View Full Version : Does it make Khaw(cow) sense to have valuation after the negotiation of resale HDB
Yes, when after 7 CMs.... still cannot control the cow(HDB).
http://staticc02.insing.com/images/97/f0/0f/00/pc_600x450.jpg
Former Minister Mentor Lee Kuan Yew said that even though Singaporeans have been able to own a home through HDB, owners should think twice before selling their flats for a profit because prices will appreciate in value over years.
"Everybody owns their own homes and the value of their homes go up as development takes place,” he said in a Channel NewsAsia report. “Some are unwise enough to sell their homes, thinking they can buy another one, they then find they can't and have to rent a flat.
“But those who held on to their homes, I've seen their property values going up, five times, 10 times, 15 times, 20 times. This was the plan which we had from the very beginning, to give everybody a home at cost or below cost and as development takes place, everybody gets a lift, all boats rise as the tide rises.”
phantom_opera
12-03-14, 07:12
as long as easy to rent out and high rental yield (around 6%), nobody in their right mind will sell cheap, they will rent out
only those forced to sell (e.g. upgrade to DBSS/EC) will sell below COV
Khaw must tell his MOM counterpart to stop taking in EPs/S-pass to reduce rental demand first ;)
So before a buyer makes an offer, does he check with the valuers for an indication just like in private.
Yes, when after 7 CMs.... still cannot control the cow(HDB).
http://staticc02.insing.com/images/97/f0/0f/00/pc_600x450.jpg
Former Minister Mentor Lee Kuan Yew said that even though Singaporeans have been able to own a home through HDB, owners should think twice before selling their flats for a profit because prices will appreciate in value over years.
"Everybody owns their own homes and the value of their homes go up as development takes place,” he said in a Channel NewsAsia report. “Some are unwise enough to sell their homes, thinking they can buy another one, they then find they can't and have to rent a flat.
“But those who held on to their homes, I've seen their property values going up, five times, 10 times, 15 times, 20 times. This was the plan which we had from the very beginning, to give everybody a home at cost or below cost and as development takes place, everybody gets a lift, all boats rise as the tide rises.”
I think there is a TPY MP who advise residence not to sell their flats too, just few years back.
So before a buyer makes an offer, does he check with the valuers for an indication just like in private.
this measure is a case of too little, too late. now COV starting to subside then implement - just like HK cop movies, robbers kenna killed by lead hero then all the mata just move in.
nope, apparently both parties are supposed to agree on a price, enter into a binding OTP agreement and then obtain valuation of the property.
what if the agreed price is way above the valuation? buyer walk away and let the OTP lapse. if price is way below the valuation, seller is being held ransom. either way, the seller is screwed.
matrix0405
12-03-14, 10:40
as long as easy to rent out and high rental yield (around 6%), nobody in their right mind will sell cheap, they will rent out
only those forced to sell (e.g. upgrade to DBSS/EC) will sell below COV
Khaw must tell his MOM counterpart to stop taking in EPs/S-pass to reduce rental demand first ;)
This is quite true. So many young couple MOP then rent out to finance condo purchase. Maybe shd be MOP to sell 5 yr. MOP to rent out 10yrs. Unless above owners are 55yo and above, to give old couple the rental income.
Amber Woods
12-03-14, 11:55
Yes, when after 7 CMs.... still cannot control the cow(HDB).
http://staticc02.insing.com/images/97/f0/0f/00/pc_600x450.jpg
Former Minister Mentor Lee Kuan Yew said that even though Singaporeans have been able to own a home through HDB, owners should think twice before selling their flats for a profit because prices will appreciate in value over years.
"Everybody owns their own homes and the value of their homes go up as development takes place,” he said in a Channel NewsAsia report. “Some are unwise enough to sell their homes, thinking they can buy another one, they then find they can't and have to rent a flat.
“But those who held on to their homes, I've seen their property values going up, five times, 10 times, 15 times, 20 times. This was the plan which we had from the very beginning, to give everybody a home at cost or below cost and as development takes place, everybody gets a lift, all boats rise as the tide rises.”
The rising asset price policy for HDB flat has worked well for Singapore over the last 30 years. However, with prices rise way above national income and with income disparity now a serious problem due to the policy itself, this policy has reached its full potential and usefulness.
It is now back to basic with government now looking at lease buyback and reverse mortgage to unlock the value of HDB flats for those who need it.
So before a buyer makes an offer, does he check with the valuers for an indication just like in private.
That's khaw(cow)'s intention I suppose.
Amber Woods
12-03-14, 12:12
So before a buyer makes an offer, does he check with the valuers for an indication just like in private.
Before a HDB flat buyer makes an offer, he would have checked the past transacted prices. If he is taking a bank loan, he would also ask the bank for an indication (desktop valuation) similar to someone buying a private property.
In the case of private property, most bank will normally pay for a formal valuation of the property especially if the loan amount is high with respect to the value of the property. The bank will usually give a copy of the formal valuation report to its client. Usually, the bank's desktop valuation is not much different from that of the commercial valuer.
However, in the case of HDB flat, the bank will now have to rely to HDB appointed valuer and not other commercial valuer to dispense the loan. Hence, bank may not be so generous with its desktop valuation for HDB flat knowing that HDB's valuers are more conservative in their valuation.
