A few CCR transactions sold at a loss (reported in The Edge)

[Rosy]

76 shenton at 18xxpsf is a very good price.

[ekl2ekl2]

76 shenton sold out in one day prelaunch.
Those <2000pfs are low floors and blocked views.
Those who have gotten in 2010 almost assured profit, so surprised this unit selling at a loss.

[Jonathan0503]

I used to see lots of japanese cars in my office. Now I see more and more Continental cars. Asked buyers why? Answer: price almost the same. If more ah bengs could afford to shift to CCR what do you think? Is there anymore exclusiveness that justified a premium price?

There is limited land in CCR and it's almost all built-up for residential. How to have more ah bengs moving in without existing ah beings or non-ah bengs moving out?

Since supply is limited, premium is still justified.

Oh, not all continental cars are luxury cars..

[bargain hunter]

Bought 2007-12-04 2600psf 2896 sq ft
Sold 2012-12-26 2480psf

not much %-wise but net loss would be > 700k.

[bargain hunter]

The Orchard Residences

1808 sq ft
BOUGHT 2007-04-16 3508psf
SOLD 2013-01-04 3417psf

wasted resources over 6 years. > 200k lost, mostly to the gahmen.

[thomastansb]

CCR is already dead. I don't see any reason why anyone would buy CCR to invest now. With CM7, the coffin is already burnt and ashes already scattered into the sea.

[phantom_opera]

CCR is already dead. I don't see any reason why anyone would buy CCR to invest now. With CM7, the coffin is already burnt and ashes already scattered into the sea.

最危险的地方就是最安全的地方 lol

[bargain hunter]

A time would come fore rebirth. but i dunno when lah.

CCR is already dead. I don't see any reason why anyone would buy CCR to invest now. With CM7, the coffin is already burnt and ashes already scattered into the sea.

[Rosy]

A time would come fore rebirth. but i dunno when lah.

When absd removed.

[heehee]

With latest cooling measures, who are least affected & still has financial power to buy & what they prefer? I will go with people who got financial muscle.

CCR is already dead. I don't see any reason why anyone would buy CCR to invest now. With CM7, the coffin is already burnt and ashes already scattered into the sea.

[DKSG]

CCR is already dead. I don't see any reason why anyone would buy CCR to invest now. With CM7, the coffin is already burnt and ashes already scattered into the sea.

Frankly, when more and more people make these statements, its time to buy into CCR.

But still the theory of concentration still stands.

With every 100 psf increase in OCR, CCR will benefit x%.

DKSG

[proud owner]

With latest cooling measures, who are least affected & still has financial power to buy & what they prefer? I will go with people who got financial muscle.

who else

the govt lor ...

with their mio $ pay ... all staying landed (almost) .. bought way before any CMs...

sitting on huge gains ... and no mortgages ....

[RCT]

who else

the govt lor ...

with their mio $ pay ... all staying landed (almost) .. bought way before any CMs...

sitting on huge gains ... and no mortgages ....

Agreed.. After this series of CM, the government will be the biggest winner

Sell Land - Earn Money
Developer sell house earn money need to pay tax - Earn Money
Property Tax - Earn Money
SSD - Earn Money
ABSD - Earn Money

But I feel the bank also earn a lot....
Developer borrow money to buy land and build house - Earn Money
Buyer borrow money to buy the house - Earn Money

But at least the bank have to take some risk in terms of default.. Government really 101% win

[thomastansb]

I don't know how people can pay 1.5M for a studio that is rented out at $4k. Or 2M for a 2 bedders that is rented out at 5k. 30 years loan somemore.

Frankly, when more and more people make these statements, its time to buy into CCR.

But still the theory of concentration still stands.

With every 100 psf increase in OCR, CCR will benefit x%.

DKSG

[leesg123]

I don't know how people can pay 1.5M for a studio that is rented out at $4k. Or 2M for a 2 bedders that is rented out at 5k. 30 years loan somemore.

most ccr studio are still below $1m lah. if a ccr FH studio is selling at $8xx and ocr 99LH selling at $6xx, which one will u choose? If both landlord charge the same rent, which one will the tenant bite first?

[thomastansb]

Which CCR studio at 800k++? My CCR refers to D1, D2 and D9. Those have the highest rental already.

most ccr studio are still below $1m lah. if a ccr FH studio is selling at $8xx and ocr 99LH selling at $6xx, which one will u choose? If both landlord charge the same rent, which one will the tenant bite first?

[DKSG]

I don't know how people can pay 1.5M for a studio that is rented out at $4k. Or 2M for a 2 bedders that is rented out at 5k. 30 years loan somemore.

I assume you have say $800K. Loan $800K.
Buy studio, $1.5million, rent out $4.5K. (if you have problem getting 3.6% yield, that means your agents got problem, OR they managed to con you to rent cheap)
Instalment about $2.5K.
Take home profit about $1.5K pm, $18 pa. 2.25% return on cash.

Sounds like a good deal, considering you still get the 1-2% increase in property value every quarter.

Alternatively, you have leave the money in the bank and next year 2014, your $800K becomes $760K in value, in 2015 $722K ... if you have already left the money in the bank since 2010, then VOILA! it just became $680K.

But your $1.5million property, if bought in 2010, now should be about $1.8 million at least.

Ok la! Enough of numbers for an Office Boy.

