Business @ AsiaOne
Is buying or renting better?
Explore the advantages and disadvantages of both renting and buying a property.
Fri, Oct 01, 2010
The Star/Asia News Network
By Chan Ai Cheng
In this article, we will explore the advantages and disadvantages of both renting and buying a property and in the process, help you decide which option will suit you best.
Why renting is better?
Time-efficient
Renting is the most logical choice when you need a place to move in immediately.
The property is already there for your choosing. True, you may have to spend some time looking at several houses before you decide on one that suits your fancy, but it is considerably faster than having to search, buy and renovate the property before you can move in.
With a rented property, all you have to do once you decide is to sign a tenancy agreement with your Landlord and you can move in when you are ready. Unlike the long process of purchasing a property, rental transactions can be completed within a day or two.
Furthermore, renting allows you the option of choosing a length of stay that you are most comfortable with. You can choose to rent on a monthly basis or opt for a longer period such as a year. With a payment of a small premium, you can even opt for a fully-furnished property, where you can just pack your bags and move in!
Flexible
For those who have not decided where to settle down, renting provides great flexibility as you may move out whenever you please. This is especially so for those who may need to move out on short notice.
For example, you receive a job offer in another location and wish to be closer to work. In this case, all you have to do is inform your Landlord to end your tenancy agreement. There may be a small fee as a penalty for early termination of the tenancy agreement but other than that, there won't be much stopping you from moving.
This would not be the case if you owned the property as you will have to go through the hassle of putting it up for sale, finding a suitable buyer and negotiating the price before you can move house with your mind at peace.
Responsibility of Repairs Falls on Others
You don't have to fret if a pipe bursts or the light goes off on you because you are not responsible for it.
Your Landlord is, and it is up to him or her to find a contractor to repair the problems.
Keeping in mind that repair costs can be quite high, it is a relief to know that your Landlord is also the one who pays for the repairs.
Your only responsibility is to pick up the phone and notify your Landlord of any problems with the property. The repair works are usually completed within 14 to 21 days of notification.
Less Upfront Cost Compared to Buying
The Landlord usually requires some upfront payments that are in accordance with the tenancy agreement. This common practice usually entails the following:
Security Deposit: 2-3 months' rent (refundable upon end of tenancy)
Advance Rental: 1 month's rent
Utility Deposit: 1 month's rent
Assuming that the rent is RM 2 500 ($1,066) per month, you will have to pay between RM 10 000 to RM 12 500 to your Landlord upon execution of the tenancy agreement.
Other expenses such as the water and electricity bills, cable and internet service are payments that you have to foot yourself, depending on your usage.
Occasionally, the property's maintenance fees are included in the rent, in accordance with the contents of the tenancy agreement. Of course, you are free to negotiate with your Landlord on what payments to include or exclude from the rent.
On the other hand, being a tenant, you are on the losing end if your Landlord decides to increase the rent or choose not to renew your tenancy upon the expiration of the tenancy agreement.
You will have to either put up with paying more or find a new place to move to in a hurry. Either way, you have no say in the matter as you have no ownership of the property, which also means that you will enjoy neither capital appreciation nor the chance to convert your property to investment property to generate more cash flows in the future.
Why buy?
Pride of ownership and security
When you buy a property, it is yours to decide whatever you want to do with it. You can demolish, re built, refurbish or redecorate any part you wish.
There is no need to worry about seeking the Landlord's permission or restoring the place to its original glory when your tenancy expires. Also, it will definitely give you peace of mind to know that your tenancy will never expire!
Pay towards Owning Your Own Home
It's a given that no matter you rent or buy property, you have to fork out cash.
The difference is rental payments go towards occupancy for a specific period of time, where ownership will never be in reach.
Loan repayments, meanwhile, lead towards total ownership of the property. If the figures are only slightly different, it is advisable to consider buying than renting as ownership of property is almost always preferred.
If you are not sure of how to pay for a property, seek advice from your local bank. You can also research on different bank mortgage plans and utilise the loan calculators available on most banks' websites to help figure out which loan repayment scheme most suits you.
Capital appreciation and conversion into investment property
When the value of a property increases, who else will gain most from it but you, the property's owner?
This is a great upside to buying compared to renting, where tenants will have to pay more for the increased value of the property.
If you must move to a new property but is unwilling to sell your old property, convert it into an investment property! This will help you to generate cash flows while at the same time, maintain your ownership over the place.
Hedge against inflation
One major attraction of owning property is that it has proven to be an effective hedge against inflation.
Research has shown that property values can be trusted to increase at a rate greater than inflation. This comes as good news as everyone wants to maintain, if not increase, their purchasing power against rising prices of goods and services.
A great disadvantage of buying property is the hefty upfront costs.
If you purchase a home in the secondary market, you have to bear a minimum of 10% of the cost of the property before the Sale and Purchase Agreement can be executed. The 90% balance must be settled within 90 days, of which is usually done by way of mortgage.
This will lead to monthly commitments of payments to the bank or financial institution for repayment of the mortgage. Then, there are the legal fees for the Sale and Purchase Agreement and Loan Agreement, Stamp Duties, Insurance, and monthly maintenance fees and sinking funds.
You must also take into account the cost to renovate and redecorate the place. You are the Landlord.
Therefore, if any appliance in your home is broken, you will have to fork out the money to repair it. If it cannot be repaired, you will have to pay a bigger amount to replace it entirely.
It would be a wise move to check on the sales price trends of the area in which your property is located. If prices spot a declining trend, then perhaps it is not worth your time and money to invest in that property after all.
Rent with the option to buy
This option is growing in popularity as it provides assurance of the mind, as the tenant is secure in having a place to stay. Some Landlords are willing to accept portions of the rent as downpayment towards the home, meaning that the ownership of the property will one day go to you.
In other instances, tenants are given the first right to refuse to purchase the property should the Landlord decide to sell the property while the tenancy is still in effect.
All these depend on the agreement achieved between the tenant and the Landlord. Although tenants usually are left in a lurch to look for a new place when new owners take over the property, some new Landlords do honour ongoing tenancies so existing tenants do not have to worry about moving out.
Conclusion
As appealing as being a property owner might sound, not everyone should rush out and purchase a property now.
There are other factors to be considered first, such as your financial situation, job, and etc.
Both renting and buying have their perks, but buying is almost always preferred as it can benefit you in the long run.
However, depending on what suits your needs, sometimes it is more worthwhile for you to rent first. When you are sure that you will be able to afford to purchase a property, it won't be too late for you to start doing so.
Showing posts with label AsiaOne. Show all posts
Showing posts with label AsiaOne. Show all posts
Thursday, November 4, 2010
AsiaOne : How to buy choice property
Business @ AsiaOne
How to buy choice property
The glossy brochures selling a dream are lovely to collect, but it is difficult to turn the dream into reality without hard work. -myp
Tue, Oct 26, 2010
my paper
By Rachel Chan
AS CHEQUES fly at sell-out roadshows for overseas property, Mr Png Poh Soon, senior manager of consultancy & research at Knight Frank, gets a little worried.
The glossy brochures selling a dream are lovely to collect, but it is difficult to turn the dream into reality without hard work and thorough research, he said.
"Two in 10 people haven't visited the place in which they are buying property," the 33-year-old observed. "If you're putting money on a piece of swamp or a desert, that's it."
Many Singaporeans make the big mistake of assuming that Singapore's institutional framework applies similarly to foreign investments, he said.
He warned buyers not to be bowled over by promises of high rental yields or beautiful surroundings, and advised them to ask their agents some hard questions instead.
For example, is the "promised" rental yield of 7 per cent gross or net yield? Does the jurisdiction there charge capital-gains tax? How much would the agent charge for his fees? What will be the difference in price if there is no "rental guarantee"?
With bank interest rates being outstripped by rising inflation, many investors feel that it is more lucrative to invest in property offering guaranteed 7 per cent rental yields. Be that as it may, Mr Png urged prudence.
He pointed out that some countries, such as Vietnam, have inflation rates exceeding 10 per cent, making property investments there relatively less attractive.
Other pitfalls await the investor who is too eager to part with his hard-earned money, he said. For example, buyers often do not get a complete picture of a property by just visiting its roadshow.
"Sure, the sales agents know how large the rooms are and what amenities are available in the area, but you need to go beyond the product," said Mr Png.
Some due diligence is in order: Buyers should investigate the developer's track record and check if they are new to the market.
They should also find out who owns the land, and learn how they could be affected if the developer goes bankrupt.
Mr Png recalled that, during the early 1990s, some fly-by-night companies set up roadshows for properties that never materialised.
So, to prevent history from repeating itself, buyers need to do their homework before committing cash.
As for Mr Png, he lives in a five-room Housing Board flat in Ang Mo Kio, and he is still biding his time, waiting for the perfect opportunity to buy his second property.
He noted that the recent cooling measures introduced by the Government seem to be taking effect, with private home sales and HDB resale transactions dipping in the third quarter, according to the latest statistics released by the Urban Redevelopment Authority last Friday.
Buyers are expecting prices to decrease as the market corrects itself, but developers are holding onto their prices, he said.
"Prices should either stabilise or drop by 10 to 15 per cent," he said. "As for when that will happen, it depends on who blinks first.
Developers are waiting for buyers to come in but buyers are being cautious at the moment."
In the meantime, investors could consider commercial assets instead, he said. Stratatitle offices - shophouses, basically - have rental yields of 4 to 5 per cent.
Investing is not the same as speculating, Mr Png emphasised, and the key to choosing a good investment is to do it early and at the right time.
"I believe in property cycles," he said.
"Many buyers want to make investments quickly as they fear the property will be sold out during its launch.
"But if you like it so much, you can enter at an opportune time and buy it off the resale market a few years down the road."
Beware different rules for overseas homes
IF YOU are thinking of investing in overseas property, here are some points you should consider before signing that cheque:
Do not assume that Singapore's institutional framework applies overseas. You might want to consider engaging an independent professional for advice. Also, check what legal recourse is available should you run into trouble with the developer.
Find out if there are any hidden costs. Some jurisdictions impose a capital-gains tax, and some banks charge a penalty for absentee landlords. Beware of foreign-exchange risks.
Investigate the developer. Find out if the company is listed, study its track record, and check whether you are paying it directly or through a third party.
Do not buy any property without first visiting the development site and its location. Try to gauge if there is local demand for the property you are interested in.
Do not be deceived by guarantees of high rental yields. You are probably paying a higher figure up front for a "guaranteed" rental yield, so try to bargain down the agent's asking price, as yields will go back to normal after the guarantee period expires. Also, calculate how much net yield you will get after deducting utilities, maintenance costs and other fees.
Know what you are buying. Are there restrictions on ownership rights? Do you get the title deed or a strata title to your property? If joining a land-banking scheme, be wary of hidden risks like urban zoning. Your lot might well fall into a green belt where development is restricted.
How to buy choice property
The glossy brochures selling a dream are lovely to collect, but it is difficult to turn the dream into reality without hard work. -myp
Tue, Oct 26, 2010
my paper
By Rachel Chan
AS CHEQUES fly at sell-out roadshows for overseas property, Mr Png Poh Soon, senior manager of consultancy & research at Knight Frank, gets a little worried.
The glossy brochures selling a dream are lovely to collect, but it is difficult to turn the dream into reality without hard work and thorough research, he said.
"Two in 10 people haven't visited the place in which they are buying property," the 33-year-old observed. "If you're putting money on a piece of swamp or a desert, that's it."
Many Singaporeans make the big mistake of assuming that Singapore's institutional framework applies similarly to foreign investments, he said.
He warned buyers not to be bowled over by promises of high rental yields or beautiful surroundings, and advised them to ask their agents some hard questions instead.
For example, is the "promised" rental yield of 7 per cent gross or net yield? Does the jurisdiction there charge capital-gains tax? How much would the agent charge for his fees? What will be the difference in price if there is no "rental guarantee"?
With bank interest rates being outstripped by rising inflation, many investors feel that it is more lucrative to invest in property offering guaranteed 7 per cent rental yields. Be that as it may, Mr Png urged prudence.