The rising asset price policy for HDB flat has worked well for Singapore over the last 30 years. However, with prices rise way above national income and with income disparity now a serious problem due to the policy itself, this policy has reached its full potential and usefulness.
It is now back to basic with government now looking at lease buyback and reverse mortgage to unlock the value of HDB flats for those who need it.
This is no longer the case ... as HDB pricing mature to a peak ... it is then on a down hill decline ... the value depreciates to ZERO at 99 years lease as confirmed by COW .. Ha Ha .. How can an expiring lease appreciates forever ... this is greatest scam .. no wonder same guy called you daft ... :doh:
However, in the case of HDB flat, the bank will now have to rely to HDB appointed valuer and not other commercial valuer to dispense the loan. Hence, bank may not be so generous with its desktop valuation for HDB flat knowing that HDB's valuers are more conservative in their valuation.
All the while Bank loan still require HDB valuation for approval of loan under HDB regulations. Changing of how valuation procedure work now doesn't affect valuation of the HDB. Now the situation is made risky to the buyers as they not sure how much the valuation of the flat they are buying. Imagine recent past transactions are ~50k COV, what if the buyer don't have enuf cash or CPF on hand then how?
Amber Woods
12-03-14, 12:29
The government greatest weapon is its ability to control the prices of HDB flat and CPF. The government can amortised the HDB flat over its entire 99 years. Which commercial landlord dares to give you a loan for your property with less than 60 year of lease left? The government is smart and Khaw is certainly not a cow in this aspect. The government is helping to unlock the value of HDB flats despite their leases getting shorter. Which government in the world will do that?
Many of the estates are turning 30~40 years old.
Will govt going to enblock all of them?
As loans are restricted, what will happen to those old flats?
Will they still command the same premium as of now?
Things changes and will HDB be reviewing their policy in time to fix these ageing problems before its becomes a problems?
Amber Woods
12-03-14, 13:00
Many of the estates are turning 30~40 years old.
Will govt going to enblock all of them?
As loans are restricted, what will happen to those old flats?
Will they still command the same premium as of now?
Things changes and will HDB be reviewing their policy in time to fix these ageing problems before its becomes a problems?
You asked the right questions.
There are more questions than answers to most Singaporeans whose HDB flats are their only asset. What we are seeing now and the changes in policy are the start of the new things to come.
Alot families are facing cash flow problems.. credit cards and loans. As such many of them will need cash out even at below value.
Many of the estates are turning 30~40 years old.
Will govt going to enblock all of them?
As loans are restricted, what will happen to those old flats?
Will they still command the same premium as of now?
Things changes and will HDB be reviewing their policy in time to fix these ageing problems before its becomes a problems?
I have a friend who is first time buyer looking for enblock opportunities hence looking for those old resale flats. I've warned him that in the case where the estate doesn't get enblocked and when the time comes the lease left is about 50 years or lesser, how is he gonna sell if he wishes to upgrade? Buyers will have to fork more cash upfront.
HDB flats are only 99 years. Its value should not go up as it ages. I think this is the start of the trend that its value will only go down as it ages. BTO may be more expensive than resale in future...
ten years ago, when the price of Normanton park dropped to the same as nearby HDBs, we contributed the low price to her old age.
but with the location around buona vista/science park turns out to be more strategic, the age of Normaton park seems to have very little impact on its value appreciation.
when it was price around 400k, no one dare to buy, when it is now more than 1000k, there are still some people biting it:)
ten years ago, when the price of Normanton park dropped to the same as nearby HDBs, we contributed the low price to her old age.
but with the location around buona vista/science park turns out to be more strategic, the age of Normaton park seems to have very little impact on its value appreciation.
when it was price around 400k, no one dare to buy, when it is now more than 1000k, there are still some people biting it:)
Normanton Park is private condo, has better chance of going enbloc.
I have a friend who is first time buyer looking for enblock opportunities hence looking for those old resale flats. I've warned him that in the case where the estate doesn't get enblocked and when the time comes the lease left is about 50 years or lesser, how is he gonna sell if he wishes to upgrade? Buyers will have to fork more cash upfront.
Still depend on whether you are the Ang Mo at Geylang looking at the Durian.
Normanton Park is private condo, has better chance of going enbloc.
good location HDB will have high chance to be enblocked, too.
to be frank, if Normanton Park were HDB, it should have been enblocked.
but as a private proerpty, enbloc is not easy because the surrounding land belongs to a government linked super-party. it will be very challenging to ask this party to release her holding, developer will not dare to buy the buildings only.
https://www.dropbox.com/s/qz4lkgmr5x...%20Housing.pdf
To further promote the resale public housing market, the “Mortgage Loan
Financing Scheme” was revised in April 1993. This scheme allows resale
public housing purchasers to obtain mortgage loans of up to 80% of the
purchase price or the market value of a housing unit, whichever is lower.
Before this policy revision, the amounts of mortgages available for resale
public housing were pegged at the HDB’s “posted prices,” which were fixed
at historical values and priced very much below transacted prices. This
change in mortgage loan financing has therefore provided a great boost to
the public housing resale market, as purchasers are now able to obtain much
larger mortgage amounts.
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