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

[Showster]

You mean interest only loan? Like what they used to have in Australia?

 

Nolar, I really didn't go for expensive holidays for many many years. Every month topped up with cash, damn siong. Truthfully, I can't imagine doing this all over again at prices that are 2-3x higher.

 

Well, at least rental is higher now and interest rate is still very low. So maybe some got it better, can enjoy positive cashflow and go expensive holidays every year.

Every generation has different salary backing, and also training / education levels.

 

Also gotta multiply the difference by two or more with people working longer years, and less stay at home mum.

https://www.straitstimes.com/business/invest/banking-on-real-estate-know-how-to-invest

 

Listen to the agent, who puts his money where his mouth is... more good times he says..

He knows the game well and leads by example. He understands the trade off between size and status (HDB vs private). Not many people can understand or embrace that choice.

[therock]

https://www.straitstimes.com/singapore/housing/hdb-owners-flouting-rules-by-adding-extra-floor

 

Lofty ambitions

 

 

Need more living space? Property prices have gone through the roof, so buying a bigger place might be out, but why not add a few mezzanine floors in your existing home?

That is what the owner of a three-room Housing Board flat decided to do after being inspired by industrial-loft designs.

Even though HDB rules outlaw such modifications, he spent a whopping $40,000 to do so and virtually doubled the living areas in the 700 sq ft apartment.

The mezzanine floor in the living room functions as a gaming area, one in the kitchen provides extra storage space and two more were built in the bedrooms.

While he may have generated extra space, there is strictly no room for such manoeuvring within HDB rules.

"Flat owners are not permitted to extend the floor area of their flat by covering over void areas, as such extensions may result in additional load on the structure and compromise the structural integrity of the building," an HDB spokesman said, noting that unauthorised mezzanine structures in flats are rare.

 

 

Housing and Development (Renovation Control) Rules state that a flat owner who carries out or allows unauthorised installations faces a fine of up to $5,000.

The owner would also have to bear the cost of reinstating the flat's original configuration.

 

A mezzanine floor built in the kitchen to create extra space. With properties getting pricier, home owners are seeking ways to increase their space instead of buying bigger apartments, said a contractor. PHOTO: ALLOYIOUS KOH/CARPENTERS

 

Mezzanine floors are becoming common in private condominiums and HDB flats as properties become more expensive and more people are finding ways to increase their own living space instead of buying bigger apartments, said a mezzanine contractor who wanted to be known only as Sam.

Sam, 50, who started Mezzanines Singapore three years ago, said he has built more than 100 mezzanines, mostly in residential properties.

Mr Alloyious Koh, 28, chief design consultant at Carpenters, said there is a bit of a grey area in the rules for private home owners.

"Some condo managements allow the building of mezzanine floors if the platforms are not attached to the wall, " said Mr Koh.

Such a mezzanine system has been a popular feature in show flats with high ceilings.

Sam added: "The mezzanines are fixed with bolts and nuts. They are not permanently fixed to the walls and can be easily dismantled."

And if the loft is 5 sq m (54 sq ft) or less, building approval is not required. However, owners and developers are advised to check that the addition and usage of the loft would not exceed the unit's designed load capacity.

Both Mr Koh and Sam advise home owners to seek approvals from the relevant authorities, although there will still be some who choose to go ahead with the work without permits.

These home owners think that the chances of the authorities finding out about their unauthorised structures are slim, they added.

The Building and Construction Authority (BCA) has handled 170 cases in the past three years where structures were erected without prior approval, including attics, staircases and floor extensions over void spaces.

"Most of the works were commissioned by owners of landed houses. Such unauthorised structures might not be properly designed and/or constructed and may pose potential hazards to the occupants," the BCA and Urban Redevelopment Authority (URA) said in a joint reply to The Sunday Times' queries.

They noted that 45 of the 170 cases were served with demolition orders. Some owners did demolish the structures while the rest obtained approvals to retain them.

The remaining 125 cases were not served with demolition orders because the owners had obtained the relevant agency approvals to retain the structures.

The BCA and URA said all cases are dealt with according to the severity of the breach. The 170 cases between 2016 and 2018 resulted in either warnings, financial penalties or prosecution.

