Heron Bay - record $1.77M

[Duckduck]

sounds reasonable. Things are so cheap in SG given our ultra low inflation , i'm sure most ppl can survive on 30% of income.

 

Local banks very kiasi one, dun u know they claim to have super conservative underwriting?

 

good luck to them come big recession. all these lax underwriting will b back to haunt them

[Acemundo]

FH will drop to the situation replacement value. Since freehold means u can derive an almost perpetual inflation pegged value to it. With leasehold, your discounted cash flow stops at year 99, hence the need to resale or enbloc since every year the residual value decreases, despite rentals holding up for example

 

the paramters you use to illustrate your point are all theoretical.

 

to the average buyer replacement value means nothing. to him is the price he purcahse vs the price he exit that is most important.

 

where got such thing that every FH condo got a guarantee baseline price he can sell that is always above what he purchased (since you say FH only gain less as they age).

 

for LH buyer, as long as they exit at higher price than they purchased, there is no depreciation. for people that buy when it is after 30 years, most of them figured that it is much cheaper than other condos for sale at same time. although on paper the price he paid depreciates, imagine he already saved few hundred grands from not paying for another more expensive newer condo. so the opportunity cost is lower and with the intererst savings from lower loan quantum added in, his net position may even be better off than another guy who thinks he bought a FH condo that has guaranteed rise in value.

[Little_prince]

According to HDB, with income of $12k, max loan is $1.3 mirrion. Payments would be $4k per month @ 2% interest.

 

hmm... so based on assumption... loan 1.3 mill.. so 400k cash?

 

CPF 1k each. cash 2k?

 

actuallyl doable mah. no meh?

[Wyfitms]

hmm... so based on assumption... loan 1.3 mill.. so 400k cash?

 

CPF 1k each. cash 2k?

 

actuallyl doable mah. no meh?

 

Precisely! I dunno why so many ppl complain that it is so expensive... quite doable what.

 

In fact, I would hope that MAS consider lowering the interest rates further to 0.5% so as to help developers young couples pay for $2.5m EC within their 12K income.

[Little_prince]

I'm not surprised. Last year when I was scouting around to get a in-principal approval for my housing loan, one of loan specialist from a local bank told me his bank actually approved an application where the loan to income ratio was up to 70%. Imagine 70% of the income goes to the mortgage. Wow

loan to income ration include cpf?

[Duckduck]

the paramters you use to illustrate your point are all theoretical.

 

to the average buyer replacement value means nothing. to him is the price he purcahse vs the price he exit that is most important.

 

where got such thing that every FH condo got a guarantee baseline price he can sell that is always above what he purchased (since you say FH only gain less as they age).

 

for LH buyer, as long as they exit at higher price than they purchased, there is no depreciation. for people that buy when it is after 30 years, most of them figured that it is much cheaper than other condos for sale at same time. although on paper the price he paid depreciates, imagine he already saved few hundred grands from not paying for another more expensive newer condo. so the opportunity cost is lower and with the intererst savings from lower loan quantum added in, his net position may even be better off than another guy who thinks he bought a FH condo that has guaranteed rise in value.

 

im saying as long u sell off your leasehold sooner than later, is OK. Dont wait until 30-40yrs left on lease valuation plus finding a buyer is much harder.

 

There r always buyers who dont understand valuation but i believe most understand the concept of a limited life asset...

Edited November 2, 2012 by Duckduck

[Duckduck]

Precisely! I dunno why so many ppl complain that it is so expensive... quite doable what.

 

In fact, I would hope that MAS consider lowering the interest rates further to 0.5% so as to help developers young couples pay for $2.5m EC within their 12K income.

 

dude current interest rates are abnormally low, hence property keeps going up. Normal mortgage rate is 3-4%, & some time down the road this will happen.

 

This is wat worries me alot of pple buying property assuming rates r low forever.

[Sugarmonster]

then why there isnt much price difference between LH and FH now...?

all bloody expensive

[Duckduck]

then why there isnt much price difference between LH and FH now...?

all bloody expensive

 

which properties are u comparing?

[Theobserver]

I find this all rather contradicting to the objective of having the Executive Condominium Scheme.

