New property cooling measure!

[Wind30]

  On 1/15/2013 at 9:31 AM, Wt_know said:

if property price corrected >20% (ie: 20% downpayment + 80% loan), got margin call for the loan?

 

haha ... i think is very unlikely la ... $1M lost $200K ... many will jump

 

not many will jump lah. In 1997/98 got a lot of people jumped meh? I think that time drop much more than 20%.

 

Coming already lah and bet you not many will jump.. just suck thumb only lor

[themagi]

  On 1/15/2013 at 1:40 PM, Wind30 said:

not many will jump lah. In 1997/98 got a lot of people jumped meh? I think that time drop much more than 20%.

 

Coming already lah and bet you not many will jump.. just suck thumb only lor

 

Yes, easy to say to be contrarian and buy when everyone sells.

[Felipe]

  On 1/15/2013 at 4:18 AM, Galantspeedz said:

and with these, there is lesser risk.....

 

so abit curious where the higher risk and higher returns come from?

iskandar can be considered a higher risk side due to nothing really taking place there now. Peter Lim is going in as a developer so you can take the cue from there according to your ability. don't bite more than you can chew.

[Woolff]

  On 1/15/2013 at 3:45 PM, Felipe said:

iskandar can be considered a higher risk side due to nothing really taking place there now. Peter Lim is going in as a developer so you can take the cue from there according to your ability. don't bite more than you can chew.

Peter lim got more than enough money to burn and throw away, do we? he can use $50 note as pang sai zua!

[Galantspeedz]

  On 1/15/2013 at 3:45 PM, Felipe said:

iskandar can be considered a higher risk side due to nothing really taking place there now. Peter Lim is going in as a developer so you can take the cue from there according to your ability. don't bite more than you can chew.

 

if someone is looking for alternative housing, it should be fine

 

if it's for investment, then it's hard to call I guess but with the relatively low prices when compared to sg, it may jolly well be worth a gamble

[Othello]

  On 1/15/2013 at 9:31 AM, Wt_know said:

if property price corrected >20% (ie: 20% downpayment + 80% loan), got margin call for the loan?

 

haha ... i think is very unlikely la ... $1M lost $200K ... many will jump

 

that's what happened after 9-11, many people died-ed BIG TIME. Banks kept asking customers to top up, if not letter of demand -> then bankruptcy

 

[HP_Lee]

  On 1/15/2013 at 1:40 PM, Wind30 said:

not many will jump lah. In 1997/98 got a lot of people jumped meh? I think that time drop much more than 20%.

 

Coming already lah and bet you not many will jump.. just suck thumb only lor

 

In all investments whether is property or stocks, there is a life-cycle. Property life-cycle tend to be longer than many have thought. Whereas, stocks cycle are shorter. As long as one dun over leverage that's fine. If really a margin call for those bought high, that'e the concern. I believe most are buy on margin, as compare to stocks.

[HP_Lee]

  On 1/16/2013 at 12:46 AM, Othello said:

that's what happened after 9-11, many people died-ed BIG TIME. Banks kept asking customers to top up, if not letter of demand -> then bankruptcy

 

Of course not to that extend. This is just too extreme. This time turn is a different situation and is artificially created. Neither one should underestimate the new ruling. Normally a downturn of property market pattern is similar to a stock market, but the cycle of a property market could be as longer as 10 years before it turns. The start of downturn is normally gradual regress. When comes to middle of downtrend, the curve becomes sharper. That's where many will start rush for exit.

As long, as one still has a job that fine. This actual feel may not within this year or next. It's takes a few years to feel the impact.

[Wt_know]

margin call = top up with cash or paid through cpf also can?

Edited January 16, 2013 by Wt_know

[HP_Lee]

  On 1/15/2013 at 11:50 PM, Woolff said:

Peter lim got more than enough money to burn and throw away, do we? he can use $50 note as pang sai zua!

 

He also have a fair share of getting burn in a number of investments. So that shows, a long time investor can also get burnt. But in a control manner.

[Darryn]

I would expect that the big danger is not margin calls, but rather failure to pay mortgage.

 

Once the market starts to go bad, maybe interest rates go up, you can see the value of the house dropping day by day and want to get out. But in a dropping market, who wants to buy? So people get stuck.

 

Add in that maybe tenancy demand goes down, or rent goes down, suddenly the cash flow to support the mortgage isn't there.