Related Story

Illegal floor a blatant breach: BCA and URA

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Stink raised over parking spaces converted into toilets

A recent case that was uncovered by a tip-off involved an illegally built hidden floor inside a building in Alexandra Road.

The Alexcier, a light industrial complex, was supposed to have only eight storeys and one basement, as shown in the strata-certified plan.

In what is the first known case of its kind here, the hidden ninth floor of over 5,000 sq ft - the size of about eight three-room HDB flats - can be accessed only from the unit on the eighth floor and boasts various living spaces with workstations, beds, a kitchen and a meeting room. The illegal floor unit is owned by ZACD Investments, co-founded by Mr Stanley Yeo and his wife Kain Sim.

The Sunday Times understands that demolition work started last week and is scheduled to be completed by April 1.

News of the hidden floor came at a time when developers are building more units with high ceilings and charging for void space.

Some public housing projects in Punggol and Queenstown also come with high ceilings, but not all void space can be used to accommodate a mezzanine floor even if buyers already paid in the expectation that they could add a floor.

 

[Mercs]

Would the discount be shared with buyer but not reflected in the S&P?

What discount??? Some may be offered by developer but not reflected in S&P.

Have to declare to bank if taking loan.

[Mercs]

Haaa. No wonder the agent who sold me gave me abalone the following Yr after buying and then this yr, came over to give me bakua.

[Tiger1]

Haha you bought recent? Congrats

 

Good after sales service, probably hoping for some recurring business from you

 

What i more keen to know is, you mention 'she' ... chio or not?

Bro, she shd be chio 20 yrs ago I guess. Now... Edited March 17, 2019 by Tiger1

[Khng8]

What discount??? Some may be offered by developer but not reflected in S&P.

Have to declare to bank if taking loan.

I meant surely the agent will offer part of his commission as discount to induce the buyer over. The developer may prefer this than over an outright price discount.

So the buyer will think he got s good deal and the developer gets to keep his ASP high.

[Mercs]

Bro, she shd be chio 20 yrs ago I guess. Now...

[Mercs]

I meant surely the agent will offer part of his commission as discount to induce the buyer over. The developer may prefer this than over an outright price discount.

So the buyer will think he got s good deal and the developer gets to keep his ASP high.

You think? Doubt this is so as there are no lack of willing buyers, thousands at showflat every new launch.

Anyway, how much discount can the agent offer, half the comm 15K? Not attractive considering some buyers having to pay 12% ABSD or above 100K

 

But never say never, if anyone encounter this do update

[Mercs]

First weekend preview ... 7,000 strong chiong ah!

 

https://www.todayonline.com/singapore/packed-showroom-treasure-tampines-opening-weekend

Thousands pack showroom at Treasure at Tampines’ opening weekend

 

Close to 7,000 visitors thronged the showroom of what is touted to be the largest private condominium launched in Singapore, with over 2,200 units set to go on sale.

 

The condominium comprises one- to five-bedroom units, with sizes ranging from 463 sq ft to 1,722 sq ft. With an indicative price of S$585,000 for a one-bedroom unit and at least S$1.88 million for a five-bedder, its developer said the condominium is priced at about S$1,280 psf on average.

 

 

Among some of the interested home buyers TODAY spoke to while visiting the showroom, a few have already set their minds on purchasing a unit.

 

Mr Triston Tan, 47, said he has already submitted a cheque to indicate his interest in a two-bedroom unit which he intends to acquire as an investment.

 

The equipment engineer and his wife, Ms Catherine Teo, 47, live in a five-room Housing and Development Board (HDB) flat in Tampines and have no intention to sell it.

 

This means they would have to pay a 12 per cent Additional Buyer’s Stamp Duty (ABSD), which is imposed on buyers getting a second residential property.

 

Mr Tan said they will have to bear with it since they made the decision to invest, although they are concerned about servicing the mortgage loan in the future.

 

 

Another showroom visitor, Melvin Goh, 37, is also looking to submit his cheque on Monday for a one-bedroom unit he intends to get as a form of investment.

 

He lives in a five-room HDB unit in Tampines and said that there is “no choice” but to pay the ABSD.

 

 

Other visitors adopted a “wait-and-see approach” and said they would look at other launches in the eastern region.