 

The EC in the first instance, caters to the middle income people who are over qualified to own a HDB flat but still do not have the means to own a private property. The developer which tendered for the land should, in my opinion, have the moral responsibility to plan the project to cater to these group of people. By having such elaborate and big units, you will get people with rich parents to fork out the down payment in order for them to own the EC. Bear in mind the parents could easily have forked out the same amount for a private property but chose to pay for the EC instead, probably because they can get a bigger unit (EC) with the same amount of money. But you cannot blame these people for such opportunistic behaviour. The developer is encouraging such opportunistic behaviour, at the cost of people with a genuine income situation losing a chance to own an EC. In the end, there is no level playing field again.

[Duckduck]

I find this all rather contradicting to the objective of having the Executive Condominium Scheme.

 

The EC in the first instance, caters to the middle income people who are over qualified to own a HDB flat but still do not have the means to own a private property. The developer which tendered for the land should, in my opinion, have the moral responsibility to plan the project to cater to these group of people. By having such elaborate and big units, you will get people with rich parents to fork out the down payment in order for them to own the EC. Bear in mind the parents could easily have forked out the same amount for a private property but chose to pay for the EC instead, probably because they can get a bigger unit (EC) with the same amount of money. But you cannot blame these people for such opportunistic behaviour. The developer is encouraging such opportunistic behaviour, at the cost of people with a genuine income situation losing a chance to own an EC. In the end, there is no level playing field again.

 

u shldnt blame developer, shld b blaming HDB for allowing this since EC is part of HDB. Developer will make $ anyway so long no restrictions

[Wt_know]

you must have $470k cash in your bank first and with $12,000 income take max loan $1,300,000 (assuming 30 years loan)

if everyone got $470k (at age 30) in their bank account, many things are doable

 

Precisely! I dunno why so many ppl complain that it is so expensive... quite doable what.

 

In fact, I would hope that MAS consider lowering the interest rates further to 0.5% so as to help developers young couples pay for $2.5m EC within their 12K income.

Edited November 2, 2012 by Wt_know

[Sk65]

hmm... so based on assumption... loan 1.3 mill.. so 400k cash?

 

CPF 1k each. cash 2k?

 

actuallyl doable mah. no meh?

people earn 12K

sure eat and spend 3-4 K la

don't spend,

pump into monthly installment....

good wat.

[Acemundo]

im saying as long u sell off your leasehold sooner than later, is OK. Dont wait until 30-40yrs left on lease valuation plus finding a buyer is much harder.

 

There r always buyers who dont understand valuation but i believe most understand the concept of a limited life asset...

yeah la, then don't say FH value only increases less as it ages. this is misleading such buyers to think FH is a golden goose that can only increase value never drop which is not the case.

[Tom_kkh]

The couple must be military buff. Get to see and hear fighter jets take off daily, sometimes at night too. I can imagine the thrill to see the 15SG afterburners and the roar of those jets. Nice.

Definitely worth every penny paid.

 

 

lol. sour grape to the max

Edited November 2, 2012 by Tom_kkh

[Throttle2]

Good luck folks.

 

Even with a $1mil in the bank also cant buy much today.

 

Better tighten our belts.

[Karu]

$1.77M for an EC is crazy!! Like many mentioned, with a $12K monthly income, who is able to service the loan solely with $12K? This is just a disguised pte condo marketed by developers with restriction on resale period. Really spoil the market for those who are buying the property with their $12K income. What's next $1M HDB ? What else can KBW do to cool the property prices?

 

Think should start looking for chance to get outta here.

Edited November 2, 2012 by Karu

[Darryn]

hmm... so based on assumption... loan 1.3 mill.. so 400k cash?

 

CPF 1k each. cash 2k?

 

actuallyl doable mah. no meh?

 

To save deposit from CPF is 200 months

 

Or if you grant $4k a month then 50 months

 

In theory dooable...

 

But got big caveats

 

a) would consume all their CPF - so no margin for error (for example, for my mortgage it is serviced from only one CPF, so if one loses job, still got balance in the other to service)

b) Assuming $6k / month each, if one loses job then would have to pay $3k cash from the other from a $5k pay packet - would be hard work

 

Other than that dooable - but at the end, really really no CPF and if interest rate goes up to 4% then payment becomes $4800 per month (which would be super marginal IMO)