Sky Habitat - Bishan

[eng81157]

going by your example, something must occur to make the seller want to take a hit of 40%. after the lehman crisis, i don't recall seeing lots of resale or subsale going at 40% discount. most were just languishing at previous peaks or slightly below. well, my memory could have failed me though

[minority]

going by your example, something must occur to make the seller want to take a hit of 40%. after the lehman crisis, i don't recall seeing lots of resale or subsale going at 40% discount. most were just languishing at previous peaks or slightly below. well, my memory could have failed me though

saying as worst case.. loose job and interesting spiking plus running our of buffer funds i.e. pay installment plus daily living cost.

might not be many but some over leverage person will have this problem.

Not forgetting the 40s might get retrench. This middle class are sometime too junior for senior roles and senior for junior roles. Thus stuck for a while. I have seen many during the last recession some taking up to 8mths -12mths before getting a new job. might not be the same pay as the original job. thus taking a pay cut. 40s is not a very safe age.

[Ilikeu]

hmm so bullish in this area.. say something happen... within the next 12mths.. i.e. another lehman like scenario. Credit crunch.. those people that bought with a bullish view get hit. i.e. retrench.

Housing price plunge... say say 20% so SH becomes $1280psf. Interest spike up to 3-4% . Then buyer run into finiancial crunch. End up force to sell..

with 20% down and the ABSD penalty coz 1st yr being 16% ... total that is 36% down + 3% stamp.. thats 39% down..

a $2M 2 bedder seller looses 880K.. not considering 1% pay agent fees

hmm would be challenging times won't that be?

Yes, there is a chance that may happen.

However, a typical investment (whether it is individual or by a corporation), no one does an analysis based on "worst case scenario" that is so so bad. Say for an investment into an Oil Tanker, if you factor in a scenario that your investment (ie. the oil tanker) will ran aground and caused a major oil spill, then don't need to do any investment liao and that one incident will cause the whole company to bankrupt. Similarly for individual, would anyone buy into any ppty if he thinks his household income will be zero when he thinks both himself and his spouse will lose their jobs.

If there is someone who uses a dooms-day assumption, then he/she is a distressed asset player waiting for the entry point.

[minority]

going by your example, something must occur to make the seller want to take a hit of 40%. after the lehman crisis, i don't recall seeing lots of resale or subsale going at 40% discount. most were just languishing at previous peaks or slightly below. well, my memory could have failed me though

There are some.. if u look at the peak price.. I remember Reflection at some point for a short while 1400psf(peak then 1700-2000), rivergate 1100 ( peak 1600), Seaview 1100(peak 1600-1700).

[eng81157]

There are some.. if u look at the peak price.. I remember Reflection at some point for a short while 1400psf(peak then 1700-2000), rivergate 1100 ( peak 1600), Seaview 1100(peak 1600-1700).

i'm sure there will be some. just that all the units i saw during the trough weren't going at 40%. i remember clearly being offered high floor 2/3BR units at montebleu as the investment company (that snapped up lots of units) wanted to cut losses. the price was, at best, close to the peak

[minority]

i'm sure there will be some. just that all the units i saw during the trough weren't going at 40%. i remember clearly being offered high floor 2/3BR units at montebleu as the investment company (that snapped up lots of units) wanted to cut losses. the price was, at best, close to the peak

well just have to look quick Clift was also going 1100psf in the crisis. looking back its shopping galore....!

[Wild Falcon]

True. But also cannot invest based on "best case". I think entry in this price, can only make money in "best case scenario".

Yes, there is a chance that may happen.

However, a typical investment (whether it is individual or by a corporation), no one does an analysis based on "worst case scenario" that is so so bad. Say for an investment into an Oil Tanker, if you factor in a scenario that your investment (ie. the oil tanker) will ran aground and caused a major oil spill, then don't need to do any investment liao and that one incident will cause the whole company to bankrupt. Similarly for individual, would anyone buy into any ppty if he thinks his household income will be zero when he thinks both himself and his spouse will lose their jobs.

If there is someone who uses a dooms-day assumption, then he/she is a distressed asset player waiting for the entry point.

