Singapore takes new steps to cool housing market

[phantom_opera]

Sg and hk Land and thus properties are the only true currency in today madness... See the true colors

[DC33_2008]

I have a PC where I was paying interest of 5% at that time and could not get another bank or the same bank to refinance it as it is too small an amount. I have decided to redeem the loan altogether as existing market loan interest was only 2.5%. Does not make sense for me to pay such relatively high interest.

Yes, I had 19 years loan (because the rate went up for 20 years loan).

Thanks,
Richard
PS. I have fully paid up due to non-financial reasons.

[4wheels]

For those who do not have outstanding loan can still have a LTV of 80% as long as the end of loan does not exceed 65 of age and the loan tenure does not exceed 30 years. Am I right?

If I m 42yo and I does not have outstanding loan but I do have a property. When I purchase the next property, can I loan a 80% with tenure of 23?

[Pikachu1245]

End of year EU will sign FTA with SG

That means more people from EU will have 'Jedi Force-signed FTA' to shield them form ABSD (3%/10%) but not Singaporean / other FT. Unless the Dark Side(ABSD) is withdrawn( disappear).

BTW, is EU population more than 500 million people?

'Mai Tu Liao' , buy now or never, especially those age above 35 with enough fund ,even after recent CM now.

[Kanarazu]

For those who do not have outstanding loan can still have a LTV of 80% as long as the end of loan does not exceed 65 of age and the loan tenure does not exceed 30 years. Am I right?

If I m 42yo and I does not have outstanding loan but I do have a property. When I purchase the next property, can I loan a 80% with tenure of 23?

Yes you can.

[Allthepies]

Is this new law a discrimination against the older people?

Old people with same earning power than young people cannot take loan??

[slepland]

That means more people from EU will have 'Jedi Force-signed FTA' to shield them form ABSD (3%/10%) but not Singaporean / other FT. Unless the Dark Side(ABSD) is withdrawn( disappear).

BTW, is EU population more than 500 million people?

'Mai Tu Liao' , buy now or never, especially those age above 35 with enough fund ,even after recent CM now.

Free Trade Agreements causes alot of distortion in the rules to favour foreigners.

Remove FTAs !

[Pikachu1245]

Is this new law a discrimination against the older people?

Old people with same earning power than young people cannot take loan??

Sad but true, 'Old' seems to be a 'dreaded/unwelcome' word in Singapore.


Is that why they say 'youthfulness' is 'wealth' in such a materialistic world of today including Singapore?

Wondering whether the latest CM policy input is by young or old members???

[DC33_2008]

Do not want older people to lose all their savings. Cannot earn back and have hefty medical bill to pay. Garment scared

Is this new law a discrimination against the older people?

Old people with same earning power than young people cannot take loan??

[DC33_2008]

Go to Malaysia. Temasek already in discussion with Malaysian counterpart to develop healthcare and medical facilities. Land and specialist costs are too high in Singapore and lost of opportunity cost too.

Sad but true, 'Old' seems to be a 'dreaded/unwelcome' word in Singapore.


Is that why they say 'youthfulness' is 'wealth' in a such a materialistic world of today including Singapore?

Wondering whether the latest CM policy input is by young or old members???

[Pikachu1245]

Go to Malaysia. Temasek already in discussion with Malaysian counterpart to develop healthcare and medical facilities. Land and specialist costs are too high in Singapore and lost of opportunity cost too.

Ur.....Good Idea........Maybe in future.........Who knows..........

[DC33_2008]

It is happening. Peter Lim's gleneagles in Malaysia will be ready in a couple of years time. Temasek's plan maybe just slightly after.

Ur.....Good Idea........Maybe in future.........Who knows..........

[Pikachu1245]

hur??... tot they should be having same restrictions as local citizens here.... which means 3% ABSD for 3rd properties and onwards ??...

So, conclusion is:

Nationals from the US, Iceland, Liechtenstein, Switzerland and Norway (due to their FTAs status) who is in the banking industry(QFBs) are the winner for this 'Hunger Game'(property buying game)....

Congratulations to the above.....You have won!!!
But soon, by Dec (after FTA signed with EU) , there will be other EU members that are working in banks(QFB) to join in as potential winners as well.

EU members populations. How many? 100 million, 500million or more?


Interesting...... Let's watch the game as it progresses to see any other developments.. lol

[PN]

That means more people from EU will have 'Jedi Force-signed FTA' to shield them form ABSD (3%/10%) but not Singaporean / other FT. Unless the Dark Side(ABSD) is withdrawn( disappear).

BTW, is EU population more than 500 million people?

'Mai Tu Liao' , buy now or never, especially those age above 35 with enough fund ,even after recent CM now.

Just want to point out that Foreigners from the FTA countries are exempted from the 10% ABSD. But they have the same treatment as SG Citizen so they will need to pay 3% ABSD for 3rd properties. This will be rare I believe. Don't think there will be many buying 3 or more properties in SG.

Foreigners under Free Trade Agreements (FTAs)

Nationals and/or Permanent Residents of the following countries who fall within the scope of the respective FTAs will be accorded with the same treatment as SCs.


