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Thread: Prevent price bubble by restricting COV for resale flats

  1. #1
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    Default Prevent price bubble by restricting COV for resale flats

    http://www.straitstimes.com/ST%2BFor...ry_435132.html

    Sep 28, 2009 Monday

    Prevent price bubble by restricting COV for resale flats


    I APPLAUD the Government's recent efforts to curb private property speculation and I believe it is the right direction to take.

    However, allowing cash over valuation (COV) for HDB resale flats to continue rising, based on the belief that market forces will eventually self-correct the currently high COV, is as good as believing in the efficient market theory.

    There is a need for certain restrictions on COV before home buyers start using COV as a barometer of market sentiments, and an unsustainable price bubble builds up in the HDB market. This may ultimately spill over and affect the private property market as well, resulting in overrall asset price instability. This is the last thing we want on the path to economic recovery.

    Ivan Phang

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    This Mr. Ivan is using his ass brain to think. So if got a flat - near city, seaview, high floor, beside MRT and shopping centre. If COV has a cap, and there are 5 buyers, then sell to who?

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    solution number 2, just don't buy flats with high COV. during recession days, i had to pay COV over mine because it was relatively close to MRT.

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    Quote Originally Posted by Squall8888
    This Mr. Ivan is using his ass brain to think. So if got a flat - near city, seaview, high floor, beside MRT and shopping centre. If COV has a cap, and there are 5 buyers, then sell to who?
    Haha... agree. Probably a new immigrant or his parents never own HDB. Poor dumb ass doesn't understand home ownership in sgp at all.

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    Quote Originally Posted by Squall8888
    This Mr. Ivan is using his ass brain to think. So if got a flat - near city, seaview, high floor, beside MRT and shopping centre. If COV has a cap, and there are 5 buyers, then sell to who?
    i agree.....everything want garment to take action!! ah mah aledy said go around and hunt for flat with low or no cov....don just sit down there and wait for ppl to take action!! the choice is yours...if cannot afford cov then don buy lor.....

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    These group of people are those who earn not enough but want the best.

    Open Sat newspaper and you will see tons of HDB asking below valuation. At valuation, I can see SOOOOOOOOOOO many. BUT, these people want the best. Near MRT, near shopping centre and hopefully high floor with seaview. BUT these miser don't want to pay. In the end, they go kpkb and set up some lame petition.

    The message they send across is they are weaklings who cannot make it in society but still want luxury life. Come on losers, there is nothing free in this world.




    Quote Originally Posted by ay123
    i agree.....everything want garment to take action!! ah mah aledy said go around and hunt for flat with low or no cov....don just sit down there and wait for ppl to take action!! the choice is yours...if cannot afford cov then don buy lor.....

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    Quote Originally Posted by Squall8888
    These group of people are those who earn not enough but want the best.

    Open Sat newspaper and you will see tons of HDB asking below valuation. At valuation, I can see SOOOOOOOOOOO many. BUT, these people want the best. Near MRT, near shopping centre and hopefully high floor with seaview. BUT these miser don't want to pay. In the end, they go kpkb and set up some lame petition.

    The message they send across is they are weaklings who cannot make it in society but still want luxury life. Come on losers, there is nothing free in this world.
    where got asking below and at valuation? i've been looking at clementi area, never see ah.

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    Aiyah, it's up to them to bite the bullet, paying the high prices to get their desired location. If everyone wants a limit to COV, then what will happen to those units that are very popular? like that must ballot ah? then owner no say in who meh?

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    Apply for Oct 09 Sale of Balance Flats here :-
    http://services2.hdb.gov.sg/webapp/B...?strSystem=SBF
    BE CENTRED BY ALL AT THE FRINGE OF THE CITY @

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    Quote Originally Posted by housewife
    where got asking below and at valuation? i've been looking at clementi area, never see ah.
    Try the outskirts places or flats that are valued at $600+k.

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    There's no pleasing the home buyer
    Desmond Ng
    The New Paper
    Thursday, 1 October 2009

    Who is to blame for our perceived housing problem?

    The market or picky buyers?

    Some Singaporeans say they?re being priced out of the HDB resale market.

    But the question is, are they looking hard enough or are they just fussy?

    Buying a home is the single largest investment one makes. So, if you have not saved enough, perhaps you shouldn't be buying yet.

    Yes, HDB prices may have risen more than the average monthly income in the long run. But, conversely, would you rather see the value of your flat, which for most of us is our main asset, depreciate?

    Property agents estimate that the average cash-over-valuation (COV) today is from $15,000 to $20,000.

    About a fifth of transactions are at or below valuation. Some of these flats are on lower floors and not renovated.

    If you're a genuine, cost-conscious buyer, why not settle for those?

    But, no, the picky Singaporean wants a well-renovated unit on a high floor with sweeping views of the city and then complains about paying a premium for it.

    There's no such thing as a free lunch.

    One home-buyer wrote to The Sunday Times forum earlier this week claiming that he had applied unsuccessfully 18 times for a new flat since 2001.

    The property market was in the dumps then, with the heady recovery coming only about two years ago.

    Did he consider a resale flat? He could have taken his pick. With about 850,000 HDB flats all over the island, there are bound to be many for sale at any time.

    And if prices are too high now, why not rent and wait for the market to dip?

    It is a risk, but you can potentially gain in the long run, even after deducting rental expenses.

    It is also a good opportunity to shop around and widen your search.

    There are pockets of private properties with shorter leases, and they're usually cheaper than some HDB flats.

    It always amazes me how, when property prices drop, those who had bought high and are threatened with negative equity will be baying for blood.

    But when prices shoot up, there's silence.

    Not for long though, because unhappy home buyers will start whining about how they can't afford to buy a place.

    When it comes to property prices, it looks like there's no pleasing everyone.

    The irony is that while we complain of living in a nanny state, we also want to be mollycoddled by the Government.

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