Mercs: property news & updates

[13177]

10 minutes ago, Kopites said:

https://www.tnp.sg/news/singapore/some-ang-mo-kio-residents-dismayed-top-similar-sized-sers-replacement-units-hdb

Reduction in lease also won't work. 

 

This amk SERS have so many problems?! 😅

[Jellandross]

20 hours ago, Kopites said:

The main point does the residents have a choice not to relocate? Ans is No. You force me to relocate. You force me to downgrade. You force me service additional loan? 

Sounded like I pay you to rape me!🤣🤣 

Ya lor actually the point of a new 99yrs lease is moot for the older residents unless they can live to 150 yrs old. Many of them will be forced choose to downgrade to smaller flat unless got children to take on a bigger mortgage. 

[Kopites]

9 minutes ago, Jellandross said:

Ya lor actually the point of a new 99yrs lease is moot for the older residents unless they can live to 150 yrs old. Many of them will be forced choose to downgrade to smaller flat unless got children to take on a bigger mortgage. 

The bigger picture is all HDB(whole Singapore) house sizes will shrink in time to come by. Also mature houses (not in prime districts) values would drop as no one would want to buy a unit with the likelihood of relocating to a smaller size. Or additional loan for same size unit. Sers instantly become a curse. A blessing for those mature estates in prime districts (Bukit merah/Queenstown) to profit. Though smaller sizes but the locations make up for the smaller size unit to come.

Edited June 16, 2022 by Kopites

[Wt_know]

i smelled that bought in hoping to get SERS 1-to-1 swap and want to huat big big  

now jit dong jeng liao ... or kena smoked by agent?  

 

we got many punters bet on $1M old HDB flat right ...

in future they will cry papa cry mama when they don't get the "expected compensation" no $2M no talk !

Edited June 16, 2022 by Wt_know

[13177]

9 minutes ago, Kopites said:

The bigger picture is all HDB(whole Singapore) house sizes will shrink in time to come by. Also mature houses (not in prime districts) values would drop as no one would want to buy a unit with the likelihood of relocating to a smaller size. Or additional loan for same size unit. Sers instantly become a curse. A blessing for those mature estates in prime districts (Bukit merah/Queenstown) to profit. Though smaller sizes but the locations make up for the smaller size unit to come.

But many SERS in the past also not say in prime districts le. You see the SERS Macpherson Lane, that area so ulu and the replacement flat dont think can profit a lot next time. 

[Kopites]

6 minutes ago, Wt_know said:

i smelled that bought in hoping to get SERS 1-to-1 swap and want to huat big big  

now jit dong jeng liao ... or kena smoked by agent?  

 

we got many punters bet on $1M old HDB flat right ...

in future they will cry papa cry mama when they don't get the "expected compensation" no $2M no talk !

You are generalising that all those whose brought resales are punter aiming for million dollar profit.

Amk only announced this year. Is unfair to call them punter as everyone might have their personal reasons to go resales.

My views.

[Wt_know]

17 minutes ago, Kopites said:

You are generalising that all those whose brought resales are punter aiming for million dollar profit.

Amk only announced this year. Is unfair to call them punter as everyone might have their personal reasons to go resales.

My views.

true ... i am sorry for the generalising part 

but ... one should open eye big big then ... 

do not "overpaid" for a 34 years old flat that risk SERS at 40 years old ... 

but agent said buy liao sure huat because property price goes up to the moon

the question is can you continue to "move" to a newer property where the price also to the moon

Edited June 16, 2022 by Wt_know

[13177]

16 minutes ago, Wt_know said:

true ... i am sorry for the generalising part 

but ... one should open eye big big then ... 

do not "overpaid" for a 34 years old flat that risk SERS at 40 years old ... 

but agent said buy liao sure huat because property price goes up to the moon

the question is can you continue to "move" to a newer property where the price also to the moon

But but how often and how many flats would have risk to get SERS at 40 yr old? I guess not many la. You see there are so many flats out there which is even more than 45 year and even residents want them to get SERS, chances also quite low. And based on current property boom, many of these 40 year old and above flat still transacted in quite ex price esp those in so called prime location.

 

[Dp26]

On 6/13/2022 at 2:45 PM, Jellandross said:

Being screwed in your old age by the very ppl you voted for is a painful thing

https://m.facebook.com/152978514720068/posts/7810365935647916/

Quote from a resident: 

"The bulk of residents staying here are elderly and most are in their 50s, 60s, 70s.. many are retired or semi- retired. This is the first home for many of these older residents 

Most of the older folks have already fully paid for their loans and are retired. They did not expect SERS to happen to them and many thought that they could live out the rest of their lives in their existing HDB surrounded with good neighbors and familiar environment. Most of them did not expect to be worrying about finance and putting more financial burden to family members. A HDB officer has suggested to some of these older folks to downgrade to a smaller unit, if they do not have the financial means. 

