Newbie
Originally Posted by Londonproperty123
What you are suggesting is timing the property cycles, which in theory is a very logical move. However in real life, one will have to factor in many other factors such as cost of replacement, (e.g stamp duty, ABSD), and also your ability to replace good properties with even better properties at a lower price.
How much price correction do you think should happen before it make this exercise worth while?
Newbie
Since you bought your properties few years back, they should both be in-the-money now, unless property crash, which is unlikely, at least the one you bot 6 years ago should not go into the red. So you are still not losing money, in fact, you are gaining the rent.
Since both are in good locations, price for such location may not drop too much (dont compare with Habitat which is super expensive in the first place). Tenant pool for such units should be better compare to ulu place, so if future supply of rental units increase, yours will not be in the frontline to get hit.
If interest goes up, since you are currently just using cpf to pay loan, at worse you will be using some of your pay/rental to help service, still no problem.
As you originally intended to hold for long term, price fluctuations should not play a big part in your decision.
If I am you, I will leave status quo ... Just my thoughts.
Newbie
Rental is real. Waiting for flash crash or flash rise is gambling / dream.
The longer the crash does not happen, the richer you get.
End of the day, is it worth it to switch and wait just for a few percent of gain if any?
Newbie
Same here, I am out of residential ppty game with ABSD and LTV. Does not make sense to pay more (no level playing ground) and higher capital (lower ROE).
Have been buying commercial properties and suggest you also take a look.
Senior
But got to buy the right ones just like residential units. Have seen a lot of completed units still empty.
Music of the night
Singkies are used to putting all eggs in one basket
without more immigrants with low GDP growth ... 99LH at so so location will be very risky
of course, US Fed is unlikely to increase policy rate anytime soon .. otherwise a Blackswan will hit
Ride at your own risk !!!
Newbie
Thats exactly my thought. Good property is actually very hard to come by because they are like cash cow that generate cash while you are sleeping. Although you dont get the feeling of a windfall, but you do get a good night sleep because you know that your investments are working for you.
Having said that, I would still like to listen to other opinion because life is still all about learning.
Property Investor
In my personal opinion, it may be better to exit market. A lot of those gurus already sold off their on hand units....only keeping those with high yields...
No emotion from investment point of view.
Newbie
Based on my purchase price, my rental yield is averaging around 5%, not sure if its good or bad to the gurus.In my personal opinion, it may be better to exit market. A lot of those gurus already sold off their on hand units....only keeping those with high yields...
No emotion from investment point of view.
However I am really interested to know what are the gurus plan after they cash out. that to me is the most difficult decision to make for property investors.
Junior
I think u alr answered yourself la
Thanks everyone for the support! Find A Home Loan is Standard Chartered #1 broker in 2013.
Newbie
i always believe there are more than one approach to investment, and you can never be too sure that your approach is the best one. Thats why I am humbly trying to learn from others.
Senior
what you said about good property is very true. when you enter a house for the first time the feeling you are after is to feel overwhelms by the natural energy within the house. That to me is really hard to find.
"Never argue with an idiot, or he will drag you down to his level and beat you with experience."
Newbie
just buy and keep if got money
Make it a point to acquire 1 property per year at least and paid off a property in 3 years.
Newbie
eventually you will come to a point where money is just a number and you will realize that happiness is not all about money, its about have a peace of mind and a good night sleepjust buy and keep if got money
Make it a point to acquire 1 property per year at least and paid off a property in 3 years.
Newbie
I seldom buy projects under construction.
Newbie
than just sell, keep the plentiful cash (which i assume can last you till you go) and park in fixed deposits. Sure can sleep in peace at night. No need to worry market go up or down. Rental up or down, interest rates up or down etc also no need to worry.
Newbie
Bro Kellogs is cash-powered...just buy and keep if got money
Make it a point to acquire 1 property per year at least and paid off a property in 3 years.
Buy conservation shophouses as art collection?
Newbie
fd is not my cup of tea because I always believe that my bank is using my money to make more moneythan just sell, keep the plentiful cash (which i assume can last you till you go) and park in fixed deposits. Sure can sleep in peace at night. No need to worry market go up or down. Rental up or down, interest rates up or down etc also no need to worry.
Junior
How does your bank use your money to make more money???
Newbie
Sell and buy land. Be a developer yourself. Then you dont have this headache of sell or not sell. From what I read, i dont think you got the guts. So just keep them and be happy
Senior
no......................will some suggest sell then use the money to buy bond or not ?
http://forums.condosingapore.com/showthread.php?t=15297
“Nothing in the world is more dangerous than sincere ignorance and conscientious stupidity.”
― Martin Luther King, Jr.
OUT WITH THE SHIT TRASH
https://www.facebook.com/shutdowntrs
Newbie
depends how old are you lor, if past 60s will be spend the $ to enjoy, travelling and enjoy life....if 50s, can still punt the stock market, if 40s, can still wait for a good project and enjoy investing, ..... Many of us facing the same problems la
Valued Contributor
I am renting them out for long term.
