View Full Version : Removal Of Asset Based Lending As Of 18th March
Heard from my banker yesterday that this scheme is gonna be removed on 18th March... this might be the 'Cooling Measure' everyone is expecting??
Heard from my banker yesterday that this scheme is gonna be removed on 18th March... this might be the 'Cooling Measure' everyone is expecting??
wahlao, every week got new cooling measures rumour? Is MAS becoming a slut?
wahlao, every week got new cooling measures rumour? Is MAS becoming a slut?
Not rumour la.. he said its confirmed liao
MAS might as well tell the whole world Buy only you can pay CASH or nothing doing.
MAS might as well tell the whole world Buy only you can pay CASH or nothing doing.
That is at least better than Chinese government saying u can only buy one right...
Garment is serious. Extracted from Today:
Tharman said garment wants to bring house prices down relative to income not just in short term but long term. Latest measure to car is to bring down sky high COE premium to alleviate inflationary pressure on economy.
Quick way to improve the relativity is to increase income. Those businesses with record profits year on year can start the ball rolling by offering more increments.
phantom_opera
08-03-13, 08:14
make housing cheap in the long term ... lol ... that is provided our friends in HK, Beijing, Shanghai, Australia, Taipei all can do the same? Our economy is so open, how to have a housing that is much cheaper relative to other big cities in the world? When the whole world is printing money and exporting inflation like crazy ... how can Singapore housing price be cheap unless garmen selling GLS way below international valuation?
Beware low interest till 2030
They not so ambitious to make it relative to the world. Their target is just relative to local income.
No assets based lending means all retirees must be super cash rich to buy HDB or private.
Increase salary will lose competitive edge and cost of living will go up. Likely to have more progressive taxation scheme. :scared-4:
Quick way to improve the relativity is to increase income. Those businesses with record profits year on year can start the ball rolling by offering more increments.
Heard from my banker yesterday that this scheme is gonna be removed on 18th March... this might be the 'Cooling Measure' everyone is expecting??
got to dig deeper to understand. 30% MSR is based on income. If implemented, then ABL option is useless as it's not based on income.
Increase salary will lose competitive edge and cost of living will go up. Likely to have more progressive taxation scheme. :scared-4:
aiyo..that is bad for us leh.
anyway, last time i already said liao: earn money quiet quiet earn, dun go everywhere like TV to tell everyone. those unable to reach your level will be very jealous indeed. last time my grandfather time is they will envy but now is jealous hor.
but do not worry, I have a strategy. am now working on it day and night. will ask Angela to trouble shoot the plan a few times before sharing here.
:) :) :) :) :)
got to dig deeper to understand. 30% MSR is based on income. If implemented, then ABL option is useless as it's not based on income.
many retiree depended on the asset loan. if this really taken off, then better to buy HDB tiobo. cos HDB can still cash out later tiobo?
taking equity out of an asset is the foundation of the capitalist free market system. It is an instrument vital to investors especially those that really depended on investment for a living.
With asset line, whenever there is an increase in valuation, one could cash out a portion of it. this will benefit those leasehold assets too.
However, if this scheme is taken off. Good luck to the 99 years leasehold landed.
:) :) :) :) :)
aiyo..that is bad for us leh.
anyway, last time i already said liao: earn money quiet quiet earn, dun go everywhere like TV to tell everyone. those unable to reach your level will be very jealous indeed. last time my grandfather time is they will envy but now is jealous hor.
but do not worry, I have a strategy. am now working on it day and night. will ask Angela to trouble shoot the plan a few times before sharing here.
:) :) :) :) :)
this time remember to quiet quiet earn. sharing here is no problem as the anal-lists are too arrogant to take us seriously.
I was talking to a ocbc mortgage banker yesterday and was told the bank had already reduced MSR to 30% even for private.
I was talking to a ocbc mortgage banker yesterday and was told the bank had already reduce MSR to 30% even for private.
then looks like the rumour will really come true. No more equity loans liao isit? OCBC usually is the one cheong first one.
:banghead: :banghead: :banghead:
http://i155.photobucket.com/albums/s297/blackjack21trader/display_image_zpsc0cd624f.jpg
asset base lending = equity loan = term loan ?
sorry, confuse with so many banking terms.....
many retiree depended on the asset loan. if this really taken off, then better to buy HDB tiobo. cos HDB can still cash out later tiobo?
HDB already have 30% MSR cap, as part of Jan CM.
so no ABL affect singaporean or foreigner more?
then looks like the rumour will really come true. No more equity loans liao isit? OCBC usually is the one cheong first one.
:banghead: :banghead: :banghead:
eh.. why no more? they are 2 diff things.
HDB already have 30% MSR cap, as part of Jan CM.
so now how ? go where to put my cash ? stock market i put liao.
