Some return units to developers

[bigapplefan]

Just read that there were some who returned units to developers, fearing price dip. What do you think?

[Rosy]

Just read that there were some who returned units to developers, fearing price dip. What do you think?

which projects?

[bigapplefan]

which projects?

Article sourced from business times:

Developers of major projects released in November and early Dec 2011 have seen some units being returned.
At bedok residences, about 20 out of 495 options (4%) were not exercised. The Palette also saw about 17 of the 436 units (4%) granted options being not exercised. At the Archipelago, about 12% or 15 of the 130 units for which options were issued are being returned.

[proud owner]

Article sourced from business times:

Developers of major projects released in November and early Dec 2011 have seen some units being returned.
At bedok residences, about 20 out of 495 options (4%) were not exercised. The Palette also saw about 17 of the 436 units (4%) granted options being not exercised. At the Archipelago, about 12% or 15 of the 130 units for which options were issued are being returned.

prudent

a friend of mine .. living in FH landed semi D in thomson area .. bought many years back for 900k

he is the sole bread winner ... a wife , 2 children ( teenager) and old mother

recently he had a 50 pct pay cut ... in a MNC which he has worked for over 10 yrs ...

it was either 50 pct pay cut or 'bye bye' ...

his 2 children are in college and next yr ..possibly uni ...

he has no choice ... but to sell his FH semi D and bgt a 99 LH cluster.. and pocket about 1.5 mio cash profit ...

initially i thot he should have bought something better ...at least a FH

but he needs a home, one with 4 bedrooms ... and he needs $ to be able to allow his children to further their studies ..

anything FH and with 4 bedrooms will be close to 2 mio or higher ..

he took the painful decision ...

sold the FH semi D , keep some cash ... and moved into a LH cluster (at least 6 yr old ) ...

i believe we will hear more of such stories ...

[sunrise]

Just read that there were some who returned units to developers, fearing price dip. What do you think?

many investors already packed up and go. no buyer leow.
CM5 digging its own grave.

what happen next???

[hopeful]

prudent

a friend of mine .. living in FH landed semi D in thomson area .. bought many years back for 900k
he is the sole bread winner ... a wife , 2 children ( teenager) and old mother
recently he had a 50 pct pay cut ... in a MNC which he has worked for over 10 yrs ...
it was either 50 pct pay cut or 'bye bye' ...
his 2 children are in college and next yr ..possibly uni ...
...................

if your friend bought many years ago, wouldn't it be fully paid for? as such, would not have any problem servicing the installment.
Also, if kids need the money, can take equity from the house.or the kids borrow from bank, only start paying after graduation.
Given his story, I dont see why he sell the house.

[Condo Kaiser]

if your friend bought many years ago, wouldn't it be fully paid for? as such, would not have any problem servicing the installment.
Also, if kids need the money, can take equity from the house.or the kids borrow from bank, only start paying after graduation.
Given his story, I dont see why he sell the house.

Ya lor... story not very reliable... He must be out of his mind... If he got the FH semi D @ 900k then there's no way he hasn;t finished paying it off...

[ikan bilis]

got 1 questions here... now still can flip option-to-purchase or not??...

yeah !!... flippers die pain pain !!...

[roly8]

prudent

a friend of mine .. living in FH landed semi D in thomson area .. bought many years back for 900k

he is the sole bread winner ... a wife , 2 children ( teenager) and old mother

recently he had a 50 pct pay cut ... in a MNC which he has worked for over 10 yrs ...

it was either 50 pct pay cut or 'bye bye' ...

his 2 children are in college and next yr ..possibly uni ...

he has no choice ... but to sell his FH semi D and bgt a 99 LH cluster.. and pocket about 1.5 mio cash profit ...

initially i thot he should have bought something better ...at least a FH

but he needs a home, one with 4 bedrooms ... and he needs $ to be able to allow his children to further their studies ..

anything FH and with 4 bedrooms will be close to 2 mio or higher ..

he took the painful decision ...

sold the FH semi D , keep some cash ... and moved into a LH cluster (at least 6 yr old ) ...

i believe we will hear more of such stories ...

wow!

[proud owner]

if your friend bought many years ago, wouldn't it be fully paid for? as such, would not have any problem servicing the installment.
Also, if kids need the money, can take equity from the house.or the kids borrow from bank, only start paying after graduation.
Given his story, I dont see why he sell the house.

yes fully paid ...

but becos its 'original' condition ..+ CM5 ..people squeezing .. he managed to sell at 3mio ish for a 3500 sqft land ..

paid 1.4 mio ish for the cluster .. keeping 1.5 mio ish cash .. to weather the next few years ..

bearing in mind he has 2 children who will be going to uni in the next 1-2 yrs ..and he is sole bread winner .. + a 50 pct pay cut ...
being an old staff .. if the company decides to further reduce headcount .. he could lose his job totally ...

he didnt have much time to think thru .. and with CM 5 .. he fears further price fall ...

