COV cannot be removed, MR KBW said

[Gendut]

I said it before and I say it again.

 

KBW has done nothing significant so far to correct the problems of housing. What he inherited from the previous fella ws what he has implemented.

 

He will continue to do nothing hoping market will correct itself. This COV saga is a case in point.

 

Previously he has mentioned that MND will be doing a comprehensive review of housing policy. Till today nothing has come out of that review. A respectable manager will first formulate his plan in his brains, then develop a timeline to test, progress and implement.

 

He did not even say when the review will be completed. Maybe after next GE.

 

I will not be giving suggestions to him as LHL has pleaded after looking at his actions so far. In fact they are inactions.

Let the home prices soar until next GE.

 

At this point in time, I think MBT is slightly better even though he gets things wrong sometime. But the fact remains that MBT takes the action.

 

Any clown can be a minister if they did not have to act or decide on anything.

Edited August 11, 2011 by Gendut

[Joseph22]

Oh... so the lowering of BTO price is not something he do

 

Its not you will not give him suggestion. it is because you got no good suggestion.

 

 

  On 8/11/2011 at 1:59 PM, Gendut said:

I said it before and I say it again.

 

KBW has done nothing significant so far to correct the problems of housing. What he inherited from the previous fella ws what he has implemented.

 

He will continue to do nothing hoping market will correct itself. This COV saga is a case in point.

 

Previously he has mentioned that MND will be doing a comprehensive review of housing policy. Till today nothing has come out of that review. A respectable manager will first formulate his plan in his brains, then develop a timeline to test, progress and implement.

 

He did not even say when the review will be completed. Maybe after next GE.

 

I will not be giving suggestions to him as LHL has pleaded after looking at his actions so far. In fact they are inactions.

Let the home prices soar until next GE.

 

At this point in time, I think MBT is slightly better even though he gets things wrong sometime. But the fact remains that MBT takes the action.

 

Any clown can be a minister if they did not have to act or decide on anything.

 

[Chongster]

1. real mkt price of a flat, i.e. willing buyer willing seller, = valuation + COV. in that sense nothing evil or not evil about COV. it is just a mkt determined price.

2. an honest valuation should be much closer to real mkt px, but HB consistently undervalue HDB resale flats.

3. that is because the real purpose of valuation is to control the amount of gearing on the flat. you can only borrow 80% of valuation.

4. by keeping valuation low, it ensure that people are not over geared. most people equity in their hdb resale is much more than 20%

5. if valuation is pushed up to try and match the real mkt price, the price of HDB will be pushed up even higher, because people can borrow up to 80% of valuation. in a sense COV helps to drain liquidity from the resale mkt.

6. HDB is intended as an asset after 5 yr minimum occupaton, so like all asset, the owner should be allowed to sell at whatever price he wants. I again see nothing wrong with that. you cannot force seller to sell at lower than what buyer wants to pay.

7. only new hdb should be seen as govt.'s obligations to the people. whatever resale profits SG people make, is what SG people deserve to make.

Edited August 11, 2011 by Chongster

[Gendut]

  On 8/11/2011 at 2:03 PM, Joseph22 said:

Oh... so the lowering of BTO price is not something he do

 

Its not you will not give him suggestion. it is because you got no good suggestion.

 

Anyone who starts to think will have ideas. Not that KBW is bereft of it just that he is paralysed by his own ideas.

 

Time to take action Mr Khaw. Don't just talk only.

[Galantspeedz]

  On 8/11/2011 at 12:50 PM, Jrage said:

LOL... you are funny.

 

if COV can be paid using your cpf, i cant imagine what will be price now.. i remember when my household income was only 4k, hdb was willing to lend me something close to 800k.. ha ha ha..

 

if they take away cov, i think you and your wife will be killing each other when the prices become to come down.

 

U sure? My household income was more than that and I was allowed max loan that was much lesser.

 

How along ago was yours?

[Gukubird]

  On 8/11/2011 at 1:51 PM, Jrage said:

why not.. hdb is for common ppl.. who gets cheated easily by agent , bank but no money or no knowledge to hire lawyer..and hdb has to protect them in a way or another.

 

pte housing is for ppl that are richer.. basic knowledge of pty. Even get cheated also can hire lawyer.. Get it!

 

 

Hi Boss,

 

Is DBSS consider HDB?

[Joseph22]

  On 8/11/2011 at 2:19 PM, Gendut said:

Anyone who starts to think will have ideas. Not that KBW is bereft of it just that he is paralysed by his own ideas.

 

Time to take action Mr Khaw. Don't just talk only.

 

 

Take action liao. you dont know meh??

[Jrage]

  On 8/11/2011 at 2:22 PM, Gukubird said:

Hi Boss,

 

Is DBSS consider HDB?

yes.. of course bound by hdb rules... even ec ( first 5 yrs) is consider a hdb.. why leh?

[Shemmy]

  On 8/11/2011 at 11:47 AM, Tarzan666 said:

wont enbloc la coz under hdb not hudc.

 

onli 2 em blocks under hdb, or u stay in tamp court?

 

ya tink diff timing coz nw even higher.. my blk lower floor sold at 600k+.

 

Yes. Im at tampines court.. You are staying opp Qianan school?

[Gukubird]

  On 8/11/2011 at 2:35 PM, Jrage said:

yes.. of course bound by hdb rules... even ec ( first 5 yrs) is consider a hdb.. why leh?

 

Nothing la, just curious how HDB is protecting the poor chap who need to find a non Chinese partner or lose his deposit.

