COV cannot be removed, MR KBW said

[Joseph22]

  On 8/11/2011 at 9:06 AM, Yewheng said:

Ya that's what KBW said also.. Actually very true.. as if no COV than what is the selling point? People will go undertable $ lor..

 

 

I heard from my parents, that was what happen in the past.

[Dirtbike]

COV will be there to stay.....cannot afford COV, look for another unit at another area...

COV is definitely fair...it might sound unfair to buyer, but again what is fair?

[Mdfaz]

  On 8/11/2011 at 9:02 AM, Mrmilktooth said:

agree. its valuation that is key.. and its controlled by hdb ..

 

Valuation of a 5 rm in tampines is about $450k to $495k, depending on location and size.. I just bought one, valuation $495k and i paid the cov of $55k, total $550k. People will say my wife and i are crazy but it is for a mature estate (loads of amneties, schools for kids etc) and near her parents.

 

But if hdb could have controlled valuation prices.. My 5 rm would have beeen cheaper.

[Mustank]

13 years ago, i booked a woodlands 4 rm flat for $136K.

 

Now you all see 136k very cheap but 13 years ago, it was very very exp! everyone say i to pay 136 for woodlands 4rm. but i got no choice. i got no marnie to buy resale. that time a 4rm in bukit merah was only 300k plus!

 

during the 2 - 2.5 yrs while they are building the flat, my wife and me bunked in with an uncle who is (in and out of IMH). i saved up 45k during the 2 yrs and renovated and bought furnitures.

 

i could not have paid high price and cov to stay near my parents or workplace bec i didnt have the marnie. that option was not opened to me.

 

Life isnt fair . But what is impt is we make do with the best that we have and make tough decisions

 

[Joseph22]

the real way to control the Resale price is not Valuation.. remember last year when valuation is low?? ppl say because valuation is low that is why COV is high. so they up the valuation..

 

now see what happen??

 

want to control COV??? control the BTO price, if the BTO price is 100 to 150K lower than the resale price. confirm it will drop.

 

same ppl complain low Valuation cause high COV is complaining that High Valuation cost COV.

Edited August 11, 2011 by Joseph22

[Darthrevan]

willing buyer willing seller..nothing wrong

[Mrmilktooth]

still bto is control by who? hdb ma...

 

 

[Joseph22]

  On 8/11/2011 at 9:21 AM, Mrmilktooth said:

still bto is control by who? hdb ma...

 

 

you dont get what i mean..

 

i mean a lot of ppl are barking at the wrong problem liao..

 

i had always say, housing problem cause by HDB because they price the BTO at 50K below resale market, that is why it is wrong.

[Dirtbike]

  On 8/11/2011 at 9:19 AM, Joseph22 said:

the real way to control the Resale price is not Valuation.. remember last year when valuation is low?? ppl say because valuation is low that is why COV is high. so they up the valuation..

 

now see what happen??

 

want to control COV??? control the BTO price, if the BTO price is 100 to 150K lower than the resale price. confirm it will drop.

 

same ppl complain low Valuation cause high COV is complaining that High Valuation cost COV.

 

 

u control BTO price...valuation will drop, not COV. COV will still stays....

[Hondauto]

  On 8/11/2011 at 9:06 AM, Yewheng said:

Ya that's what KBW said also.. Actually very true.. as if no COV than what is the selling point? People will go undertable $ lor..

 

 

if undertable - no need to pay commission to agent.

[Joseph22]

  On 8/11/2011 at 9:24 AM, Dirtbike said:

u control BTO price...valuation will drop, not COV. COV will still stays....

 

you know how they calculate valuation or not??

 

its base on the last few month selling price of Resales flat, it got nothing to do with BTO price.

[Joseph22]

  On 8/11/2011 at 9:27 AM, Hondauto said:

if undertable - no need to pay commission to agent.

 

 

not true, last time undertable is commision by the agent.

if you dont give them, they just report you to the authority. then bang you commit a crime.

Edited August 11, 2011 by Joseph22

[Unfair]

The main problem is still Valuation.

 

1. They take into account the total sale amt of the nearby flats. So if next block the guy sold similar unit for $300k + $15k COV,

the valuer will take a base of $315 for your unit.

 

2. Nobody hires a valuer that consistently gives a low valuation for the flat. The agents have regular valuer contacts that they will try.

 

3. Your flat sells for $320k + 40K COV 5 yrs later. Congrats, you just raised the prices of flats nearby :)

 

Loop this for yrs and we have our current situation.

[Dirtbike]

  On 8/11/2011 at 9:29 AM, Joseph22 said:

you know how they calculate valuation or not??

 

its base on the last few month selling price of Resales flat, it got nothing to do with BTO price.

 

dan can u kindly explain why COV will drop?

COV is buyers/sellers determined...

 

BTO price drop....overall selling price for resale drop....Valuation drop...

Same amount of buyers looking for the unit...they will still offer COV to buy the unit....

Edited August 11, 2011 by Dirtbike

[Darryn]

  On 8/11/2011 at 9:29 AM, Joseph22 said:

you know how they calculate valuation or not??

 

its base on the last few month selling price of Resales flat, it got nothing to do with BTO price.

 

But selling price of resale flats has everything to do with BTO price and how many are released...so it's an insidious loop.

[Joseph22]

  On 8/11/2011 at 9:30 AM, Unfair said:

The main problem is still Valuation.

 

1. They take into account the total sale amt of the nearby flats. So if next block the guy sold similar unit for $300k + $15k COV,

the valuer will take a base of $315 for your unit.

 

2. Nobody hires a valuer that consistently gives a low valuation for the flat. The agents have regular valuer contacts that they will try.

 

3. Your flat sells for $320k + 40K COV 5 yrs later. Congrats, you just raised the prices of flats nearby :)

 

Loop this for yrs and we have our current situation.

 

FYI

 

HDB valuator are not the same as private Valuator from banks.

 

HDB valuator are license by HDB. and they cannot deivate too far from HDB given data.

[Pcslim]

Certain things need the authorities to interfere (e.g. housing, public transport, etc), they siam.

 

Cretain things no need or little need to interfere, they die die must come in and impose additional $$ (e.g. redundant ERP gantries, COE, etc).

[Joseph22]

  On 8/11/2011 at 9:31 AM, Dirtbike said:

dan can u kindly explain why COV will drop?

COV is buyers/sellers determined...

 

BTO price drop....overall selling price for resale drop....Valuation drop...

Same amount of buyers looking for the unit...they will still offer COV to buy the unit....

 

First you need to understand this.

 

my area, initial selling price for 5 room was 380K.

when a BTO near (about 2KM away) come out selling 5 room at 350K.

(jurong west)

 

the price of resale 5 room automatically become min 400K.

 

why is that so? simple math. if BTO is 350K without the 40K subsidise. then with subsidise, resale flat will be at least 390K. Now resale flat dont have to wait. so typically ppl will put another 20K ontop of the 40K.. making it 420K on advertisement.

 

hence different is only say 70K different, ppl are more willing to buy resales as the valuation is likely to be around 380 to 400K.

 

now, let say, instead of 350K for 5 room. it is selling at 200K for 5 room. what do you think will happen???

 

ppl cant mark up so high anymore as 200K different is worth the wait for 3 years.

 

then ppl will be offering less and less. slowly market price will drop and valuation will drop.

Edited August 11, 2011 by Joseph22