New Cooling Measures

[economist]

resale 3br 2.2m 4.5-5k rental.
then again, this area has a lack of 1br.. but anw ccr should continue to be quiet...........

Yield is a bit low...

[狮子王]

bro u walk and tell me can or not? and if u can walk back to jewel, i treat u massage.

maybe because I drive regularly in that area that is why I feel it is very near Orchard.

One end of Balmoral ends at Balmoral Plaza in Bukit Timah, the other end runs all the way from Stevens Road to Raffles Girls to Balmoral Hill and Ardmore Park tiobo ? So this One-Blamoral should be the nearer to Orchard or Bukit Timah?

[狮子王]

maybe because I drive regularly in that area that is why I feel it is very near Orchard.

One end of Balmoral ends at Balmoral Plaza in Bukit Timah, the other end runs all the way from Stevens Road to Raffles Girls to Balmoral Hill and Ardmore Park tiobo ? So this One-Blamoral should be the nearer to Orchard or Bukit Timah?

just checked. It is nearer to RGS which I will try tomm see if can walk along Shangri-La Hotel secret lane to Orchard bo. You see, I child that time very good at playing hide and seek in that place cause grandfather business is in that area lor.

[DaytonaSS]

Please share your observations tomorrow, sure many are curious.

My feel regarding the percentage of buyers affected could be around 10%, which means minimal impact, and maybe easily offset by the usual sentiment of -- would one more CM come and would it make buying more difficult?

We can laugh at this sentiment, but I always feel that sentiment is more of a deciding factor in property market. However laughable, if it is real, then it is something so we shall observe.

KBW already say cannot fight sentiments, after so many CM still like that , sold out in 1 day. All uncles come out and DP for children and let their children carry the installment.

most hdb bought in the early 1990s must be mostly paid finish already. This group of "starving" and burned(post leman) syndrome uncles & aunties come out in full force is clearly demonstrated in OCR region run-ups.

There is no discussion of PSF price for them. There is only 1 line this group look at, how much month installment? After CPF cash outlay how much. Dont worry, if i cannot pay, i rent out is their mentality.

There is no stopping them in my opinion. If someone have not seen ghost, he will not be scare of the dark, no mater how vividly our government try to paint how scary a ghost look like.

But all in all, if the tap is continue to be open and PAPs continue to do what they are best at, this boat might not be silly decision after all. However if all the mindless PAP bashers on the web get their way, we all get to sink together in this little hot spot.

[狮子王]

just checked. It is nearer to RGS which I will try tomm see if can walk along Shangri-La Hotel secret lane to Orchard bo. You see, I child that time very good at playing hide and seek in that place cause grandfather business is in that area lor.

Looking at the streetdirectory, I think I am right. But can only confirm tomm.

This is my secret path:

1) From One-Balmoral cross road quickly to RGS.
2) Walk outside the perimeter of RGS, and remind myself DO NOT ENTER the school !
3) I should see an overhead bridge I think now still there, go along Steven Road only shortly and I shall see the roof of Shangri-la Hotel above the trees.
4) Just walk in that direction.
5) When I reach the gates of the hotel, I shall cut across the outside carpark around a taxi control station opposite of Orchard Hotel.
6) Then just walk towards Shaw House.

Hope that should take around 30 mins on foot.

[DKSG]

Ok! LionKing go showflat and report back here ok?

Office Boy try to go also.

I told one of my nicer office colleague to buy this one, tomorrow confirm got one unit sold!!!

DKSG

[狮子王]

Ok! LionKing go showflat and report back here ok?

Office Boy try to go also.

I told one of my nicer office colleague to buy this one, tomorrow confirm got one unit sold!!!

DKSG

I think I will use Draycott lane after viewing , will be even faster reach Shaw House from the map, avoiding RGS altogether!

[DKSG]

I think I will use Draycott lane after viewing , will be even faster reach Shaw House from the map, avoiding RGS altogether!

U can safely walk RGS, no young school girls around... School holidays now ....

