Singapore takes new steps to cool housing market

[zeamybro]

why if i am a multi millionare with hordes of cash like my ex-landlord why not....heard he owns a few properties fully paid....shake leg collect tens of thousands rental every month....

Yes yes I agree ... There r indeed a handful of folks out there who owned several properties which have been fully paid. Their rental income is the true passive income

[Ringo33]

why if i am a multi millionare with hordes of cash like my ex-landlord why not....heard he owns a few properties fully paid....shake leg collect tens of thousands rental every month....

wont it be more difficult to own fully paid properties

[DC33_2008]

Properties are bought to be kept for passive income. Getting more and more difficult to own multiple properties with this latest CM. Those who refinance their loans 2-3 years have the best deals as spread is low and longer tenure.

Yes yes I agree ... There r indeed a handful of folks out there who owned several properties which have been fully paid. Their rental income is the true passive income

[DC33_2008]

Thought you have already bought for them and use them as a retirement plan as well.

That's why I feel sufocated.
Cos likely, next time I may have to help my kids buy.

[kane]

no more landlord dream for a lot of people liao.

[DC33_2008]

Blame US QE3 and superb sale at KR and Eco.

Let's boycott UOB... I think largely their fault for coming out with 50yrs...
40yrs good enuf loh... Extra... Now worse

[hopeful]

......
I bought a unit at Kovan Regency for about $1.25 million last Sat for investment
LTV @ 60%, loan tenure 30 years. Have not sign S&P yet.
Seems like market foresee prices to soften.
Should I forfeit my 1.25% booking fee and buy later?
If I buy later, my LTV is still 60% but loan tenure 25 years (rental may not be able to cover mortgage installment but I am fine to top up using savings)
Would appreciate any advice! Thank you

why current LTV only 60%? that is >1 mortgages.
then if buy later, LTV still 60%? that is only for 1st mortgage.

[DC33_2008]

CM indirectly prohibiting Senior HDB dwellers with fully paid up flats with some cash who will overstretch if purchase PC and thinking rental of the flat can pay for the mortgage. .

25yr loan lor.... don;t overshoot the 65yr limit...

[DC33_2008]

Is it worth it too have so long tenure. Your principal will never draw down and paying a lot more interest.

yay me too, i got 1 40 1 50 actually

[DC33_2008]

Please PM me if you know of any such deal.

It is like a string pulled at both ends. The opposing forces just stopped dead in their tracks ! Very good Ah Khaw and Tharman teamwork !

AH Khaw already stopped the bombardment from the foreigners by introducing CM4 on foreign buyers and small speculators. Tharman just taken out the BIG speculators.

Very wise move I say !This CM is a real fiscal CM, very effective as it targets at the loan instrument. It will help the middle class here and stabilise the price of property here for a longer time frame ! A very good CM indeed.

I advise all brothers seeking to upgrade to landed to wait for the CM to make its FULL EFFECT. The agent occupied landed will be given up first end 2012. Just watch:

3 million landed will need to topup at approx. $2million !
5 million will be approx $3million
and $7million will be approx S$5million !

How many centa millionaire here ?


Swee ARH ! I LOVE YOU THARMAN ! YOU ARE DOING THE RIGHT THING !

YOU ARE A GENIUS ! I have been HOLDING my breath until now I can finally let go a BIG SIGH OF RELIEF !!! THANK YOU ! !


神龙股侠。
NIL SINE LABORE !


"Better to illuminate than merely to shine, to deliver to
others contemplated truths than merely to contemplate."
� St. Thomas Aquinas

[price]

Is it worth it too have so long tenure. Your principal will never draw down and paying a lot more interest.

A longer loan repayment period make sense for investors because investors are always looking for return on investment. So the less capital we put into the property, the higher our returns.

For ordinary home buyers, they should tailor their loan repayment period to the age they want to retire. Which is similar to what the MAS is preaching right now.

I'm an investor who's gonna be renting out the proprieties and obviously I won't be holding them for 40-50 years (probably sold and bought others by then) Given that I'm in my early 20s and the low interest rates now why not?

[DC33_2008]

That is what the wealthier ones will do. Rich becomes richer .

Eventually, parents will buy properties under their children's name before they reach 30 years old. Save the ABSD, better LTV.

On top, properties with small quantum will be hot cakes.

[DC33_2008]

True only if there is no major correction, investors have holding power, and existing cash is put in high yielding instruments.

A longer loan repayment period may make sense for investors because the investor is always looking for return on investment. So the less capital they put into the property, the higher their return.

For ordinary home buyers, they should tailor their loan repayment period to the age they want to retire.

I'm renting out the proprieties and obviously I won't be holding them for 40-50 years Given that I'm in my early 20s and the low interest rates now why not?

[price]

True only if there is no major correction, investors have holding power, and existing cash is put in high yielding instruments.

Yep, which is why I agree with today's ST article. this CM will cut out those borderline investors

[chestnut]

Yep, which is why I agree with today's ST article. this CM will cut out those borderline investors

Good or no good?

[Werther]

Hi bros

I am new but have been reading on this interesting forum for few months.

I still unsure how this cm can have any effect to cool the property market. Let take an example, couple both 45 years old, looking to buy their 2nd property, currently one almost paid up, what happened if they want to buy a $2m property? They can loan up to max 20 years, what is the new loan quantum now? Thanks

[chestnut]

Hi bros

I am new but have been reading on this interesting forum for few months.

