therock Supersonic August 7, 2019 Share August 7, 2019 Gone are the days when a HDB home is a sure bet asset... so don't pay too much ↡ Advertisement 1 Link to post Share on other sites More sharing options...
Invigorated Supercharged August 7, 2019 Share August 7, 2019 One method to lessen the impact is to compensate at market value of new flat. Says one buys a new 5 room flat now at bto price of 400k. (2019) In 50 years time, say if it's 1.08 mil for a new 5 room bto in the same area then (e.g. 2% pa compounded), the govt may compensate 50% of that value at 540k under Vers, meaning a slower appreciation of only 0.6% p.a. for the initial 400k but at least it doesn't run to 0. This may be similar to what is currently done under lease buyback, which isn't very popular as market value falls. The one I'm proposing here is tagged to new HDB flat instead, not the market value of an old flat as what's currently done. The elderly owners may choose to downsize and buy a 2 bedroom with some balance cash left, as they probably need lesser room and at the same time, the government can take back the units and provide for new couples who need more space. 1 Link to post Share on other sites More sharing options...
Showster Twincharged August 7, 2019 Share August 7, 2019 (edited) u mean a old hdb left 60yr price now 800k then use 30yr left final 30yr, price that time 300 to 500k say average 400k for easy calculation so per yr depreciation is 400k /30yr = 13k or 1k+ loss per month how on earth is old hdb a 'asset', when every month losing 1k+??? scratch head... and I doubt a old 69yr left 30yr 5room hdb is priced equal as a brand new 2room bto with full 99yr tenure in the future, if there is such a thing as brand new lh99 2room more likely is government build "retirement village" with lh30 for senior citizens displaced by vers, there should be eligibility requirements eg age for such housing lh99 bto is for married youngeters gainfully employed and will be priced higher than "retirement village" lh30 for obvious reasons, and likely bigger units to encourage youngsters to start family although tiagong some people said no need much room to start family... The alternative to living in prime area (5rm size) is to rent for 30 years. One family would end up paying upwards of 3K plus per month plus 2% annual inflation for 30 years. Another way to see the actual asset value is to rent out the HDB for 30 years. Lastly, do remember that the first buyers paid merely 50K for their flat when they bought it. For them, it is still a huge appreciation. We will know in 20 years. Edited August 7, 2019 by Showster Link to post Share on other sites More sharing options...
Showster Twincharged August 7, 2019 Share August 7, 2019 (edited) Assets can depreciate, especially if one chooses to overpay to begin with. But they are still valuable because people can derive value from them. If your definition of assets is they cannot depreciate, then no way can our thoughts reconcile. Edited August 7, 2019 by Showster Link to post Share on other sites More sharing options...
awhtc 6th Gear August 7, 2019 Share August 7, 2019 One method to lessen the impact is to compensate at market value of new flat. Says one buys a new 5 room flat now at bto price of 400k. (2019) In 50 years time, say if it's 1.08 mil for a new 5 room bto in the same area then (e.g. 2% pa compounded), the govt may compensate 50% of that value at 540k under Vers, meaning a slower appreciation of only 0.6% p.a. for the initial 400k but at least it doesn't run to 0. This may be similar to what is currently done under lease buyback, which isn't very popular as market value falls. The one I'm proposing here is tagged to new HDB flat instead, not the market value of an old flat as what's currently done. The elderly owners may choose to downsize and buy a 2 bedroom with some balance cash left, as they probably need lesser room and at the same time, the government can take back the units and provide for new couples who need more space. Your proposal will rob the tax payers and benefit the HDB owner. Link to post Share on other sites More sharing options...
Showster Twincharged August 7, 2019 Share August 7, 2019 (edited) The examples I shared to begin with were young people buying prime HDB units for 300-400+K. Then I was told to comment how about those who bought at 30% higher than recent prices. If the buyers buy at 800K or over 1 million, they have to be pragmatic that at the end of the day, the Govt cannot compensate them the whole sum, or any other unit will have to be similarly compensated. The only option they have is to opt against VERS. Then they get to depreciate it to 0. But such cases were the exception rather than the rule. Edited August 7, 2019 by Showster Link to post Share on other sites More sharing options...
Wind30 Turbocharged August 7, 2019 Share August 7, 2019 see how u roti prata you call those youngsters who bought old hdb 'savvy' Then you say old lh99 are assets without doubt now you say old lh99 are depreciating 'assets' so savvy youngsters are savvy because they buy old depreciating 'assets'? how oxymoronic 1 Link to post Share on other sites More sharing options...