DKSG

[puffer_fish]

wow....happening sia

when back, will go, see if any good pickings

can someone help me understand, this round cooling measures seems to just state officially what the banks have been implementing and the loan tenure is switch from youngest to older applicant age?

[radha08]

CM="Chim" Measures

[Arcachon]

http://www.mas.gov.sg/News-and-Publi...rty-Loans.aspx

[hyenergix]

Parents will find it difficult to buy properties for their children. So this rule will favour rich parents n their children can get a foot in property before any further rise in prices. End up HDB for Singaporeans n condos for rich people n foreigners. V hard to upgrade now.

[sillyme]

Parents will find it difficult to buy properties for their children. So this rule will favour rich parents n their children can get a foot in property before any further rise in prices. End up HDB for Singaporeans n condos for rich people n foreigners. V hard to upgrade now.

Agreed. CM will have least impact on the rich. It's the non- rich who will feel the impact.

[chestnut]

What the govt wants, what the govt gets.....

Every investment has a phase....

Don't be too highly strung on properties....

The goal is
1. Prevent a repeat of 1997 bubble burst
2. Prevent over leverage for multiple property owners
3. Give first timers a chance - prevent property speculation

Depending on which side u are on, there are advantages and disadvantages...

There are other investment instruments around... Hahahaha

[LaFiestaOwner]

Then how, I buy to stay and now this come in. No wonder developer drop price. Are prices going to tank big time? Then I might as well sell off my property now and wait. If developer drop some more price and very significant, I will not sign my sales and purchase. Going to lose 25% of my deposit.

[wind30]

My personal feel is that it doesn't differ much from the current practice. Why? this is because MAS has been talking with banks since a few months ago, and MAS, as a regulator, wouldn't want to kill banks' business, MAS couldn't even afford the new loans to show year-on-year declines.

I'm not sure about the current practice as banks never question me when I took loans, however, my guess is that they didn't have a standardized framework to assess TDSR for all loans using 3.5%, what banks did were perhaps only looking at individual mortgage loans, applying a rate like 2.5% or 3%, they probably applied some haircuts to rental too, and banks are no-idiot, while they have been loose in the above, they probably applied a stricter and lower ratio for this individual mortgage service ratio, probably in the region of 40% to 50%. What MAS did was really to standardize it, and probably when MAS helped setup this new TDSR framework, they already took a survey of existing loan applicants, and found that some 95% of applicants satisfy the new TDSR framework, and only then they can launch the new framework.

You also say the bank never question you when you take loan...

MAS and the banks have VERY DIFFERENT objectives.

If you look at it from the point of the bank, if the LTV is 60%, do they care if you can finance the loan??? They don't care. If you cannot, they take back the property. If the property value fall by 20%, they ask for top up to safe guard themselves. To them it is pretty low risk. They don't care if the borrower defaults as long as they don't lose money.

MAS is different... they don't want too many borrowers to go and commit suicide as population will go down

[hyenergix]

What the govt wants, what the govt gets.....

Every investment has a phase....

Don't be too highly strung on properties....

The goal is
1. Prevent a repeat of 1997 bubble burst
2. Prevent over leverage for multiple property owners
3. Give first timers a chance - prevent property speculation

Depending on which side u are on, there are advantages and disadvantages...

There are other investment instruments around... Hahahaha

Other instruments are a lot more risky unless the average man in the street is very well-versed with the instruments and well supplied with information. But then they won't be the man in the street if they know. Unless you are talking about flipping Hello Kitty.

[henryhk]

Haha...heng ar...I got 2 fully paid property and 1 under mortgage.

No impact on me.

Bro, how young are u? I still have 20% and 30% loan for the 1st two lei! I early 40s

[LaFiestaOwner]

Other instruments are a lot more risky unless the average man in the street is very well-versed with the instruments and well supplied with information. But then they won't be the man in the street if they know. Unless you are talking about flipping Hello Kitty.

Sorry, First Timer like me is deciding whether to forfeit my 25% deposit. Scare the hell out of a 1st time buyer like me. Not for investment.