He pointed out that some countries, such as Vietnam, have inflation rates exceeding 10 per cent, making property investments there relatively less attractive.
Other pitfalls await the investor who is too eager to part with his hard-earned money, he said. For example, buyers often do not get a complete picture of a property by just visiting its roadshow.
"Sure, the sales agents know how large the rooms are and what amenities are available in the area, but you need to go beyond the product," said Mr Png.
Some due diligence is in order: Buyers should investigate the developer's track record and check if they are new to the market.
They should also find out who owns the land, and learn how they could be affected if the developer goes bankrupt.
Mr Png recalled that, during the early 1990s, some fly-by-night companies set up roadshows for properties that never materialised.
So, to prevent history from repeating itself, buyers need to do their homework before committing cash.
As for Mr Png, he lives in a five-room Housing Board flat in Ang Mo Kio, and he is still biding his time, waiting for the perfect opportunity to buy his second property.
He noted that the recent cooling measures introduced by the Government seem to be taking effect, with private home sales and HDB resale transactions dipping in the third quarter, according to the latest statistics released by the Urban Redevelopment Authority last Friday.
Buyers are expecting prices to decrease as the market corrects itself, but developers are holding onto their prices, he said.
"Prices should either stabilise or drop by 10 to 15 per cent," he said. "As for when that will happen, it depends on who blinks first.
Developers are waiting for buyers to come in but buyers are being cautious at the moment."
In the meantime, investors could consider commercial assets instead, he said. Stratatitle offices - shophouses, basically - have rental yields of 4 to 5 per cent.
Investing is not the same as speculating, Mr Png emphasised, and the key to choosing a good investment is to do it early and at the right time.
"I believe in property cycles," he said.
"Many buyers want to make investments quickly as they fear the property will be sold out during its launch.
"But if you like it so much, you can enter at an opportune time and buy it off the resale market a few years down the road."
Beware different rules for overseas homes
IF YOU are thinking of investing in overseas property, here are some points you should consider before signing that cheque:
Do not assume that Singapore's institutional framework applies overseas. You might want to consider engaging an independent professional for advice. Also, check what legal recourse is available should you run into trouble with the developer.
Find out if there are any hidden costs. Some jurisdictions impose a capital-gains tax, and some banks charge a penalty for absentee landlords. Beware of foreign-exchange risks.
Investigate the developer. Find out if the company is listed, study its track record, and check whether you are paying it directly or through a third party.
Do not buy any property without first visiting the development site and its location. Try to gauge if there is local demand for the property you are interested in.
Do not be deceived by guarantees of high rental yields. You are probably paying a higher figure up front for a "guaranteed" rental yield, so try to bargain down the agent's asking price, as yields will go back to normal after the guarantee period expires. Also, calculate how much net yield you will get after deducting utilities, maintenance costs and other fees.
Know what you are buying. Are there restrictions on ownership rights? Do you get the title deed or a strata title to your property? If joining a land-banking scheme, be wary of hidden risks like urban zoning. Your lot might well fall into a green belt where development is restricted.
Thursday, July 29, 2010
ASIAONE : 5 tips for investing in shops and shophouses
Business @ AsiaOne
5 tips for investing in shops and shophouses
The total value of commercial units transacted was $976.9 million, 12% higher than in 2H 2009.
Fri, Jul 23, 2010
Knight Frank
By Mary Sai, Executive Director
Auctions (Commercial), Knight Frank
The number of commercial units, typically shophouses and strata units for office and shops, sold in 1H 2010 remained similar to that in 2H 2009. A total of 495 commercial units were transacted in 1H 2010, reflecting a 4 per cent decrease compared to that in 2H 2009.
Although economic conditions have tremendously improved in 1H 2010, the number of commercial properties transacted was subdued, underpinned by limited supply and a stalemate in sellers' asking prices and owners' offer prices.
The limited supply meant limited choices for potential buyers while for sellers, the limited supply of strata commercial properties meant that there would be no urgency to sell their properties in case prices appreciate with further economic recovery.
Nevertheless, the total value of commercial units transacted was $976.9 million, 12 per cent higher than that in
2H 2009. The encouraging value of commercial units transacted in 1H 2010 could be the result of a shift from an interest for units in the lower price-band, to units in the mid price-band.
In 2009, due to the adverse economic conditions, investors and buyers were cautious and preferred to purchase commercial units which were affordably priced in the lowest price band.
Most transaction activities of strata shops and shophouses still remain in the Central Region (planning areas like Outram, Rochor, Kallang, Geylang). Meanwhile, strata office investors are shifting their interest to fringe areas like Beach Road, Middle Road and East Coast vicinity.
Buying Shops & Shophouses - What should you look out for?
Financing
As with most property transactions, getting funding is pivotal to the buying decision. Since July 2006, CPF savings cannot be used to finance commercial purchase. As such, getting a bank loan is critical.
With most banks granting loans of 70 to 80 per cent of the purchase price or valuation (whichever is lower), prospective buyers must have cash upfront for the remaining 20 to 30 per cent.
Currently, many banks are offering commercial loan packages at promotional rate of about 2.3 per cent which is a booster for many investors who are considering buying commercial properties for investment or owner occupation.
Location
Location is one key consideration in the buying decision for any property, more so for shops and shophouses. As shops/shophouses are for retailing purposes, they should be in conspicuous locations and sited where human traffic is high.
In a shopping mall, one has to pay a premium for shops in the main shoppers' concourse and facing the escalator where most shoppers will pass by when shopping. In the case of shophouse, its visibility from the main road and easy access to carparks are essential factors for consideration.
Good locations of shops/shophouses generate better rentability and therefore higher rental yields if they are held as investment properties.
Tenure
Statistics in 2H2009 & 1H2010 have shown that most buyers for shophouses preferred freehold properties while about half of the strata shop transactions in the same period were 99-year leasehold strata shops.
Differences in values between the two tenures can be in the region of 15 per cent to 20 per cent depending on the balance years of lease and other factors.
In recent years, many buyers of commercial properties have embraced 99-year leasehold properties in their investment portfolios as they are more affordable and have higher rental yields because of their lower capital values.
Zoning
This is essential to note when buying shophouses. Shophouses are usually erected on land zoned "Commercial" or "Residential with Commercial on Groundfloor Only".
Shophouses sited on land zoned residential are essentially terrace buildings with "tolerated" commercial uses and the occupants have to pay Temporary Occupation Licence (TOL) fees to the relevant authority for the non-residential usage.
Buyers have to note that they cannot assume that the building erected on residential zoned land can continue to run as a shophouse when there is a transfer of ownership.
Road line
This must be factored in when buying shophouses. Shophouses that face the main road are often affected by road lines. If the property is adversely affected - say, by a major road line - it will be more difficult to get bank financing as there is the risk of government acquisition for road widening.
However, if the shophouses are conserved or located within a conservation area, they are generally safe buys as these are "protected" areas.
Outlook for commercial units
Strata Office
The commercial property sales market is expected to continue to improve in 2010, in tandem with an expected economic recovery. Sales activity for strata office units is likely to reflect moderate increase, as investor sentiments for strata office units improve.
Potential buyers of strata offices are likely to continue to remain less sensitive to the tenure of strata offices. About two-third of strata offices transacted in 2H 2009 and 1H 2010 were 99-year leasehold strata offices. This trend is likely to continue, given limited supply, lower capital outlay and attractive yields of leasehold strata offices.
Strata Shops
The number of shop units transacted is expected to remain similar to the current number. However, due to limited new supply of strata shops, transaction prices is expected to be stable and there is potential for some capital appreciation.
Additionally, while strata shops are generally older and may be thought to be losing their appeal, there are certain trades which can only be supported by strata shops. These include lower-cost retail services, offering personable and customized services for regular customers.
About half of strata shops transacted in 2H 2009 and 1H 2010 were 99-year leasehold strata shops. This is likely to continue in 2H 2010.
Shophouses
Shophouses are expected to remain favourable for buyers, underpinned by limited supply and unique design. Some potential buyers will also feel that owning shophouses will be more tangible than renting as the unique value can only be actualised through owning.
Buyers are expected to remain keen in freehold shophouses. Currently, only about a quarter of shophouse transactions are leasehold, reflecting buyers' strong desire to have a lasting interest in shophouses.
5 tips for investing in shops and shophouses
The total value of commercial units transacted was $976.9 million, 12% higher than in 2H 2009.
Fri, Jul 23, 2010
Knight Frank
By Mary Sai, Executive Director
Auctions (Commercial), Knight Frank
The number of commercial units, typically shophouses and strata units for office and shops, sold in 1H 2010 remained similar to that in 2H 2009. A total of 495 commercial units were transacted in 1H 2010, reflecting a 4 per cent decrease compared to that in 2H 2009.
Although economic conditions have tremendously improved in 1H 2010, the number of commercial properties transacted was subdued, underpinned by limited supply and a stalemate in sellers' asking prices and owners' offer prices.
The limited supply meant limited choices for potential buyers while for sellers, the limited supply of strata commercial properties meant that there would be no urgency to sell their properties in case prices appreciate with further economic recovery.
Nevertheless, the total value of commercial units transacted was $976.9 million, 12 per cent higher than that in
2H 2009. The encouraging value of commercial units transacted in 1H 2010 could be the result of a shift from an interest for units in the lower price-band, to units in the mid price-band.
In 2009, due to the adverse economic conditions, investors and buyers were cautious and preferred to purchase commercial units which were affordably priced in the lowest price band.
Most transaction activities of strata shops and shophouses still remain in the Central Region (planning areas like Outram, Rochor, Kallang, Geylang). Meanwhile, strata office investors are shifting their interest to fringe areas like Beach Road, Middle Road and East Coast vicinity.
Buying Shops & Shophouses - What should you look out for?
Financing
As with most property transactions, getting funding is pivotal to the buying decision. Since July 2006, CPF savings cannot be used to finance commercial purchase. As such, getting a bank loan is critical.
With most banks granting loans of 70 to 80 per cent of the purchase price or valuation (whichever is lower), prospective buyers must have cash upfront for the remaining 20 to 30 per cent.
Currently, many banks are offering commercial loan packages at promotional rate of about 2.3 per cent which is a booster for many investors who are considering buying commercial properties for investment or owner occupation.
Location
Location is one key consideration in the buying decision for any property, more so for shops and shophouses. As shops/shophouses are for retailing purposes, they should be in conspicuous locations and sited where human traffic is high.
In a shopping mall, one has to pay a premium for shops in the main shoppers' concourse and facing the escalator where most shoppers will pass by when shopping. In the case of shophouse, its visibility from the main road and easy access to carparks are essential factors for consideration.
Good locations of shops/shophouses generate better rentability and therefore higher rental yields if they are held as investment properties.
Tenure
Statistics in 2H2009 & 1H2010 have shown that most buyers for shophouses preferred freehold properties while about half of the strata shop transactions in the same period were 99-year leasehold strata shops.
Differences in values between the two tenures can be in the region of 15 per cent to 20 per cent depending on the balance years of lease and other factors.
In recent years, many buyers of commercial properties have embraced 99-year leasehold properties in their investment portfolios as they are more affordable and have higher rental yields because of their lower capital values.
Zoning
This is essential to note when buying shophouses. Shophouses are usually erected on land zoned "Commercial" or "Residential with Commercial on Groundfloor Only".
Shophouses sited on land zoned residential are essentially terrace buildings with "tolerated" commercial uses and the occupants have to pay Temporary Occupation Licence (TOL) fees to the relevant authority for the non-residential usage.
Buyers have to note that they cannot assume that the building erected on residential zoned land can continue to run as a shophouse when there is a transfer of ownership.
Road line
This must be factored in when buying shophouses. Shophouses that face the main road are often affected by road lines. If the property is adversely affected - say, by a major road line - it will be more difficult to get bank financing as there is the risk of government acquisition for road widening.
However, if the shophouses are conserved or located within a conservation area, they are generally safe buys as these are "protected" areas.