 

Okay ,I am being unreasonable here :)

 

 

[Jrage]

  On 8/11/2011 at 3:05 PM, Gukubird said:

Nothing la, just curious how HDB is protecting the poor chap who need to find a non Chinese partner or lose his deposit.

 

Okay ,I am being unreasonable here :)

 

Government already realised that they also need to protect idiots like these.. think they will cook up something for these ppl..

 

aniway.. all hdb rules are spell out.. if you cannot understand.. .. then keep it simple , buy simple bto hdb.

 

Complex issue like COV , undertable $$ , valuation is beyond your understanding.

Edited August 11, 2011 by Jrage

[Zze121]

HDB no longer affordable to lower income, why still refuse to put a control on the open market? And please dun ask ppl to buy new one n expect every couple to wait for 5 yrs! ROM n birth rate low still chu this pattern.

[Darthrevan]

  On 8/11/2011 at 11:03 AM, Mustank said:

13 yrs ago. I made the same choice as you: go for bto.

 

If cov is not acceptable, go for bto.

 

bro u sure or not? 13yrs ago where got BTO? BTO is somewhere around mid-2000s

[Mustank]

I don know what it was called but it basically is a brand new flat. When i first shifted in, the entire block was onky 10% occupied. Only after 3 yrs then it was full.

[Singhao]

  On 8/11/2011 at 3:37 PM, Zze121 said:

HDB no longer affordable to lower income, why still refuse to put a control on the open market?

 

1. Actually, COV is a form of control on the open market. It makes it harder for the people to chase up the price as the cash portion becomes too big to bear. In fact, I think COV suppresses the true value of your home. Imagine your home is valued at $500k by HDB/bank. The top bidder values your home at $600k. Unfortunately, he only can afford $80k in cash. In the end he can only offer $580k. You are actually shortchanged by $20k!

 

On the flip side, if the top bidder values your home at $480k, he will offer you $480k. You want to sell at $500k? Sorry, you try to sell to the bank/HDB loh since they are the ones giving you the $500k valuation.

 

2. If you remove COV, it is no longer an open market. Unless you trust the government to price our homes so accurately, then it might work.

 

3. It seems that many people here are concentrating so much on the COV and not paying attention to the numbers that count, which is the purchase price itself. That's why we have people saying no need to pay cash so good. The loan use CPF to cover can liao. That's why there are people buying Centrale 8 at ridiculous prices. They pay very little cash upfront leh. Do you envy them?

 

5. The root of the problem is too much demand chasing too few supply. Economics 101. COV is like a thermometer on how heated the property market is. Without it, it will be too late when the fever really hits.

[Ivan_06]

  On 8/11/2011 at 4:08 PM, Singhao said:

1. Actually, COV is a form of control on the open market. It makes it harder for the people to chase up the price as the cash portion becomes too big to bear. In fact, I think COV suppresses the true value of your home. Imagine your home is valued at $500k by HDB/bank. The top bidder values your home at $600k. Unfortunately, he only can afford $80k in cash. In the end he can only offer $580k. You are actually shortchanged by $20k!

 

On the flip side, if the top bidder values your home at $480k, he will offer you $480k. You want to sell at $500k? Sorry, you try to sell to the bank/HDB loh since they are the ones giving you the $500k valuation.

 

2. If you remove COV, it is no longer an open market. Unless you trust the government to price our homes so accurately, then it might work.

 

3. It seems that many people here are concentrating so much on the COV and not paying attention to the numbers that count, which is the purchase price itself. That's why we have people saying no need to pay cash so good. The loan use CPF to cover can liao. That's why there are people buying Centrale 8 at ridiculous prices. They pay very little cash upfront leh. Do you envy them?

 

5. The root of the problem is too much demand chasing too few supply. Economics 101. COV is like a thermometer on how heated the property market is. Without it, it will be too late when the fever really hits.

 

 

mei like this leh.. i am getting my new flat early new year leh... according to the HDB report, Median 5 room COV in Toa Payoh was 70k leh.. Median 5 room resale flat in TPY is also 660k...

 

if you all chiu pattern, it means the flat i gotten no value le meh? cannot be lah.. i gotten it in 2009 for less than 600k...

[Ivan_06]

before anyone says i anyhow poon figures...

 

here are the figures from HDB

 

Median Flat Prices

http://www.hdb.gov.sg/fi10/fi10297p.nsf/Im...ile/Annex+C.pdf

 

Median COV Prices

http://www.hdb.gov.sg/fi10/fi10297p.nsf/Im...ile/Annex+D.pdf

 

my flat also in TPY leh.. if market crash, i sad sad...

[Metalsubzero]

The only people whom are complaining on COV are people who doesnt have a flat and can't get a good queue no. in BTO ballotings.. No offence, but as a HDB owner, I wouldn't want the govt to stop me from being able to ask for any Cash Over the Valuation price.. I spent $10k on cov and another $30+k on renovation.. If I can't even get back a portion of what I spent, den it's really BS..

 

The high COVs u see, i.e. >$70k, u don't see it often.. And when u see ppl buying with $70k cov, it means they are sure able to afford it.. And I'm sure there's a reason behind why they pay $70k..

 

I am very public against the MIW, but I dun see anything wrong here and also why COV should be abolished..

 

There should be tighter rules on who gets to buy HDB.. Cutting away COV does not solve the problem.. The root of the problem are the loose rules HDB has set for purchasing of flats..