Property Advice On Buying / Selling (Compiled)

[joshboy]

You and your dad can apply/ purchase the HDB flat together. You can pay for the mortgage while your dad can have the cash from selling the current unit.

In addition to your monthly income savings, I believe the bank evaluate your debts like credit cards and other financial commitments like insurance and car. Given the current financial situation, banks are more cautious when it comes to approving housing loan.

Go for Novena area since it is central and near TTSH. You need not worry too much in case of emergency. Anyway, based on your replies, it seems you have set your mind on getting a condo. So a HDB is out of your scope. Good luck and happy searching for a new house!!

1stly, your dad and you CANNOT apply/purchase the flat together unless he is divorced or widower. You can however add your name into it to help service the loan.

[joshboy]

Mr Smartie, can you give an example of a property that have drop by half of its purchase price? And i don't think there is any problem with my English and my Job as a banker have nothing to do with my English Standard. All of us here have freedom to express our view here, and if you think we are idiots, skip this thread. What $1.2m with a 10-20% of risk to play with ? I bet you must have not seen much. Continue to leave in your well.

during 1997, property prices effectively HALVED. It took a good 15 years for property prices bought then to recover and appreciate and finally overshoot.

Long term? You wait 15 years just to BREAKEVEN, so please do not tell listen to property agents who want to take a hefty commission now. Why not buy at 2001-2004 when prices are the lowest?

If sure earn, why these property agents do not buy property? in fact in many developments now, they are using FRAUD to close sales. They ask you to give an empty cheque to "QUEUE" but when you got the queue and see the unit and say "don't want", they refuse to return the cheque and say "already confirmed" even though you never sign anything.

The current market hasn't crashed yet because govts worldwide and even international banks like IMF and ECB are desperately still holding on. Once they fail, we see the big bang effect.

[Guest * Hopeful *]

Hi there,

 

Need your expert opinions here. All advice are welcome, especially the property experts, real estate agents, investors... etc

 

I am a PR in Singapore, and have been paying rental of 1k+ a month for some time. Lately, my parents agreed to loan me cash for downpayment have asked me to buy a property in Singapore, as it's really not worth paying rental every month and then get nothing in return.

 

So - I have started to shop around for private properties in Singapore (as I am not eligible to buy HDBs for obvious reasons). However, looking at the property price now, even a shoebox apartment in the city fringe area costs around 1600 per sq feet, which means 500 sq ft single bedroom apartment costs about 800k.

 

The monthly installment would come up to roughly 2000 per month, but at least I get to own a property.

 

The question is - there's just so much to consider now... and I just need to find the wisdom to decide what's best for me:

1. Buy a shoebox apartment near the City Fringe, or get a 2 bedroom with the same price somewhere further (pasir ris?)

2. Is this a good timing to buy property, or will the price of property continue to go up or down?

3. Should the cash (for downpayment) be better off put in other investment vehicles (eg bonds, unit trusts etc)

 

Thanks so much for your time, and hope there will be some great ideas being shared here...

 

[Guest * Hopeful *]

Maybe it would be helpful if I clarify and qualify these few statements:

 

1. Buy a shoebox apartment near the City Fringe, or get a 2 bedroom with the same price somewhere further (pasir ris?)

> Knowing that I will never get married and start a family, a shoebox apartment would be ideal for me (and my future partner if at all?)

> However, does this make investment sense? I was advised to get a property with 2 bedroom, at least the value will appreciate better and if I needed cash, I can rent out the second room

 

 

2. Is this a good timing to buy property, or will the price of property continue to go up or down?

> With the recent cooling measures, the property sales have gone down and hence property launches are offering huge discounts

> But a lot of people also say that the price is quite high, and the bubble may burst any time soon.... however, people have been speculating the bubble burst for more than a year already....

> I guess if I'm buying the property for my own stay - it doesn't really matter?

 

3. Should the cash (for downpayment) be better off put in other investment vehicles (eg bonds, unit trusts etc)

> This would lead to another topic - but seriously... is buying property now a good idea? Rather than paying rental every month? Should I be paying the loan repayment instead?

 

 

 

[Guest Rex]

I recently bought a suburban condo for my own stay. Personally, I think city fringe areas are quite ridiculous now. At 1600-1700 psf, I wonder how much higher can they go... An exception is geylang if you dun mind the district. But you may not get a loan from big banks and you may hv difficulty selling later...

I advised you really work the sums right. Property agents and developers use all sort of marketing ploys to create demand and push you to buy. An agent told me "if you can come out with downpayment, everything will be fine." Bullshit. She will just pocket the commission n disappear from your life if you believe her.

Interest rates may not stay low forever. You should work out if you can still afford it if interest rates double or even triple. Factor in mainrainence fee n utilities which will definitely increase in the future too.

There is no right or wrong time to buy. Agents will tell you new cooling measures are coming and you need to buy now. Dun let anyone pressure you. Work out ur sums carefully n make a prudent purchase.

Good luck.

[evianguy]

When buying real estate for owner occupation then its misleading to ask whether its a gd investment. Concentrate on whether its a gd investment when you're buying for non owner occupation.

When buying for owner occupation, concentrate on convenience and affordability. Do your sums well, set aside ample amounts for contingencies. Make sure that the monthly servicing of the mortgage will not over-strain your finances taking into account all your existing and foreseeable financial commitments.

[Guest Handsome Guy]

Hi hopeful, may i know what is your budget to buy the private condo? And what is your age?

Last year i just bought a private condo in tampines cost approximately 1M. Downpayment is 5+15%. But loan repayment starts after 6months and it's progressive repayment which means i just pay little money like $ 300-400 initially everymonth This is good as i have almost 3 years time to wait before i will be hit hard to pay $2,300 monthly for the home loan. The construction for condo usually takes 3-4 years.