Outlook for commercial units
Strata Office
The commercial property sales market is expected to continue to improve in 2010, in tandem with an expected economic recovery. Sales activity for strata office units is likely to reflect moderate increase, as investor sentiments for strata office units improve.
Potential buyers of strata offices are likely to continue to remain less sensitive to the tenure of strata offices. About two-third of strata offices transacted in 2H 2009 and 1H 2010 were 99-year leasehold strata offices. This trend is likely to continue, given limited supply, lower capital outlay and attractive yields of leasehold strata offices.
Strata Shops
The number of shop units transacted is expected to remain similar to the current number. However, due to limited new supply of strata shops, transaction prices is expected to be stable and there is potential for some capital appreciation.
Additionally, while strata shops are generally older and may be thought to be losing their appeal, there are certain trades which can only be supported by strata shops. These include lower-cost retail services, offering personable and customized services for regular customers.
About half of strata shops transacted in 2H 2009 and 1H 2010 were 99-year leasehold strata shops. This is likely to continue in 2H 2010.
Shophouses
Shophouses are expected to remain favourable for buyers, underpinned by limited supply and unique design. Some potential buyers will also feel that owning shophouses will be more tangible than renting as the unique value can only be actualised through owning.
Buyers are expected to remain keen in freehold shophouses. Currently, only about a quarter of shophouse transactions are leasehold, reflecting buyers' strong desire to have a lasting interest in shophouses.
Friday, July 23, 2010
ASIAONE : Mistakes made when buying a house
Business @ AsiaOne
Mistakes made when buying a house
It is important that when you consider a place to call your home, it must be a safe and pleasant place to be in.
Thu, Jul 22, 2010
The Star/Asia News Network
A home is a place of residence or refuge and comfort. It is usually a place where an individual or usually a family can rest and relax, communicate, share, feast and be able to collect and store their personal properties.
Therefore it is important that when you consider a place to call your home, it must be a safe and pleasant place to be in.
Buying a house is more often than not, the single largest investment most people ever make; yet all too often it's a decision made in rush without adequate thought and preparation.
In this article we will explore some of the house-buying mistakes to watch out for in your property hunt.
Solo Mission
Buying a house is a complex transaction and should not be undertaken alone.
You need to enlist the help of these individuals early in the buying process : Real Estate Agent, Banker, Lawyer and Property Inspector.
It is also wise to get referrals and advise or tips from family and friends.
When assembling your team, select rightly. Lack of experience in the person who's suppose to be your guide can make your property hunt a frustrating experience.
Love At First Sight
You may be in love with the house at first sight, but you have to ask yourself if the house fit your family's needs and budget.
You have to make sure that you make a list of your needs and wants and also check whether the house fits your requirements.
Besides that, you should check out the neighbourhood and the communities before you buy by visiting at different times of the day and week.
Even if you do not have kids, you should also check out the local schools to make sure your resale value will be good.
Get past the love at first sight to consider what it'd really be like to live there.
Pre-qualified and Pre-approved Financing
Being pre-qualified gives you a general idea of how much you can afford to borrow.
It is a good idea to get in touch with your banker or mortgage officer early in the buying process so that you are aware of the amount you can borrow as this will determine your budget for the home.
The mortgage officers will also be in a position to advise you on aspects of financing i.e. the possibility of having joint borrowers to strengthen the application or to lengthen loan tenures should a need arise.
Being pre-approved means your banker has verified your information and credit rating and agreed to provide you with a specific amount of money.
You are in a better position to go house hunting knowing exactly how much you can afford and that you have the financing ready.
Over-Buying
You may qualify to borrow more, but you have to ask yourself again whether you can afford it or not.
Borrowing more would mean higher monthly loan commitments for just the purchase of the house. You have not considered the cost of improvements on the house i.e. renovations and furnishings.
What you need to do is analyze your monthly costs - food, transportation, entertainment, car loans and other commitments. Therefore you have to be sure to budget enough to cover closing costs (often two to five percent of the purchase price), plus moving and maintenance.
Beyond mortgage payments, there'll be costs like insurance. You don't want your house to deprive you of your lifestyle.
Misplacing your trust
Remember that buying a house is a business transaction.
Your decision is binding.
You should do your own research and know your support team's roles and responsibilities and not just depending on what one says 100%.
Verbal Agreement
Get it right and get it in writing.
Written agreements almost always trump verbal ones when it comes to contracts.
Don't set yourself up for surprises when you move into that new house and some of the items in it are now missing.
There are many details that make up the purchase contract that governs the particulars of your house purchase.
It is not unusual for an item to be missed; especially those requests made by you of the seller or seller's agent. If you ask for a toilet to be repaired or a chipped tile to be repaired, don't simply take someone's word that the item will be repaired prior to transfer of the property. Make sure every item that you agree on is put in the purchase contract.
Verbal agreements are hard to prove and even harder to enforce. They can lead to an ugly "he said, she said" situation.
Once the property transfers to your name; problems or issues that you thought were going to be repaired are now your responsibility. Don't let miscommunication or failed promises ruin the purchase of your dream home.
Get all commitments - no matter how small - in writing.
Fine print
You need to understand what you're signing.
As soon as possible, review the documents you'll be signing. You must always ask for documents in advance, make time to read them and ask questions, where necessary.
Don't just skim through the purchase contract. Real estate contracts are long and dense, but you need to know what you're committing to.
Wrong assumptions, poorly written or missing clauses, and not understanding how the clauses affect the purchase can lead to increased costs or a void contract.
Do not sign documents in a hurry. Do not rush the closing.
Resale
You should avoid buying a home that costs much more than neighbouring homes and think before buying the most expensive house in the area.
Your neighbours' lower house values will weaken yours.
Remember, markets change.
If you buy intending to flip your investment and the market falls and you have to sell, your selling price may not be enough to even cover your mortgage.
Wrong Price
Many home-buyers forget that the market value of a house is affected a great deal by its neighbours.
The best way to gauge a fair offer price is to get your real estate agent to pull prices that comparable homes nearby recently fetched. The listings will show not just the amounts but how long the house has been on the market and its condition and size.
Note that the nearby houses will affect your house's value. That means the most expensive house on the street may be pulled down in value by its cheaper neighbours, while a low-end one will benefit from posher surroundings.
Conditional Offer
It is good practice to have your offer to purchase the house conditional upon securing financing.
The last thing you want happen to you is the forfeiture of your deposits for backing out on a purchase transaction because of it.
One thing is being pre-approved, the other is the property itself.
The banks will do a valuation on the property to confirm the market value and then to determine the margin of loan they are willing to offer you. There may be other conditions are well that you might want to add in at this point.
House Inspection
It is well worth your money engaging a House Inspector to check out the house before committing to the purchase.
These Inspectors know what to look out for and can advise you accordingly on the state of the house, whether it is in need of repairs so that you are fully aware of the additional expenses needed.
Don't take the word of the seller that certain repairs and maintenance has been made to the home. A formal inspection of wiring, plumbing, and general structure of the home is needed to avoid nasty surprises.
Inspection reports are great negotiating tools when it comes to asking the seller to make repairs.
If a professional home inspector cites specific repairs in the inspection report the seller is more likely to agree to them than if you simply try to negotiate based on your observations. As we mentioned above, make sure that any last minute items that arise based on the inspection report or your own visual inspection during the walk through are addressed in writing and completed before you take ownership of the property.
If the seller agrees to make repairs, have your inspector verify the work is completed properly. Do not assume that everything will be done as promised.
If you're buying a new house, off the plans from the developer, they will offer the Defect Liability Period upon Vacant Possession, where they will rectify problems, if any, with the house during Handover.
Buyer's Remorse
No place is perfect. There will always be surprises. Don't let a few initial blips spoil the whole ride.
And don't miss a great house waiting for the perfect one!
Failing to jump on an opportunity, I believe, is a mistake. Too much shopping around can backfire.
When you have done your homework and when you see something you that matches, go for it.
Mistakes made when buying a house
It is important that when you consider a place to call your home, it must be a safe and pleasant place to be in.
Thu, Jul 22, 2010
The Star/Asia News Network
A home is a place of residence or refuge and comfort. It is usually a place where an individual or usually a family can rest and relax, communicate, share, feast and be able to collect and store their personal properties.
Therefore it is important that when you consider a place to call your home, it must be a safe and pleasant place to be in.
Buying a house is more often than not, the single largest investment most people ever make; yet all too often it's a decision made in rush without adequate thought and preparation.
In this article we will explore some of the house-buying mistakes to watch out for in your property hunt.
Solo Mission
Buying a house is a complex transaction and should not be undertaken alone.
You need to enlist the help of these individuals early in the buying process : Real Estate Agent, Banker, Lawyer and Property Inspector.
It is also wise to get referrals and advise or tips from family and friends.
When assembling your team, select rightly. Lack of experience in the person who's suppose to be your guide can make your property hunt a frustrating experience.
Love At First Sight
You may be in love with the house at first sight, but you have to ask yourself if the house fit your family's needs and budget.
You have to make sure that you make a list of your needs and wants and also check whether the house fits your requirements.
Besides that, you should check out the neighbourhood and the communities before you buy by visiting at different times of the day and week.
Even if you do not have kids, you should also check out the local schools to make sure your resale value will be good.
Get past the love at first sight to consider what it'd really be like to live there.
Pre-qualified and Pre-approved Financing
Being pre-qualified gives you a general idea of how much you can afford to borrow.
It is a good idea to get in touch with your banker or mortgage officer early in the buying process so that you are aware of the amount you can borrow as this will determine your budget for the home.
The mortgage officers will also be in a position to advise you on aspects of financing i.e. the possibility of having joint borrowers to strengthen the application or to lengthen loan tenures should a need arise.
Being pre-approved means your banker has verified your information and credit rating and agreed to provide you with a specific amount of money.
You are in a better position to go house hunting knowing exactly how much you can afford and that you have the financing ready.
Over-Buying
You may qualify to borrow more, but you have to ask yourself again whether you can afford it or not.
Borrowing more would mean higher monthly loan commitments for just the purchase of the house. You have not considered the cost of improvements on the house i.e. renovations and furnishings.
What you need to do is analyze your monthly costs - food, transportation, entertainment, car loans and other commitments. Therefore you have to be sure to budget enough to cover closing costs (often two to five percent of the purchase price), plus moving and maintenance.
Beyond mortgage payments, there'll be costs like insurance. You don't want your house to deprive you of your lifestyle.
Misplacing your trust
Remember that buying a house is a business transaction.
Your decision is binding.
You should do your own research and know your support team's roles and responsibilities and not just depending on what one says 100%.
Verbal Agreement
Get it right and get it in writing.
Written agreements almost always trump verbal ones when it comes to contracts.
Don't set yourself up for surprises when you move into that new house and some of the items in it are now missing.
There are many details that make up the purchase contract that governs the particulars of your house purchase.
It is not unusual for an item to be missed; especially those requests made by you of the seller or seller's agent. If you ask for a toilet to be repaired or a chipped tile to be repaired, don't simply take someone's word that the item will be repaired prior to transfer of the property. Make sure every item that you agree on is put in the purchase contract.
Verbal agreements are hard to prove and even harder to enforce. They can lead to an ugly "he said, she said" situation.
Once the property transfers to your name; problems or issues that you thought were going to be repaired are now your responsibility. Don't let miscommunication or failed promises ruin the purchase of your dream home.
Get all commitments - no matter how small - in writing.
Fine print
You need to understand what you're signing.
As soon as possible, review the documents you'll be signing. You must always ask for documents in advance, make time to read them and ask questions, where necessary.
Don't just skim through the purchase contract. Real estate contracts are long and dense, but you need to know what you're committing to.
Wrong assumptions, poorly written or missing clauses, and not understanding how the clauses affect the purchase can lead to increased costs or a void contract.
Do not sign documents in a hurry. Do not rush the closing.
Resale
You should avoid buying a home that costs much more than neighbouring homes and think before buying the most expensive house in the area.
