Directory —
Real Estate —
Blog Details for "Smart Property Buyers"
Smart Property BuyersSmart Property BuyersProperty Buying Advice for the Prudent Property Buyers and Investors. 
Articles
Singapore Property Market: A forecast for 2008
2008-04-28 02:31:00 Smart Buyers Collection is a collection of words of wisdom by various Singapore property watchers.By: uncertainPosted: 28-04-2008 Well...I would wait at least another 6 months to a year. We told clients and investors to sell all Singapore holdings (property, stocks and everything else) in June 2007. We determined that prices would never, ever be higher and were predicting a 15% drop in pricing by March 2008 and 25% drop by June 2008. Rationale was simple and not rocket science. #1. There was no demand for housing when the boom started. The vacancy rates on existing housing were above New York, London, Hong Kong, Tokyo and other major urban market levels. A Singapore property boom made no sense at all. #2. Singapore GDP...nice impressive numbers. But the growth was 99% construction related. There is no economic growth when the construction boom ends and those numbers are subtracted from the total. #3. The existing luxury housing vacancy levels in Singapore were adequate to fill the ne... More About: Market , Property , Forecast
Global Recession+Global Inflation=Global Stagflation
2008-04-12 03:51:00 Smart Buyers Collection is a collection of words of wisdom by various Singapore property watchers.By: AnonymousPosted: 12-04-2008In the big recession of the 70s, stagflation was also the key reason why it lasted till the early 80s.The IMF says it will be a GLOBAL recession. In case you don't understand what GLOBAL means, it refers to countries on an international basis and not just the US. Europe and Asia are going to be greatly affected; decoupled or not, we need to tighten our belts now to prepare for the next one to two years of recession and retrenchments. Commit to a $1m property with a big loan and you will find yourself in negative equity in less than six months. GE in the US is a belwether; this means investors look at it as the biggest indicator of the performance of the consumer market. The recession that we have today is a consumer-led recession i.e. it is a lack of confidence in the whole financial and economic system that we have. The triggers to the breakdown in consu... More About: Inflation , Global , Recession , Stagflation
Singapore Property is over-priced
2008-03-19 04:15:00 Why's everybody blaming the US subprime problem for the poor take-up in the Singapore property market? The way I see it, the real problem is over-pricing. A typical unit in the suburb costs about $1M and can be rented for $3K which gives only a yield of 3%. That's a very high risk for such a low return. CPF gives 2.5% with no risk. Of course some people will argue that the rental yield is only to pay for the interest, "I can sell it at much higher price for profit" but if the present owner gets 3% and let's say he sells it at a higher price, then the next buyer will be looking at an even lower return ... eventually a property is only a home for someone and it boils down to people's affordability. With an average household income of $6K, a mass market priced above $1000 psf is simply beyond the reach of most people. It's simple mathematics. Don't go on propaganding this rosy picture about IR and remaking Singapore, and so property price must go up. This rosy picture is good eno... More About: Property
Major problem Singapore faces is talent renewal
2008-03-18 04:23:00 Smart Buyers Collection is a collection of words of wisdom by various Singapore property watchers."In the long run, the major problem that Singapore will face is with talent renewal i.e. getting talented people to be involved professionally at the various levels of government and support industries. If this problem cannot be resolved, it will eat into the growth prospects of the country. This issue will be seen after the next five years and will ripen (given the current state of things) within ten to twelve years."By: AnonymousPosted: 18-03-2008Here is what I feel we can see in the next five years: Singapore, on a whole, is competitive and is still working hard to bring in investments. The economic fundamentals are sound and economic growth should not be a major issue. Making money should not be a problem in Singapore for the next five years. The only concern I have are the social problems which come with the changes that have been implemented and will be implemented over the next f... More About: Faces , Problem , Talent , Renewal
Smart Buyers Collection: Low mortgage rate - beware of being lured into a