I agree with you, that it is very bo hua to pay $600-$1,000 monthly to stay in HDB room. The rental is just too expensive and many HDB owners are very greedy nowaday.

So you better buy your own property. If you foresee you will stay in SG for a long long time, would you consider to apply for SG citizenship? So you can buy resale HDB at much affordable price or at least cheaper than condo.

If you want to buy condo for investment and also personnal stay, you may consider D'Nest in Pasir Ris.

[LongCurious]

Hi hopeful,

im a real estate agent

 

firstly, for own stay, there is no need to ask for good investment, because it will be your shelter for many years to come.

 

secondly, hdb price is all time high, people are very cautious to buy as they fear property price will drop or interest rate will go up. I do not suggest buying any residential property if you are looking for a good investment, singapore leasehold property will give you a return of around 4% rental yield while Freehold give around 3% rental yield. Commercial property leasehold give around 5-6% rental yield. ( for freehold commercial properties im still following closely )

 

For your question on downpayment to be better put off in bonds, the bonds im looking at currently have minimum risk, give you around 3.6% interest which you get every 2 weeks, its a 2 weeks contract btw. For other bonds you need to find the expert!

 

Do message me if you need more advice!

 

- to rex

Not all property agents are like that , at least not me, i believe helping my clients and double and triple their profile in the next 5 years, simply earning commission and running off wouldnt do good for my reputation and it certainly will hurt me in the long run

[Guest]

it makes more sense to buy a house... one that you can afford

 

perhaps you should first talk to your banker about the financing and find out how much you may borrow (up to *80% of purchase price or cmv whichever is lower)... and then, you can happily go house shopping looking at properties within your budget

 

* quantum of financing includes the cpf amount that will be used

[Guest Raiden Alpha]

My advise is -don't buy property in Singapore.

Now is really not the best time to enter.

You are a pr, you are not entitle to Hdb. What is holding you back to become a full fledge citizen to "enjoy" housing benefits a citizen has? I am not interest to know your personal reasons, I suggest you take your money elsewhere to invest.

If you see yourself as having long term commitment here why not convert to citizen and get a Hdb flat? Of course this only applies to common folks, if u are a high end income earner or a big player by all means go ahead n dabble in local property speculation, sin island is a playground for the rich and dandy folks.

[Guest * Hopeful *]

I recently bought a suburban condo for my own stay. Personally, I think city fringe areas are quite ridiculous now. At 1600-1700 psf, I wonder how much higher can they go... An exception is geylang if you dun mind the district. But you may not get a loan from big banks and you may hv difficulty selling later...

I advised you really work the sums right. Property agents and developers use all sort of marketing ploys to create demand and push you to buy. An agent told me "if you can come out with downpayment, everything will be fine." Bullshit. She will just pocket the commission n disappear from your life if you believe her.

Interest rates may not stay low forever. You should work out if you can still afford it if interest rates double or even triple. Factor in mainrainence fee n utilities which will definitely increase in the future too.

There is no right or wrong time to buy. Agents will tell you new cooling measures are coming and you need to buy now. Dun let anyone pressure you. Work out ur sums carefully n make a prudent purchase.

Good luck.

 

Thanks for the wise words. Gotta consider the interest rates for the next 30 years and misc fees + utilities.

 

The only question now is - if I were to continue renting and pay RM1k+ a month, it's already expenses with no returns. At least if I spend on loan repayment, I will have something to hold on to.....

[Guest * Hopeful *]

When buying real estate for owner occupation then its misleading to ask whether its a gd investment. Concentrate on whether its a gd investment when you're buying for non owner occupation.

When buying for owner occupation, concentrate on convenience and affordability. Do your sums well, set aside ample amounts for contingencies. Make sure that the monthly servicing of the mortgage will not over-strain your finances taking into account all your existing and foreseeable financial commitments.

 

That's true. I think I'm one of those "kiasu" guys... who want to buy for own stay.. yet want to have the option to rent out in future if I choose to.

 

One thing good about PLU, our commitment won't really grow, as we are not going to support a family / children. That's one less headache to think of!

[Guest * Hopeful *]

Hi hopeful, may i know what is your budget to buy the private condo? And what is your age?

Last year i just bought a private condo in tampines cost approximately 1M. Downpayment is 5+15%. But loan repayment starts after 6months and it's progressive repayment which means i just pay little money like $ 300-400 initially everymonth This is good as i have almost 3 years time to wait before i will be hit hard to pay $2,300 monthly for the home loan. The construction for condo usually takes 3-4 years.

I agree with you, that it is very bo hua to pay $600-$1,000 monthly to stay in HDB room. The rental is just too expensive and many HDB owners are very greedy nowaday.

So you better buy your own property. If you foresee you will stay in SG for a long long time, would you consider to apply for SG citizenship? So you can buy resale HDB at much affordable price or at least cheaper than condo.

If you want to buy condo for investment and also personnal stay, you may consider D'Nest in Pasir Ris.

 

Hi Handsome guy.... I'm in my early 30s.. budget is around 600-800k.

 

I'll definitely consider getting citizenship. But then, that would take awhile before I can convert (I guess). But then, if I were to wait that long, my 10++ k per year rental would go to waste just because I want to eventually but a resale HDB, which probably would go up to an exorbitant price then?

 

Yea... One thing about D'Nest. It's really far (at least for me) - cos now I'm staying quite close to the city... would need to get a lot used to the distance.... 40 mins travel everyday to and from work.....

[Guest * Hopeful *]

Hi hopeful,

im a real estate agent

 

firstly, for own stay, there is no need to ask for good investment, because it will be your shelter for many years to come.