[DKSG]

yes fully paid ...

but becos its 'original' condition ..+ CM5 ..people squeezing .. he managed to sell at 3mio ish for a 3500 sqft land ..

paid 1.4 mio ish for the cluster .. keeping 1.5 mio ish cash .. to weather the next few years ..

bearing in mind he has 2 children who will be going to uni in the next 1-2 yrs ..and he is sole bread winner .. + a 50 pct pay cut ...
being an old staff .. if the company decides to further reduce headcount .. he could lose his job totally ...

he didnt have much time to think thru .. and with CM 5 .. he fears further price fall ...

This proves that there are still people out there being confident and buying from him ? The question is : Did he sell it at way below valuation ?
I doubt so. Will his selling contribute to an increase in the index or reduction ?

Cant just use one person's encounter to generalise the market. I would be more keen to know if there are (I know there maybe) people out there who are trying to sell their properties at 20% below Nov's average price and still cannot find buyer.

DKSG
Stay calm and cool!

[proud owner]

This proves that there are still people out there being confident and buying from him ? The question is : Did he sell it at way below valuation ?
I doubt so. Will his selling contribute to an increase in the index or reduction ?

Cant just use one person's encounter to generalise the market. I would be more keen to know if there are (I know there maybe) people out there who are trying to sell their properties at 20% below Nov's average price and still cannot find buyer.

DKSG
Stay calm and cool!

3500 sqft sold at 3 mio thats 858 psf

for FH landed in thomson ?? cheap or fair or expensive ?

[peterng8]

This proves that there are still people out there being confident and buying from him ? The question is : Did he sell it at way below valuation ?
I doubt so. Will his selling contribute to an increase in the index or reduction ?

Cant just use one person's encounter to generalise the market. I would be more keen to know if there are (I know there maybe) people out there who are trying to sell their properties at 20% below Nov's average price and still cannot find buyer.

DKSG
Stay calm and cool!

it will come for resale PC I believe later of this year, even with this 20% discount, the seller still makes if he bought the unit during down cycle not long ago previously.. as CM is not to meant to crash the market..

[radha08]

3500 sqft sold at 3 mio thats 858 psf

for FH landed in thomson ?? cheap or fair or expensive ?

reasonable if u look at landed prices its not that expensive...but will become cheaper....

[bargain hunter]

as PO said, its just prudence. at this point, its just rational pple being prudent, nothing abnormal (YET) .

[thomastansb]

If he is prudent enough or fear for his future/job, he should have bought a 500k 5 bedroom in Sengkang and keep 2.5 million dollars in fixed deposit. Based on 1% FD, should generate 25k a year or 2k a month. That is more than what many people earn as a sole bread winner. And when market turn, he has 2.5 million capital. Easily double the money when market turns.

[proud owner]

If he is prudent enough or fear for his future/job, he should have bought a 500k 5 bedroom in Sengkang and keep 2.5 million dollars in fixed deposit. Based on 1% FD, should generate 25k a year or 2k a month. That is more than what many people earn as a sole bread winner. And when market turn, he has 2.5 million capital. Easily double the money when market turns.

i cant agree more with you

but fact is .. if it happens to yuo ... you may not have the mood, time to think thru so much

also timing issue .. with a FH landed .. you cant buy HDB ..
money wont come in until he sells the house ..to pay for the HDB right ?

when shxt is hitting the fan ... would u still ask your whole family move to a rental ...
sell the house ..
take the money ...
buy HDB ...
move into hdb ??

i doubt

[rattydrama]

If he is prudent enough or fear for his future/job, he should have bought a 500k 5 bedroom in Sengkang and keep 2.5 million dollars in fixed deposit. Based on 1% FD, should generate 25k a year or 2k a month. That is more than what many people earn as a sole bread winner. And when market turn, he has 2.5 million capital. Easily double the money when market turns.

I tot need to wait for 24 months before one can buy HDB.

[rattydrama]

with 3m on hand, this is what I will do.


1m for OCR condo with relatively big space fully paid.
1m for education on loan to 2 kids.
1m for FH 2 MM units fully paid
if there is balance cash, buy a 2nd hand car.

At least will preserve some cash in the end.

i cant agree more with you

but fact is .. if it happens to yuo ... you may not have the mood, time to think thru so much

also timing issue .. with a FH landed .. you cant buy HDB ..
money wont come in until he sells the house ..to pay for the HDB right ?

when shxt is hitting the fan ... would u still ask your whole family move to a rental ...
sell the house ..
take the money ...
buy HDB ...
move into hdb ??

i doubt

[gap969]

Honestly LH cluster still must pay high monthly maintenance fees ($500 up)

[proud owner]

with 3m on hand, this is what I will do.


