... wriggly wriggly.. ewww... Link to post Share on other sites More sharing options...
Modykoh 1st Gear November 13, 2008 Share November 13, 2008 try to arrange for a reinstallment with the bank...worst case, talk to your MP. I dont think the bank wan to reprocess the unit...as few months down the rd will be worst... good luck.. Link to post Share on other sites More sharing options...
Modykoh 1st Gear November 13, 2008 Share November 13, 2008 when HDB privatied, alot of ppl fear of this,,,loan is taken from banks and banks are, in general,quite merciless... Link to post Share on other sites More sharing options...
Silver_blade Turbocharged November 13, 2008 Share November 13, 2008 (edited) If that happened...talking to MP is also useless. But like someone has pointed out....i doubt it will be rampant here..at least it will not affect a lot of people here. Cos after the '97 crisis....people are more careful when they buy their HDB flats. Most will not pay too much extra for a flat in the open market (some have only just recovered from the last crisis) and it is not easy to get a huge loan from bank if the amount far exceeds the valuation of the flat. Loan system has also been changed to prevent buyer from inflating the actual purchase price in order to get extra loan tp cover other expenses eg, reno, personal debt, etc . Property (HDB especially) prices have not dropped much yet...so it should be ok for the time being. Edited November 13, 2008 by Silver_blade Link to post Share on other sites More sharing options...
Modykoh 1st Gear November 13, 2008 Share November 13, 2008 HDB market usually is lagging curve agaist econ, when econ is down, private property owner down grade to HDB which make them demand substain. later then we can see the diff between exe appt, 4 rm and 3 rm... MP will intercede fi there such cases and banks will in away compromise what ever they can,,after all HDB is still for every person housing. There are few such cases, lan lan the bank bend thier rule a bit to faciliate or help... Link to post Share on other sites More sharing options...
Icq2453 Neutral Newbie November 13, 2008 Share November 13, 2008 Just think outloud, while the HDB flat price, especially for size of 5-room & above, is still stable, it is wise to sell the flat now in anticipation the property prices will plunge next year? I was thinking to use this trying time to upgrade to Condo at cheaper price next one to two years when I have cash on hand (after flat was sold). Any comments? Link to post Share on other sites More sharing options...
Roborovskii 4th Gear November 13, 2008 Author Share November 13, 2008 If you have an alternative place to stay over the next 1-2 years, I think it sounds like a good idea, but of course right now it's gonna be hard to find a buyer and your agent might probably ask you to sell at valuation. Do note that this is going to be a drawn out recession and it would take almost a decade to see any gain. However, if you intend to rent in the meantime, please do not take the risk; I might be conservative here, but I believe that you should never use your primary home as a means of making money. What if everyone's prediction goes wrong, and the govt implements some quirky policy that maintains or increases property prices? Not forgetting also hyperinflation that may just set in, thus reducing the value of your cash. Link to post Share on other sites More sharing options...
Icq2453 Neutral Newbie November 13, 2008 Share November 13, 2008 Ya, absolute agree with your analysis, there is always two sides of a coin. "Never use your primary home as a mean of making money", this has actually striked me..... Thanks for sharing your excellent insights. Link to post Share on other sites More sharing options...
Throttle2 Supersonic November 13, 2008 Share November 13, 2008 i double agree as well , not to use primary residence as a gamble Link to post Share on other sites More sharing options...
Ngck 3rd Gear November 13, 2008 Share November 13, 2008 (edited) a home, especially a HDB one, is for you to live in. Not for you to speculate. All these ppl want to get rich fast, keep pushing up the prices... in the end, the only ppl that got richer surely are the banks and in the end, those poor ppl cannot afford to even buy a 3-rm Edited November 13, 2008 by Ngck Link to post Share on other sites More sharing options...
Felipe 3rd Gear November 13, 2008 Share November 13, 2008 the rise in hdb is largely due to enbloc sales. cash rich private owners trying to make the most of it by getting hdb. once these guys are done, hdb will start to fall, whether economy good or not. i think best is to sell hdb and wait till next year or 2010 to get a condo. should be plenty of unsold condos by then. Link to post Share on other sites More sharing options...
Darth_mel 1st Gear November 13, 2008 Share November 13, 2008 Agree 100%. Gahmen is capitalizing on our speculative and greedy nature, thus causing this never-ending spiraling prices of housing. Most people become rich because of this artificial inflation.... Link to post Share on other sites More sharing options...
Kianbeng Clutched November 13, 2008 Share November 13, 2008 Don't think so. My ex-neighbor bought their flat during the last boom at over $600K, but in 2007, the property is only worth $350K. They were told to pay part of the shortfall in cash. Year 2007 property prices should be quite high isn't it? Link to post Share on other sites More sharing options...
Modykoh 1st Gear November 13, 2008 Share November 13, 2008 >>i think best is to sell hdb and wait till next year or 2010 to get a condo. should be plenty of unsold condos by the u need some place to stay, isitz? if sell and wait to 2010, stay at parent/friend/rental hse? pratically no so convenience,,, ↡ Advertisement Link to post Share on other sites More sharing options...
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