Ah Tharman arh.. you ask me to keep so much cash for what arhhhhhhhh????for christmas party isit?
asset base lending = equity loan = term loan ?
sorry, confuse with so many banking terms.....
Usually Asset base lending is based on 40% deposit and 60% bank loan and no income is require for you to take up a housing loan coz the value of the property is backed up by your pte property valuation. In the event that the purchaser default payment, the bank is well guarded and can repossess the property and sell it at auction.
You guys say I say like this correct or not:
Now whenever I sell one property, I cannot replace liao because of the opportunity cost of the stamp duties tiobo?
So if I keep unloading, that means I cannot put the cash back into property tiobo?
So put where? Commercial ? Factory ?
Otherwise the three local banks may merge if many borrowers defaults.
Usually Asset base lending is based on 40% deposit and 60% bank loan and no income is require for you to take up a housing loan coz the value of the property is backed up by your pte property valuation. In the event that the purchaser default payment, the bank is well guarded and can repossess the property and sell it at auction.
Why sell in the first place? Are u a speculator?
Why sell in the first place? Are u a speculator?
nope. just that i am peeing in my pants now :) :) :) :)
later i go capital mall to buy some adult pampers. now everyday i will wear it before i watch the TV or read the newspaper. just in case.
:) :) :) :) :)
Removal of abl is essential when ltv reduced to 60% or less.
It is dangerous to many marginal investors who think they can afford the property as long as they can foot the initial 50-60% downpayment.
Why sell in the first place? Are u a speculator?
frankly, i don't think i want to hold more than 2 properties now. because i am afraid the next demand will be hammered because of the measures. Those first time property buyer demand will definately run out in the forseeable future.
so, i am unloading as i m expecting a price drop in landed very very soon ( May 2013) .
I am not sure whether removal of abl will create a big impact on propert market. CM7 is a lot harsher and so far new launches seems to be doing fine.
Removal of abl is essential when ltv reduced to 60% or less.
It is dangerous to many marginal investors who think they can afford the property as long as they can foot the initial 50-60% downpayment.
I think asset based lending included equity loans too.
I am not sure whether removal of abl will create a big impact on propert market. CM7 is a lot harsher and so far new launches seems to be doing fine.
I believe many in the market now are first property buyers.
I think asset based lending included equity loans too.
Then it means no more leveraging on property/stocks/BONDS/INSURANCE as collateral for the loan.
Well....I wonder what tsuname the Govt is expecting to reach the shores for them to take such a strong stance.
Then it means no more leveraging on property/stocks/BONDS/INSURANCE as collateral for the loan.
Well....I wonder what tsuname the Govt is expecting to reach the shores for them to take such a strong stance.
exactly my thoughts, good sister. that is why think i am going to unload liao.
What are you going to do after unloaded them?
exactly my thoughts, good sister. that is why think i am going to unload liao.
so no ABL affect singaporean or foreigner more?
it does affect those banks that allow ABL. Some banks are quite aggressive in this, to provide financing for foreigners who dont want to proof their income (eg PRC, Indon). Ppl with low income will be hit. Low doesnt mean poor ppl. It include cash-rich retirees, business owners, sales ppl etc whose bulk of income is NOT from basic salary.
Eg For ppl on 90/10 comm scheme and make 100k, their MSR is similar as someone who earn 75k basic salary (assuming everything else is constant).
It is quite clearly written on the wall that the rich will become richer with these scheme.
it does affect those banks that allow ABL. Some banks are quite aggressive in this, to provide financing for foreigners who dont want to proof their income (eg PRC, Indon). Ppl with low income will be hit. Low doesnt mean poor ppl. It include cash-rich retirees, business owners, sales ppl etc whose bulk of income is NOT from basic salary.
Eg For ppl on 90/10 comm scheme and make 100k, their purchasing power is probably same as someone who earn 75k basic salary (assuming everything else is constant).
bargain hunter
08-03-13, 10:04
but i know of banks who take dividend income into consideration. they treat 70% of dividend income the same way as salary. is it true?
it does affect those banks that allow ABL. Some banks are quite aggressive in this, to provide financing for foreigners who dont want to proof their income (eg PRC, Indon). Ppl with low income will be hit. Low doesnt mean poor ppl. It include cash-rich retirees, business owners, sales ppl etc whose bulk of income is NOT from basic salary.
Eg For ppl on 90/10 comm scheme and make 100k, their purchasing power is probably same as someone who earn 75k basic salary (assuming everything else is constant).
correct.. typically recognised 70% of non-basic salary income.