Your neighbours' lower house values will weaken yours.
Remember, markets change.
If you buy intending to flip your investment and the market falls and you have to sell, your selling price may not be enough to even cover your mortgage.
Wrong Price
Many home-buyers forget that the market value of a house is affected a great deal by its neighbours.
The best way to gauge a fair offer price is to get your real estate agent to pull prices that comparable homes nearby recently fetched. The listings will show not just the amounts but how long the house has been on the market and its condition and size.
Note that the nearby houses will affect your house's value. That means the most expensive house on the street may be pulled down in value by its cheaper neighbours, while a low-end one will benefit from posher surroundings.
Conditional Offer
It is good practice to have your offer to purchase the house conditional upon securing financing.
The last thing you want happen to you is the forfeiture of your deposits for backing out on a purchase transaction because of it.
One thing is being pre-approved, the other is the property itself.
The banks will do a valuation on the property to confirm the market value and then to determine the margin of loan they are willing to offer you. There may be other conditions are well that you might want to add in at this point.
House Inspection
It is well worth your money engaging a House Inspector to check out the house before committing to the purchase.
These Inspectors know what to look out for and can advise you accordingly on the state of the house, whether it is in need of repairs so that you are fully aware of the additional expenses needed.
Don't take the word of the seller that certain repairs and maintenance has been made to the home. A formal inspection of wiring, plumbing, and general structure of the home is needed to avoid nasty surprises.
Inspection reports are great negotiating tools when it comes to asking the seller to make repairs.
If a professional home inspector cites specific repairs in the inspection report the seller is more likely to agree to them than if you simply try to negotiate based on your observations. As we mentioned above, make sure that any last minute items that arise based on the inspection report or your own visual inspection during the walk through are addressed in writing and completed before you take ownership of the property.
If the seller agrees to make repairs, have your inspector verify the work is completed properly. Do not assume that everything will be done as promised.
If you're buying a new house, off the plans from the developer, they will offer the Defect Liability Period upon Vacant Possession, where they will rectify problems, if any, with the house during Handover.
Buyer's Remorse
No place is perfect. There will always be surprises. Don't let a few initial blips spoil the whole ride.
And don't miss a great house waiting for the perfect one!
Failing to jump on an opportunity, I believe, is a mistake. Too much shopping around can backfire.
When you have done your homework and when you see something you that matches, go for it.
Wednesday, May 12, 2010
ASIAONE : Beware this fake-landlord scam
Beware this fake-landlord scam
Police say around one person falls victim to such rental scams every day. -myp
Wed, May 12, 2010
my paper
By Joy Fang
BE CAREFUL if you are looking to rent a home here, or you could fall prey to a rental scam.
This is how it works: A conman, using a fake name, poses as a landlord with rooms for rent at low prices.
He gives fake addresses of apartments in areas like Orchard and Chinatown.
He refuses to arrange for a viewing of the apartments, claiming that he is in Britain on internship and will be back here only by the end of next month.
He asks potential tenants to e-mail him a scan of their passport, and sign a contract e-mailed to them.
He asks them to wire a month's rent and a security deposit to a Western Union account, and says he will post the keys to them. To reassure them, he sends images of the apartments and a scan of what he claims to be his passport.
A check with a thread on rental scams in Singapore on online forum scamwarners.com showed that at least 14 people have received such messages.
The scammer uses different pseudonyms, like Richard Willem Tibor, Jane Louise Millar and Tan Nee, and asks for sums of between $1,100 and $2,500.
Figures from the police show that, on average, one person falls victim to such rental scams every day. Last year, police received 324 reports of rental scams, down from 355 reports in 2008.
Mr Manuel Nacionales, 44, a Filipino systems analyst who has been working here for four years, almost became a victim.
He posted a request to rent a room on share-accommodation. sg, a website that links potential house- or flat-mates, in February this year.
Within a day, he got an offer of an apartment at 14 Scotts Road ? the address of shopping mall Far East Plaza.
In an e-mail sent from tantongnee@hotmail.com, the sender said he was a Singaporean named Tan Nee and could be called on +44-701-115-1047.
He asked Mr Nacionales to send a month's rent of $700 and a security deposit of $400 to a Western Union account.
Mr Nacionales did receive a scan of the passport of a man called Tan Tong Nee, but did not wire any money after his colleagues advised him against it.
When my paper called the number posing as a potential tenant, the man identified himself as Tan Nee Long in a pseudo- British accent.
Pressed for the address of the rental apartment, he said that it was 202 Far East Apartment.
But a check with Far East Plaza's residence showed that all its unit numbers are in four digits.
He could not arrange for a viewing of the apartment as he is doing a master's programme in computer programming in London and has no friends in Singapore, he said.
He would send the keys only after the lease contract was signed and payment made.
"You have nothing to worry about, I'll be sending you the contract and scanned passport of myself," he said repeatedly.
When my paper asked him about forum postings about him being a scammer, he said: "No, I don't do such things... People keep saying rubbish on the Internet.
It's because I'm not gonna lease the room to them, that's why they say I'm a scammer."
He said that he was renting out the apartment on behalf of his mother, who owns it.
When told that he was speaking to my paper, he said "no problem", but then hung up.
Scamwarners.com's adviser, Mr David Jenson, 40, said one should never pay or send personal details to a stranger online.
Insist on seeing the title deeds, said Consumers Association of Singapore executive director Seah Seng Choon.
Check out the rightful owners of a property on the Inland Revenue Authority of Singapore's website, and look for properties via reputable websites like www.iproperty.com and www.propertyguru.com, said Mr Nelson Tan, a council member of the Institute of Estate Agents.
A police spokesman said tenants should request all parties to be present when signing tenancy documents, and should not pay large sums in cash.
joyfang@sph.com.sg
Police say around one person falls victim to such rental scams every day. -myp
Wed, May 12, 2010
my paper
By Joy Fang
BE CAREFUL if you are looking to rent a home here, or you could fall prey to a rental scam.
This is how it works: A conman, using a fake name, poses as a landlord with rooms for rent at low prices.
He gives fake addresses of apartments in areas like Orchard and Chinatown.
He refuses to arrange for a viewing of the apartments, claiming that he is in Britain on internship and will be back here only by the end of next month.
He asks potential tenants to e-mail him a scan of their passport, and sign a contract e-mailed to them.
He asks them to wire a month's rent and a security deposit to a Western Union account, and says he will post the keys to them. To reassure them, he sends images of the apartments and a scan of what he claims to be his passport.
A check with a thread on rental scams in Singapore on online forum scamwarners.com showed that at least 14 people have received such messages.
The scammer uses different pseudonyms, like Richard Willem Tibor, Jane Louise Millar and Tan Nee, and asks for sums of between $1,100 and $2,500.
Figures from the police show that, on average, one person falls victim to such rental scams every day. Last year, police received 324 reports of rental scams, down from 355 reports in 2008.
Mr Manuel Nacionales, 44, a Filipino systems analyst who has been working here for four years, almost became a victim.
He posted a request to rent a room on share-accommodation. sg, a website that links potential house- or flat-mates, in February this year.
Within a day, he got an offer of an apartment at 14 Scotts Road ? the address of shopping mall Far East Plaza.
In an e-mail sent from tantongnee@hotmail.com, the sender said he was a Singaporean named Tan Nee and could be called on +44-701-115-1047.
He asked Mr Nacionales to send a month's rent of $700 and a security deposit of $400 to a Western Union account.
Mr Nacionales did receive a scan of the passport of a man called Tan Tong Nee, but did not wire any money after his colleagues advised him against it.
When my paper called the number posing as a potential tenant, the man identified himself as Tan Nee Long in a pseudo- British accent.
Pressed for the address of the rental apartment, he said that it was 202 Far East Apartment.
But a check with Far East Plaza's residence showed that all its unit numbers are in four digits.
He could not arrange for a viewing of the apartment as he is doing a master's programme in computer programming in London and has no friends in Singapore, he said.
He would send the keys only after the lease contract was signed and payment made.
"You have nothing to worry about, I'll be sending you the contract and scanned passport of myself," he said repeatedly.
When my paper asked him about forum postings about him being a scammer, he said: "No, I don't do such things... People keep saying rubbish on the Internet.
It's because I'm not gonna lease the room to them, that's why they say I'm a scammer."
He said that he was renting out the apartment on behalf of his mother, who owns it.
When told that he was speaking to my paper, he said "no problem", but then hung up.
Scamwarners.com's adviser, Mr David Jenson, 40, said one should never pay or send personal details to a stranger online.
Insist on seeing the title deeds, said Consumers Association of Singapore executive director Seah Seng Choon.
Check out the rightful owners of a property on the Inland Revenue Authority of Singapore's website, and look for properties via reputable websites like www.iproperty.com and www.propertyguru.com, said Mr Nelson Tan, a council member of the Institute of Estate Agents.
A police spokesman said tenants should request all parties to be present when signing tenancy documents, and should not pay large sums in cash.
joyfang@sph.com.sg
Monday, April 5, 2010
ASIAONE : Condo cheapos shamed
Business @ AsiaOne
Condo cheapos shamed
Condo management names and shames those who don't pay fees on time.
Thu, Apr 01, 2010
The New Paper
NAME and shame - and do so with a method more associated with loan sharks.
One condominium seems to have taken a leaf from their infamous 'Owe$Pay$' strategy by putting up the names of residents who are behind in their maintenance fees.
The Castle Green Condominium management committee (MC) has been pasting lists of residents' names on notice boards next to letterboxes and in lifts at the blocks where they live.
The lists, put up this month, also showed the amounts they owed.
The New Paper counted 36 names. The sums owed ranged from just over $1,000 to nearly $10,000.
Collectively, they owe nearly $70,000.
The maintenance fee for each unit in the 664-unit condo along Yio Chu Kang Road is about $700 every quarter. Owners of bigger units pay more.
The charges are collected every three months.
Next to each list was a notice warning that legal action may be taken against the those who fail to pay their fees.
The Castle Green MC, made up of elected residents, declined to comment. But a managing agent for another condo said that 'shame lists' are effective in making errant residents pay up.
The move has upset some residents at Castle Green - including those not on the list. They feel the MC is being overzealous.
The New Paper spoke to several of those who were named on the lists.
All of them said they had not received any calls or messages from the MC before they were named.
One of them, a resident in his 40s, said the MC's actions were 'high-handed'.
'It's not like we owe them for free - we do pay them interest (on the amount owed) and it's above market rate. If you put the money in a bank, I don't think you get that kind of interest,' he said.
The interest for overdue fees is 10 per cent a year.
He said he was in arrears for three quarters, or nine months. The reason, he claimed, was because he had a huge backlog of letters to deal with.
'I was engaged in other things,' he said. 'This was not my priority, but anyway I pay them interest. So what's the big deal?'
Another debtor, who declined to be named, said his failure to pay for two quarters was the result of a problem with his cheque.
'It's not right - they should constantly give us reminders, or they should call,' he said.
He said he hadn't seen the notices.
There were separate lists at each residential block, carrying the names of those in that particular block who were in arrears.
The complete list of debtors was stuck on a notice board near the condo's clubhouse.
Mr Kesavan Subramaniam, 42, a businessman, said he was unaware that his name was on the list.
He said he had bought the Castle Green apartment - his first condo purchase - a few months ago as an investment. He lives in an HDB flat and rents out his condo unit.
As a new owner, he said he was unsure about what he was supposed to do.
'They should ask for my permission first,' he said. 'If they send letters, and call me, and I say I don't want to pay them ' then okay.
'But it was only last month when they sent me a reminder letter to pay up.'
Even former owners were named.
One of them, a businesswoman, said she had used her apartment to house visiting pastors for her church, but sold it in January.
'I have so many condos,' she said. 'I'm not the one who settles the bills. My staff do it for me.'
'To tell you the truth, I don't even know my unit number.'
She insisted that she had 'settled everything' before she sold the apartment.
Another of those named is a woman in her 40s, who claimed she had never lived in the condominium.
It is co-owned with her ex-husband.