Your example is almost the same as my case.
All my loans are about 50% of today's valuation because I bought them before the price spike. Just take my unit at citylights for eg - I am paying the bank 1.7k. Rental is 4.2k. Every month, I saved up the money and I feel really rich in this way. Even if I don't see 800,000 or 1M in my account, I can see the account going up by a lot a month. It is good enough for me.
Senior
Welcome to the New World, Bank do not need your deposit to give loan. MAS decided whether they can loan or not.
In 2006, your need to pay 5% and loan upon TOP (DPS).
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PLAYING the deferred payment card can help private housing developers boost the take-up rates for their new launches, say property consultants.
Recent industry figures show a clear trend in favour of deferred payment projects because - all other factors being equal - buyers are attracted by the lower cash downpayments.
Most projects launched since the beginning of last month which offered deferred payment schemes have seen more than half of the units sold, figures provided by property consultancy Colliers Jardine show.
In fact, of 10 new launches offering deferred payment, an impressive eight have already seen their take-up rates climb above the 50 per cent mark.
The top three projects were notable successes, achieving 100 per cent sales.
Buyers understandably leap at the chance to pay just 10 per cent deposit up front, instead of the usual 20 per cent, with the other 10 per cent payable several years down the road when the temporary occupation permit (TOP) is issued.
Inevitably, other factors such as location, pricing and the competition on offer also affect take-up rates - so deferred payment does not guarantee success to a developer.
Take for example the smash sell-out of MCL Land's The Warren condominium development in Choa Chu Kang, last year's top-selling private housing project. All 699 units in the development were snapped up in just three weeks, at an average price of $450 per sq ft (psf).
Keppel Land's 53-unit freehold The Edgewater at Jalan Loyang Besar was also sold out at $460 psf on average. And other developments such as Trussville, Golden Heights and the Ansley have all achieved take-up rates at or near 100 per cent.
"I think if you look at comparable properties in the same price range, those with a deferred payment scheme have a lot better take-up rate," said Mr Peter Ow, executive director (residential) for property consultancy Knight Frank.
He cited the example of the MCL Land-Ho Bee joint venture Rio Vista, which was relaunched recently with the deferred payment incentive, with no change in its average price of $450 psf.
Some 290 units had been sold since the 99-year leasehold, 716-unit project was first launched last July without a deferred payment scheme.
Since then, Mr Ow noted, "the take up has been fairly good ... it has been more than 150 units since we relaunched with a deferred payment scheme".
In contrast, of seven new launches which did not offer deferred payment, only three had managed to achieve take-up rates of 50 percent or better.
Still, an appealing project will do well even without deferred payment, such as the case of Wing Tai Holdings' The Serenade @ Holland.
Some 76 units or about 85 per cent of the 89-unit, 99-year leasehold condominium at 371 Holland Road have already been snapped up.
Market watchers say Wing Tai may be set to repeat this success with its 81-unit Newton 18 freehold apartment project in District 11, which will be launched officially this weekend.
A total of 39 units will be released for sale at an average price of $1,000 psf, and some 24 units have already been taken up even before the official launch.
Again, Wing Tai is not offering deferred payment.
Observers have noted that the two projects are located in quite attractive districts - Newton 18, for example, is a hop, skip and jump away from the Orchard Road shopping belt - which may account for the strong demand.
However, other developments such as Adam Park, which did not offer deferred payment, have not yet hit the 50 per cent mark.
Market-watchers say it is likely to be the smaller developers which are unable to offer deferred payment, since they may not have the cash to sustain the construction costs until TOP.
In the end, however, while the deferred payment option "eases the financial burden and allows one to stagger the payment, it by no means is going to keep away buyers once they have decided to buy a property", said Colliers Jardine associate director for research Priyadarshini Sengupta.
Meanwhile, Knight Frank said yesterday that OUB Centre is launching its first residential project for this year, Malvern Springs in Katong, today.
It, too, does not offer deferred payment. Prices start at $615,000 for a two-bedroom apartment.
http://www.stproperty.sg/articles-pr...-point/a/60700
Senior
[SINGAPORE] Private home purchases fell across the board in the first three months of this year to just over 2,000 units - the first time in more than five years that the number has dropped below 3,000 homes. However, foreigners' share of transactions edged up because of a sharper pullback by Singaporean buyers.
Singaporeans' share - at 70 per cent - is at its lowest since the introduction of the additional buyer's stamp duty (ABSD) in Q4 2011. In absolute terms, purchases by permanent residents (PRs) and foreign buyers were also at their lowest levels since the Q1 2009 market trough during the global financial crisis.
Based on DTZ's caveats analysis of URA Realis data as at April 15, Singaporean buyers accounted for 70 per cent of the 2,076 private homes that changed hands in Q1 this year, down from the 73 per cent share in both Q4 and Q1 last year.