2008-03-10 02:54:00 Smart Buyers Collection is a collection of words of wisdom by various Singapore property watchers.Low mortgage rate - beware of being lured into a mortgage trap. The following is a firsthand experience.By: AnonymousPosted: 09-03-2008Let me just remind you people out there, I've fallen into this trap before I was offered a low housing loan for the first 3 years, when it expired the bank will start to increase the interest rate what started off a low of 2.5 % it went as high as 6 %. Imagine paying 6 % for $ 1million dollar loan. You will be working like a dog just to pay off the interest. It's very true the housing loan rate follow SIBOR rate, when the rate drop do you think the Bank will offer you the same rate, the answer is NO. The rate they they offer new customers is definitely lower than existing customer just to attract new customers. When SIBOR drop the Bank will not reduce your interest rate in tandem or immediately, rather you will have to approach the bank and bang thier... More About: Smart , Mortgage , Beware , Rate
Smart Buyers Collection: Singapore property market is doomed
2008-03-04 00:59:00 Smart Buyers Collection is a collection of words of wisdom by various Singapore property watchers.By: SeanPosted: 4-Mar-2008Singapore property market is doomed to fall/decline this year and next year. The main reasons are as follows: (a) There are still a significant number of speculators (estimated at 30%) still holding to their existing properties with the hope of making quick bucks before TOP. Unfortunately, there will be 30-40 condo developments numbering up to 20,000 units which will go TOP this year or next year. Its real unfortunate that in 2008-2009, the global economy will not improve. There will be over-supply on top of the existing sales that we see on Classified Ads every Saturday...We shall also see pages and pages of auction sales or files for bankruptcies. As such, some desperate speculators will have no choice but sell their properties at the prices which they have bought in 2006/2007 to escape from bank actions. Banks will be more stricter on extending loans and thi... More About: Market , Property , Smart
Smart Buyers Collection: SOLVENCY WORRIES STALK CREDIT-DERIVATIVES MARKET
2008-02-15 05:18:00 Smart Buyers Collection is a collection of words of wisdom by various Singapore property watchers.By: AnonymousPosted: 14-2-2008So as to bring you up to speed on what's happening in the real world ........ and its possible effect on us , ..the following that is happening may affect the financial health of the banking systems in the US (but like the proverbial frog in the well, all is still blue skies to you). They are now talking of SOLVENCY, not just LIQUIDITY issue .......it's really quite serious now. This is not meant to frighten but be a voice of caution ........ so as to mitigate potential losses! SOLVENCY WORRIES STALK CREDIT-DERIVATIVES MARKET Gross applied the historical average default rate of 1.25 percent to the $45.5 trillion of notional swaps and assumed a 50 percent recovery rate for holders of the defaulted debt. Under that all-too-plausible scenario, Gross calculated that the default-swap market has the potential to generate losses of $250 billion in coming years. ... More About: Credit , Market , Smart , Derivatives
Rent or Buy ? A Financial Analysis
2008-02-09 09:26:00 The conventional wisdom goes like that: Surely paying rent can’t help to make you rich?! If you buy a flat, the mortgage is for your own property. It’s like paying to yourself. However, with soaring property price, home searchers are beginning to ask otherwise. Here we'll do a financial analysis.As an illustration, let's consider the example given below: In the example, we assume a property of price $500,000 with mortgage at 6% (average over a loan period of 30 years), rent at 3%, the property appreciates at 4% and the return from your alternative investment at 10%. At the end of 30 years, the property is worthed $1,599,326 and the alternative investment yields $2,632,193. In this scenario, we should therefore rent and invest our money.As a simple illustration, we shall vary only the rate of property appreciation and keep all other factors unchanged. We now change the property appreciation to 5% and the result is as shown below:The analysis shows that property is now worthed $... More About: Analysis , Financial , Rent
Major events that impact the Singapore property market from 1960 to 2007(II