[Ilikeu]

True. But also cannot invest based on "best case". I think entry in this price, can only make money in "best case scenario".

Well, i didn't say invest based on "best case"....
Is assuming himself continuing to have a job a "best case scenerio"? This is debatable.

Moreover, going by the various reports/discussions, it seems that the majority buying the SH is not to make money, it is for their self-stay.

[minority]

Yes, there is a chance that may happen.

However, a typical investment (whether it is individual or by a corporation), no one does an analysis based on "worst case scenario" that is so so bad. Say for an investment into an Oil Tanker, if you factor in a scenario that your investment (ie. the oil tanker) will ran aground and caused a major oil spill, then don't need to do any investment liao and that one incident will cause the whole company to bankrupt. Similarly for individual, would anyone buy into any ppty if he thinks his household income will be zero when he thinks both himself and his spouse will lose their jobs.

If there is someone who uses a dooms-day assumption, then he/she is a distressed asset player waiting for the entry point.

Yes this is the worst case. To me SH is the best best case limited upside and very potential downside if got weak hand.

[Ilikeu]

Yes this is the worst case. To me SH is the best best case limited upside and very potential downside if got weak hand.

Not Watertown?

[minority]

Not Watertown?

Watertown is lousy buy. At least with SH if can hold still better then WT. At least Bishan is a more mature location. Plus design is unique. good amount of 2-3 bedders. Just as long not financially strap is still better buy than WT with all the MMs in a ulu area.

[amk]

So many ppl buy SH 3bds, I guess most for own stay, so it's just a matter of personal judgment of affordability.

for watertown, wow, more than 60% all investors , gambling big time..

[Ilikeu]

Watertown is lousy buy. At least with SH if can hold still better then WT. At least Bishan is a more mature location. Plus design is unique. good amount of 2-3 bedders. Just as long not financially strap is still better buy than WT with all the MMs in a ulu area.

Ok, your points have some logical merits....so u rank WT followed by SH as the worst worst buy.

[Ilikeu]

So many ppl buy SH 3bds, I guess most for own stay, so it's just a matter of personal judgment of affordability.

for watertown, wow, more than 60% all investors , gambling big time..

I personally know 2 currently staying in Punggol with parents, still single and in their early 40s bot into 1 and 2 bedder in watertown respectively for their own stay. Can't say they are gambling for this case.

[carbuncle]

Yes this is the worst case. To me SH is the best best case limited upside and very potential downside if got weak hand.

Finally understand the design rationale. If owner lose money and jump from balcony, at least guarantee wont die as floor below balcony juts out to "catch" you. Cant comment for those who jump from sky pool. Maybe if still have some luck left the lower level skybridges can catch you.... (Flame incoming... Hide!!!!!)

[minority]

going by your example, something must occur to make the seller want to take a hit of 40%. after the lehman crisis, i don't recall seeing lots of resale or subsale going at 40% discount. most were just languishing at previous peaks or slightly below. well, my memory could have failed me though

Well times have changeable. Pre Lehman we didn't t have absd. Now we have absd. The slippery slope got slipper. Maybe during Lehman property lost is 20%. but now becoz absd there is a double whammy.

So have weak hands better don't play. Big boys game.

Say for example. Like the 44 people in the news. The high fliers suddenly no job. Cannot find work. Impending case. if add in interest,movement die.

Do u think they plan for this?

[phantom_opera]

Well times have changeable. Pre Lehman we didn't t have absd. Now we have absd. The slippery slope got slipper. Maybe during Lehman property lost is 20%. but now becoz absd there is a double whammy.

So have weak hands better don't play. Big boys game.

Say for example. Like the 44 people in the news. The high fliers suddenly no job. Cannot find work. Impending case. if add in interest,movement die.

Do u think they plan for this?

The pimp is a rich guy who owns many cos ... money not enough sigh

[minority]

The pimp is a rich guy who owns many cos ... money not enough sigh

So how anyone ask got fire sales a not?

[repanse71]

So assuming the person who bought the SH is what age? typical age person married is 30. say HDB fully paid out by late 30s? 38 with 30yrs loan means out of loan by 68. So means cannot retire till 68.? what is interest goes up to 3.5%? Would that break the calculation?

