Land Storm is Coming!!!

[gsmsimmax3]

Its pointless to talk about bank valuation because anyone who is in the market for landed property will be looking at min 15% below bank valuation.......

I concur with this.Valuation does not say anything.

http://www.propquest.sg/singapore-pr...angi-road/1414

Valuation was $8.3 mio according to the ads.
Sold only at $5.3 mio. Its 36% below valuation.

How to reconcile ?

[DC33_2008]

You are right. One needs to have several properties to play this game. QUOTE=mummy;489468]Yeah but if they sell now, they need to buy another one at a high unless they have more than one property. That is wh5 it is important to have a few properties..[/QUOTE]

[Arcachon]

I concur with this.Valuation does not say anything.

http://www.propquest.sg/singapore-pr...angi-road/1414

Valuation was $8.3 mio according to the ads.
Sold only at $5.3 mio. Its 36% below valuation.

How to reconcile ?

Huated House

[Ringo33]

I concur with this.Valuation does not say anything.

http://www.propquest.sg/singapore-pr...angi-road/1414

Valuation was $8.3 mio according to the ads.
Sold only at $5.3 mio. Its 36% below valuation.

How to reconcile ?

As more pioneer citizens aged and pass on, more of such old landed property will be put on the market because their children are now able to liquidate the assets to split among themselves. And many of them will be eager to sell.

For those who will believe in passing down landed property to their children and expecting several families to live happily ever after under one roof are just dreaming. I always believe that if their children is capable enough, they would have buy their own landed property instead of waiting for inheritance and living with their BIL or SIL. As the saying goes, one mountain cannot have 2 tiger.

[lajia]

Haha...this chart again. Wa storm le...So u are advising ppl to sell their landed is it? Then put in bank? Or buy jld condo?? U bring out this chart u should know that when price dip, u buy, not sell...the question is when to buy.
Look at the various peaks, what do u see?? It hit record high again and again.

Just another cycle for those deep pockets to invest more. Ppl buy landed not for the lone reason to pass down to next generation. Please broaden your views, there are always diff ppl with diff preferences. Again, 1.5mil to buy a EC, I rather buy a lok tok landed....just my opinion.

Sound to me like the frogs swimming in the pot of water doesnt know that the water is getting warmer and they will eventually be cooked alive

[Arcachon]

Shoe Salesmen in Africa – A Story about Optimism
May 21, 2010 in Inspirational Stories | Tags: optimism
I’ve written previously about the importance of being solutions focused and not problem focused.

This simple story is one that I’ve heard a few times now and it illustrates the above point really well.

Two shoe salesmen were sent to Africa to see if there was a market for their product.

The first salesman reported back, “This is a terrible business opportunity, no-one wears shoes.”

The second salesman reported back, “This is a fantastic business opportunity, no-one wears shoes.”

The only question that I have is, when confronted with a problem or challenge, which salesman are you?

http://betterlifecoachingblog.com/20...bout-optimism/

[DC33_2008]

Imagine if your parents bought a hdb flat for $5000 those days. What will it be worth now? How about leaving it in the bank then? How about people now leaving $100k in the bank instead of investing it? How much will it appreciate 30 years later? I hope you got my point.

10k in 60s is larger than 1 million nowadays.

I was told of a time that a whole landed household of 12 can't even find a 5c to use.

[DC33_2008]

It is good news for investors. But you must know there is another group of pioneer citizens. Some of them have multiple properties who gave a couple to each child although they are already capable of living in landed or PC. This is the group who will continue to preserve and grow their wealth. They'd are not looking 1-2 million but few times of them. With legacy planning, their great grand children will appreciate what their great grand parents have done for them.

As more pioneer citizens aged and pass on, more of such old landed property will be put on the market because their children are now able to liquidate the assets to split among themselves. And many of them will be eager to sell.

For those who will believe in passing down landed property to their children and expecting several families to live happily ever after under one roof are just dreaming. I always believe that if their children is capable enough, they would have buy their own landed property instead of waiting for inheritance and living with their BIL or SIL. As the saying goes, one mountain cannot have 2 tiger.

[Ringo33]

It is good news for investors. But you must know there is another group of pioneer citizens. Some of them have multiple properties who gave a couple to each child although they are already capable of living in landed or PC. This is the group who will continue to preserve and grow their wealth. They'd are not looking 1-2 million but few times of them. With legacy planning, their great grand children will appreciate what their great grand parents have done for them.

I am not sure how big is this group, but i certainly know that there are many super rich family who assist their kids in business so that they are rich enough to buy their own property be it landed or apartment.
I have seldom hear about parents give A COUPLE of property to each kid. And honestly if a kid need their parents to give them property, they are unlikely to be rich enough to live in them. Isnt that what Warren Buffet said about leaving inheritance to his kids?

In Singapore for example Sam Goi, Kwek Leng Beng, Tommie Goh all have kids who buy their own GCB, they dont get free properties from their parents like you said because people who work hard for their money will not spoil their kids with such nonsensical gift especially if they are still alive

[Ringo33]

Haha...this chart again. Wa storm le...So u are advising ppl to sell their landed is it? Then put in bank? Or buy jld condo?? U bring out this chart u should know that when price dip, u buy, not sell...the question is when to buy.
Look at the various peaks, what do u see?? It hit record high again and again.