 

Then further, as the development progresses, then you have to start paying more on the mortgage, where you may well have had enough cash to supplement for 3-4 years, or until TOP, suddenly the market is dropping, you still need to add cash to the mortgage but your reserves are depleted - then what? You try to sell, and sell quickly because you don't have cash to support the higher mortgage, but how? Market is dropping, no one wants to buy - so you drop price - and it just becomes a self reinforcing cycle.

 

[Throttle2]

  On 1/16/2013 at 1:10 AM, Wt_know said:

i believe majority of local property "investor" especially upper-middle-class not the super rich type that buy sentosa cove, marina bay area or GCB falls under the below scenario

upgrader is not investor ... they just sell hdb and upgrade to condo and sign on for the next 25-30 years loan

price correction + interest rate rise = double whammy

 

property 1 = hdb = fully paid = sublet

property 2 = condo = live in = LTV = 80%

property 3 = condo (probably shoebox) = investment = LTV = 60%

 

property 0 = live with parent / in-law

property 1 = hdb = sublet (fully paid is best, else property 2&3 LTV will be lower)

property 2 = condo = investment = LTV = 80%

property 3 = condo = investment = LTV = 60%

 

Wah scary so much loans.

If lose the job, risk losing car losing house, losing face and eating grass

 

Actually its not too different from running a business.

The ones that continue to expand too quickly too soon on borrowed money cant go a long way.

They may get ahead first but if they are not wise enough to stop and think, confirm go down.

Slow and steady does finally win the game.

I learnt this since 2yrs old.

Edited January 16, 2013 by Throttle2

[ShepherdPie]

actually..the recently spike in the buying signal hoarding...

I think CM8 has to start addressing that ...

 

Actually, government shld force the 4-5% vacant unit out into the mkt. Their policy shld be target on these units.

These are ready units...so it shld "soften" the tight housing mkt.

They could either lower rental property tax or slap vacant owners with a big fine.

 

Also they shld mkt the buyers of new development to start to finance fully the unit when they pick up the unit. They have to service the intended borrowed amt. e.g. if you intent to buy a 1 mil unit, you start to pay 2000-3000 per mth after you acquire.. Then it will be a real test if you have the abilities to finance the loan when there is no rental. Also prevent hoarding...

Edited January 16, 2013 by ShepherdPie

[Roh96]

I see long queue of sellers for some of the going to TOP projects.

 

Some data taken from propertyguru web.

 

Spottiswoode - 241

Centro Residences - 93

Estuary - 681

Scala - 241

 

I guess these condo were launched before the 4 yrs seller stamp duty measure was introduced. These flippers are now rushing to exit. Good luck to them all.

[Wt_know]

no SSD

but got ABSD + lower LTV (loan to valuation) and tigher MSR (mortgage service ratio) = sibei jialat

 

but first timer

 

  On 1/16/2013 at 1:34 AM, Roh96 said:

I see long queue of sellers for some of the going to TOP projects.

 

Some data taken from propertyguru web.

 

Spottiswoode - 241

Centro Residences - 93

Estuary - 681

Scala - 241

 

I guess these condo were launched before the 4 yrs seller stamp duty measure was introduced. These flippers are now rushing to exit. Good luck to them all.

Edited January 16, 2013 by Wt_know

[Jman888]

  On 1/16/2013 at 1:34 AM, Roh96 said:

I see long queue of sellers for some of the going to TOP projects.

 

Some data taken from propertyguru web.

 

Spottiswoode - 241

Centro Residences - 93

Estuary - 681

Scala - 241

 

I guess these condo were launched before the 4 yrs seller stamp duty measure was introduced. These flippers are now rushing to exit. Good luck to them all.

 

 

i believe when they bought it 2-3 years ago, by now the value appreciate at least 25%, should be able to let go let slightly lower price but still make profit.

[Roh96]

  On 1/16/2013 at 2:01 AM, Wt_know said:

no SSD but got ABSD ... still jialat

then got lower LTV and tigher MSR ... hdb upgrader need to sell first else LTV and MSR is the deal breaker

 

Those flippers who managed to escape before the gate closed are now celebrating. Those who are still trap inside, i guess they should feel panic now.

[Duckduck]

CMs just prolong the bull mkt in a v slow way, IMO. If there was no CMs, the mkt wld have jumped 30-40% n crashed v hard by now, so instead of big price moves, which means good upside for timing investors, we have a slow n steady uptrend... boring n unattractive, which is exactly wat garmen wants to do, make property not attractive for investment anymore.

Edited January 16, 2013 by Duckduck