 

secondly, hdb price is all time high, people are very cautious to buy as they fear property price will drop or interest rate will go up. I do not suggest buying any residential property if you are looking for a good investment, singapore leasehold property will give you a return of around 4% rental yield while Freehold give around 3% rental yield. Commercial property leasehold give around 5-6% rental yield. ( for freehold commercial properties im still following closely )

 

For your question on downpayment to be better put off in bonds, the bonds im looking at currently have minimum risk, give you around 3.6% interest which you get every 2 weeks, its a 2 weeks contract btw. For other bonds you need to find the expert!

 

Do message me if you need more advice!

 

- to rex

Not all property agents are like that , at least not me, i believe helping my clients and double and triple their profile in the next 5 years, simply earning commission and running off wouldnt do good for my reputation and it certainly will hurt me in the long run

 

Hi LongCurious... Thanks for the advice. I guess I'm really hoping to buy something to stay now, and eventually maybe rent out if I need to?

 

And I think it's all a gamble - there's no right timing or wrong timing... it really depends whether it suits my requirements, my budget, my objective.. and for now..... I'm partially decided, just need to get some wise advice from the floor....

 

I guess I won't be in such a position if I already have a place to stay without paying rental. I'm just considering what I can do to turn around and maximise the money I pay out. True enough, other investment vehicles are less risky, but eventually... I still need to get a unit of my own, cos I don't think I wanna rent for the rest of my life. And that's why I'm considering to get a unit now.... else the property price will only go higher and higher, and the cooling measures will only make it more and more difficult to purchase private property.

 

Unless anyone has a good sign on the property bubble going into a near "burst" state? But that's what people have been speculating for the past couple of years....

 

and yes - I'm also fortunate enought to have some good and reliable servicing agents... recommended from frens.

[Guest * Hopeful *]

it makes more sense to buy a house... one that you can afford

 

perhaps you should first talk to your banker about the financing and find out how much you may borrow (up to *80% of purchase price or cmv whichever is lower)... and then, you can happily go house shopping looking at properties within your budget

 

* quantum of financing includes the cpf amount that will be used

Yeps - that's what I've done, and that's what I'm doing now.... property shopping every week..

[Guest * Hopeful *]

My advise is -don't buy property in Singapore.

Now is really not the best time to enter.

You are a pr, you are not entitle to Hdb. What is holding you back to become a full fledge citizen to "enjoy" housing benefits a citizen has? I am not interest to know your personal reasons, I suggest you take your money elsewhere to invest.

If you see yourself as having long term commitment here why not convert to citizen and get a Hdb flat? Of course this only applies to common folks, if u are a high end income earner or a big player by all means go ahead n dabble in local property speculation, sin island is a playground for the rich and dandy folks.

 

Hey there.. am just the average guy next door who tries to be more savvy in this area.

 

A lot of people also give the same advice - not to buy now, cos it's too high... but I really wonder - when is the best timing? or should I wait a couple of years more till I can get my citizenship, then buy a resale HDB? (by the way, I just got my PR recently)...

 

In that case, I'll need to consider:

1) 5 years * 15k annual rent  = 75k

b) In 5 years time, prices of HDB resale probably would have gone up by another 20-30% (or even more?)

c) Interest rates will not be so competitive anymore?

 

I think it does make more sense now... looking at the figures, am not sure if it's really such a bad timing to get a unit now? Really, unless there's strong reasons to think that the property price will go down soon? Looking at the trend:

 

http://www.singaporepropertycycle.com.sg/market-trends/singapore-property-price-index/

 

Peaks and troughs are at:

- 1997 (170)

- 1999 (100)

- 2001 (140)

- 2009 (170)

- 2010 (130)

- 2013 (205)

 

This is just my rough observation, not an expert in this area.. that's why I need some feedback.... But I guess it's really tough - nobody can really predict, it's only a guestimate... cos there's just too many external factors, like population, supply, govt measures, unemployment rate, interest rate...

 

Oh well... more comments, please?

[Guest Raiden Alpha]

Hey there.. am just the average guy next door who tries to be more savvy in this area.

A lot of people also give the same advice - not to buy now, cos it's too high... but I really wonder - when is the best timing? or should I wait a couple of years more till I can get my citizenship, then buy a resale HDB? (by the way, I just got my PR recently)...

In that case, I'll need to consider:

1) 5 years * 15k annual rent = 75k

b) In 5 years time, prices of HDB resale probably would have gone up by another 20-30% (or even more?)

c) Interest rates will not be so competitive anymore?

I think it does make more sense now... looking at the figures, am not sure if it's really such a bad timing to get a unit now? Really, unless there's strong reasons to think that the property price will go down soon? Looking at the trend:

http://www.singaporepropertycycle.com.sg/market-trends/singapore-property-price-index/

Peaks and troughs are at:

- 1997 (170)

- 1999 (100)

- 2001 (140)

- 2009 (170)

- 2010 (130)

- 2013 (205)

This is just my rough observation, not an expert in this area.. that's why I need some feedback.... But I guess it's really tough - nobody can really predict, it's only a guestimate... cos there's just too many external factors, like population, supply, govt measures, unemployment rate, interest rate...

Oh well... more comments, please?

I took a pessimistic view on things. Guess I rather err on the side of judgement than on the side of emotions.

Wait til you commit like me,the monthly mortgage is back crushing.. Haha.

Well not to put a damper on things, I agree with you that more comments and views are encourage to come in on regard to this topic. Cheers stranger, I bid u a great night ahead.

[Guest Raiden Alpha]

Hey there.. am just the average guy next door who tries to be more savvy in this area.

A lot of people also give the same advice - not to buy now, cos it's too high... but I really wonder - when is the best timing? or should I wait a couple of years more till I can get my citizenship, then buy a resale HDB? (by the way, I just got my PR recently)...

In that case, I'll need to consider:

1) 5 years * 15k annual rent = 75k

b) In 5 years time, prices of HDB resale probably would have gone up by another 20-30% (or even more?)

c) Interest rates will not be so competitive anymore?