When they divorced 10 years ago, she said they had agreed that he would continue to make all the payments for the unit.
They had not sold it at that time as home prices were below what they had paid for the apartment.
'It's unfair that I am the one being blamed when he's the one who's not paying,' she said.
When told that her name was on the list, she said she was more upset with her ex-husband than with the condominium MC.
Indeed, she didn't see anything wrong with name-and-shame tactics.
'If they really didn't pay up, it's okay,' she said.
Short of cash
Her ex-husband said he did not pay up because he was short of money.
'There are so many things to pay,' he said. 'I settle the important ones, such the car loan and housing loan, first.'
Does the MC have the right to put up the notices?
Lawyer Bryan Tan said there is an issue only if they get the facts wrong.
'If, through an administrative error, the person paid and the system didn't capture the fact and you name the person, you would be defaming him or her,' he said.
He said it is a good idea to send out a reminder letter to give the person concerned a chance to say if he had already paid.
This would cut down the chance of this error.
The New Paper understands that the yearly expenditure for the condo is more than $1 million.
It has a large swimming pool and club house, as well as badminton, squash and tennis courts.
Some residents who were not on the list sympathised with those who had been shamed.
Embarrassing
One of them, a retiree in his 60s, said: 'What's the difference between this and the way the loansharks embarrass their debtors? It's the same - owe money, pay money.
'Only here, they don't splash paint.'
Another resident, in her 50s, who declined to be named, felt that this was an intrusion of privacy.
'It's not nice to write about people like that. It's not fair because you do not know the situation they may be in.'
She felt that those in the MC should have been more civil.
'Don't behave like loansharks. Sit down with these people. Find out why they aren't paying the charges. Maybe they can pay little by little.
'Let's solve the problem together, see what you can do to get the amount down,' she said.
This article was first published in The New Paper.
Condo cheapos shamed
Condo management names and shames those who don't pay fees on time.
Thu, Apr 01, 2010
The New Paper
NAME and shame - and do so with a method more associated with loan sharks.
One condominium seems to have taken a leaf from their infamous 'Owe$Pay$' strategy by putting up the names of residents who are behind in their maintenance fees.
The Castle Green Condominium management committee (MC) has been pasting lists of residents' names on notice boards next to letterboxes and in lifts at the blocks where they live.
The lists, put up this month, also showed the amounts they owed.
The New Paper counted 36 names. The sums owed ranged from just over $1,000 to nearly $10,000.
Collectively, they owe nearly $70,000.
The maintenance fee for each unit in the 664-unit condo along Yio Chu Kang Road is about $700 every quarter. Owners of bigger units pay more.
The charges are collected every three months.
Next to each list was a notice warning that legal action may be taken against the those who fail to pay their fees.
The Castle Green MC, made up of elected residents, declined to comment. But a managing agent for another condo said that 'shame lists' are effective in making errant residents pay up.
The move has upset some residents at Castle Green - including those not on the list. They feel the MC is being overzealous.
The New Paper spoke to several of those who were named on the lists.
All of them said they had not received any calls or messages from the MC before they were named.
One of them, a resident in his 40s, said the MC's actions were 'high-handed'.
'It's not like we owe them for free - we do pay them interest (on the amount owed) and it's above market rate. If you put the money in a bank, I don't think you get that kind of interest,' he said.
The interest for overdue fees is 10 per cent a year.
He said he was in arrears for three quarters, or nine months. The reason, he claimed, was because he had a huge backlog of letters to deal with.
'I was engaged in other things,' he said. 'This was not my priority, but anyway I pay them interest. So what's the big deal?'
Another debtor, who declined to be named, said his failure to pay for two quarters was the result of a problem with his cheque.
'It's not right - they should constantly give us reminders, or they should call,' he said.
He said he hadn't seen the notices.
There were separate lists at each residential block, carrying the names of those in that particular block who were in arrears.
The complete list of debtors was stuck on a notice board near the condo's clubhouse.
Mr Kesavan Subramaniam, 42, a businessman, said he was unaware that his name was on the list.
He said he had bought the Castle Green apartment - his first condo purchase - a few months ago as an investment. He lives in an HDB flat and rents out his condo unit.
As a new owner, he said he was unsure about what he was supposed to do.
'They should ask for my permission first,' he said. 'If they send letters, and call me, and I say I don't want to pay them ' then okay.
'But it was only last month when they sent me a reminder letter to pay up.'
Even former owners were named.
One of them, a businesswoman, said she had used her apartment to house visiting pastors for her church, but sold it in January.
'I have so many condos,' she said. 'I'm not the one who settles the bills. My staff do it for me.'
'To tell you the truth, I don't even know my unit number.'
She insisted that she had 'settled everything' before she sold the apartment.
Another of those named is a woman in her 40s, who claimed she had never lived in the condominium.
It is co-owned with her ex-husband.
When they divorced 10 years ago, she said they had agreed that he would continue to make all the payments for the unit.
They had not sold it at that time as home prices were below what they had paid for the apartment.
'It's unfair that I am the one being blamed when he's the one who's not paying,' she said.
When told that her name was on the list, she said she was more upset with her ex-husband than with the condominium MC.
Indeed, she didn't see anything wrong with name-and-shame tactics.
'If they really didn't pay up, it's okay,' she said.
Short of cash
Her ex-husband said he did not pay up because he was short of money.
'There are so many things to pay,' he said. 'I settle the important ones, such the car loan and housing loan, first.'
Does the MC have the right to put up the notices?
Lawyer Bryan Tan said there is an issue only if they get the facts wrong.
'If, through an administrative error, the person paid and the system didn't capture the fact and you name the person, you would be defaming him or her,' he said.
He said it is a good idea to send out a reminder letter to give the person concerned a chance to say if he had already paid.
This would cut down the chance of this error.
The New Paper understands that the yearly expenditure for the condo is more than $1 million.
It has a large swimming pool and club house, as well as badminton, squash and tennis courts.
Some residents who were not on the list sympathised with those who had been shamed.
Embarrassing
One of them, a retiree in his 60s, said: 'What's the difference between this and the way the loansharks embarrass their debtors? It's the same - owe money, pay money.
'Only here, they don't splash paint.'
Another resident, in her 50s, who declined to be named, felt that this was an intrusion of privacy.
'It's not nice to write about people like that. It's not fair because you do not know the situation they may be in.'
She felt that those in the MC should have been more civil.
'Don't behave like loansharks. Sit down with these people. Find out why they aren't paying the charges. Maybe they can pay little by little.
'Let's solve the problem together, see what you can do to get the amount down,' she said.
This article was first published in The New Paper.
Sunday, March 14, 2010
ASIAONE : Housing agent sublet flat illegally three times
Housing agent sublet flat illegally three times
HDB will now acquire his flat as they step up enforcement against illegal sub-letting. -AsiaOne
Fri, Mar 12, 2010
AsiaOne
In 2007, Mr Poh Boon Kay, a registered real estate agent with five other properties, bought his 4-room Bukit Batok flat at $150,000 without any loans, listing his wife, Mdm Khoo Kim Cheng as occupier.
However, in November 2009, the Housing and Development Board (HDB) discovered that Mr Poh was actually subletting the flat - without HDB's prior approval - to 3 Burmese couples (six adults and one child) at a monthly rent of $1,900. Mr Poh and his family were not residing in the flat.
Two weeks later, HDB informed him that unless the unauthorised sub-tenants are evicted, HDB would take compulsory acquisition action. As the subtenants continued to stay in the flat, a Notice of Board's Intention to compulsorily acquire the flat was served on December 23. On the same day, he said the sub-tenants had signed an undertaking that they would vacate the flat by the end of December.
Mr Poh appealed the next day, claiming that he rented out the flat to the sub-tenants while they worked out their finances in order to buy the flat from him.
When interviewed, he and his wife claimed they did not know that they needed to seek prior approval from HDB before subletting the flat, or that they needed to fulfill the Minimum Occupation Period (MOP) of three years before they are eligible to do so.
Two other cases of illegal sub-letting
HDB subsequently discovered that Mr Poh is related to two more cases of unauthorised sub-letting.
In the second case, he acted as the housing agent for his 91-year-old aunt, whose flat was sublet without HDB's approval to Burmese monks at a monthly rent of $1,400 since July last year. They had used it as a meditation centre, with monthly rents paid out to Mr Poh.
The third case involved his daughter's Telok Blangah flat which was again sublet without HDB's consent to subtenants for $900 a month.
According to a statement released by the HDB, "With these further instances of unauthorised subletting related to Mr. Poh, his claims that he is "unaware" of HDB rules cannot be substantiated. Furthermore, these regulations are publicly available from many sources such as HDB's InfoWeb or service hotline. There is clear evidence that Mr Poh, a housing agent by profession, has been intentionally abusing HDB flats for monetary gains."
HDB has now taken legal action to compulsorily acquire Mr Poh's flat. It plans to take the same action towards his aunt's and daughter's flats as well.
HDB ramps up enforcement against unauthorised subletting
In its statement, HDB said it 'would like to emphasize the severity of unauthorised subletting'.
It said it would take action in those who commit this infringement, from penalties that ranged from fines of $1,000 to $21,000, to repossession of flat. 56 owners have received these penalties from January 2008 to December 2009.
Flat owners who wish to sublet their whole flat must obtain approval from HDB and fulfil the Minimum Occupation Period (MOP). The current MOP for the subletting of flats is as follows:
Flats bought directly from HDB: 5 years
Resale flats purchased with CPF Housing Grant: 5 years
Resale flats purchased without CPF Housing Grant: 3 years
They must also comply with HDB's terms and conditions. For instance, the maximum number of subtenants allowed. 1-Room and 2-Room flats are allowed a maximum of four persons, 3-room flats can have 6 persons, while 4-Room and bigger flat types can have 9 persons in total.
Residents are encouraged to call our dedicated hotline at 1800-5556370 [Monday to Friday - 8am to 5pm] to report any suspected cases.
HDB will now acquire his flat as they step up enforcement against illegal sub-letting. -AsiaOne
Fri, Mar 12, 2010
AsiaOne
In 2007, Mr Poh Boon Kay, a registered real estate agent with five other properties, bought his 4-room Bukit Batok flat at $150,000 without any loans, listing his wife, Mdm Khoo Kim Cheng as occupier.
However, in November 2009, the Housing and Development Board (HDB) discovered that Mr Poh was actually subletting the flat - without HDB's prior approval - to 3 Burmese couples (six adults and one child) at a monthly rent of $1,900. Mr Poh and his family were not residing in the flat.
Two weeks later, HDB informed him that unless the unauthorised sub-tenants are evicted, HDB would take compulsory acquisition action. As the subtenants continued to stay in the flat, a Notice of Board's Intention to compulsorily acquire the flat was served on December 23. On the same day, he said the sub-tenants had signed an undertaking that they would vacate the flat by the end of December.
Mr Poh appealed the next day, claiming that he rented out the flat to the sub-tenants while they worked out their finances in order to buy the flat from him.
When interviewed, he and his wife claimed they did not know that they needed to seek prior approval from HDB before subletting the flat, or that they needed to fulfill the Minimum Occupation Period (MOP) of three years before they are eligible to do so.
Two other cases of illegal sub-letting
HDB subsequently discovered that Mr Poh is related to two more cases of unauthorised sub-letting.
In the second case, he acted as the housing agent for his 91-year-old aunt, whose flat was sublet without HDB's approval to Burmese monks at a monthly rent of $1,400 since July last year. They had used it as a meditation centre, with monthly rents paid out to Mr Poh.
The third case involved his daughter's Telok Blangah flat which was again sublet without HDB's consent to subtenants for $900 a month.
According to a statement released by the HDB, "With these further instances of unauthorised subletting related to Mr. Poh, his claims that he is "unaware" of HDB rules cannot be substantiated. Furthermore, these regulations are publicly available from many sources such as HDB's InfoWeb or service hotline. There is clear evidence that Mr Poh, a housing agent by profession, has been intentionally abusing HDB flats for monetary gains."
