Private Property prices......still up or down? Part II

[Throttle2]

oh you mean the elites, deities and the supreme divines

they dont touch peasant properties bah, scare dirty the hands

i thought the supreme divines live in clouds, no?

Got nothing to do with elites deities of supreme divine beings.

Go ask around mcf, many folks are pretty savvy.

 

As for myself, cant afford private properties.

Happy with my sengkang HDB.

 

You leh?

Which condos you own currently?

Share share leh

[Showster]

I am looking at the EC sites now and again the signs are worrying.

 

After Anchorvale EC, there is only one more confirmed site at Tampines Ave 10 in October.

 

Supposing the current trend of de-linking public and private properties continues, would we eventually phase out ECs?

 

I remember Khaw BW talking about this several years back when he was still the MND minister.

 

Or do ECs still serve a function in the housing landscape?

 

Oh, managed to read this. Guess EC should still be relevant.

 

https://www.channelnewsasia.com/news/singapore/govt-to-continue-to-be-vigilant-of-abuse-in-ec-scheme-khaw-8331968

 

The last thing we need to do is to examine Anchorvale EC final pricing. That will set the baseline for land prices.

Edited August 15, 2018 by Showster

[pegasi]

my all are low ses f-type lah not worth mentioning

 

Got nothing to do with elites deities of supreme divine beings.

Go ask around mcf, many folks are pretty savvy.

 

As for myself, cant afford private properties.

Happy with my sengkang HDB.

 

You leh?

Which condos you own currently?

Share share leh

[Throttle2]

my all are low ses f-type lah not worth mentioning

 

 

Maybe add 4 low ses can become 1 high ses?

 

Dont shy leh

[Newbie26]

can u share using 1m property as an example how amassing full cash plus ABSD currently is a wise investment choice

 

1m unit, plus 150k ABSD, plus 30k BSD = 1.18m

 

 

 

Actually not true.

 

Pure investors will pay the lowest price possible, for something that most others find worth it to stay. Case in point, most investors prefer to buy at city centre or near because that's where most of the rental demand is projected to be. Since they are not staying, if two places are side by side, they will get the cheaper one.

 

Owners prefer a place that meets their needs - work, school proximity, nice environment, near MRT, large etc. Usually that means they do not mind paying a higher price for a place that meets more of their needs. If two places are side by side, they will opt for the more luxurious feel and/or facilities.

 

If I can amass a close to full cash sum plus ABSD, I will still get one more. But it's a long shot.

 

I believe we will be at Part III very soon.

 

[pegasi]

not advisable to pay all 1mil in cash

btw bsd n absd cannot leverage, must pay upfront

likewise 55% dp

remain 45% or 450k is ok to loan

dont hero pay this 450k in cash because the cash got better ways to spend

 

say rental for this 1mil unit is 2.5k pm

less maintenance n 10% property tax, still can get 25k per yr or 2.5% yield

 

if interest up beyond 2.5%, make sure got bullet to sustain the loan servicing

 

can u share using 1m property as an example how amassing full cash plus ABSD currently is a wise investment choice

 

1m unit, plus 150k ABSD, plus 30k BSD = 1.18m

Edited August 15, 2018 by pegasi

[Mercs]

https://www.edgeprop.sg/property-news/private-homes-sold-july-55-y-o-y-ura

Private homes sold in July up 55% y-o-y: URA

Aug 15, 2018

[Mercs]

So many units unsold... almost all the launches cannot sell, less than half sold. Good luck to Developers....

 

To me it is also a foregone conclusion price will start falling...

 

Everybody start looking at interest rates now...

During the last downturn, it's been shown that developers would rather pay QC than to lower prices by much to move units.

 

Currently, some new launches after sold certain number units also closed showflat, now is 'wait and see' period for both developer/buyer.

 

Furthermore, this time round is enbloc fever/many billions coming back to the market/many that MUST buy replacement homes. So you think developers worried can't sell?

 

(Foregone conclusion price will start falling)? It took 3.75 years for prices to drop just 11.6%, but only 1 year to go back up 9.1%. So even if prices do fall, will not be by much. Anyway all to be revealed next quarter URA data.

 

(interest rates) again? Like I've mentioned, TDSR at 3.5%. Even if reach this level, is only just back to normal interest rates. Now still below 2% leh, those worried can just lock in at fixed, covered for next few years.

[pegasi]

those who sing down the market should be buyers waiting to enter or to re-enter the market

i dont think developers are so desperate to sell cheap, at least not at the moment

the strong pool of enbloc displaced families will easily avoid 12% absd and 55% ltv by buying 1 unit per person

the leftovers we see in 2018 launches should be less popular locations , or low floors facing noisy roads, or units facing west sun , or 1 bedder units , etc

 

During the last downturn, it's been shown that developers would rather pay QC than to lower prices by much to move units.

Currently, some new launches after sold certain number units also closed showflat, now is 'wait and see' period for both developer/buyer.

Furthermore, this time round is enbloc fever/many billions coming back to the market/many that MUST buy replacement homes. So you think developers worried can't sell?

(Foregone conclusion price will start falling)? It took 3.75 years for prices to drop just 11.6%, but only 1 year to go back up 9.1%. So even if prices do fall, will not be by much. Anyway all to be revealed next quarter URA data.

(interest rates) again? Like I've mentioned, TDSR at 3.5%. Even if reach this level, is only just back to normal interest rates. Now still below 2% leh, those worried can just lock in at fixed, covered for next few years.

 

[antelop]

https://www.edgeprop.sg/property-news/private-homes-sold-july-55-y-o-y-ura

Private homes sold in July up 55% y-o-y: URA

Aug 15, 2018

[therock]

Tenant or owner...