2008-02-09 08:34:00 2003Outbreak of SARS & Gulf War - The gloomiest year in the history of the Singapore property market.2003 (Feb) Budget 2003 - e.g. Defer restoration of CPF employer contribution rate for 2 years; lower CPF salary ceiling over 2 years;new property tax rebate for commercial and industrial properties for 2H03.2003 (Apr) $230 million on SARS Relief Package e.g. Additional property tax rebates for commercial properties; higher property tax& 100% rebate of TV licence fees rebates for gazetted tourist hotels; cess rebate2003 (Apr) Single Purpose Company Requirement for GLS sites lifted2003 (July) Formation of HDB Corp and announcement on the public housing building programme. Programme would be opened upto the private sector – starting with 10% in July 2006 and reaching 50% in July 2008.Graph shows the Property Price Index from 1960 (Click on the image to view details.) 20042004 (Jun) Continued Suspension of Confirmed List. BFC Site for Sale on Reserve List2004 (Aug) Government of Sing... More About: Events , Market , Major
Major events that impact the Singapore property market from 1960 to 2007(II
2008-02-09 08:22:00 Graph shows the Property Price Index from 1960 (Click on the image to view details.) 1997 The Asian financial crisis. Property price plunged.Reversal of Anti-speculation policy implemented in 1996:Removal of $30,000 capHDB owners allowed to book a new private property only after occupying the flat for 5years.Government sale sites deferred and project completion period (PCP) extended for up to 8 yearsl.Stamp duty for sellers was suspended.1998 More Property policy reversal:Land sales were suspended; 15% property tax rebate for commercial and industrial properties commencing July 1998; Property tax exemption for land under development reinstated; exemption will be for a period of up to 5 years,and will apply from the time construction begins to the time the TOP is granted1998 (Jun) Off-Budget measures implemented including more property policy revisions. Land sales were suspended and more taxexemptions granted; stamp duty deferred for buyer of uncompleted properties until TOP or sub... More About: Events , Singapore , Market , Major
Major events that impact the Singapore property market from 1960 to 2007 (I
2008-02-09 08:17:00 A study of major events that impact the Singapore property market will better help one to predict the market trends, e.g. like which part of history is likely repeat itself etc.1960 HDB formed to provide subsidised, high rise housing for Singaporeans. 12,000 flats built between 1960-70; Property Tax introduced 1968 CPF implements Public Housing Schemes for home ownership (which sees 90% of Singaporeans owning their homes today). 1972 Inflow of foreign funds and the beginning of Singapore's golden years. 1973 Property curbs introduced: foreigners not allowed to buy residential properties; property tax surcharge w.e.f. 1974 1974 Oil Crisis which afflicted the US economy of which Singapore was very dependant on. The year saw a plunge in Singapore property price and Singaporeans learned how their home price has every thing to do with the US economy.1976 Introduction of Residential Property Act: Foreigners allowed to purchase flats in buildings of 6 levels or higher. Graph... More About: Events , Market , Major
Smart Buyers Collection: Bad investments are made in Good Times
2008-02-09 08:11:00 Smart Buyers Collection is a collection of words of wisdom by various Singapore property watchers.By: kmPosted: 10-10-2007In 1993, my partner and I bot 2 commercial properties in shenton way at the average px of $810psf. 2 yrs later in 1995, (the peak), an agt called to offer me $1600 psf, my partner told him $1700 psf as we need to pay the capital gain tax, guess what happen?, we finally sold the property through the same agent at $1510 psf...in 2006, some 11 years later. Why didnt we sell at $1600 in 1995??, because we were collecting very good rental, enough to pay the bank and still have money to spare, it make sense to keep for long term. Mistake !!!. because rental fell, interest went up. The following years saw the rental falling yr by yr, interest went up and during the currencies crisis, it went to some 8-9%, hence the rental wasnt enough to cover the bank installment. Dont worry, we have a contigent plan, sell one unit to repay the loan for the second unit. Wrong!!, there ... More About: Smart , Made , Times , Investments , Good
Smart Buyers Collection:..inflation is up. Most of the Singaporean is spend