I think it does make more sense now... looking at the figures, am not sure if it's really such a bad timing to get a unit now? Really, unless there's strong reasons to think that the property price will go down soon? Looking at the trend:

http://www.singaporepropertycycle.com.sg/market-trends/singapore-property-price-index/

Peaks and troughs are at:

- 1997 (170)

- 1999 (100)

- 2001 (140)

- 2009 (170)

- 2010 (130)

- 2013 (205)

This is just my rough observation, not an expert in this area.. that's why I need some feedback.... But I guess it's really tough - nobody can really predict, it's only a guestimate... cos there's just too many external factors, like population, supply, govt measures, unemployment rate, interest rate...

Oh well... more comments, please?

I took a pessimistic view on things. Guess I rather err on the side of judgement than on the side of emotions.

Wait til you commit like me,the monthly mortgage is back crushing.. Haha.

Well not to put a damper on things, I agree with you that more comments and views are encourage to come in on regard to this topic. Cheers stranger, I bid u a great night ahead.

[Guest Handsome Guy]

Hi Hopeful.

Don't forget the rental keeps going up and up. To rent a common HDB room last year cost S$500 a month and this year many greedy landlords ask for S$600 at least. It is not hard to predict next year. You better buy condo now or you wait till 35yo and get your citizenship to buy HDB.

Another trick is you can get your citizenship next year, apply PR for your mom. Then you can buy HDB before you turn 35.

Why i recommend D'Nest in Pasir Ris, because its price is more affordable comparing to many at the market now. And it is 5mins walk to Pasir Ris MRT. In 2018, there will have new MRT line to Yishun. Don't buy studio you will regret, buy at least a 2 room unit, you may rent out or your parents can stay when they come by sometimes.

[gz69a]

Property prices have exceeded the affordability of most Singaporeans.  Many young Singaporeans and PRs are buying with assistance from their parents. On their salaries, it is beyond their capability.

 

Do not buy now.  The property prices will continue to fall.  Measures by the government have just started taking effect and you need another six months to see the trend.

 

Watch Khaw Boon Wan closely.  I like this Minister.  He is an action person.  If prices continue to go up or stay up, it will have a major political backlash.  So, they must ease the market.

 

Property is a long term investment.  If you intend to stay here for decades, then become a citizen and take advantage of being a citizen.  If you are mobile and may move elsewhere, then you need not buy.  No guarantee that your property will be profitable over the next few years.

 

It is okay to pay rental.  Work our your sums.  The money you have not invested in property can be earning good income in other investments provided you know what to do.   And work out the total sums:   Mortgage plus all outgoings  versus Investment returns less rentals.   Good luck.

[IkuTube]

I always feel that thinking (and analyzing too much) will only give more doubts than going down to action when it comes to buying a property.  Importantly, when we think that we can afford, after doing all the sums, we need to put one foot in and start making the commitment.  Often, this 'thinking' leave many of us missing the boat.  What you need to have right now, to start the ball rolling, is the downpayment cash.

 

True that buying a property here in Singapore is expensive but there is no way one can fully guarantee the property market situation.  Many property owners get smarter once they own a property and make adjustments (re-mortgage, renting out, etc) down the road.

 

Re D'Nest, I think there are not many units left, or probably almost sold out.

[lean n mean]

If I were you, I would choose the best location I can afford. I would choose location over size because I do not need a big space. But I would choose at least a two bedder, one to rent out. Despite the recent curbing measures, newly launched condos are still doing well. The Chinese and Indonesians have deep pockets. Parents are paying the initial deposits for their offspring. There is a 6.9 million population target. Every couple earning more than 10K has to go private (which is really easy to hit if both are graduates in this time and day). Singapore is a small country with limited space. Property prices will always go up. 

[Guest Hopeful No. 2]

Since we are at this topic can I please have the opinion/advice of my situation:

I currently have a 3 room HDB, got it 5 years ago, still servicing my loan. Over years of savings, I have actually saved more than enough to fully pay the remainder of my loan.

1. My question is, should I use part of my savings to pay the full remainder of my HDB loan or should I use almost all my savings for downpayment and get a condo?

I'm not being greedy, I am just a gay planning his future. At this point the savings are just sitting there in my bank.

I have investments in unit thrust and not looking to go into that anymore. I don't want to invest in shares.

2. Any idea what other sensible investment should I go for?

Please don't ask me how long more I will be working like this because I don't know.

Next question:

3. The location of my HDB is very likely going En bloc Redevelopment Scheme soon. When that happened, will I be denied a hdb flat replacement if I already owned a condo?

Sorry I feel paiseh to Sign In and show who I am.

Thanks!

[Guest Raiden Alpha]

If I were you, I would choose the best location I can afford. I would choose location over size because I do not need a big space. But I would choose at least a two bedder, one to rent out. Despite the recent curbing measures, newly launched condos are still doing well. The Chinese and Indonesians have deep pockets. Parents are paying the initial deposits for their offspring. There is a 6.9 million population target. Every couple earning more than 10K has to go private (which is really easy to hit if both are graduates in this time and day). Singapore is a small country with limited space. Property prices will always go up.

Hi not out to sting but to ask a question. Every couple earning more than 10k has to go private? I'm not sure every couple with such combine income would want to carry a big monthly burden .. Imagine the Finance flexibility they enjoy if they choose a cheaper alternative.

And 2 highly educated people married or get together only to rent out their living space to tenants with deep pocket? Is this what everyone aspire their family life to be? Hmmm lots to ponder here..

[Guest * Hopeful *]

Hi Hopeful.

Don't forget the rental keeps going up and up. To rent a common HDB room last year cost S$500 a month and this year many greedy landlords ask for S$600 at least. It is not hard to predict next year. You better buy condo now or you wait till 35yo and get your citizenship to buy HDB.