 

One of them is Mrs Vinita Malekar, 47, who lives with her husband in a five-room HDB flat in Bedok and is looking to upgrade.

 

Having to come up with the ABSD upfront poses a problem, Mr Chandra Malekar, 54, said, and so the couple is shopping around for a smaller unit than they were aiming for.

 

"Definitely we want to go for a bigger house, a four-bedroom. But the cost also goes higher right? It definitely puts a strain on us,” said the housewife.

 

 

Mdm June Tan, 63, is also looking to buy a second property in the eastern region as an investment. The retiree lives in a three-bedroom freehold condominium in Geylang, which she is looking to move from after her husband died last year.

 

She is looking to buy the next property under her 21-year-old daughter’s name, as she can then avoid paying the 12 per cent tax. The current condo in Geylang is in Mdm Tan's sole name and her daughter has no property to her name.

 

ABSD is not refunded for singles even after they have sold off their first property within six months of purchasing a completed property or receiving the Temporary Occupation Permit.

 

“Isn’t the law very weird? Just because my husband died, I cannot get back my 12 per cent?... I didn’t ask for my husband to pass away,” Mdm Tan said.

Edited March 17, 2019 by Mercs

[Icedbs]

I meant surely the agent will offer part of his commission as discount to induce the buyer over. The developer may prefer this than over an outright price discount.

So the buyer will think he got s good deal and the developer gets to keep his ASP high.

 

Note that it is illegal for the agent to offer cashback to buyer. If the agent offers to cut his comm, then that's between the developer and the agent while the true price must still be reflected on the S&P.

[therock]

First weekend preview ... 7,000 strong chiong ah!

 

https://www.todayonline.com/singapore/packed-showroom-treasure-tampines-opening-weekend

Thousands pack showroom at Treasure at Tampines’ opening weekend

 

7000 pax vs two thousand plus units is actually rather low... love my statistics... 

But of course they will play up the 7k figure..

Let's see how well they sell.. 

Obviously if they sell well, prices may go up elsewhere.. 

[Showster]

7000 pax vs two thousand plus units is actually rather low... love my statistics...

But of course they will play up the 7k figure..

Let's see how well they sell..

Obviously if they sell well, prices may go up elsewhere..

It should be attractive to upgraders due to economies of scale and numerous facilities from lower maintenance, location and decent price. EC plus, should be very favoured.

[Mercs]

7000 pax vs two thousand plus units is actually rather low... love my statistics...

But of course they will play up the 7k figure..

Let's see how well they sell..

Obviously if they sell well, prices may go up elsewhere..

Sure, there could also be many just 'window shopping' ... keen buyers but wait and see approach.

 

Previously the trend was for developers to quickly sell move on next project.

Current is slow and steady strategy, not dropping psf prices with consistent monthly sales.

 

So probably won't be seeing high sales numbers during initial for new launches IMHO.

 

These are potential buyers, but i reckon at this juncture, many are just 'window shopping'

 

With the abundance of new launches in 2019, choices galore, so there's really no hurry.

 

If developers dun price them attractively, uphill task to move units

[Mercs]

Before age 30 already own 2 private properties

 

https://www.straitstimes.com/business/invest/banking-on-real-estate-know-how-to-invest

Banking on real estate know-how to invest

 

Growing up in a low-income household is a challenge for anyone but property executive Stewart Lim was fortunate in that his parents had a sound exit strategy - education.

 

His now-retired father used to work as a concrete-mixer driver while his mother is a clerk in a construction firm.

 

They saved most of their salaries to provide Mr Lim, now 30, and his two younger sisters the funds for tertiary education, which they saw as a sure-fire way to break out of the poverty cycle.

 

Mr Lim, an associate group director at real estate firm PropNex, recalls helping at his uncle's food stall during his secondary school days.

 

 

Q What's in your property portfolio?

A In 2015, I bought my first property at the age of 26. It was a 570 sq ft two-bedroom apartment with one bathroom at High Park Residences in Sengkang at $636,000. It is expected to receive its Temporary Occupation Permit (TOP) status by June and I am looking at a potential rental yield of 2 per cent.

 

Two years later, I bought my second property, Le Quest in Bukit Batok, a 495 sq ft one-plus-study unit at $652,000. It will obtain its TOP in 2021.