Tiger1 6th Gear August 7, 2019 Share August 7, 2019 WA.. I 2 days no check forum and it turned out to be a 2-man talking show. Relax la. Happy national day long weekend wan sui. 2 Link to post Share on other sites More sharing options...
Showster Twincharged August 7, 2019 Share August 7, 2019 (edited) Firstly, I said they are savvy based on their education levels and occupation. I don't think I stated they were savvy because they bought old HDBs. If you have been here long enough, you know I am an advocate for private property. Second, I never said LH99 are or are not depreciating. And if you saw the original quoted prices, the buyers of old HDB resale unit will not lose anything at the end of the day when VERS comes. The ones who actually lose are those who paid 30% above market value, based on your question of those who chose to do so.But I recognise the value in HDBs and also understand why some people choose to buy it (at valuation or below valuation prices). You can twist people's words and roll on the floor laughing but actually you know the drama is all self-created. see how u roti pratayou call those youngsters who bought old hdb 'savvy'Then you say old lh99 are assets without doubtnow you say old lh99 are depreciating 'assets'so savvy youngsters are savvy because they buy old depreciating 'assets'?how oxymoronic Edited August 7, 2019 by Showster 1 Link to post Share on other sites More sharing options...
Showster Twincharged August 7, 2019 Share August 7, 2019 (edited) Reincarnated and cloned a thousand times, the behaviour is still the same. When will people grow up? Haiz... Edited August 7, 2019 by Showster 1 Link to post Share on other sites More sharing options...
Invigorated Supercharged August 7, 2019 Share August 7, 2019 Reincarnated and cloned a thousand times, the behaviour is still the same. When will people grow up? Haiz...Another example that age and maturity don't go together. We have had some good times here but alas, good times don't last.. 3 Link to post Share on other sites More sharing options...
Mercury1 Turbocharged August 7, 2019 Share August 7, 2019 I attended the propertysoul seminar in 2014, her approach is myopic due to her earlier success in buying bargain basement properties and then flipping them. She has some good points in her research no doubt but really over analyzed and generally always against the market due to her earlier success, back in 2014 she was already saying market peaked somewhat and was expecting a downtrend. this Ku always talk down the market and I have to agree that he is quite off target. his view is the same as the property soul lady. 4 Link to post Share on other sites More sharing options...
Dafansu Turbocharged August 7, 2019 Share August 7, 2019 I attended the propertysoul seminar in 2014, her approach is myopic due to her earlier success in buying bargain basement properties and then flipping them. She has some good points in her research no doubt but really over analyzed and generally always against the market due to her earlier success, back in 2014 she was already saying market peaked somewhat and was expecting a downtrend. almost everything is against the market for her. better don't listen too much if not always remain a soul. 6 Link to post Share on other sites More sharing options...
boonhat_91 6th Gear August 7, 2019 Share August 7, 2019 Making sense of the rise in Singapore's private property prices sorry if posted before 3 Link to post Share on other sites More sharing options...
Freeder Hypersonic August 7, 2019 Share August 7, 2019 see how u roti prata you call those youngsters who bought old hdb 'savvy' Then you say old lh99 are assets without doubt now you say old lh99 are depreciating 'assets' so savvy youngsters are savvy because they buy old depreciating 'assets'? how oxymoronic 14 Link to post Share on other sites More sharing options...
Invigorated Supercharged August 7, 2019 Share August 7, 2019 Y u come here jjww? Here not EDMW lei.. We cum here to share expertise n not pick on people .. U really a CBK.... Agree.. Class, not crass. Just registered in July and have already tried to snap away about half of the population here. Moderators are watching I'm sure but maybe some drama to spice things up will be tolerable, wahah. almost everything is against the market for her. better don't listen too much if not always remain a soul.I'm sure she will be right one day, even the spoilt clock gets it right twice a day. Just not sure if time would have passed us by the time that happens. Not everyone can wait till 60 to buy property. 7 Link to post Share on other sites More sharing options...
Freeder Hypersonic August 7, 2019 Share August 7, 2019 Agree.. Class, not crass. Just registered in July and have already tried to snap away about half of the population here. Moderators are watching I'm sure but maybe some drama to spice things up will be tolerable, wahah. Should be that CBtruth or that CCBSSB.... 11 Link to post Share on other sites More sharing options...
Mercs Hypersonic August 7, 2019 Share August 7, 2019 https://www.edgeprop.sg/property-news/etco-sees-sales-auction-properties-hit-nearly-20-mil-july ET&Co sees sales of auction properties hit nearly $20 mil in July ↡ Advertisement 7 Link to post Share on other sites More sharing options...
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