Another trick is you can get your citizenship next year, apply PR for your mom. Then you can buy HDB before you turn 35.

Why i recommend D'Nest in Pasir Ris, because its price is more affordable comparing to many at the market now. And it is 5mins walk to Pasir Ris MRT. In 2018, there will have new MRT line to Yishun. Don't buy studio you will regret, buy at least a 2 room unit, you may rent out or your parents can stay when they come by sometimes.

 Yes - that's what happened to mine. Last year, this year, my master bedroom HDB has increased by more than 10%. Due to "increased cost and PUB"... Again, I think I'll need to get used to the distance.... Travelling more than 40 minutes to work twice every day... I guess each individual is different. But I was told that D'Nest is a great choice for investment, cos there's a good market for property in Pasir Ris... Suitable for people who works near the west....

[Guest * Hopeful *]

Property prices have exceeded the affordability of most Singaporeans.  Many young Singaporeans and PRs are buying with assistance from their parents. On their salaries, it is beyond their capability.

 

Do not buy now.  The property prices will continue to fall.  Measures by the government have just started taking effect and you need another six months to see the trend.

 

Watch Khaw Boon Wan closely.  I like this Minister.  He is an action person.  If prices continue to go up or stay up, it will have a major political backlash.  So, they must ease the market.

 

Property is a long term investment.  If you intend to stay here for decades, then become a citizen and take advantage of being a citizen.  If you are mobile and may move elsewhere, then you need not buy.  No guarantee that your property will be profitable over the next few years.

 

It is okay to pay rental.  Work our your sums.  The money you have not invested in property can be earning good income in other investments provided you know what to do.   And work out the total sums:   Mortgage plus all outgoings  versus Investment returns less rentals.   Good luck.

 

That's a very good point. Being a non-Singaporean, I wouldn't be able to see this coming. What the local authorities are doing, what's the master plan...

 

Am just thinking. What would cost the price to go down? Shortage of demand, and surplus of supply... The thing is - demand is always going to be there, with foreign investors and local rich ones... This time, the cooling measure did encourage the property price to go down, but overall, the price did increase for most purchasers, due to the additional buyer stamp duty. But maybe... the price is currently still adjusting, and will go down further..... Then I think this is a good approach. Start shopping now, get used to the market trend, the negotiating.. etc and only start to buy in 2-3 months time.

 

And while we're actively shopping around, observe the market, observe what's available, and once there's a good catch.. go for it! :clap:

 

Haha.. seems so easy to do... just have to make sure we don't succumb to our emotions and the pressure from the agents...

[Guest * Hopeful *]

I always feel that thinking (and analyzing too much) will only give more doubts than going down to action when it comes to buying a property.  Importantly, when we think that we can afford, after doing all the sums, we need to put one foot in and start making the commitment.  Often, this 'thinking' leave many of us missing the boat.  What you need to have right now, to start the ball rolling, is the downpayment cash.

 

True that buying a property here in Singapore is expensive but there is no way one can fully guarantee the property market situation.  Many property owners get smarter once they own a property and make adjustments (re-mortgage, renting out, etc) down the road.

 

Re D'Nest, I think there are not many units left, or probably almost sold out.

 

Totally agree.... buying property is not for the faint hearted.... once there is a good catch, we will have to go for it and never look back.

 

However, as you mentioned, property owners get smarter once they own a property. Now, since we've got the chance, let's learn from each other while we make a wise decision. It only takes a couple of days extra to get valuable input from this forum.... no harm done.

 

Really appreciate all your advice

[Guest * Hopeful *]

If I were you, I would choose the best location I can afford. I would choose location over size because I do not need a big space. But I would choose at least a two bedder, one to rent out. Despite the recent curbing measures, newly launched condos are still doing well. The Chinese and Indonesians have deep pockets. Parents are paying the initial deposits for their offspring. There is a 6.9 million population target. Every couple earning more than 10K has to go private (which is really easy to hit if both are graduates in this time and day). Singapore is a small country with limited space. Property prices will always go up. 

Yea - that's so true. Everyone has an opinion on this topic. However, it's me who will have to decide. Based on my objective. Based on my budget. Based on my criteria.

 

And I think I can make a wiser decision after hearing from the floor... did learn a couple of good points from this forum. What to watch out for, how to plan the finances, preparing myself with the real deal... equip myself with what it takes to seal the deal....

 

And yes - that's what people say also. Property prices will always go up. Plus, if we choose one that's in the right location, there's a real good chance that it won't go down.

 

One of the main driver to buy property now is due to the really low interest rate. That's probably the next thing to think about - which one to go for.... Fixed interest rate would be ideal... but I haven't really gone shopping for home loans yet. That's next on my list

[Guest * Hopeful *]

Since we are at this topic can I please have the opinion/advice of my situation:

I currently have a 3 room HDB, got it 5 years ago, still servicing my loan. Over years of savings, I have actually saved more than enough to fully pay the remainder of my loan.

1. My question is, should I use part of my savings to pay the full remainder of my HDB loan or should I use almost all my savings for downpayment and get a condo?

I'm not being greedy, I am just a gay planning his future. At this point the savings are just sitting there in my bank.

I have investments in unit thrust and not looking to go into that anymore. I don't want to invest in shares.

2. Any idea what other sensible investment should I go for?

Please don't ask me how long more I will be working like this because I don't know.

Next question:

3. The location of my HDB is very likely going En bloc Redevelopment Scheme soon. When that happened, will I be denied a hdb flat replacement if I already owned a condo?

Sorry I feel paiseh to Sign In and show who I am.

Thanks!

 

Hi Hopeful No 2... I really understand how you feel. Looks like you're way ahead of me! Well, certainly I can't comment much as there are more experienced investors and property experts in the house. Really dunno how's the ruling for HDB. Would like to hear what the others have to say?

 

But then, what I can say is.. All the best!