2008-02-09 07:33:00 Smart Buyers Collection is a collection of words of wisdom by various Singapore property watchers.By: Be coolPosted: 30-12-2007Even though the economy is doing well in Singapore, inflation is up. Most of the Singaporean is spending wisely and they are going for more affordable HDB and EC. The cars are also at it lowest at this point of time. Expensive Private housing is for the rich. However, if they are really rich, then they should look for landed housing. Many of these foreign buyers are also speculators and with some of the measure enforce by government, it will definitely frightens them away. The downward transactions for the past 2 quarters are a good sign. Singapore government is good for their control and law enforcement. Government has assured that the housing will stay affordable. The announcement is to make sure that people who call Singapore their home is able to get their house at a reasonable price. Most speculators are using greed and fear to swindle people to buy. Be... More About: Inflation , Smart
Smart Buyers Collection:Having a house which has a big loan is a liability
2008-02-09 07:29:00 Smart Buyers Collection is a collection of words of wisdom by various Singapore property watchers.By: AnonymousPosted: 30-12-2007Government has already started to supply more HDBs and ECs to the market. They have also given more sites for private housing development. The price has gone too high and I am sure there are many who can't support the loan when their apartments are ready. The buyers are hearing more news and they now do their math before buying. The banks also do their assessment before they approve the loan. There are condos that have their TOP and units are still available. They Singaporean income has not changed much and the dreams of owning a private apartment will be put aside now that they have woken up. Many of the foreign companies will be laying off staffs next year especially the banking sector. Integrated resort might not be able to bring in the crowd and can become a liability rather then profitability. There are choices for a Casino in countries like Malaysia... More About: House , Smart , Loan , A House
Big Boys CARNIBALISE on the weak and common people
2008-02-09 07:25:00 Smart Buyers Collection is a collection of words of wisdom by various Singapore property watchers.By: Wee LiangPosted: 28-12-2007If everyone were to be as intelligent, and yet kind enough to give logical advice, there certainly will be less casualties. I was in the property industry, we have datas and informations that ppl on the street do not have. We know the game that BB is playing, ya to be direct...Quek, Ng you name a few, ...are selling properties, gov want to look good for the IR ...so is a GAME...and SPH reported wat is in line with gov policies...Is the BB CARNIBALISE on the weak and common ppl....of course, is also not the duty of property agent to tell you WAT is the Happen, we need to earn the commission for a living!!! Take these pointers seriously please...I have been selling properties 80% of whom CPF wiped out, ...I must also admit that my families are the miserable few who benifitted from the en block sale at bedok res (1st owner never shift)...most of our neighbour... More About: People , Common , Boys
Smart Buyers Collection:I foresee a correction of 20% from here.
2008-02-09 07:15:00 Smart Buyers Collection is a collection of words of wisdom by various Singapore property watchers.By: dellPosted: 28-10-2007The sharp rise in the property mkt during the last 12 months was partly fuel by the enbloc sales, speculators and of course there are the geniune buyers who are worried abt missing the boat. It is beyong doubt that the DPS plays a impt role in the developer's sales as buyers only need to pay up 3 yrs later. With this remove, it is just like stocks, when the brokers removes the T+4, just like the recent UniAsia, the buyers will have to pay upfront when buying, the prices will fall, if not collapse. When the developers offer DPS, they are indeed paying for the interest incurred and hence build the cost into the prices. At 4% per yr, for 3 years, the interest playable by the developer would come up to 12%. Without DPS, the developers, with the saving of some 12%, can afford to give a discount of that amt . It would be very logical to see Prices of the new develop... More About: Smart , Rect
Smart Buyers Collection: In every bubble market, there is always a reason o
2008-02-09 05:49:00 Smart Buyers Collection is a collection of words of wisdom by various Singapore property watchers.By: SotongPosted: 19-10-2007In every bubble mkt, there is always a reason or beautiful picture that lead people to "Over-paying" for the assets. In the 1990's, our govt forecast gowth of 10%, economy was doing much greater than now. Ask the businessmen and they will tell you that the mkt conditions are getting tougher than before. You may nopt believe it, our govt was so optimitic abt the mkt that even propose to link up our MRT to JB, malaysia. A crazy now but then at that time, everything was so bullish. One of my friend who is in insurance told me that his client was doing very well in his business and bot a land to build a factory with a cold room. He went bust before the factory was ready, victim of the property downturn. More About: Market , Smart , Reason , Bubble