I still unsure how this cm can have any effect to cool the property market. Let take an example, couple both 45 years old, looking to buy their 2nd property, currently one almost paid up, what happened if they want to buy a $2m property? They can loan up to max 20 years, what is the new loan quantum now? Thanks

Almost paid and fully paid will result in diff ltv.if fully paid and applying 20 yr loan. Ltv is 80%. If almost paid- ltv will be 60%.

[ikan bilis]

Hi bros

I am new but have been reading on this interesting forum for few months.

I still unsure how this cm can have any effect to cool the property market. Let take an example, couple both 45 years old, looking to buy their 2nd property, currently one almost paid up, what happened if they want to buy a $2m property? They can loan up to max 20 years, what is the new loan quantum now? Thanks

go pay up the first loan and get 80% LTV....

main difference....
1.6mil, 20yrs, 1.5%.... 7.7K/month
1.6mil, 30yrs, 1.5%.... 5.5K/month (last time only, now LTV will be 60%)

[DC33_2008]

Do not concur with point (3) generally. Rental is easier and better yield for two bedder in CCR and city fringe due to expand budget constraint. Your observation may apply to OCR. Just my opinion.

my reading
1. for landed properties, usually buy by older (ie 40 and above), it will have some impact on it especially for ranges from $3m-6m. For those >$10m, money shall not be a problem.

2. If u want to buy under children's names and have the money, the first property has to be a big one, to have better LTV and saving ABSD.

3. As the supply of the small units will be much more, if ur buying for investment / rental, then buy those in the range of 1200 - 1400 sf, as supply is getting lesser and most expat with family prefers a bigger space. But don't go beyond $1.5m

[Ringo33]

Hi bros

I am new but have been reading on this interesting forum for few months.

I still unsure how this cm can have any effect to cool the property market. Let take an example, couple both 45 years old, looking to buy their 2nd property, currently one almost paid up, what happened if they want to buy a $2m property? They can loan up to max 20 years, what is the new loan quantum now? Thanks

its either fully or not paid up, no such thing as almost paid up.

For 2nd loan you will have to pay 40% down payment ($800K) and 60% loan for 20 years maximum.

[price]

Good or no good?

Good for the government, good for the people of this nation. They are protecting people who are unable to tide through major price corrections or economy downturns.

[Werther]

go pay up the first loan and get 80% LTV....

main difference....
1.6mil, 20yrs, 1.5%.... 7.7K/month
1.6mil, 30yrs, 1.5%.... 5.5K/month (last time only, now LTV will be 60%)

Thanks everyone for the swift response.

If I didn't remember wrongly, the lasts cm already state that if got one outstanding loan, the next one is need 40%, so this cm is not new, rite?

[carbuncle]

cooling measure
苦了。没辙！

[Laguna]

Do not concur with point (3) generally. Rental is easier and better yield for two bedder in CCR and city fringe due to expand budget constraint. Your observation may apply to OCR. Just my opinion.

yes, agreed.
In other words, if they want bigger space with the same budget, they need to move to OCR but too far from schools and work place, and with good transport.


Let us see the price of next GLS closing, the impact could then be better assessed

[ikan bilis]

Thanks everyone for the swift response.

If I didn't remember wrongly, the lasts cm already state that if got one outstanding loan, the next one is need 40%, so this cm is not new, rite?

higher dosage... LTV can gone down to 40% (means 60% downpayment)... copying HK...

[chestnut]

go pay up the first loan and get 80% LTV....

main difference....
1.6mil, 20yrs, 1.5%.... 7.7K/month
1.6mil, 30yrs, 1.5%.... 5.5K/month (last time only, now LTV will be 60%)

Cannot like that decide.

1. Need to see which one is rental? Take loan max against rental unit to offset tax.
2. See how much need to pay off for 1 sr property. If it's property is for rental, again, loan interest can be used to offset tax.
3. He could be hoarding cash and can easily pay up the 40%. Because his case there is no diff from last finance package, only diff is retirement and 30 yr term.
Others- there are other reasons as well

[Ringo33]

Thanks everyone for the swift response.

If I didn't remember wrongly, the lasts cm already state that if got one outstanding loan, the next one is need 40%, so this cm is not new, rite?

what is new is now you cant borrow past 65 years old or have loan tenure beyond 35 years whichever is shorter

[price]

Thanks everyone for the swift response.

If I didn't remember wrongly, the lasts cm already state that if got one outstanding loan, the next one is need 40%, so this cm is not new, rite?

This CM affects even old first time buyers as they can no longer stretch their loan tenure beyond their retirement age of 65 unless they pay more upfront cash.

[DC33_2008]

Bank did not ask you to keep there for a period of time as a consideration in the agreement. Bank is doing a dis-service to customer.

I can help Laguna answer this question as I fall under this category. only uob works though. they allow assets under management loans. I deposits 110k cash, show them my option and once the loan is approved I could withdraw the cash for use.

[chestnut]

Good for the government, good for the people of this nation. They are protecting people who are unable to tide through major price corrections or economy downturns.

I fully agree. This is like a casino but the stakes are in the millions.if cannot afford, don't play. If not there will be many bankrupts in a major recession. I feel govt is moving in right direction.