Comments on: Interest Absorption Scheme Stopped

By: Huge Debt

Huge Debt — Sat, 26 Sep 2009 09:15:21 +0000

Hi Alice, you may want to consider renting also. The priviate condo rental market is still quite weak in some areas. Rent for 2 to 3 years and buy later if you are not in a hurry to buy.

By: lioninvestor

lioninvestor — Sat, 26 Sep 2009 02:45:17 +0000

Hi Alan,

Even though sellers don’t complain, I think it’s a zero sum game for them they are going to buy back an equivalent unit after they sell one.

They only really make a profit if they downgrade or it is an excess unit they are selling.

By: alice

alice — Fri, 25 Sep 2009 23:24:46 +0000

Thanks Huge Debt. Your advice is very much appreciated.

By: Alan

Alan — Sat, 19 Sep 2009 09:18:32 +0000

Hi all…

What I can say is, cheap/expensive is very much relative on how much is the household income, how much you like it and the
value it can give towards you. Property is a hedge against inflation.

As long as there is increase in population and Income, the price will still increase be it 99 or FH. No one can outlive 99 lease as most owners are buying at age 30-45 and we’re half way to our grave. Also some places, they only offer 60 years lease.

End of the day, buy what you need and take it as a bonuse if you’re able to flip or get capital appreciation from your house. So you don’t get yourself so stress out.

Last but not least, do you find it’s only the buyer’s are complainting…. We don’t see seller complaint about high price…. To me, other than property, my best bet against inflation is to increase the income.

By: Huge Debt

Huge Debt — Thu, 17 Sep 2009 10:04:09 +0000

Hi James,
I encountered similar situations 3 times the last 2 months. Agent told me developers instructed them “give me your cheque as a deposit, then I let you into the showroom to choose your choice units”. Must bring cheque in order to enter the showrrom. It started with 8@Woodleigh, which I was invited to a preview, by invitation cards. Then when the preview day came, agent call me to bring a cheque of X amount as deposit and give it to her. I was very angry. I thought I was the previliaged one, but end up kanna sidelined. She kept apologizing to me and said this is the instruction from developer. Why did this happen? Partly speculators, partly kiasu people. They queue up for 2 days before the preview (mind you, it’s only a preview by invitation and not the actual launch). Regarding holding on to the units, what I meant was finished units, already TOP, be it 99 yrs or freehold. There are many units like that in S’pore today in completed projects that I went for viewing. The condo in front of my house TOP 6 years ago but still with many vacant units. Developer want to sell only at current prices even though the previous launch price was already making a nice profit. I visit 2 vacant units there and went home scratching my head, why?
Speculators typically will buy 3 to 5 units, in each development and flip it the very next day through the sales agent. They took advantage of the DPS, IAS or ILPS to buy many units with a sum of money. You just need a million dollar to flip 3 to 4 units typically. If you are observant you will also noticed most of the time, 1 agent has quite a number of units for sale in the same project, asked more questions and you will be find out some units are owned by 1 person. I actually did a simple study on this few months back. My estimate is 1/3 are speculators, 2/3 are for own stay or long term investments.
All those factors above add up to the high prices today and will keep spiralling upward because of greed and fear.
If the government don’t step in, the genuine buyers will suffer. SLA is also able to see the speculative trend through the caveats lodged and sale documents. How can one person live in so many units? This time round, the government did the right thing, but I think the 4 years could be reduced to 2 years instead.