What are you going to do after unloaded them?
i will spend it slowly lor. then look for opportunity elsewhere. u say i say like this can or not, good brother :) :) :)
I just hope this will not materialise :) :) :) :)
Heard from my banker yesterday that this scheme is gonna be removed on 18th March... this might be the 'Cooling Measure' everyone is expecting??
i think it will be stupid to introduce this. simple accounting practices recognises value of assets.
if this goes through, then what happens to commercial companies? banks no longer accept assets as collaterals in loans??
i think it will be stupid to introduce this. simple accounting practices recognises value of assets.
if this goes through, then what happens to commercial companies? banks no longer accept assets as collaterals in loans??
It may only restrict within residential properties.
It is quite clearly written on the wall that the rich will become richer with these scheme.
With abl restriction, the rich cannot leverage on cheap credit easily.
Do not worry. Rich has many advisors to continue with it. Singapore is just one of the playing fields.
With abl restriction, the rich cannot leverage on cheap credit easily.
Do not worry. Rich has many advisors to continue with it. Singapore is just one of the playing fields.
Definition of rich.
There are not many truly mobile rich here.
frankly, i don't think i want to hold more than 2 properties now. because i am afraid the next demand will be hammered because of the measures. Those first time property buyer demand will definately run out in the forseeable future.
so, i am unloading as i m expecting a price drop in landed very very soon ( May 2013) .
u sound like someone i know..blackjack trader...:cheers1:
I just check with various mortgage bankers from few foreign banks, till date they have not receive such instructions.
I just check with various mortgage bankers from few foreign banks, till date they have not receive such instructions.
foreign last to follow...:cool:
Nowadays, the fear of CM is making it hot for buyers to quickly commit.
thomastansb
08-03-13, 11:07
No leh. I just SMS my OCBC banker. He said no such thing.
DSR still at 60% for 80% loan, and 100% for 75% loan.
UOB also say no such news.
I was talking to a ocbc mortgage banker yesterday and was told the bank had already reduced MSR to 30% even for private.
bargain hunter
08-03-13, 11:17
yes, too obvious liao when he said good brother. :D
u sound like someone i know..blackjack trader...:cheers1:
bargain hunter
08-03-13, 11:22
are these really just rumours to help boost sales at sennett and trillinq? :D
Nowadays, the fear of CM is making it hot for buyers to quickly commit.
Would that constitute market manipulation?? Haha.
Garment is serious. Extracted from Today:
Tharman said garment wants to bring house prices down relative to income not just in short term but long term. Latest measure to car is to bring down sky high COE premium to alleviate inflationary pressure on economy.
Why do i smell communism.... Or rather socialist.
Why do i smell communism.... Or rather socialist.
He must say something like that to applease the people right ?
Do you expect him to say that based on the current global liquidity, asset prices will be at least 20% higher in the next 2 years ?
DKSG
No assets based lending means all retirees must be super cash rich to buy HDB or private.
I'm screwed... was looking to buy another property when prices are lower :mad:
I'm screwed... was looking to buy another property when prices are lower :mad:
even u plonk 500k to buy 1m, if your income is little, and 30% is true, then how to buy?
PropertyNewbie
08-03-13, 14:10
so 18 march the rule kicks in?
nice of the govt to give us a heads up now.
APPLYING FOR EQUITY LOAN NOW!!!!!!!
even u plonk 500k to buy 1m, if your income is little, and 30% is true, then how to buy?
then IRAS will invite you for a "kopi session", or worse CAD brings you out to a "buffet"
then IRAS will invite you for a "kopi session", or worse CAD brings you out to a "buffet"
I already drank Ah Huat white coffee the past full year. Now face white white.
I already drank Ah Huat white coffee the past full year. Now face white white.
and now you can replace gigi as the face of SKII :D :D
even u plonk 500k to buy 1m, if your income is little, and 30% is true, then how to buy?
How very true... i can only buy a MM! :scared-2:
No leh. I just SMS my OCBC banker. He said no such thing.
DSR still at 60% for 80% loan, and 100% for 75% loan.
UOB also say no such news.
huh? how come double standard one? so funny?
smellyfish
08-03-13, 15:47
if the meantime i think they should CM commercial property rather than be behind the curve again
if the meantime i think they should CM commercial property rather than be behind the curve again
they wont. they let it run.. and then repeat what tharman said last wk "we are at wrong side of the cycle".. :doh:
huh? how come double standard one? so funny?
actually not la..some may have faster info than others within same company. let's hope your info is wrong lor.
WOAHEHEHEHHE
they wont. they let it run.. and then repeat what tharman said last wk "we are at wrong side of the cycle".. :doh:
:doh: :doh: :doh:
huh? how come double standard one? so funny?
Who started this rumour?
Who started this rumour?
Someone got the date wrong. They thot today April 1st. Hahahahahaha:D
Who started this rumour?