In the age where people hitting 40s are consider endanger to be retrench. and to many employers 45s are consider old. and not hirable if out of job.

I think the loan tenor cannot go beyond one's 65th birthday. i.e. If I am 40 now, max loan tenor is 25 years.

I guess people forget that mortgage rates used to hit 5% some years ago, and too young to remember it could hit as high as 10%.

When I say stay 1 and rent out 1 conservatively, I fail to add I have cash and CPF for at least 1 year of installments.

Am I being too risk averse here?????

Regards

[teddybear]

Why so rich still live in HDB?

The pimp is a rich guy who owns many cos ... money not enough sigh

[phantom_opera]

The pimp very capable ... recruit mei mei (only 1 is Korean, the rest Singaporeans) and set up web service, sell it to professionals WOW

May be he wanted to buy one a few Sky Habitat but vitamin M not enough ...

[eng81157]

Well times have changeable. Pre Lehman we didn't t have absd. Now we have absd. The slippery slope got slipper. Maybe during Lehman property lost is 20%. but now becoz absd there is a double whammy.

So have weak hands better don't play. Big boys game.

Say for example. Like the 44 people in the news. The high fliers suddenly no job. Cannot find work. Impending case. if add in interest,movement die.

Do u think they plan for this?

govt policies can come and go, depending whether the situation calls for it. all these CMs can just go poof if there's a sudden deep downturn. i don't think we will have a lehman-scale crash in the coming 1-2 years and hence, i would use it as a benchmark

[bargain hunter]

i think its 70 years old. 40 year old should be able to borrow till 30 year tenor at the MAX.

I think the loan tenor cannot go beyond one's 65th birthday. i.e. If I am 40 now, max loan tenor is 25 years.

I guess people forget that mortgage rates used to hit 5% some years ago, and too young to remember it could hit as high as 10%.

When I say stay 1 and rent out 1 conservatively, I fail to add I have cash and CPF for at least 1 year of installments.

Am I being too risk averse here?????

Regards

[speculator]

govt policies can come and go, depending whether the situation calls for it. all these CMs can just go poof if there's a sudden deep downturn. i don't think we will have a lehman-scale crash in the coming 1-2 years and hence, i would use it as a benchmark

if you're already a home owner or already in the market, the more CMs the better it is. If there's any downturn, Govt could stop GLS, remove CMs one by one.

if you're not already in the market, CMs might make it harder for you to enter

[insigina]

i think its 70 years old. 40 year old should be able to borrow till 30 year tenor at the MAX.

OCBC is up to 75 years. Not sure about the others,

[DC33_2008]

Banks like Standard Chartered and ANZ are up to 75 years.

OCBC is up to 75 years. Not sure about the others,

[Komo]

realistically, should anyone take loan up to 75?

[Pynchmail]

realistically, should anyone take loan up to 75?

Nope. Because by the time you actually own your house, it is almost time to leave.

[carbuncle]

realistically, should anyone take loan up to 75?

Stretch out as long as possible. Coz u gonna sell it off before that for profit anyway...

[ppty]

NICE ARTICLE FROM H88.COM WEB SITE

http://www.h88.com.sg/article/Capita...t+city+prices/

From an investment point of view, at this price point, do you forsee prices going any higher? There are better options elsewhere.

That said, there is no doubting the quality of the developers, the wonderful design and the excellent location of this condo.

Much like how the Empire State Building was a sign of New York's pomp and prime in the days before the Great Depression, Sky Habitat is a sign of much that is askew about the state of Singapore's property market. It is overheating, it is unhealthy, that's why we get blips like Sky Habitat - it simply does not belong.

This 'gentrification' of Bishan though unavoidable is not something we'd like to see.

Condos like Sky Habitat bring strong inflationary pressure to the potential and existing homes around the area. We won't be surprised to see the land next to Sky Habitat going for similar rates. But for the sake of all aspiring home owners and HDB upgraders, let's hope it doesn't happen. Heartland homes for heartlanders at heartland prices - that's what we all want to see.