In the financial guide prepared by HDB, there are 2 pages. Page 1 shows that my estimated compensation is $450K for 4rm flat and the estimated purchase price for replacement flat for 90 SQM is $545K and including stamp duty and optional component scheme the replacement unit will be $564K.  

My total shortfall after deducting all my entire CPF and adding my existing bank loan works out to be $187,766."

 

Not sure if I read the statement correctly but there’s an outstanding loan with OCBC there at 258k. With the payment needed at 187k, maybe they can just transfer the loan to the new flat? 
 

that would also mean loan is reduced by ~70k with the SERS? 
doesn’t look all gloom and doom in that sense… 

[Mercs]

8 hours ago, 13177 said:

So it means the 80sqm for 4 room bto in the market is only in SERS replacement flat?! I still find 80sqm for a 4 room flat is too small. Esp the new BTO layout, there are many not usable space de. Last time old type 4 room flat, even though there is 82sqm but the flat still looks bigger.

Agree, 80sqm is only 861sqft. Last time some folks say hdb upgrade pte is actually downgrade as unit size become smaller. Seems like now bto getting smaller than pte new launch? 😛 For comparison example latest new launch - smallest 3 bedder = 1,119 sqft 😉

 

[Mercs]

https://www.cnbc.com/2022/06/15/fed-hikes-its-benchmark-interest-rate-by-three-quarters-of-a-point-the-biggest-increase-since-1994.html

Fed hikes its benchmark interest rate by 0.75 percentage point, the biggest increase since 1994

https://www.straitstimes.com/business/economy/fed-hikes-us-interest-rate-075-points-biggest-since-1994

https://www.straitstimes.com/business/economy/fed-rate-hikes-raise-threat-of-us-recession-higher-borrowing-costs-in-singapore

https://www.straitstimes.com/business/economy/wall-street-sounds-louder-us-recession-call-after-fed-rate-hike

 

https://www.99.co/singapore/insider/million-dollar-4-room-hdb-resale-flats-what-where-why-and-when/

Million-dollar 4-room HDB resale flats: What, Where, Why and When?

https://www.99.co/singapore/insider/no-more-early-mop-for-sers-replacement-flat-owners-starting-with-amk-sers/

No more early MOP for SERS replacement flat owners, starting with AMK SERS

 

https://www.edgeprop.sg/property-news/two-bedder-rivergate-sets-new-high-2816-psf

Two-bedder at RiverGate sets new high of $2,816 psf

https://www.edgeprop.sg/property-news/mortgagee-sale-corner-terraced-house-villa-verde-235-mil

Mortgagee sale of corner terraced house at Villa Verde for $2.35 mil

 

https://www.propertyguru.com.sg/property-guides/ultimate-list-of-bto-flat-prices-54099

HDB BTO to Prices Sorted by Estate and Price of Rooms in Singapore (From 2019 to May 2022)

 

 

[Mercs]

On 6/7/2022 at 2:18 AM, Mercs said:

Agree, older folks may be content to just live out the remaining years, not overly concern with lease decay or future value. A simple solution for such who can't afford or do not wish to top up - have an option to allow one to one replace with no top up :(eg 49yr old change to new but lease still at balance 50 instead of 99), like the lease buyback scheme.

 

Hmmn... didn't i just read about this somewhere before?   lol 

 

https://www.straitstimes.com/singapore/housing/some-ang-mo-kio-residents-dismayed-by-top-up-for-similar-sized-sers-replacement-units-hdb-exploring-options

Professor Sing Tien Foo, director of the Institute of Real Estate and Urban Studies at the National University of Singapore, said a possible solution could be for the HDB to bundle the Lease Buyback Scheme in the replacement flats for Sers owners who do not require the fresh 99-year lease.

The scheme allows seniors aged 65 and above to sell back a portion of their lease to the HDB to receive a stream of income in their retirement years, while continuing to live in their flats.

"For the seniors, they can perhaps buy a replacement flat on a 40-year lease and the remaining 59 years will be taken care of by HDB, so they don't have to fret about taking a loan or forking out money," said Prof Sing.

[Alfc]

20 minutes ago, Mercs said:

Agree, 80sqm is only 861sqft. Last time some folks say hdb upgrade pte is actually downgrade as unit size become smaller. Seems like now bto getting smaller than pte new launch? 😛 For comparison example latest new launch - smallest 3 bedder = 1,119 sqft 😉

 

All this stated area for pte is covered up with inclusion of non-liveable area like balcony (which the area is not even disclosed). Should exclude for apple-to-apple. Only once you step in and compare the real thing, cannot bluff already. But no doubt, be it hdb or pte, the new units are really getting smaller.