[sf84]

I am buying properties in my own homeland this year, though I just got a PR here....then only I shall consider doing so in SG...maybe two years later.. I shall consider being a citizen and start buying a HDB. However buying as a Single Citizen..this HDB rule is kind of a setback

 

 

''If you own any private residential property (locally or overseas), you may still buy a resale flat without any CPF housing grant or HDB loan but you must dispose of the private property within six months of the purchase of the resale flat'''

 

[sf84]

Does it mean if I were to take a bank loan..then I wont need to dispose the private property I purchased in my homeland.. Perhaps I should just put my mom's name

[123ZZZ]

2008 they say property will have correction

2010 they also say correction overdue and will soon fall like dominoes

2012 same old story

2013...

If you are buying to stay, it does not matter cause it is for the long term and in the long term like 15 years and more, property prices have a history of increasing and will probably still be higher than now when 15 years from now.

Don't have to worry so much when you are not intending to sell in the next 3 years

Don't have to worry so much when you are not taking too huge a loan than you can afford

Don't have to worry so much when you have some excess cash in your savings for a rainy day

Difficult to catch the high and just as difficult to catch the low

Buy what you can afford and don't over leverage

Have a backup plan for a worst-case scenario

Make a judgement and decide

Good luck

[LongCurious]

hi everyone first i would like to address couples that earn less than 12k combined household income would be able to buy EC ( another good investment) (at least one pr!)

2ndly hdb price is an all time high, due to all the measures and actions taken by government, do your research you can see the graph where hdb prices are starting to come down like before, follow history and make a good decision, you wont go off the road to much

3rdly always choose a good agent ( im one! haha )

im sure most of the people here can judge when one agent is trying to sell n run. do make a precise decision as time waits for no one, the wise makes the most money.

*now address to hopeful 2, u need to calculate your finances properly if you can maintain a new house and do take caution incase interests rate rises, i could help you more but do pm me only if you are keen as i have limited time to help my precious clients.

cheers

Edited April 26, 2013 by LongCurious

[Guest Handsome Guy]

Hi Hopeful,

Since your budget is limited. You better don't buy private condo in SG. What i think best for you is you get your citizenship asap. Then you get your mom or dad to be PR. Once you are citizen, you can then buy EC condo joinly with your mom or dad of course. If you have property abroad you will need to transfer ownership temporarily to your mom or dad before you get your EC condo. You can transfer the abroad property back to you after 5-6 years you get your EC condo. The key thing is it is better to get HDB first then more condos after. If you get private condo first, then in later time you may want to get HDB, you will have to sell your private condo.

[tampguy]

i think properties is one of the best investment - it is not easy to invest in shares, bonds and unit trusts as most of them are making losses.

i totally agree that there is no right or wrong time to buy properties - there is ups and downs in the cycle ...

buying HDB should of course be the first choice but if you can't, private property will be the only choice.

on the whole, the price of properties in singapore will not drop (at least new launches) as the land price and development cost is high and in order to break even, the developer must sell at a certain price.

after many rounds of cooling measures, the property sales are still robust and optimistic....though the developer may have given lot of discounts during the new launches, you will see that the price per square foot is still higher if you would have bought it earlier ...

as i already had a executive HDB flat jointly with my family, i must buy private properties if i have excess money ...

my first property was a 1+1 bedded shoe box unit in upper changi road near Kemangan Mrt station (431sq feet - 40 sq metre) bought for half a million which i thought i was crazy but was persuaded by my friend to buy in year 2009 and i sold it in year 2011 and make a reasonable profit out from the sale (TOP in year 2013 Aug)

With this money, i bought a mid-floor 2 bedded premium stack with pool view at the Palette (at Pasir Ris Grove beside Dnest, NV residences and Livia).

after comparison, the Palette 2 Bedded unit is still cheaper than the newly launched Dnest 2 bedded unit (already sold out).

we should consider to buy 2 bedded instead of one bedded for suburban location.

Last year, i also bought a 1+1 bedded condo unit (TOP next year) along balestier area (cityfringe) behind belestier shaw plaza as balestier is one of the area having best rental yield. i bought it when the developer is giving a huge discount. the price is up for more than $100k after one year especially when the Zhong Shan park is nearly completion.

(buying a one bedded for cityfringe area is more affordable depending on the budget) ...

Geylang is also a good area near to city and the price is more reasonable ...try to avoid Geylang Lorong 8 to 26 (even Lorong no. as there are more red light district activities) odd lorong no. or higher lorong no. nearer to paya lebar hubs/mrt is good!

my friend bought one in Geylang Lorong 34 for just about $566k for a 1+1 bedded unit.

honestly speaking, there is nothing wrong with the shoe box unit and you can still get a reasonable profit from the sale but you must get the unit and location right. why is there still a demand for that ? - it is more affordable for first timer or the young ones ....

My friend sold one of this shoe box unit (527 sq feet) in balestier area when the unit TOP this year after 2 years he bought it and fetch him a decent profit of $150k from the sale.

bear in mind - buy within your means and do not over-stretched your budgets - get a loan in principal approval from the bank first before you commit the purchase and select the units and location carefully.

Edited April 27, 2013 by tampguy

[Guest Handsome Guy]

So Tampguy, you are private condo speculator?

I wonder how can you sell your condo even before TOP? How you profit 100k? Did u kena huge penalty tax by garment?

I remember a famous investor ( forgot the name already) once he said "never try to catch the high or the low when do investment, instead try to look at the potential it will offer."

There is no shortage of private condo buyers, if you dont buy, the PRC will

[illuminati]

I'm in the same situation as TS. Am thinking to buy a private property as well after knowing that DNest price is quite affordable, although the 2 bedder now is already sold out.
Then come into my mind, since I'm really on a tight budget, it'd be better if I can wait and get a resale HDB flat instead. Let say HDB flat costs $400K and condo $800K, I can use $400K difference to a very good use such as other investment, and the installment won't strain my financial so much.