PRs saw their share increase to a record 19 per cent - the highest level since Q1 1995, the earliest date that the URA Realis caveats database goes back to - from 16 per cent in Q4 2013 and 17 per cent in Q1 2013.
Market watchers linked the rise to the rule change in late-August 2013 requiring new PRs to wait three years before they can buy an HDB resale flat, prompting those who need immediate accommodation to turn to the private housing market.
Foreigners' share too has been creeping back up, touching 10 per cent for the first quarter. Although this is still low compared to the pre-ABSD proportion of 19 per cent, this was higher than the 9 per cent in Q4 2013.
DTZ South-east Asia chief operating officer Ong Choon Fah said that given the high home ownership rate among Singaporeans, "there is no real push factor for them to buy right now".
"They can afford to time the market. With signs now that the market is softening, more Singaporeans are taking a wait-and-see attitude."
Lee Lay Keng, DTZ's regional head (SEA) research, noted that the combination of the ABSD measures and last June's total debt servicing ratio (TDSR) framework had led to a sharper pullback in buying activity by Singaporeans in the first quarter amid expectations that prices could fall further given that the government has said it is not yet time to remove any cooling measures.
Despite the slowly rising share of foreign buying, market watchers are not expecting the authorities to come up with fresh cooling measures given the weaker property market sentiment.
Ms Lee said while the 42 and 47 per cent quarter-on-quarter declines in Q1 purchases by PRs and foreigners respectively were smaller than the 54 per cent slide in Singaporean purchases, the 401 units and 203 units that PRs and foreigners acquired here in January-March were at their lowest levels since Q1 2009. In that quarter, the figures were 325 and 175 units respectively.
The 1,453 private homes that Singaporeans bought in Q1 this year was the lowest since the 1,402 units in Q4 2008.
For all three groups, the number of units bought in Q1 was also down significantly from the year-ago period. In Q1 2013, Singaporeans, PRs and foreigners snapped up 4,494, 1,029 and 622 units respectively.
Giving a breakdown of the combined PR and foreign buying pool by nationalities, DTZ said that mainland Chinese, Malaysians, Indonesians and Indians continued to be the top four groups. Together, they accounted for 81 per cent of all private home purchases by non-Singaporean buyers, similar to Q4 2013.
Purchases by all four nationalities saw quarter-on-quarter declines, with Indonesians posting the biggest drop of 52 per cent to only 72 units in Q1. This was the first time since Q1 2009 that their purchases dipped below 100 units.
In all, 2,076 private homes were transacted in Q1, nearly half the 4,312 units in the previous quarter and one-third the Q1 2013 volume of 6,175 homes. The latest figure marks the first time the number has slipped below 3,000 units since Q4 2008, when 1,787 private home changed hands.
Century 21 Singapore CEO Ku Swee Yong is cautious about the outlook for private residential transactions for the rest of the year. "The general mood among real estate investors in most markets is just not there. For Singapore, I'm cautious till at least end-2014. If we see another three to four quarters of subdued transaction volumes and price declines, the Singapore authorities may lift some of the cooling measures. That could bring back buyers."
http://www.stproperty.sg/articles-pr...ng-up/a/161716
Newbie
Yes, most are taking a wait and see attitude.
Senior
Allow me to paint the other half of the household balance sheet picture (see Table 1). For the period under consideration, while total household debt grew by 41%, or $78 billion, total household assets grew by $420 billion (+33%) of which “Currency and Deposits” grew by $77 billion (+33%) and CPF funds grew by $70 billion (+41%). As for the residential segment, mortgages increased $57 billion (+40%) while the value of residential assets increased $229 billion (+38%). Asset value grew 4 times that of liabilities. Ask the accountants if this is healthy for household balance sheets.
http://www.btinvest.com.sg/blogs/201...orrowing-pt-1/
The Monetary Authority of Singapore (MAS) sounded alarm bells about certain households over-stretching their finances and taking on high mortgages (me 44K). To curb the herd mentality in property investments and to instill further prudence in taking on mortgages, the MAS imposed further restrictions on property loans with the Total Debt Servicing Ratio (TDSR) framework.
Newbie
Rather than put in random thoughts, I have put up a new blog post and I give this issue my 2 cents worth.
My views only.
http://londonproperty123.blogspot.sg...-property.html
Newbie
Seem like you are seeking information from this forum to decide...
If this is real, then think if you sell now, how much will you gain. Then, by looking at how much you understand about property to see if that gain is good enough for you ... If you think you should deserve/gain more from property, than continue to keep it to see if really grow so well in future.... good luck.
For me, I am just here to seek some fun to relax only, for the real solid information I need for analysis, usually don’t come easy, many times I have to pay for it, and still sometimes I will receive some bullshits for academic scholar. End of the day, trust your instinct, and learn for mistake.
A bottle of Lafite '82 for all my coffeeshop friends yesterday...many don't know what is it....haha...
Newbie
Hi Tiger
That's so true!
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