Just another cycle for those deep pockets to invest more. Ppl buy landed not for the lone reason to pass down to next generation. Please broaden your views, there are always diff ppl with diff preferences. Again, 1.5mil to buy a EC, I rather buy a lok tok landed....just my opinion.

Most old landed property are sold when the old man passed away thats because when kids have family they dont like to live together. Plus in most cases, the children are just not rich enough to live in these landed property and thats why you see many very run down landed property in Singapore.

As for passing down to the next generation, thats only if your next generation is rich enough to live in landed property and willing to live together with siblings. Having said that, for those who can afford it they would have already bought and build their own rather than inheritance.

Like i said before, landed property party is over.

[gsmsimmax3]

The valuation for my terrace was 2 mil in last year june and now still 1.8 to 2 mil as given by OCBC and Maybank...so does not seem like a landstorm yet.......

Valuation is very subjective and is only a tool. Final transacted price will be between the ultimate buyer, (you only need 1 buyer, and more importantly that is if you can find one?) and seller.

It’s a tool for bank usage—when applying a loan, they probably err toward conservative and when already in their books they would like it to be on the high side—for obvious reasons.
This will boost up their loan portfolio and lessen the need for margin calls when prices are down.
Valuation lags behind transacted prices. In a buyer market as its now, downward bearish market, valuation prices are slow to adjust downward.
In a seller market, where market prices are trending upward, prices are only a bit slower to adjust upward.

All in all, there seem to be a bias toward valuation coming down than going up as the big boys—banks, developer, agent and even government generally favour a high valuation.

I share an example. Many years ago someone bought an old detached house at $1.75 mio with a bank loan of $500,000. This was the time when prices were running up and away.
Valuation from bank was only $1.5 mio and he thought he was wrong and the sucker.
He considered giving up the $17500 option money but eventually decide to go ahead with the S&P agreement.Obviously ,the agent also prompted him to go ahead.
After exercising the option, the vendor/seller called. He offered him $250,000 to abrogate the deal. ( Seller must had a much higher bid.)
Lawyer tell him to take it if he want as there will be no stamp duties/capital gain tax whatsoever---Its called “damages”, inability to fulfil the contract.
Agent gave him a--"I told you so" credit.

Fortunately he did not.

So what is valuation ?

[Kelonguni]

Imagine if your parents bought a hdb flat for $5000 those days. What will it be worth now? How about leaving it in the bank then? How about people now leaving $100k in the bank instead of investing it? How much will it appreciate 30 years later? I hope you got my point.

I concur. I am consolidating dough spotting the right place and price point for family long term. But prefer above 6 floor to significantly reduce chance of dengue. My family members are mosquito attractants.

[DC33_2008]

Maybe not in your circle of friends but it is already happening. I am sure those that you have mentioned whose children would have in one way or the other be 'different' because of their parents stature in the industry. Life is always unequal. It depends if you are with the right clique.

I am not sure how big is this group, but i certainly know that there are many super rich family who assist their kids in business so that they are rich enough to buy their own property be it landed or apartment.
I have seldom hear about parents give A COUPLE of property to each kid. And honestly if a kid need their parents to give them property, they are unlikely to be rich enough to live in them. Isnt that what Warren Buffet said about leaving inheritance to his kids?

In Singapore for example Sam Goi, Kwek Leng Beng, Tommie Goh all have kids who buy their own GCB, they dont get free properties from their parents like you said because people who work hard for their money will not spoil their kids with such nonsensical gift especially if they are still alive

[DC33_2008]

Bro, do not be surprise with the number of household who is doing this. You will know when you are there.

Most old landed property are sold when the old man passed away thats because when kids have family they dont like to live together. Plus in most cases, the children are just not rich enough to live in these landed property and thats why you see many very run down landed property in Singapore.

As for passing down to the next generation, thats only if your next generation is rich enough to live in landed property and willing to live together with siblings. Having said that, for those who can afford it they would have already bought and build their own rather than inheritance.

Like i said before, landed property party is over.

[Arcachon]

Bro, do not be surprise with the number of household who is doing this. You will know when you are there.

Like.

[Ringo33]

Bro, do not be surprise with the number of household who is doing this. You will know when you are there.

I do know quite a fair bit of high net worth people include those whom I have mentioned. And none of them actually do give away landed property as gift for their children. On the other hand, there are actually many people living with the mum and dad in landed property that have not been renovated for the past 20 to 30 years. Many are asset rich but cash poor. In fact, I think some HDB dweller are actually making lot more money then them. And if you refer to Singapore household income statistic for landed property dweller you will see that the latter group is not very much richer than those living in condo.

So please stop blowing hot air on this and I am pretty sure that you are not the only one in your family that is waiting to inherit your parents property.