[wind30]

Bro, how young are u? I still have 20% and 30% loan for the 1st two lei! I early 40s

if you bought the properties early, your loans is always a low percentage because of the huge run up in prices.

That is why the LTV rulings did not protect the man on the street. It basically protected the banks.

A 60% LTV at todays prices is like 100% LTV at 2 years ago prices...

[Reisor]

Sorry, First Timer like me is deciding whether to forfeit my 25% deposit. Scare the hell out of a 1st time buyer like me. Not for investment.

Relax bro. You have already made a choice. Whether you made a loss or profit still depends on your next move in next 4-15 years time. If you forfeit now, it's a confirmed loss. Go back to your basic reason for the commitment. Do not be intimidated by the media buzz. In fact, it's prob the best time to learn from it. The most significant signs to read were in the year 1998-99, 2003-04, 2009.

[Reisor]

if you bought the properties early, your loans is always a low percentage because of the huge run up in prices.

That is why the LTV rulings did not protect the man on the street. It basically protected the banks.

A 60% LTV at todays prices is like 100% LTV at 2 years ago prices...

Applies esp to those older, FH, able to walk to MRT type, and nowadays also if nearby brand new development esp. FEO.

[ecimbew]

Relax bro. You have already made a choice. Whether you made a loss or profit still depends on your next move in next 4-15 years time. If you forfeit now, it's a confirmed loss. Go back to your basic reason for the commitment. Do not be intimidated by the media buzz. In fact, it's prob the best time to learn from it.


The most significant signs to read were in the year 1998-99, 2003-04, 2009.

Major events that shook the market
1998-99
2003-04
2009

[Reisor]

My personal feel is that it doesn't differ much from the current practice. Why? this is because MAS has been talking with banks since a few months ago, and MAS, ............

We need forumers who just took loans in recent years and who have been able to understand how banks assess his TDSR and his eligibility, to contribute here, in order to gauge the impact. This is how a forum can really help.

With local bank D, the officer I spoke to (in 2009) assessed using 50% DSR based on total household fixed monthly income (including other loans and no inclusion of rental income). Although 35%-40% would be more my comfort zone, he claimed 50% is conservative enough.

With this CM, govt is stopping citizens from using "other people's money" to prosper/property thyself.

[chestnut]

Other instruments are a lot more risky unless the average man in the street is very well-versed with the instruments and well supplied with information. But then they won't be the man in the street if they know. Unless you are talking about flipping Hello Kitty.

Sis, the man on the street is your average joe. Condo is 20% of the housing population. How to be man on the street??

But I agree with you, property is very simple... But it is not in the phase of fast growth. So minimal capital gains. Hahahaha

[chestnut]

Now like this, can I ask, who is going to sell????

The market will now move sideways for a long time for resale.... Hahahaha

So most sales will come from new development....

[chiaberry]

Hint : This one has the same initials as our previous Prime Minister hor....heheheheheh

Don't say, don't say, please!

[economist]

You also say the bank never question you when you take loan...

Banks didn't question me, because my loan was really much more than qualified. That's why I asked for others who may have been questioned by banks before, and through the process may have an insight of banks' previous practices, as said, banks may have each have their own practices of assessing loan eligibility on top of LTV, and I'm trying to see if it differs much from MAS's new framework.

[economist]

With local bank D, the officer I spoke to (in 2009) assessed using 50% DSR based on total household fixed monthly income (including other loans and no inclusion of rental income). Although 35%-40% would be more my comfort zone, he claimed 50% is conservative enough.

With this CM, govt is stopping citizens from using "other people's money" to prosper/property thyself.

Thanks for sharing.
So your bank D has already been applying total DSR instead of MSR before, any idea of what interest rate they used to calculate DSR?

[economist]

Just to share, HK banks used to do stress testing of the ability of applicants to repay loans assuming mortgage rate increase of 2%, earlier this year, HK Monetary Authority require them to assume mortgage rate increase of 3%.

So it is likely that Singapore banks have already been using interest rates of around 3.5% to stress test the ability to repay loans. However, more confirmations are needed from those who had insights of their previous practices.