Smart Buyers Collection: This market is definitely driven by greed & li
2008-02-09 05:44:00 Smart Buyers Collection is a collection of words of wisdom by various Singapore property watchers.By: rob_502Posted: 18-10-2007I think the goverment is doing all that they can do relieve the short term supply crunch. What I am worried is that they may over do it and there will be an oversupply in a couple of years. I am sure they are controlling the media, notice that it is not so much hyped up as 6 months ago. The hyped up it is, the more people will panic. Market is everywhere is too hot to touch, property, stocks, china, you name it. However the ELEPHANT (US) is definitely going to slow down. Let's see how this will affect the EASTERN superpower. I have never seen anything like it in my lifetime. Property prices goes up as fast a the stock market. This market is definitely driven by greed & liquidity in the asian market. What goes up must come down! I am waiting on the sideline definitely, happy renting for a while as long as my landlord don't KETUK me in 2 years time More About: Smart , Greed
Smart Buyers Collection: During the 1995 -1998 period, the same scenerio ar
2008-02-09 05:18:00 Smart Buyers Collection is a collection of words of wisdom by various Singapore property watchers.By: AnonymousPosted: 18-10-2007During the 1995 -1998 period, the same scenerio arise. Many people cant get the HDB flat. There was the ballot system and it is just like "ti-kam", 1 out of 8 can get to buy. Due to this flocked system, many people, including those who are not so keen buyer also join the Q, paying $10 as a ballot fee, when they get balloted, then they decide whether to buy or not. At that time, similar to now, many people were worried that they can get their flat, rushing in to buy. Govt see good demand, built even more flats, thus causing the mkt to change from over demand to over supply. Many were convinced that HDB prices will not fall, at that time, it has never fallen before. There were influx of hongkongers, indoesian, etc . then when the mkt adjusted itself with supplies from govt and developers, the price collapse. More About: Smart , Period
Smart Buyers Collection: main cause of today's boom is the massive rate of
2008-02-09 05:10:00 Smart Buyers Collection is a collection of words of wisdom by various Singapore property watchers.By: Oct10Posted: 12-10-2007I recently sold my suburban investment property in July 2007 just after it crossed the 1996's peak value for similar property types. I took the 96 peak as a benchmark that while there may still be some upside in today's property boom, it's not going to be very much more. In my mind the 1996 frenzy was greater than the current one, even without the IRs, F1, 6m population, etc. Back then, Hong Kong was priming for its return to Communist China in 1997, and many Hongkongers were buying up properties in Singapore and taking up residency here and elsewhere in their bid to secure external homes. Singapore was one of the four roaring economic tigers, the sense of job security was much higher than now, employer's CPF contribution was at its highest, bank loans were easy to obtain, expats here had very generous housing package (unlike now), every IPO was many times... More About: Smart , Main , Boom , Rate
Checklist for Buying Property
2008-02-07 01:18:00 The purchase of property, whether for investment or as home, involves a substantial amount of money and often involves long-term financial commitment. Imprudent purchase made on impulsive decision can lead to financial crisis such as severe indebtness and bankruptcy. The following is a checklist to help you plan your property purchase: Affordability The first consideration is affordability . As a general guide, your total monthly housing loan instalment should not exceed 30 per cent of your monthly income. This will help ensure that you have sufficient money left for fulfilling other objectives such as your childrens' education and saving for retirement. Do your calculations even before you start with your property hunt. Emergency Fund It is also prudent to set aside cash and/or sufficient CPF monies to pay for at least six months' monthly instalments to meet loan payment in the event of unforseen circumstances such as lost of employment. Location of Property Location is also an ... More About: Buying
Smart Buyers, 10 Reasons to wait....