HDB has now taken legal action to compulsorily acquire Mr Poh's flat. It plans to take the same action towards his aunt's and daughter's flats as well.
HDB ramps up enforcement against unauthorised subletting
In its statement, HDB said it 'would like to emphasize the severity of unauthorised subletting'.
It said it would take action in those who commit this infringement, from penalties that ranged from fines of $1,000 to $21,000, to repossession of flat. 56 owners have received these penalties from January 2008 to December 2009.
Flat owners who wish to sublet their whole flat must obtain approval from HDB and fulfil the Minimum Occupation Period (MOP). The current MOP for the subletting of flats is as follows:
Flats bought directly from HDB: 5 years
Resale flats purchased with CPF Housing Grant: 5 years
Resale flats purchased without CPF Housing Grant: 3 years
They must also comply with HDB's terms and conditions. For instance, the maximum number of subtenants allowed. 1-Room and 2-Room flats are allowed a maximum of four persons, 3-room flats can have 6 persons, while 4-Room and bigger flat types can have 9 persons in total.
Residents are encouraged to call our dedicated hotline at 1800-5556370 [Monday to Friday - 8am to 5pm] to report any suspected cases.
Monday, March 8, 2010
ASIAONE : Jumbo Queenstown flat valued at $1m
Jumbo Queenstown flat valued at $1m
15-year-old unit along Strathmore Ave is about 40% larger than most units there. -AsiaOne
Fri, Mar 05, 2010
AsiaOne
A Housing Development Board (HDB) flat in Queenstown has been valued at close to a million dollars, and its owner is considering selling the unit.
The 15-year-old apartment is one of units in the 25-storey blocks along Strathmore Avenue in Queenstown. It is about 10 minutes away from Queenstown MRT station, has a balcony, and reportedly an unobstructed view.
The property agent selling this unit told Shin Min Daily that based on the floor area, the flat has been valued at about $1 million.
Shin Min Daily reports that the flat's floor area totals 192 square metres, which is about 2000 square feet. Based on HDB statistics, Queenstown flats can fetch about $400 to $450 per square foot. Based on the rate of $450 psf, the unit is valued at more than $900,000.
However, units along Strathmore Avenue can often fetch a higher price. For example, in February, a flat of 110 square metres was sold for $688,000, which averages out to close to $600 psf. Looking at the transactions of five-room flats in that area in the last three months , the average price psf of is about $540.
Mr Steven Tan, executive director of property firm OrangeTee told Shin Min Daily that the average price psf of flats in that area should be above $500.
Property agents say that flats in that area usually transact in the range of $700,000, but they have not come across a flat of that size.
Mr Lim Yong Hock, senior vice president of PropNex told Shin Min Daily that most buyers of HDB flats will not have a budget of $1 million. For the same amount, the buyer can buy a unit in Toa Payoh, Redhill or Tiong Bahru, which are even nearer to town.
15-year-old unit along Strathmore Ave is about 40% larger than most units there. -AsiaOne
Fri, Mar 05, 2010
AsiaOne
A Housing Development Board (HDB) flat in Queenstown has been valued at close to a million dollars, and its owner is considering selling the unit.
The 15-year-old apartment is one of units in the 25-storey blocks along Strathmore Avenue in Queenstown. It is about 10 minutes away from Queenstown MRT station, has a balcony, and reportedly an unobstructed view.
The property agent selling this unit told Shin Min Daily that based on the floor area, the flat has been valued at about $1 million.
Shin Min Daily reports that the flat's floor area totals 192 square metres, which is about 2000 square feet. Based on HDB statistics, Queenstown flats can fetch about $400 to $450 per square foot. Based on the rate of $450 psf, the unit is valued at more than $900,000.
However, units along Strathmore Avenue can often fetch a higher price. For example, in February, a flat of 110 square metres was sold for $688,000, which averages out to close to $600 psf. Looking at the transactions of five-room flats in that area in the last three months , the average price psf of is about $540.
Mr Steven Tan, executive director of property firm OrangeTee told Shin Min Daily that the average price psf of flats in that area should be above $500.
Property agents say that flats in that area usually transact in the range of $700,000, but they have not come across a flat of that size.
Mr Lim Yong Hock, senior vice president of PropNex told Shin Min Daily that most buyers of HDB flats will not have a budget of $1 million. For the same amount, the buyer can buy a unit in Toa Payoh, Redhill or Tiong Bahru, which are even nearer to town.
Thursday, February 4, 2010
AsiaOne : Bargain houses in Singapore
$135k for a terrace house in Kallang area
The catch? Most of these houses are on short leases.
Mon, Feb 01, 2010
The New Paper
WHAT can you buy for $135,000?
A two-room flat in Lorong Lew Lian (Upper Serangoon), perhaps.
But how about a double-storey terrace house in the Kallang area' One terrace unit in Upper Boon Keng Road was sold for that price in October last year, according to URA statistics.
It sits on a land area of about 725 sq ft with a built-up area of about 1,300 sq ft. How is this even possible?
The catch - the house has only 10 years remaining on its lease.
There are at least 250 such terrace houses here and most of them are on short leases.
Settled down
For Mr C Y Koh, this 'cheap' estate has been his home for the last 50 years. He and his wife settled there after their kampung was burnt down in 1961.
The Kohs currently live in their two-bedroom double-storey house with their son, who is in his 40s, and their two grandchildren, aged 13 and 10.
Speaking to The New Paper in a mix of Mandarin and Hokkien, the 71-year-old retiree said: 'It's very safe here, everyone knows each other. In the past we didn't even have to lock our front doors.'
He bought his unit for about $5,000, paying the sum off with monthly instalments of about $30. According to residents, they were given the option to resettle there in double-storey terrace houses with leases of 60 years. Their homes are on State land which is zoned as residential under the Master Plan 2008, on the URA website.
His wife, Mrs A I Koh, 70, said that she would live there until the lease runs out.
The estate is a 15-minute walk from Kallang MRT Station and a 10-minute drive away from the city centre. The Upper Boon Keng wet market is also a five-minute walk away.
Despite the range of amenities, many of the Kohs' neighbours have moved out. Almost all of them have moved in with their children, said Mrs Koh.
Many units there have been converted to temples or rented out to contractors, who use them to house foreign workers. This is because it's cheap to buy the houses there.
Mr Koh estimated that foreign workers now occupy half of the houses there.
Sell or rent out
Mr Nicholas Mak, a real-estate lecturer at Ngee Ann Polytechnic, said of the estate's transformation: 'Many of these owners would either sell or rent out the place to contractors or labour brokers who would then house foreign workers.
'The contractors might find it flexible to house their workers there rather than in a dormitory.'
He added that with so many foreign workers living there, the estate would become less appealing and less desirable to Singaporeans.
Many of the residents agreed with his sentiment.
Mrs Ou Mei Xia, who is in her 70s and has lived there since the 1960s, said: 'The kampung atmosphere has diminished. Even though the foreigners don't disturb us, they make a bit of noise occasionally.'
Madam Phyllis Koh, Mr Koh's sister who used to live in the estate, said: 'It's quite sad. It is very difficult to find areas like these with such a communal spirit in Singapore these days.'
- Danson Cheong, newsroom intern
--------------------------------------------------------------------------------
$500k for a terrace house?
MRT station, coffee shops and supermarket just a walk away. But there's a catch.
Mon, Feb 01, 2010
The New Paper
HIS two-storey home is well-renovated, with a lush garden and ample parking space.
The 72-year-old, who wanted to be known only as Mr He, had bought his double-storey terrace house in Jalan Chempaka Kuning, a little cul-de-sac in Bedok, six years ago for $600,000.
The retiree said he rejected a $600,000 offer for his home - about 2,200 sq ft big - a few months ago.
Property agents we spoke to valued homes like his at under $500,000 today.
This is even cheaper than some five-room HDB flats in prime areas.
The catch?
Only 26 years remain on the lease of the land his home is sitting on.
However, this does not bother Mr He.
He told The New Paper in Mandarin: 'It's hard to find such nice and quiet places in Singapore now.
'At $600,000, I'll be hard pressed to find even a five-room flat.'
Having paid the full amount for his home, Mr He is not tied down by a home loan.
Three generations of his family live under one roof.
Mr He said that the proximity to many amenities and the ample space for gardening were also big draws for him.
Conveniences
The terrace houses in the Jalan Chempaka Kuning cluster are a 15-minute walk away from the Tanah Merah MRT station. Conveniences like a supermarket, a few 24-hour coffee shops and a petrol station are a brisk five-minute walk away.
Among the homes in the area, about 140 terrace and semi-detached houses are leasehold properties.
They sit on a large plot of freehold land which belonged to Mr Koh Sek Lim, a property owner in the east who has since died, The New Paper reported in Feb 2006.
Mr Koh sold a 70-year lease for the land in the 1960s to several developers who built and marketed the houses there.
It's unclear what will happen to this estate when the lease runs out.
But the residents we spoke to said that the short lease does not bother them.
The main draw of these properties are its low prices and the space available for gardening. For $600,000, you can perhaps get a five-room HDB flat in nearby Marine Parade.
Prices of five-room flats in Marine Parade averaged about $625,000, according to HDB statistics in the last quarter.
Prices of landed properties also jumped by 8.3 percent in the fourth quarter of last year and 7.7 percent for the whole of 2009, according to recent URAdata.
Mr Eric Cheng, CEO of ECG Property, said that even though properties in the Jalan Chempaka Kuning cluster may be cheap, buyers would have to pay in cash as banks usually will not approve loans for properties with fewer than 30 years left on the lease.
Banks generally take their cue from the CPF Board's 30-year cut-off against use of members' savings to pay for mortgage.
This is not really a problem for some of the residents here, who are mainly cash-rich retirees.
Mrs Y M Ye, 75, a retiree, said: 'Most of the residents in the area are retired and enjoy living in the area.
'It is convenient - I can walk to the market at Simpang Bedok and I have space for gardening.'
Staying put
Mrs Ye, who has lived in her two-storey, three-bedroom terrace house with her family for more than 20years, has no intention of selling her home.
Most of the residents we spoke to shared her views.
Mr Cheng added: 'For retirees who do not wish to be tied down by a loan, properties in the area are very attractive. It is a very good place to live in, based on the price.'
Jalan Chempaka Kuning is not just a sleepy, retirement enclave though.
There were a number of young residents out-and-about making use of the nearby park and playgrounds in the area.
Student Richard Quek, 18, lives with his parents in the area.
He said: 'I've lived here for seven years, I love the number of eating places nearby. It is very convenient.'
- Danson Cheong, newsroom intern
--------------------------------------------------------------------------------
Haig Road flats up to $100,000 less
Close to beach, yet much cheaper than flats at Marine Parade.
Mon, Feb 01, 2010
The New Paper
By Elysa Chen
HER block of flats is sandwiched between clusters of condominiums and landed property.
A brisk 10 minutes' walk can take her to the Geylang Serai market, while East Coast Park is just a few minutes away by bus. Her home is also just a 10 to 15-minute walk from Paya Lebar MRT station.
It is no wonder that after living in the Haig Road estate for more than 30 years, Madam S Salimah's 78-year-old mother is reluctant to sell her flat.
But she is getting frail, so she is moving in with Madam Salimah, 58, a retiree who lives with her husband in a three-room flat in Ang Mo Kio.
Madam Salimah's family had first rented a home in the estate before her mother bought the three-room second storey flat for $27,000 in 1982. Their 635sqft flat was recently valued at about $233,000.
A reasonable price if you compare it with flats in Marine Parade, a premium beachfront neighbourhood nearby. A similar-sized three-room flat in Marine Parade was sold for $280,000 around August last year, according to information on HDB's website.
In other words, the Marine Parade flat cost about $50,000 more, and is seven years older.
Madam Salimah said: "Given the choice, we wouldn't sell. Even President S R Nathan lives nearby, on Ceylon Road."
The community centre is just across the road from their home, there is a kindergarten at their void deck, and several good schools in the area.