DKSG

[newbie11]

I think he is referring to alternatively investing 1.5m in 2 OCR MM

[thomastansb]

It is a flawed comparison. Actually a flawed calculation as well.

Firstly, my money in my bank stays at 800k (ignore the interest for the time being). It won't be 760k in 2014. It will be 800k in 2014 and 800k in 2015. Chicken rice might go up from $2.50 to $3 but my 800k stays 800k.

Secondly, your take home profit conveniently left out maintenance fees, property taxes etc.

Thirdly, 1 to 2% increase is a guesstimate at best. If it drops 10%, your 800k deposit becomes 640k. Right? (50% leverage means double in gain/loss). So this is one plausible scenario as well right?

So can I say, if property drop 10%, you just lose 160k on paper while my 800k is still 800k in my bank?

I am just giving another scenario of prices dropping and also correcting your mistakes in your analysis.

I assume you have say $800K. Loan $800K.
Buy studio, $1.5million, rent out $4.5K. (if you have problem getting 3.6% yield, that means your agents got problem, OR they managed to con you to rent cheap)
Instalment about $2.5K.
Take home profit about $1.5K pm, $18 pa. 2.25% return on cash.

Sounds like a good deal, considering you still get the 1-2% increase in property value every quarter.

Alternatively, you have leave the money in the bank and next year 2014, your $800K becomes $760K in value, in 2015 $722K ... if you have already left the money in the bank since 2010, then VOILA! it just became $680K.

But your $1.5million property, if bought in 2010, now should be about $1.8 million at least.

Ok la! Enough of numbers for an Office Boy.

DKSG

[CCR]

You wouldny sell if prices drop and you continue to collect rental.... After 3-5 years the sell when prices recovers.... In the mean time u will make at least 2.5% nett per year.... 5 years means at leats 15% return.... And the best part is....... You only put 20% downpayment.... If you have bought the unit before cm7....

Your 800k still 800k but the fellow already up at leastanpther 200k

[leesg123]

Which CCR studio at 800k++? My CCR refers to D1, D2 and D9. Those have the highest rental already.

That is CA lah anyway there ARE studio at $8xxk in D9. but wont tell you.

[teddybear]

Great analysis.

$800k in the bank now will be worth like $700k in 2015 due to REAL inflation + almost 0% interest (not those on-paper inflation number, look nice and smell nice but covering a can of worms, not the real-life figure lah! I already told the toilet paper story on inflation so will not repeat here again).

You wouldny sell if prices drop and you continue to collect rental.... After 3-5 years the sell when prices recovers.... In the mean time u will make at least 2.5% nett per year.... 5 years means at leats 15% return.... And the best part is....... You only put 20% downpayment.... If you have bought the unit before cm7....

Your 800k still 800k but the fellow already up at leastanpther 200k

[dtrax]

Great analysis.

$800k in the bank now will be worth like $700k in 2015 due to REAL inflation + almost 0% interest (not those on-paper inflation number, look nice and smell nice but covering a can of worms, not the real-life figure lah! I already told the toilet paper story on inflation so will not repeat here again).

guess that is why the rich gets richer.. just like FEO got balance sheet gaogao no need firesale. If got only 200k probably might hold purchase until recession. If got 800k put in bank abit wasted. Use 200k for downpayment, another 200k in fixed deposit as buffer and reinvest the balance

[bargain hunter]

oh no, the poor fella who set the record psf for duchess during the 07 craze

1485 sq ft
BOUGHT 2007-07-31 2300psf
SOLD 2013-01-07 1885psf

net loss in excess of 700k.

[proud owner]

oh no, the poor fella who set the record psf for duchess during the 07 craze

1485 sq ft
BOUGHT 2007-07-31 2300psf
SOLD 2013-01-07 1885psf

net loss in excess of 700k.

700k ... no problem ... his child probably managed to get in PRIME school due to the address ...

wait another 15 yrs ... his child will earn alot more than 700k

hehehehehe

[bargain hunter]

i still can't believe Wee and Co. bought at 1500 to 1700psf, sold to VVIP and public at 1800 to 2100psf and managed to get someone to set the record 2300psf all within the same week. something feat which hopefully is never repeated again.

700k ... no problem ... his child probably managed to get in PRIME school due to the address ...

wait another 15 yrs ... his child will earn alot more than 700k

hehehehehe

[proud owner]

i still can't believe Wee and Co. bought at 1500 to 1700psf, sold to VVIP and public at 1800 to 2100psf and managed to get someone to set the record 2300psf all within the same week. something feat which hopefully is never repeated again.

willing seller willing but stupid buyer


many buy becos its prime district and near GOOD school

thats the price to pay ..

to them , they are losing small money to make BIG future money

that is, if their children remembers to take care of these folks

[bargain hunter]

i think it was more of the 07 hype. totally overdrive until within one week they can do this kind of thing. (of course the buyers didn't know Wee & Co. bought at 1500 to 1700) when they were buying just the next day lah.

willing seller willing but stupid buyer


many buy becos its prime district and near GOOD school

thats the price to pay ..

to them , they are losing small money to make BIG future money

that is, if their children remembers to take care of these folks

[thomastansb]

700k loss. Wow. Might as well just rent it out for 20 years.

[bargain hunter]

rent out for 20 years? how to tahan the monthly payments?!

700k loss. Wow. Might as well just rent it out for 20 years.