2007-09-20 11:22:00 1) Supply is Increasing RapidlyIf you wait, chances are you'll be spoilt for choices.According to URA's data, there'll be a supply of 65,400 residential units by 2010.PRIVATE RESIDENTIAL UNITS IN THE PIPELINE EXPECTED TO BE COMPLETED FROM THE FOURTH QUARTER OF 2007(Source: URA)In addition, the GLS (Government Land Sales) programme for 2008 Q1 will add another 8250 units. The government has assured Singaporeans that it will continue to review the GLS to meet demand.Add that to HDB's Ponggol 21 plus, Dawson Estate and the many design and build flats that will give private condo a run for its money; and you'll see the reason to wait. What about those enbloc sales which will come back in manifolds their orginal number. To give you some sense of the quantum, I've seen site which used to be just a bungalow turning into a 30 storey high building with some 50 units. Also, look at the land sale after land sale that have come on stream. Why should 10 people rush for 1 flat when there ar... More About: Smart , Reasons , Buyers , Wait
Major events that impact the Singapore property market from 1960 to 2007
2007-09-14 11:39:00 A study of major events that impact the Singapore property market will better help one to predict the market trends, e.g. like which part of history is likely repeat itself etc.1960 HDB formed and 12,000 flats built between 1960-70; Property Tax introduced 1968 CPF implements Public Housing Schemes for home ownership (which sees 90% of Singaporeans owning their homes today). 1972 Inflow of foreign funds and the beginning of Singapore's golden years. 1973 Property curbs introduced: foreigners not allowed to buy residential properties; property tax surcharge w.e.f. 1974 1974 Oil Crisis which afflicted the US economy of which Singapore was very dependant on. The year saw a plunge in Singapore property price and Singaporeans learned how their home price has every thing to do with the US economy.1976 Introduction of Residential Property Act: Foreigners allowed to purchase flats in buildings of 6 levels or higher. Graph shows the Property Price Index (Click on the image to ... More About: Events , Market , Major
Singapore Property Supply Crunch?
2007-09-13 11:19:00 The key argument by vested parties for a continued increase in Singapore property price rests largely on "Supply Crunch ".Here is a typical example: According to Citigroup, the property supply crunch is likely to get worse despite government assurances that supply over the next few years is sufficient. They reckon that the foreign worker inflow will continue to overwhelm available residential units. Jobs growth in 2007 is keeping pace with the 176,000 jobs generated in 2006, of which about half were taken up by foreigners... Conclusion: Demand outstrips supply so property price must continue to go up.Argument like this, which has propelled many property investors to plunge into the property market, while persuasive at first sight, has serious flaws. Firstly, it fails to see the price mismatch between demand and supply. While there may be a genuine supply crunch, if the price is beyond the affordability of those who need the housing, alternatives such as sharing of apartments, may red... More About: Property
Why are Singaporeans paying sky-high prices for property?
2007-09-12 07:38:00 According to the Household Expenditure Survey 2003 (www.singstat.gov.sg/pubn/papers/people/o p-s9.pdf):93% of HDB households own their flats and 88% of private residential households own their properties.So why are Singaporeans still paying sky-high price for property?The simple answer is that: They don't have to.Then why are they doing it? Namely, kiasu.(Have something to say about this? Click here.)In a nutshell, the property market in Singapore is strong fuelled by sentiment, rather than fundamental. Hence, any down turn in sentiment is enough to send prices plunging. (Have something to say about this? Click here.)Take for instance the resale market between 2004 and 2006, despite continuous economic growth ( a positive fundamental), the negative sentiment continues to drag prices down in the suburbs even though prices at the high end market has already soared (another positive fundamental). The sales volume remained the miserable few hundreds during this period. Sellers got reall... More About: Property , High , Prices |
|