 

I am targeting capital appreciation of between 10 and 20 per cent in view of the growing young generation in Sengkang and government plans of creating the new Tengah town.

 

As a real estate salesman, I have the latest market updates, partly based on supply and demand issues, plus an understanding of developers' pricing strategies, before making a decision.

 

Q Describe your property investing strategy.

A Putting to good use what I have learnt from PropNex, I will monitor the surrounding future development plans by the Urban Redevelopment Authority before considering the entry price and the unique selling point of the property.

 

I plan to upgrade to a bigger unit in the next five years and it could be a landed property or a four-bedroom private condominium for my family to enjoy.

 

Q What's your view of the property market?

A Given Singapore's stable political environment and many upcoming exciting developments in different parts of the island, I believe the property market will continue to grow steadily and rapidly over the years, due to the limited supply of land and population increase.

 

Q What's your financing strategy?

A I took a bank loan with floating interest for my first property and subsequently refinanced it to a fixed interest rate mortgage due to the volatile market.

 

For the second property, I adopted a "forced savings" method to pay for the progressive payment without taking any loan. This drives me to work harder to make any payment I need to.

 

Q What's your overall investing strategy?

A As a real estate salesman, I walk the talk by placing 70 per cent of my investment portfolio in real estate and 30 per cent in Singapore bonds and blue-chip stocks.

[Mcscot]

I have MAJOR concerns ... in that article ... most if not ALL buyers were purchasing for "investment purposes" which means that they will be looking for tenants in the future.

 

When the market is flushed with condos for lease with few or worse no takers (looking at the current climate!) ... there is only 1 way the property market will go.

 

Sorry ... I don't have stats to back this up (ie supply vs demand) but this is based on a lay person's view of what is the situation.

[Wind30]

I have MAJOR concerns ... in that article ... most if not ALL buyers were purchasing for "investment purposes" which means that they will be looking for tenants in the future.

 

When the market is flushed with condos for lease with few or worse no takers (looking at the current climate!) ... there is only 1 way the property market will go.

 

Sorry ... I don't have stats to back this up (ie supply vs demand) but this is based on a lay person's view of what is the situation.

You never read the Property Agent story meh?

 

Targeting rental yield of only 2%.... crazy...

 

I really don’t understand all those people who bought new. There are some in this forum... the rental yield must be peanuts plus the initial years of depreciation because of new leasehold...

[Wt_know]

bro, 2% rental yield is pocket money only la

capital appreciation no 20% no talk la

assuming after 4 years ... make 160k ... that’s 40k profit per year la

and downpayment as little as posisble

leverage loan to the max ... kiyosaki said use other people money to make your money

never user your own money ....

spore dream is EVERYONE must own at least 2 properties

property agent already said

sell 1 hdb and buy 2 private

no matter what

borrow from daddy mommy or uncle aunties

die die must buy 2 properties

1 to stay, 1 for rental

sure huat until song song gao jurong

 

I am targeting capital appreciation of between 10 and 20 per cent in view of the growing young generation in Sengkang and government plans of creating the new Tengah town.

 

I have MAJOR concerns ... in that article ... most if not ALL buyers were purchasing for "investment purposes" which means that they will be looking for tenants in the future.

 

When the market is flushed with condos for lease with few or worse no takers (looking at the current climate!) ... there is only 1 way the property market will go.

 

Sorry ... I don't have stats to back this up (ie supply vs demand) but this is based on a lay person's view of what is the situation.

Edited March 17, 2019 by Wt_know

[Victor68]

bro, 2% rental yield is pocket money only la

capital appreciation no 20% no talk la

assuming after 4 years ... make 160k ... that’s 40k profit per year la

and downpayment as little as posisble

leverage loan to the max ... kiyosaki said use other people money to make your money

never user your own money ....

spore dream is EVERYONE must own at least 2 properties

property agent already said

sell 1 hdb and buy 2 private

no matter what

borrow from daddy mommy or uncle aunties

die die must buy 2 properties

1 to stay, 1 for rental

sure huat until song song gao jurong

 

This is what driving the mass condo sale and I sincerely hope it will not crash. If we build enough HDB to house our citizens and economy does not attract FT to rent, then we will see the real property market. The high end property will never have such issues.