May need ISD help to trace the person.
make housing cheap in the long term ... lol ... that is provided our friends in HK, Beijing, Shanghai, Australia, Taipei all can do the same? Our economy is so open, how to have a housing that is much cheaper relative to other big cities in the world? When the whole world is printing money and exporting inflation like crazy ... how can Singapore housing price be cheap unless garmen selling GLS way below international valuation?
Beware low interest till 2030
Can only target on HDB la. Not possible for private!
and now you can replace gigi as the face of SKII :D :D
Ya. SK吐 ...
buttercarp
09-03-13, 20:53
So can someone please tell me is abl removed or not?
Is Msr implemented by banks yet?
From my understanding after reading all the post is abl still exists n msr of 30% is implemented by some banks.
CondoSeeker2012
09-03-13, 23:24
So can someone please tell me is abl removed or not?
Is Msr implemented by banks yet?
From my understanding after reading all the post is abl still exists n msr of 30% is implemented by some banks.
May I ask if MSR = mortgage servicing rights?
May I ask if MSR = mortgage servicing rights?
MSR = Mortgage Serving Ratio or the percentage of your income against the mortgaged instrument, in our case the Housing Loan.
In other countries, can use other assets like gold, stocks or equity. Here I dunno can or not or maybe they got some other fancy names for the same concept ratio.
Good Luck.
MSR = Mortgage Serving Ratio or in Singapore they wrongly labelled as Mortgage Servicing Ratio.
MY REAL Example:
My yearly income ( all inclusive ) is S$876,000.
My mortgage installment per month for my properties is S$55,000
hence, my monthly income is 876,000/12 = S$73,000
My monthly installment as above is = S$55,000
Therefore, my MSR for my properties will be : (55,000/73,000 )x 100 = 75%
( my time banks never use the flawed MSR concept la..woahehahahaheheheeh )
which you can see, is way above the 40% MSR.
However, I can still survive because my monthly living expenses is only $15,000
Or rather, 73,000- 55,000 = $18000
So I still got savings of S$3000 every month.
So I think this MSR concept is flawed la- JMHO. Dun be anger hor.
WOAHAHAHEHHEHEHE
blackjack21trader
10-03-13, 06:46
"Flawed" financial or banking concepts or philosophy or theories have been making me very rich over the past 25 years of my life.
Recently, the volume of such "concepts" accelerated, hence increasing my wealth many folds.
Contrary to popular beliefs, it is not the low interest rates that caused this. But the "FLAWED" perception of oil, gold, corn, euro, yen and US$ that actually multiplied my wealth tremendously.
And when I say tremendous, I mean I am in the league of people like Warren Buffett,and not Li Ka Shing.
Good Luck.
:) :) :) :)
Yes indeed, I was invited by one famous Cable for an interview entitled " The Shadow Billionaires".
I rejected the interview because I have 2 very compulsive gambling parents and many relatives with low moral principles.
WOAHAHEHHEHEHE
Frankly, to reach my stage is beyond the reach of many common folks. This is because I am luckier than most of you that I was born into a wealthy family. I had a head start over most of you because I started with $800,000 seed money from my grandmother. 25 years ago, that was a lot of cash liao la.
However, if you really can take some of my "nonsense" seriously and read them carefully in this forum, you can STILL get at least to a level higher than your present one :) :) :)
some brothers here have a "flawed" concept about me too. They say I log in and out with different nicks to post not tired meh.
Let me tell you. This shows the difference in intelligence level between you and me. How so?
I have 3 ipads each logged into this forum under the different nick names. So I do not need to log in and out. I simply pick one of the 3 ipads infront of me to post here.
WOAHAAHHEHEHEHEHE
DUMBS GET DUMBER.
So can someone please tell me is abl removed or not?
Is Msr implemented by banks yet?
From my understanding after reading all the post is abl still exists n msr of 30% is implemented by some banks.
Sis, call your bank.
How can the bank function without equity based loan??? This is the safest loan in the world. This are collaterals. :doh: :doh: :doh: :doh:
I will sell someone products if he can give me some form of collateral.:D
Hahahahaha
All companies use asset based lending in some way or another to grow their businesses, such assets may be other than properties although properties is most common.
REITs and hospitality operators are the biggest users of asset-based lending to grow their portfolios.
If asset based lending is to be removed for properties, it has to be for all properties right? I would believe that to be fair, all kind of properties, including private, commercial, industrial, retail, hospitality (hotels & service apartment, medical suites etc) properties etc will all be subjected to same rules right? :beats-me-man:
Heard from my banker yesterday that this scheme is gonna be removed on 18th March... this might be the 'Cooling Measure' everyone is expecting??
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