Similarly, the pte stats for profits is often gross profit, the net profit (after lessing misc like commission, duties, conveyance, legal etc) is not disclosed. Real loss making deals are actually understated. Then the PSF$ denominator is based on gross floor or live-in floor. And the list goes on... so many variable which often are not disclosed but being used selectively. 

[Alfc]

11 minutes ago, Mercs said:

Hmmn... didn't i just read about this somewhere before?   lol 

 

https://www.straitstimes.com/singapore/housing/some-ang-mo-kio-residents-dismayed-by-top-up-for-similar-sized-sers-replacement-units-hdb-exploring-options

Professor Sing Tien Foo, director of the Institute of Real Estate and Urban Studies at the National University of Singapore, said a possible solution could be for the HDB to bundle the Lease Buyback Scheme in the replacement flats for Sers owners who do not require the fresh 99-year lease.

The scheme allows seniors aged 65 and above to sell back a portion of their lease to the HDB to receive a stream of income in their retirement years, while continuing to live in their flats.

"For the seniors, they can perhaps buy a replacement flat on a 40-year lease and the remaining 59 years will be taken care of by HDB, so they don't have to fret about taking a loan or forking out money," said Prof Sing.

For those low rise old hdb with open air carpark, how about bundle the money made by HDB from selling the new high-rise bto built over the old flats and open air carparks, for a full replacement to the Sers owners?   Win-win for everybody. huat ah!

Edited June 16, 2022 by Alfc

[Mercs]

6 hours ago, Alfc said:

All this stated area for pte is covered up with inclusion of non-liveable area like balcony (which the area is not even disclosed). Should exclude for apple-to-apple. Only once you step in and compare the real thing, cannot bluff already. But no doubt, be it hdb or pte, the new units are really getting smaller.

Similarly, the pte stats for profits is often gross profit, the net profit (after lessing misc like commission, duties, conveyance, legal etc) is not disclosed. Real loss making deals are actually understated. Then the PSF$ denominator is based on gross floor or live-in floor. And the list goes on... so many variable which often are not disclosed but being used selectively. 

Not apple to apple, that example is specific only to SERs (80sqm), norm for new bto 4R still around 90sqm/968sqft for now which is comparable though not any much bigger than some pte. For pte can understand, developers have to go smaller to maintain sweetspot as prices are high - current no 2kpsf no talk. But for hdb prices being set by ahgong, hopefully dun keep getting smaller, with bto prices keep going up, core principle is still to ensure all SGreans able to afford and have a roof over head.

Agree, some do not realise that even with some sale at higher than purchase price, can still go negative sale after bank+cpf interest being the bulk offset. That said, rental income also not in the pte stats, taken into account which may add on to net profit or help reduce part/full losses 😉

 

[Mercs]

7 hours ago, Alfc said:

For those low rise old hdb with open air carpark, how about bundle the money made by HDB from selling the new high-rise bto built over the old flats and open air carparks, for a full replacement to the Sers owners?   Win-win for everybody. huat ah!

Haha, over here in the land of Expensive SG ... money talks. Go casino foreigners enter free local pay $150 entry day levy, buy car COE current 100K a pop, buy 2nd property onwards 17% ABSD and up, can afford buy cannot afford byebye 😛

HDB built on state land, how much are new BTOs selling now? SERs those low rise old flats with open carpark, can build many times more high rise bto, but can it be a win-win for everybody? answer is bto prices peg to market rate, there is only one banker in this scenario...huat ah!

 

 

Edited June 16, 2022 by Mercs

[13177]

6 hours ago, Mercs said:

Haha, over here in the land of Expensive SG ... money talks. Go casino foreigners enter free local pay $150 entry day levy, buy car COE current 100K a pop, buy 2nd property onwards 17% ABSD and up, can afford buy cannot afford byebye 😛

HDB built on state land, how much are new BTOs selling now? SERs those low rise old flats with open carpark, can build many times more high rise bto, but can it be a win-win for everybody? answer is bto prices peg to market rate, there is only one banker in this scenario...huat ah!

 

 

There are too many low rise old flats with open carpark around le, dont think they can SERS them, even though it seems like the land can build many times more high rise bto.

[Mercs]

7 hours ago, 13177 said:

There are too many low rise old flats with open carpark around le, dont think they can SERS them, even though it seems like the land can build many times more high rise bto.

Very low chance, only for redevelopment, many old flats they wait till lease run to zero, no more have to compensate or replace, collect back FOC