With easy access to malls like City Plaza and Tanjong Katong Shopping Centre, she rarely needs to travel to town. If she wants to get to the city, there are several direct buses and it takes only half an hour, said Madam Salimah.
The beach is also just a short bus ride away, and Madam Salimah goes there with her family twice a month.
Mr Azhar Johar, a PropNex agent who is helping Madam Salimah to sell her home, said that flats in Haig Road are a good, and cheaper, alternative to those in Marine Parade.
--------------------------------------------------------------------------------
Green light for red-light district living
Family of four unfazed by negative connotations of living in Geylang.
Mon, Feb 01, 2010
The New Paper
By Danson Cheong, newsroom intern
IT'S barely a 10-minute drive from town. The Paya Lebar MRT station is just a brisk five-minute walk away.
And it's smack in the middle of a food hub, with delicious local fare like beef kway teow and hokkien mee just around the corner.
The average price of a 1,200 sq ft condo unit in this condominium is about $688,000, according to the Urban Redevelopment Authority resale data.
The price is certainly attractive in today's market, but some may baulk at the location because the Aston Mansions condominium is located in Lorong 42, Geylang.
Not Mr Simon Lim and his wife Irene, a couple in their late 40s.
In 1995, they bought a unit in the 99-year leasehold condo for $750,000. They live there with their two adult children, aged 22 and 25.
Mrs Lim, who works in a head-hunting firm, said: "The Geylang name carries with it a certain negative connotation. But before we moved in, we made sure there were no pubs, novice and no drinking near the condo."
But with a current price tag of below $700,000,one can hardly complain. This is almost as cheap as some five-room flats in some prime areas.
For example, the median price of a five-room flat in Queenstown was around $645,000 last month, according to HDB resale statistics. The size of the five-room flat and the condo unit is almost similar.
A similarly sized condo unit at The Trumps in Kembangan, two train stops away, was sold for $913,000 in October.
The rental yield for private property in Geylang is quite decent too, because of its low capital cost.
Property agent Angeline Lim estimated that the rent of a 1,200 sq ft apartment at Aston Mansions will be around $3,500. That gives a rental yield of about 5 per cent.
Mr Eric Cheng, CEO of ECG Property, said that condos in the Geylang area are cheaper than those in other areas because the demand for such properties is not very high.
He also said that for properties in the Geylang area, some banks may not give the normal 80 per cent of the property value as a loan.
He believes this is because if the property market dips, these properties would probably be the most difficult to sell.
Mr Lim, who works in the property industry himself, said he was looking for a home in a more central area with easy access to the city centre when he bought his Geylang condo.
No regrets
His family had earlier lived in a maisonette in Yishun, which they bought for $100,000 in the 1980s. They sold it for $400,000 in 1995.
Mrs Lim added: "Then, Yishun was not a mature town yet. The location here is much better. "And of course, it's close to a lot of good food."
And they haven't regretted their decision to move to Geylang. The city centre, which is a 10-minute drive across Nicoll Highway, is also where Mrs Lim works.
Geylang is also highly accessible by bus, with 19 different services - including one night service.
The Lims' son, Derrick, 22, who is currently doing national service in the police force, said: "It is easy for me to get to the station and back with all the bus services nearby."
The New Paper had a look around the area and found it to be peaceful, with none of the usual dubious characters one would associate with the area. This condo has the usual facilities like a swimming pool, a jacuzzi and underground parking space.
But being so close to the red-light district admittedly does have its drawbacks. Mrs Lim said:
"There used to be a number of suspicious characters who rented some of the neighbouring units. It's much better now - the management is very strict."
The catch? Most of these houses are on short leases.
Mon, Feb 01, 2010
The New Paper
WHAT can you buy for $135,000?
A two-room flat in Lorong Lew Lian (Upper Serangoon), perhaps.
But how about a double-storey terrace house in the Kallang area' One terrace unit in Upper Boon Keng Road was sold for that price in October last year, according to URA statistics.
It sits on a land area of about 725 sq ft with a built-up area of about 1,300 sq ft. How is this even possible?
The catch - the house has only 10 years remaining on its lease.
There are at least 250 such terrace houses here and most of them are on short leases.
Settled down
For Mr C Y Koh, this 'cheap' estate has been his home for the last 50 years. He and his wife settled there after their kampung was burnt down in 1961.
The Kohs currently live in their two-bedroom double-storey house with their son, who is in his 40s, and their two grandchildren, aged 13 and 10.
Speaking to The New Paper in a mix of Mandarin and Hokkien, the 71-year-old retiree said: 'It's very safe here, everyone knows each other. In the past we didn't even have to lock our front doors.'
He bought his unit for about $5,000, paying the sum off with monthly instalments of about $30. According to residents, they were given the option to resettle there in double-storey terrace houses with leases of 60 years. Their homes are on State land which is zoned as residential under the Master Plan 2008, on the URA website.
His wife, Mrs A I Koh, 70, said that she would live there until the lease runs out.
The estate is a 15-minute walk from Kallang MRT Station and a 10-minute drive away from the city centre. The Upper Boon Keng wet market is also a five-minute walk away.
Despite the range of amenities, many of the Kohs' neighbours have moved out. Almost all of them have moved in with their children, said Mrs Koh.
Many units there have been converted to temples or rented out to contractors, who use them to house foreign workers. This is because it's cheap to buy the houses there.
Mr Koh estimated that foreign workers now occupy half of the houses there.
Sell or rent out
Mr Nicholas Mak, a real-estate lecturer at Ngee Ann Polytechnic, said of the estate's transformation: 'Many of these owners would either sell or rent out the place to contractors or labour brokers who would then house foreign workers.
'The contractors might find it flexible to house their workers there rather than in a dormitory.'
He added that with so many foreign workers living there, the estate would become less appealing and less desirable to Singaporeans.
Many of the residents agreed with his sentiment.
Mrs Ou Mei Xia, who is in her 70s and has lived there since the 1960s, said: 'The kampung atmosphere has diminished. Even though the foreigners don't disturb us, they make a bit of noise occasionally.'
Madam Phyllis Koh, Mr Koh's sister who used to live in the estate, said: 'It's quite sad. It is very difficult to find areas like these with such a communal spirit in Singapore these days.'
- Danson Cheong, newsroom intern
--------------------------------------------------------------------------------
$500k for a terrace house?
MRT station, coffee shops and supermarket just a walk away. But there's a catch.
Mon, Feb 01, 2010
The New Paper
HIS two-storey home is well-renovated, with a lush garden and ample parking space.
The 72-year-old, who wanted to be known only as Mr He, had bought his double-storey terrace house in Jalan Chempaka Kuning, a little cul-de-sac in Bedok, six years ago for $600,000.
The retiree said he rejected a $600,000 offer for his home - about 2,200 sq ft big - a few months ago.
Property agents we spoke to valued homes like his at under $500,000 today.
This is even cheaper than some five-room HDB flats in prime areas.
The catch?
Only 26 years remain on the lease of the land his home is sitting on.
However, this does not bother Mr He.
He told The New Paper in Mandarin: 'It's hard to find such nice and quiet places in Singapore now.
'At $600,000, I'll be hard pressed to find even a five-room flat.'
Having paid the full amount for his home, Mr He is not tied down by a home loan.
Three generations of his family live under one roof.
Mr He said that the proximity to many amenities and the ample space for gardening were also big draws for him.
Conveniences
The terrace houses in the Jalan Chempaka Kuning cluster are a 15-minute walk away from the Tanah Merah MRT station. Conveniences like a supermarket, a few 24-hour coffee shops and a petrol station are a brisk five-minute walk away.
Among the homes in the area, about 140 terrace and semi-detached houses are leasehold properties.
They sit on a large plot of freehold land which belonged to Mr Koh Sek Lim, a property owner in the east who has since died, The New Paper reported in Feb 2006.
Mr Koh sold a 70-year lease for the land in the 1960s to several developers who built and marketed the houses there.
It's unclear what will happen to this estate when the lease runs out.
But the residents we spoke to said that the short lease does not bother them.
The main draw of these properties are its low prices and the space available for gardening. For $600,000, you can perhaps get a five-room HDB flat in nearby Marine Parade.
Prices of five-room flats in Marine Parade averaged about $625,000, according to HDB statistics in the last quarter.
Prices of landed properties also jumped by 8.3 percent in the fourth quarter of last year and 7.7 percent for the whole of 2009, according to recent URAdata.
Mr Eric Cheng, CEO of ECG Property, said that even though properties in the Jalan Chempaka Kuning cluster may be cheap, buyers would have to pay in cash as banks usually will not approve loans for properties with fewer than 30 years left on the lease.
Banks generally take their cue from the CPF Board's 30-year cut-off against use of members' savings to pay for mortgage.
This is not really a problem for some of the residents here, who are mainly cash-rich retirees.
Mrs Y M Ye, 75, a retiree, said: 'Most of the residents in the area are retired and enjoy living in the area.
'It is convenient - I can walk to the market at Simpang Bedok and I have space for gardening.'
Staying put
Mrs Ye, who has lived in her two-storey, three-bedroom terrace house with her family for more than 20years, has no intention of selling her home.
Most of the residents we spoke to shared her views.
Mr Cheng added: 'For retirees who do not wish to be tied down by a loan, properties in the area are very attractive. It is a very good place to live in, based on the price.'
Jalan Chempaka Kuning is not just a sleepy, retirement enclave though.
There were a number of young residents out-and-about making use of the nearby park and playgrounds in the area.
Student Richard Quek, 18, lives with his parents in the area.
He said: 'I've lived here for seven years, I love the number of eating places nearby. It is very convenient.'
- Danson Cheong, newsroom intern
--------------------------------------------------------------------------------
Haig Road flats up to $100,000 less
Close to beach, yet much cheaper than flats at Marine Parade.
Mon, Feb 01, 2010
The New Paper
By Elysa Chen
HER block of flats is sandwiched between clusters of condominiums and landed property.
A brisk 10 minutes' walk can take her to the Geylang Serai market, while East Coast Park is just a few minutes away by bus. Her home is also just a 10 to 15-minute walk from Paya Lebar MRT station.
It is no wonder that after living in the Haig Road estate for more than 30 years, Madam S Salimah's 78-year-old mother is reluctant to sell her flat.
But she is getting frail, so she is moving in with Madam Salimah, 58, a retiree who lives with her husband in a three-room flat in Ang Mo Kio.
Madam Salimah's family had first rented a home in the estate before her mother bought the three-room second storey flat for $27,000 in 1982. Their 635sqft flat was recently valued at about $233,000.
A reasonable price if you compare it with flats in Marine Parade, a premium beachfront neighbourhood nearby. A similar-sized three-room flat in Marine Parade was sold for $280,000 around August last year, according to information on HDB's website.
In other words, the Marine Parade flat cost about $50,000 more, and is seven years older.
Madam Salimah said: "Given the choice, we wouldn't sell. Even President S R Nathan lives nearby, on Ceylon Road."
The community centre is just across the road from their home, there is a kindergarten at their void deck, and several good schools in the area.
With easy access to malls like City Plaza and Tanjong Katong Shopping Centre, she rarely needs to travel to town. If she wants to get to the city, there are several direct buses and it takes only half an hour, said Madam Salimah.
The beach is also just a short bus ride away, and Madam Salimah goes there with her family twice a month.
Mr Azhar Johar, a PropNex agent who is helping Madam Salimah to sell her home, said that flats in Haig Road are a good, and cheaper, alternative to those in Marine Parade.
--------------------------------------------------------------------------------
Green light for red-light district living
Family of four unfazed by negative connotations of living in Geylang.
Mon, Feb 01, 2010
The New Paper
By Danson Cheong, newsroom intern
IT'S barely a 10-minute drive from town. The Paya Lebar MRT station is just a brisk five-minute walk away.
And it's smack in the middle of a food hub, with delicious local fare like beef kway teow and hokkien mee just around the corner.
The average price of a 1,200 sq ft condo unit in this condominium is about $688,000, according to the Urban Redevelopment Authority resale data.