1m for OCR condo with relatively big space fully paid.
1m for education on loan to 2 kids.
1m for FH 2 MM units fully paid
if there is balance cash, buy a 2nd hand car.

At least will preserve some cash in the end.

huh ??

he has a wife , mother, 2 children .. all dependent on him ..and his salary has been cut 50 pct

[rattydrama]

huh ??

he has a wife , mother, 2 children .. all dependent on him ..and his salary has been cut 50 pct

is 4bedroom sufficient maybe stretch to 1.2m budget, i think can get.

I dont understand why must be cluster. I tot there is a better choice...No offence pls.

[radha08]

ha ha so all that queing up for bresindences for nothing...

[TKT]

He should had taken $500k and bought an even bigger, brand-new, gated and guarded, freehold semi-D with nice golf views at Horizon Hills in JB.

When his kids need to go university soon, he can enrol them in any of the 7-8 universities coming up there soon. I dont think he needs S$1m for this?... maybe $200-300k in total.

Keep the balance +$2m and do something else with his life, smell the roses, for example.

His mum would also thank him for the fresher air around the golf course.

Negotiate with his fxxx boss for a nice retrenchment package, use that to buy a nice HDB later... and then much later, rent it out to FTs for grocery and petrol money.

Why would anyone still willing to stay LOYAL and COMMITTED when you got a 50% pay cut??!!!

[proud owner]

is 4bedroom sufficient maybe stretch to 1.2m budget, i think can get.

I dont understand why must be cluster. I tot there is a better choice...No offence pls.

i didnt have time to talk much with him

but i understand he needs 4 bedroom ..

HDB is out due to timing issue ...

other condo ...FH wiht 4 bedroom all above 2 mio

only this LH cluster ...that has 4 bedrooms and 'affordable' and still gives him a good cash balance

he needs to keep as much cash as possible ... cos even after 50 pct pay cut ..he feels he may be retrenched IF situation does not improve ...

[rattydrama]

nvr let fear rule the head but I can understand why he made that decision if one is in that suitation, especially when age is catching up.

As what I believed and mentioned, ppty investment is not for the faint hearted.

Well his situation is alot more better than others. God Bless Him.

i didnt have time to talk much with him

but i understand he needs 4 bedroom ..

HDB is out due to timing issue ...

other condo ...FH wiht 4 bedroom all above 2 mio

only this LH cluster ...that has 4 bedrooms and 'affordable' and still gives him a good cash balance

he needs to keep as much cash as possible ... cos even after 50 pct pay cut ..he feels he may be retrenched IF situation does not improve ...

[rattydrama]

his friend is not in the desperate mood. This will be the way to go if I need to run road from all my debts. LOL

He should had taken $500k and bought an even bigger, brand-new, gated and guarded, freehold semi-D with nice golf views at Horizon Hills in JB.

When his kids need to go university soon, he can enrol them in any of the 7-8 universities coming up there soon. I dont think he needs S$1m for this?... maybe $200-300k in total.

Keep the balance +$2m and do something else with his life, smell the roses, for example.

His mum would also thank him for the fresher air around the golf course.

Negotiate with his fxxx boss for a nice retrenchment package, use that to buy a nice HDB later... and then much later, rent it out to FTs for grocery and petrol money.

Why would anyone still willing to stay LOYAL and COMMITTED when you got a 50% pay cut??!!!

[jwong71]

i didnt have time to talk much with him

but i understand he needs 4 bedroom ..

HDB is out due to timing issue ...

other condo ...FH wiht 4 bedroom all above 2 mio

only this LH cluster ...that has 4 bedrooms and 'affordable' and still gives him a good cash balance

he needs to keep as much cash as possible ... cos even after 50 pct pay cut ..he feels he may be retrenched IF situation does not improve ...

least he will able to live to share his story,

while others..... r.i.p.

[roly8]

Honestly LH cluster still must pay high monthly maintenance fees ($500 up)

wa..$500/mo ?

[hopeful]

i didnt have time to talk much with him
....
he needs to keep as much cash as possible ... cos even after 50 pct pay cut ..he feels he may be retrenched IF situation does not improve ...

I am just surprise that he paid for his LH in full. Didnt even take out. If he took out loan, he could at least has more cash in hand.
Education for 2 kids, $400k for 2 kids for 4 years enough? that still leaves him with a $1mil plus cash in hand.
Given your story, I suspect that this is the biggest amount of cash that he ever has. Please advise your friend not to go crazy and invest anyhow, just to chase yield.