[Ringo33]

Maybe not in your circle of friends but it is already happening. I am sure those that you have mentioned whose children would have in one way or the other be 'different' because of their parents stature in the industry. Life is always unequal. It depends if you are with the right clique.

There is no need for me to share too much about my friend or myself as this is not a thread about the lifestyle of rich and famous. This is about landed property prices falling. Dont believe look through the past property cycle and you will be able to see how quickly landed property will fall during bad times.

And please dont tell us that this time is different.

[mummy]

Actually even if landed falls, all the other segments like HDB and condos will also fall and freehold landed will appreciate in the longterm but leasehold condo and hdb will not appreciate forever as their lease falls....what value can a condo or hdb left with say 30years have? That is why I only go for freehold..

[Ringo33]

Actually even if landed falls, all the other segments like HDB and condos will also fall and freehold landed will appreciate in the longterm but leasehold condo and hdb will not appreciate forever as their lease falls....what value can a condo or hdb left with say 30years have? That is why I only go for freehold..

If fh landed is really as fh as you said then no one will be selling

[mummy]

If fh landed is really as fh as you said then no one will be selling

They sell because they need the money and want to cash out for retirement and/or for children's education like the previous owner who sold to me and perhaps me in future...

[Ringo33]

They sell because they need the money and want to cash out for retirement and/or for children's education like the previous owner who sold to me and perhaps me in future...

Which goes to show that in reality, many who bought landed property will eventually have to sell it away because the family needs the money.

[Ringo33]

From $50m to 33.5m??

Told you land storm is here

http://forums.condosingapore.com/sho...-Road-bungalow

[DC33_2008]

I am just sharing the facts in this forum. No intention to blow hot air. Go and get more sleep as your last post was at 2 plus in the morning.

I do know quite a fair bit of high net worth people include those whom I have mentioned. And none of them actually do give away landed property as gift for their children. On the other hand, there are actually many people living with the mum and dad in landed property that have not been renovated for the past 20 to 30 years. Many are asset rich but cash poor. In fact, I think some HDB dweller are actually making lot more money then them. And if you refer to Singapore household income statistic for landed property dweller you will see that the latter group is not very much richer than those living in condo.

So please stop blowing hot air on this and I am pretty sure that you are not the only one in your family that is waiting to inherit your parents property.

[Ringo33]

I am just sharing the facts in this forum. No intention to blow hot air. Go and get more sleep as your last post was at 2 plus in the morning.

Actually what you said doesnt make much sense. I mean, how do you actually know which family is giving away A COUPLE of properties to their kid? And this context I presume it will be a couple of LANDED property. Where is your source of such information since you seem to say that there are many of such parents around.

No offense, I mean why does a parent need to give away 2 landed property? Do you mean their parents own like 10 or 15 landed property to give away to kids and grand kids like ang pow? I certainly would like to know who in Singapore actually own so many landed properties.

Plus if the family is so well off, wont it make sense for the kid to buy their own landed property since first property doesnt require to pay ABSD?

btw, are you the same fellow who say that you made over 1000% on buying landed property? (I mean your parent buying.) perhaps should learn not to BS too much in this forum.

[DC33_2008]

I am just sharing in this forum. I am not here to convince anybody. You will know when you reach that level.

Actually what you said doesnt make much sense. I mean, how do you actually know which family is giving away A COUPLE of properties to their kid? And this context I presume it will be a couple of LANDED property. Where is your source of such information since you seem to say that there are many of such parents around.

No offense, I mean why does a parent need to give away 2 landed property? Do you mean their parents own like 10 or 15 landed property to give away to kids and grand kids like ang pow? I certainly would like to know who in Singapore actually own so many landed properties.

Plus if the family is so well off, wont it make sense for the kid to buy their own landed property since first property doesnt require to pay ABSD?

btw, are you the same fellow who say that you made over 1000% on buying landed property? (I mean your parent buying.) perhaps should learn not to BS too much in this forum.

[Ringo33]

I am just sharing in this forum. I am not here to convince anybody. You will know when you reach that level.

The truly rich people seldom like to talk about their wealth. Its only those highly leveraged people who need to speak loudly to the world about what they own because they are paying through their nose.

[DC33_2008]

You will know when you are there.

The truly rich people seldom like to talk about their wealth. Its only those highly leveraged people who need to speak loudly to the world about what they own because they are paying through their nose.

[AssetRichMoneyPoor]

You will know when you are there.

hahaha ringgo is far far from there.

claim to know who & who, wonder the authenticity of his claim.

& the who & who probably doesn't wish to be associated with ringgo in any way, form or life.

[Ringo33]

hahaha ringgo is far far from there.

claim to know who & who, wonder the authenticity of his claim.

& the who & who probably doesn't wish to be associated with ringgo in any way, form or life.

as you have rightly said. Many landed property owners here are "asset rich and money poor" and thats why so many run down landed property in Singapore and so many owners are putting their landed property on the market.

BEWARE land storm is here.

[Ringo33]

You will know when you are there.

If you are there you wont need to waste your time talking about small change in this forum.
So please stop trying blow your own trumpet.