Was wondering also why some people here suggesting TS mom to get a PR here. It's not that easy as one must have the requirements to bring benefit to Spore. I'm not implying anything, but it's something to take note of.

TS, maybe you can consider this scheme as well, Non-Citizen Family Scheme. You have to be a Spore citizen and buy the flat jointly with your mom/dad and you dont need to be 35 yrs old. But I know, same for me as well, it's only my 1st year of PR, may need to wait a little longer to be eligible for citizenship.

Edited April 27, 2013 by illuminati

[Guest * Hopeful *]

2008 they say property will have correction

2010 they also say correction overdue and will soon fall like dominoes

2012 same old story

2013...

If you are buying to stay, it does not matter cause it is for the long term and in the long term like 15 years and more, property prices have a history of increasing and will probably still be higher than now when 15 years from now.

Don't have to worry so much when you are not intending to sell in the next 3 years

Don't have to worry so much when you are not taking too huge a loan than you can afford

Don't have to worry so much when you have some excess cash in your savings for a rainy day

Difficult to catch the high and just as difficult to catch the low

Buy what you can afford and don't over leverage

Have a backup plan for a worst-case scenario

Make a judgement and decide

Good luck

Well said. I like this a lot... like like like!

[Guest * Hopeful *]

Hi Hopeful,

Since your budget is limited. You better don't buy private condo in SG. What i think best for you is you get your citizenship asap. Then you get your mom or dad to be PR. Once you are citizen, you can then buy EC condo joinly with your mom or dad of course. If you have property abroad you will need to transfer ownership temporarily to your mom or dad before you get your EC condo. You can transfer the abroad property back to you after 5-6 years you get your EC condo. The key thing is it is better to get HDB first then more condos after. If you get private condo first, then in later time you may want to get HDB, you will have to sell your private condo.

 

Hmm.... Citizenship probably won't work for me witihn the next 4-5 years (I just recently got my PR). And to get my parents to be PR - that will probably be a lot longer. And by that time, I would be paying rental for 15k * 5 = 75k... down the drain.......... As it is, I've been paying 30k rental for the past 2 years already.....

 

I think that's quite unfortunate, that timing's not right for me, and I can't go for this option.. but listening to the advice of the many, I think I'm sorta clear... much clearer...

[Guest * Hopeful *]

i think properties is one of the best investment - it is not easy to invest in shares, bonds and unit trusts as most of them are making losses.

i totally agree that there is no right or wrong time to buy properties - there is ups and downs in the cycle ...

buying HDB should of course be the first choice but if you can't, private property will be the only choice.

on the whole, the price of properties in singapore will not drop (at least new launches) as the land price and development cost is high and in order to break even, the developer must sell at a certain price.

after many rounds of cooling measures, the property sales are still robust and optimistic....though the developer may have given lot of discounts during the new launches, you will see that the price per square foot is still higher if you would have bought it earlier ...

as i already had a executive HDB flat jointly with my family, i must buy private properties if i have excess money ...

my first property was a 1+1 bedded shoe box unit in upper changi road near Kemangan Mrt station (431sq feet - 40 sq metre) bought for half a million which i thought i was crazy but was persuaded by my friend to buy in year 2009 and i sold it in year 2011 and make a reasonable profit out from the sale (TOP in year 2013 Aug)

With this money, i bought a mid-floor 2 bedded premium stack with pool view at the Palette (at Pasir Grove beside Dnest, NV residences and Livia).

after comparison, the Palette 2 Bedded unit is still cheaper than the newly launched Dnest 2 bedded unit (already sold out).

we should consider to buy 2 bedded instead of one bedded for suburban location.

Last year, i also bought a 1+1 bedded condo unit (TOP next year) along balestier area (cityfringe) behind belestier shaw plaza as balestier is one of the area having best rental yield. i bought it when the developer is giving a huge discount. the price is up for more than $100k after one year.

(buying a one bedded for cityfringe area is more affordable depending on the budget) ...

Geylang is also a good area near to city and the price is more reasonable ...try to avoid Geylang Lorong 8 to 26 (even Lorong no. as there are more red light district activities) odd lorong no. or higher lorong no. nearer to paya lebar hubs/mrt is good!

my friend bought one in Geylang Lorong 34 for just about $566k for a 1+1 bedded unit.

honestly speaking, there is nothing wrong with the shoe box unit and you can still get a reasonable profit from the sale but you must get the unit and location right. why is there still a demand for that ? - it is more affordable for first timer or the young ones ....

My friend sold one of this shoe box unit (527 sq feet) in balestier area when the unit TOP after 2 years he bought it and fetch him a decent profit of $150k from the sale.

bear in mind - buy within your means and do not over-stretched your budgets - get a loan in principal approval from the bank first before you commit the purchase and select the units and location carefully.

Yup - I also see such cases happening. Those who bought the shoe box apartments 2 years ago are now laughing their way to the bank when they start to sell off their apartment. Cos it's an immediate 100k increase at least.. Of course, these are the good ones. But that doesn't mean they pocket everything, cos gotta consider the stamp duty, the agent fees, the property tax, mortgage.. etc But it's still profit.

 

One thing I agree... buy within your means and do not overstretch the budget. I guess once we're in good shape (financially, career wise, timing...etc), the next thing is to choose a good unit.

[tampguy]

I wonder how can you sell your condo even before TOP? How you profit 100k? Did u kena huge penalty tax by garment?

I bought my condo in year 2009 and was not affected by any of the cooling measures so i was not penalised with any seller's stamp duty.

 

i need to pay legal fee and penalty for the bank loan.