The debate rages on

https://www.straitstimes.com/forum/letters-in-print/hdb-flat-buyers-are-home-owners-not-tenants

[Showster]

Tenant or owner...

The debate rages on

https://www.straitstimes.com/forum/letters-in-print/hdb-flat-buyers-are-home-owners-not-tenants

A rose by any other name would smell just as sweet.

 

If my tenant can sell my house, is he really a tenant?

[Acemundo]

A rose by any other name would smell just as sweet.

 

If my tenant can sell my house, is he really a tenant?

 

agreed.  this is one of the rare time i find ku swee yong dont make sense.

 

just because he want people to understand that 99 year leasehold has fixed diminishing life, he chose to name it an asset as not owned by individuals.  in actual fact in the commercial world, there are 2 types of leases - operating lease and finance lease.  in the strictest sense he is not wrong.  but in reality, people always viewed the assets under operating lease (eg motor vehicles, machinery) as their own and those under finance lease (eg copier machines) as being rented.  

 

this is the case with hdb as well......

 

the only argument the ST forum contributor made wrongly is that where the private properties are concerned, the owners indeed have titled deeds in their name.  but for the case of owner of hdb properties, it is in HDB name if i guessed correctly.

Edited August 16, 2018 by Acemundo

[therock]

I think Mr Ku is simply trying to stir a bit so we change our mindsets. Otherwise when everyone expects the government to help when their lease runs down, we will be in financial trouble.

But not helping at all can cause a lot of social unrest. The solution lies somewhere in between.

I hope they don’t simply kick the bucket down the road. So any kind of discussion is meaningful.

[Ash2017]

I like to share my personal strategy with those who are interested

 

It is years of learning through painful tuition fee but at the end it all works out

 

 

1. enbloc

 

- great capital gain but it is an unfair deal, the smaller units usually get grossly more $$$ than the bigger units, 

- don't be too happy that your estate is going to enbloc (windfall) think long term instead, if there are no major problems with the estate like expensive repairs, located centrally like in Orchard Belt, Freehold, there is no hurry to sell, those in Balmoral area sold to Hong Leong now looking back regret, prices had already gone through the roof

 

2. Location, location, location

 

- even if it is a 99 years but situation in a exclusive location is still better than a 999 years or freehold in Pasir Ris (at least for the moment)

- work your finances, if it is for investment, location says it all (of course the price must also be right)

- politics does affect eg Potong Pasir

 

3. $$$

 

- buy the best available what you can afford

- make sure you can buffer the downturn and able to keep financing the property until the upturn

 

 

4. For investment or self use

 

- I use to think buying a big big house is the best for self use, but if you have an investment mind, then it may be wrong because the house you stay is in fact a form of "liability". Stay in a house size that is adequate but not excessive. Remember that will you are staying in the property, you are loosing rental income, you have maintenance to take care too.

- if pride is not in your way, my humble suggestion is keep your HDB flat, it is low maintenance and a fall back in case anything fails in the future. Banks and government cannot take it away from you and make you live on the street

 

 

In short, so far, from personal experience, unlike other investment vehicles, property should NOT make you loose money especially if you plan ahead. Property is long term investment and rarely a short term pun (only for those who are savvy and in the know).

 

Hope this helps everybody who are interested to huat!

[Ash2017]

I am looking at the EC sites now and again the signs are worrying.

 

After Anchorvale EC, there is only one more confirmed site at Tampines Ave 10 in October.

 

Supposing the current trend of de-linking public and private properties continues, would we eventually phase out ECs?

 

I remember Khaw BW talking about this several years back when he was still the MND minister.

 

Or do ECs still serve a function in the housing landscape?

 

Oh, managed to read this. Guess EC should still be relevant.

 

https://www.channelnewsasia.com/news/singapore/govt-to-continue-to-be-vigilant-of-abuse-in-ec-scheme-khaw-8331968

 

The last thing we need to do is to examine Anchorvale EC final pricing. That will set the baseline for land prices.

 

 

I believe when the price gap between EC and Private are very close, buying power of citizens increases, EC continues with their restrictions, EC no new features in their estate to show or attract, when ordinary BTO flats improves with added amenities, price of BTO edged closer to EC, government (company linked to gov) cannot make double or triple digit profit from sale of EC, then EC may slowly disappear. 

Edited August 16, 2018 by Ash2017

[Kusje]

I am looking at the EC sites now and again the signs are worrying.

 

After Anchorvale EC, there is only one more confirmed site at Tampines Ave 10 in October.

 

Supposing the current trend of de-linking public and private properties continues, would we eventually phase out ECs?

 

I remember Khaw BW talking about this several years back when he was still the MND minister.

 

Or do ECs still serve a function in the housing landscape?

 

Oh, managed to read this. Guess EC should still be relevant.

 

https://www.channelnewsasia.com/news/singapore/govt-to-continue-to-be-vigilant-of-abuse-in-ec-scheme-khaw-8331968

 

The last thing we need to do is to examine Anchorvale EC final pricing. That will set the baseline for land prices.

 

You are posting a 2013 article to support that ECs will still be built?

 

I dunno if it will or not but I know a prata can be peng many many times in 5 years.

[Mkl22]

I like to share my personal strategy with those who are interested

 

It is years of learning through painful tuition fee but at the end it all works out

 

 

1. enbloc

 

- great capital gain but it is an unfair deal, the smaller units usually get grossly more $$$ than the bigger units, 

- don't be too happy that your estate is going to enbloc (windfall) think long term instead, if there are no major problems with the estate like expensive repairs, located centrally like in Orchard Belt, Freehold, there is no hurry to sell, those in Balmoral area sold to Hong Leong now looking back regret, prices had already gone through the roof

 

 

isn't this the same in buying/selling psf of bigger units too. you never get the same psf as smaller units. PSF of bigger units are almost always less than a smaller unit.