Nationals and Permanent Residents of:-

• Iceland
• Liechtenstein
• Norway
• Switzerland

Nationals of:-

• United States of America

Such buyers are required to submit an application for ABSD remission, together with the following list of supporting documents in copy to IRAS so as to enjoy the same treatment as SCs. Please proceed to pay BSD while applying for remission.

[phantom_opera]

Another 10y, HDB upgraders can only buy ulu condos, CCR/RCR/OCR near MRTs will only be owned by the rich

Most S-Pass, EP holders and middle class SPRs can only rent ... the trend is getting obvious year by year ...

It is getting much more difficult to own even one investment condo while keeping your HDB ... very soon middle class HDB upgraders can only own one MM ... those who own multiple properties will never sell fearing that MAS will keep increasing LTV / reducing leverage

If you think these CMs will result in price reduction you are dreaming as SG land price is pegged to gold ... look at the following chart to have a feel of the FORCE

[Pikachu1245]

Just want to point out that Foreigners from the FTA countries are exempted from the 10% ABSD. But they have the same treatment as SG Citizen so they will need to pay 3% ABSD for 3rd properties. This will be rare I believe. Don't think there will be many buying 3 or more properties in SG.

Foreigners under Free Trade Agreements (FTAs)

Nationals and/or Permanent Residents of the following countries who fall within the scope of the respective FTAs will be accorded with the same treatment as SCs.


Nationals and Permanent Residents of:-

• Iceland
• Liechtenstein
• Norway
• Switzerland

Nationals of:-

• United States of America

Such buyers are required to submit an application for ABSD remission, together with the following list of supporting documents in copy to IRAS so as to enjoy the same treatment as SCs. Please proceed to pay BSD while applying for remission.

Thanks for the clarifications. Pardon my ignorance....

[Pikachu1245]

Another 10y, HDB upgraders can only buy ulu condos, CCR/RCR/OCR near MRTs will only be owned by the rich

Most S-Pass, EP holders and middle class SPRs can only rent ... the trend is getting obvious year by year ...

It is getting much more difficult to own even one investment condo while keeping your HDB ... very soon middle class HDB upgraders can only own one MM ... those who own multiple properties will never sell fearing that MAS will keep increasing LTV / reducing leverage

If you think these CMs will result in price reduction you are dreaming as SG land price is pegged to gold ... look at the following chart to have a feel of the FORCE

Well said. As mentioned in my other tread, 'mai tu liao' for those who can affort, just buy now than later but within your means hor..
Those in 40s and above lagi got to 'gan jiong' as another Dark Force (new CM) may come again when you least expected. This time the 'Dark Force'(latest CM) seems to hit middle-age (rich or poor) harder lor....
My view

[Pikachu1245]

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

Good for the rich and super rich.

Not so good for those borderline investor/upgrader.

More borderline cases may move to ECs perhaps?

[Amber Woods]

As reported by MAS, 45% of loan applicants took up 30 yrs tenure or more. Assuming that 50% of them could afford shorter tenure but opted for the max, that would made about 23% who were weak. The new measure would mean game over for these 23%. Could these 23% influence the demand and hence price pressure to go down in the coming months?

[carbuncle]

why game over? just don't refinance lor,,,

[Amber Woods]

why game over? just don't refinance lor,,,

What I mean is assuming that this is the profile of all buyers and with 23% of the buyers out of the market, could it affects the market?

[CondoInterested]

Took me from yesterday afternoon until now on and off to read all these fast speed posting.

This morning was even more scary, after reading 1 pg, the thread increase 2 pgs.

Think it's time to change my nick to CondoNotInterested...

[azeoprop]

When everybody is not interested in properties, its time to buy.

[kane]

this move will curtail much needed resale supply because nobody dares to make a move out of their current pad unless they have a huge warchest.

[Kanarazu]

this move will curtail much needed resale supply because nobody dares to make a move out of their current pad unless they have a huge warchest.

I thin you are referring to further illiquidity of real estate assets here, after all the fortification by CMs.

[maisonjai]

I am trying to figure out if rental demand will go up after this CM.

[carbuncle]

jlrx - "property is meant to be bought, not sold!"

[kane]

I thin you are referring to further illiquidity of real estate assets here, after all the fortification by CMs.

illiquidity yes that as well. But I was thinking more of the supply for resale units, there are some fence sitters who might try to sell their units and move to the sidelines. with this move, it would have helped them make up their mind in not putting their unit up for sale.

[radha08]

why game over? just don't refinance lor,,,

got some people who almost finish their loan and property value gone up a lot might want to refinance and take out an equity loan to use money to invest in other properties but now looks like days are numbered...but i could be wrong...

[phantom_opera]

As reported by MAS, 45% of loan applicants took up 30 yrs tenure or more. Assuming that 50% of them could afford shorter tenure but opted for the max, that would made about 23% who were weak. The new measure would mean game over for these 23%. Could these 23% influence the demand and hence price pressure to go down in the coming months?

you should really study what Chinese garmen has done ... HK/SG CMs are too pro-property developers... of course if psf moves up another 30-40%, PAP might just ban SC from buying 3rd property outright

even then any correction will be shallow, just check gold price