 

i sold my condo by floor plan.  as this project construction was pretty slow, my bank loan was only drawn down for 20pct which i only pay a few hundred dollars every month so the interest i incurred is very minimum.  Since this condo is near to Kemangan mrt and there are many eateries along upper changi road (though it is beside the Hotel 81 and near the mosque and facing the main road which is a bit noisy), i managed to sell it through an agent within a week as long as you set the price correct.

[tampguy]

Am just thinking. What would cost the price to go down? This time, the cooling measure did encourage the property price to go down, but overall, the price did increase for most purchasers, due to the additional buyer stamp duty. But maybe... the price is currently still adjusting, and will go down further.....

In general, the price will not go down but just a mild correction or to stablise the property price or gradual increase to prevent any 'bubble burst' the cooling measures imposed by the government is not to crush the market by bringing down the price sharply but just to prevent the market from being 'overheated'

like i explained earlier, the developer will not drop the price as they need to break even with a decent profit margin. you must have read recently that there is a plot of land at Kim Tian Road (near Tiong Bahru MRT) which the developer bid at a very high price - there is no way the property price will drop if the land price is expensive and the high development cost. As for the open market, most of the existing buyers are financially sound who are able to hold when the price dropped after so many rounds of cooling measures as the loan that most people obtained are 60pct. if the property markets are not doing well, we can still rent out the whole unit and the rental will be able to cover the bank loan installment and maintainence fee.

Most of the cooling measures are affecting the 2nd property buyer ( Note: HDB will be considered as first property) in terms of buyer's stamp duty and bank loan percentage.

Since you are the first time buyer, you are not affected and should be able to get 80pct loan and only need to pay 3 pct buyer's stamp duty.

(please check with the bank loan specialist and property agent/lawyer to confirm again)

like what some said earlier, once bought, please do not look back or regret as no one is able to tell the ups and downs of property markets.

once you bought a unit, the price of your unit will also increase in line with the property market trend years later and you will not then fall behind.

In year 2008 (if i did not remember wrongly, that year was the banking crisis), i nearly buy a freehold 3 bedded unit condo (about 1250 sq feet) for

about $775k ($620 per sq foot) along upper paya lebar road which i was being dissuaded by my family members and relatives and colleagues saying the property market will crash and plunged! i decided to give a miss and who knows the price started to rise to $800 to $1000 per sq foot half a year later in year 2009! this is my deepest regret in life which i should have stood firm and bought it - i realised that after years later, the price has increased from $775k to $1.2m when it TOP in year 2011! sigh....i still felt heartache when i thought about it. those people who dissuaded me were speechless when i brought up the issue.

The decision is yours

Edited April 28, 2013 by tampguy

[Guest Handsome Guy]

"never try to catch the high or the low when do investment, instead try to look at the potential it will offer."

 

[Guest LONEly NIGht]

Pls bear in mind when the recession set in, high interest loan rate, unserved loan, people losing their job.

[LongCurious]

Since you are the first time buyer, you are not affected and should be able to get 80pct loan and only need to pay 3 pct seller's stamp duty.

(please check with the bank loan specialist and property agent/lawyer to confirm again)

 

 

Its buyer stamp duty ^^, you will need to pay 3% of buyer stamp duty

for Singapore Citizens 0%(0+3=3) ABSD ( additional buyer stamp duty ) for first residential apartment, 7% for the second residential apartment.(7+3=10)

 

 

For prices of property.. speculating is now a very high risk as the bubble is real big.. make a firm decision.

My investors are looking for freehold/leasehold, commercial and residential, but the similarity for them is to be able to HOLD them for a long time to get back the yield, not trying to sell because of the ABSD they have to pay, i got client trying to purchase his 3rd residential property even knowing he need to pay BSD 3% + ABSD 10% for a total of 13% of purchase price, thats insane, but his reason was that he is looking for long term, while he still can hold, he would.

Research more, or get to me for a clearer discussion ( im a property agent btw )

To double and triple your profile in the next 5 years is difficult, but achievable.

 

cheers!

[lean n mean]

What a great educational thread this is. Keep it up  :clap: 

[slackerj]

Since we are at this topic can I please have the opinion/advice of my situation:

I currently have a 3 room HDB, got it 5 years ago, still servicing my loan. Over years of savings, I have actually saved more than enough to fully pay the remainder of my loan.

1. My question is, should I use part of my savings to pay the full remainder of my HDB loan or should I use almost all my savings for downpayment and get a condo?

I'm not being greedy, I am just a gay planning his future. At this point the savings are just sitting there in my bank.

I have investments in unit thrust and not looking to go into that anymore. I don't want to invest in shares.

2. Any idea what other sensible investment should I go for?

Please don't ask me how long more I will be working like this because I don't know.

Next question:

3. The location of my HDB is very likely going En bloc Redevelopment Scheme soon. When that happened, will I be denied a hdb flat replacement if I already owned a condo?

Sorry I feel paiseh to Sign In and show who I am.

Thanks!

Hi hopeful no 2

I'm not sure if after hdb en bloc, a hdb owner with condo can still purchase the replacement unit. Chances are quite high that the answer is no.

Just a reminder though, the government tax looks at how many Property u have under your name whereas a bank when making loan only look at the number of loans that you are currently servicing. Thus once the HDB loan is fully serviced, you will be able to obtain higher loan for your second property.

2. If you have a lump sum, you can try placing them into those single premium saving plans. Works sorta of like FD and better return than leaving in the bank. Your funds will be lock for ard 5 yrs though.

3. As for the en bloc news, how sure are you of it? My block frm 5 yrs ago rumor going to en bloc end up now just complete the life upgrade.

Hope it helps.

[Moo]

Looking to buy a starter apartment with my partner. Was hoping people with experience could advise.

 

What is a safe amount to leverage?

 

What's the legal process like?

 

Hope to hear some constructive advice.

[gstc82]

Hdb or private?

[Moo]

Private, we dont really qualify for HDB,