The price is certainly attractive in today's market, but some may baulk at the location because the Aston Mansions condominium is located in Lorong 42, Geylang.
Not Mr Simon Lim and his wife Irene, a couple in their late 40s.
In 1995, they bought a unit in the 99-year leasehold condo for $750,000. They live there with their two adult children, aged 22 and 25.
Mrs Lim, who works in a head-hunting firm, said: "The Geylang name carries with it a certain negative connotation. But before we moved in, we made sure there were no pubs, novice and no drinking near the condo."
But with a current price tag of below $700,000,one can hardly complain. This is almost as cheap as some five-room flats in some prime areas.
For example, the median price of a five-room flat in Queenstown was around $645,000 last month, according to HDB resale statistics. The size of the five-room flat and the condo unit is almost similar.
A similarly sized condo unit at The Trumps in Kembangan, two train stops away, was sold for $913,000 in October.
The rental yield for private property in Geylang is quite decent too, because of its low capital cost.
Property agent Angeline Lim estimated that the rent of a 1,200 sq ft apartment at Aston Mansions will be around $3,500. That gives a rental yield of about 5 per cent.
Mr Eric Cheng, CEO of ECG Property, said that condos in the Geylang area are cheaper than those in other areas because the demand for such properties is not very high.
He also said that for properties in the Geylang area, some banks may not give the normal 80 per cent of the property value as a loan.
He believes this is because if the property market dips, these properties would probably be the most difficult to sell.
Mr Lim, who works in the property industry himself, said he was looking for a home in a more central area with easy access to the city centre when he bought his Geylang condo.
No regrets
His family had earlier lived in a maisonette in Yishun, which they bought for $100,000 in the 1980s. They sold it for $400,000 in 1995.
Mrs Lim added: "Then, Yishun was not a mature town yet. The location here is much better. "And of course, it's close to a lot of good food."
And they haven't regretted their decision to move to Geylang. The city centre, which is a 10-minute drive across Nicoll Highway, is also where Mrs Lim works.
Geylang is also highly accessible by bus, with 19 different services - including one night service.
The Lims' son, Derrick, 22, who is currently doing national service in the police force, said: "It is easy for me to get to the station and back with all the bus services nearby."
The New Paper had a look around the area and found it to be peaceful, with none of the usual dubious characters one would associate with the area. This condo has the usual facilities like a swimming pool, a jacuzzi and underground parking space.
But being so close to the red-light district admittedly does have its drawbacks. Mrs Lim said:
"There used to be a number of suspicious characters who rented some of the neighbouring units. It's much better now - the management is very strict."
Wednesday, January 20, 2010
AsiaOne : I live like a king
I live like a king
Man who "settled" for Yishun flat says he feels like he's living in condo.
Wed, Jan 20, 2010
The New Paper
BY ELYSA CHEN
HE HAD wanted to buy a 4-room flat in Ang Mo Kio, but settled for Yishun instead when he couldn't afford it.
It was probably one of the best decisions that 53-year-old driver Low Hoon Chee made. He saved $50,000 and Ang Mo Kio is just three MRT stops away from Yishun.
With a shopping centre and swimming pool within walking distance, Mr Low said it feels like he has a full suite of condo facilities and added: "I feel like a king, even though I live in a flat."
He is one of many homebuyers who are not willing to pay high prices for flats in central or mature estates.
A two-room HDB flat in Chinatown made headlines after it was sold for $245,000 two months ago. That, to Mr Low, is the height of insanity.
After all, flats in outlying areas tend to be cheaper, bigger and newer compared to their counterparts located in
a more prime location.
When Mr Low sold his three-room flat in Toa Payoh 13 years ago for $168,000, he wanted to upgrade to a four-room flat in Ang Mo Kio, as he and his wife was expecting their second child.
After all, he had made a handsome profit, having bought it for $52,000 seven years earlier. But with his budget of $200,000, he could afford only a three-room flat in Ang Mo Kio.
The four-room flats in Ang Mo Kio and Toa Payoh were going for around $250,000 then, said Mr Low. The couple then decided to look for a unit in Yishun - buying a 84 sq m flat there for just $200,000.
Although his wife, Madam Xu Li Hua, 38, a housewife, found Yishun inaccessible at first, she now prefers her current home to her former flat in Toa Payoh.
She said: "I prefer our flat now, it's much bigger than our old home. I want to live here till I grow old." Mr Low added: "Why should I buy a three-room flat in Ang Mo Kio when I can get a four-room flat in Yishun for just $200,000?"
He not only could get a bigger flat, he even managed to get a unit on a high floor.
Mr Low said: "My wife and I fell in love with the flat when we came to view it the first time. We sat there for
an hour without moving, enjoying the breeze on the high floor. The feeling was so 'shiok'."
His home, which is on the 11th storey of a block along Yishun Avenue 2, is just five to 10 minutes' walk from Yishun MRT station. It is also a brisk 10 minutes' walk to Northpoint Shopping Centre and is close to amenities such as a wet market, coffee shops and two parks - the Yishun Town Garden and the Nee Soon Central Community Park.
Mr Low also goes swimming with his son almost every day because there's a swimming pool just a few minutes' walk from his home.
He added: "It's almost like living in a condominium, just that I don't have to pay maintenance fees. Where else can I find such a good flat?"
And the prices of flats in Yishun might rise even further, especially with the opening of the Khoo Teck Puat hospital this year, and an air-conditioned interchange at Yishun which is due to be completed in 2013.
Mr Low's flat is worth around $270,000 today. Conversely, a four-room flat in Ang Mo Kio 10 minutes' walk away from the MRT station would be worth around $400,000, based on recent transacted prices. That's a $130,000 price difference between two estates just three MRT stations apart.
While some may argue that nothing beats living in a prime location, industry watchers say that moving from a prime location to an outlying one may be a good decision.
Associate director of ERA Asia Pacific Eugene Lim said of home owners in the suburban areas: "The primary motivation for these home buyers is to pay a lower price for more space."
Affordable
Mr Lim said that couples usually start out with a smaller flat in the central area because of convenience.
But some will move towards the suburban areas because units there are more affordable, given the space.
Mr Eric Cheng, CEO of ECG Property, said that four-room flats in Yishun tend to be cheaper than other estates because Yishun is a big town, so the large supply of flats, relative to the demand for flats there, keeps prices low.
The price difference there, as compared to some other housing estates, could range between $40,000 and $100,000.
PRICE VS PLACE
Yishun flats tend to be smaller than Ang Mo Kio flats, but they are newer. Price comparisons were done for flats near the MRT station.
3-ROOM
ANG MO KIO: $310,000
YISHUN: $230,000
4-ROOM
ANG MO KIO: $380,000
YISHUN: $270,000
5-ROOM
ANG MO KIO: $475,000
YISHUN: $415,000
Information taken from HDB website.
Man who "settled" for Yishun flat says he feels like he's living in condo.
Wed, Jan 20, 2010
The New Paper
BY ELYSA CHEN
HE HAD wanted to buy a 4-room flat in Ang Mo Kio, but settled for Yishun instead when he couldn't afford it.
It was probably one of the best decisions that 53-year-old driver Low Hoon Chee made. He saved $50,000 and Ang Mo Kio is just three MRT stops away from Yishun.
With a shopping centre and swimming pool within walking distance, Mr Low said it feels like he has a full suite of condo facilities and added: "I feel like a king, even though I live in a flat."
He is one of many homebuyers who are not willing to pay high prices for flats in central or mature estates.
A two-room HDB flat in Chinatown made headlines after it was sold for $245,000 two months ago. That, to Mr Low, is the height of insanity.
After all, flats in outlying areas tend to be cheaper, bigger and newer compared to their counterparts located in
a more prime location.
When Mr Low sold his three-room flat in Toa Payoh 13 years ago for $168,000, he wanted to upgrade to a four-room flat in Ang Mo Kio, as he and his wife was expecting their second child.
After all, he had made a handsome profit, having bought it for $52,000 seven years earlier. But with his budget of $200,000, he could afford only a three-room flat in Ang Mo Kio.
The four-room flats in Ang Mo Kio and Toa Payoh were going for around $250,000 then, said Mr Low. The couple then decided to look for a unit in Yishun - buying a 84 sq m flat there for just $200,000.
Although his wife, Madam Xu Li Hua, 38, a housewife, found Yishun inaccessible at first, she now prefers her current home to her former flat in Toa Payoh.
She said: "I prefer our flat now, it's much bigger than our old home. I want to live here till I grow old." Mr Low added: "Why should I buy a three-room flat in Ang Mo Kio when I can get a four-room flat in Yishun for just $200,000?"
He not only could get a bigger flat, he even managed to get a unit on a high floor.
Mr Low said: "My wife and I fell in love with the flat when we came to view it the first time. We sat there for
an hour without moving, enjoying the breeze on the high floor. The feeling was so 'shiok'."
His home, which is on the 11th storey of a block along Yishun Avenue 2, is just five to 10 minutes' walk from Yishun MRT station. It is also a brisk 10 minutes' walk to Northpoint Shopping Centre and is close to amenities such as a wet market, coffee shops and two parks - the Yishun Town Garden and the Nee Soon Central Community Park.
Mr Low also goes swimming with his son almost every day because there's a swimming pool just a few minutes' walk from his home.
He added: "It's almost like living in a condominium, just that I don't have to pay maintenance fees. Where else can I find such a good flat?"
And the prices of flats in Yishun might rise even further, especially with the opening of the Khoo Teck Puat hospital this year, and an air-conditioned interchange at Yishun which is due to be completed in 2013.
Mr Low's flat is worth around $270,000 today. Conversely, a four-room flat in Ang Mo Kio 10 minutes' walk away from the MRT station would be worth around $400,000, based on recent transacted prices. That's a $130,000 price difference between two estates just three MRT stations apart.
While some may argue that nothing beats living in a prime location, industry watchers say that moving from a prime location to an outlying one may be a good decision.
Associate director of ERA Asia Pacific Eugene Lim said of home owners in the suburban areas: "The primary motivation for these home buyers is to pay a lower price for more space."
Affordable
Mr Lim said that couples usually start out with a smaller flat in the central area because of convenience.
But some will move towards the suburban areas because units there are more affordable, given the space.
Mr Eric Cheng, CEO of ECG Property, said that four-room flats in Yishun tend to be cheaper than other estates because Yishun is a big town, so the large supply of flats, relative to the demand for flats there, keeps prices low.
The price difference there, as compared to some other housing estates, could range between $40,000 and $100,000.
PRICE VS PLACE
Yishun flats tend to be smaller than Ang Mo Kio flats, but they are newer. Price comparisons were done for flats near the MRT station.
3-ROOM
ANG MO KIO: $310,000
YISHUN: $230,000
4-ROOM
ANG MO KIO: $380,000
YISHUN: $270,000
5-ROOM
ANG MO KIO: $475,000
YISHUN: $415,000
Information taken from HDB website.
AsiaOne : Two executive condos sites to launch
Two executive condos sites to launch
The sites at Sengkang and Yishun offer 900 units in total. -AsiaOne
Thu, Jan 14, 2010
AsiaOne
The Housing Development Board (HDB) is launching two Executive Condominium (EC) housing sites in Sengkang and Yishun tomorrow.
The two EC housing sites are Compassvale Bow at Sengkang and Yishun Avenue 11 and have a combined yield of about 900 units.
The tender for Compassvale Bow will close on Mar 4 and the tender for Yishun Avenue 11 will close on Mar 11.
Compassvale Bow is located near to Buangkok MRT station and is easily accessible from major expressways such as TPE and KPE. Grocery shopping facilities and eateries are a stone's throw away. Recreational choices such as Punggol Park and Sengkang Sports and Recreation Centre are within easy reach.
Yishun is well served by a comprehensive network of roads and expressways such as Yishun Avenue 2 and SLE. Yishun and Khatib MRT stations and Yishun bus interchange are also within the vicinity. The site is also only a few minutes' walk from Yishun Park and is near to shopping and dining conveniences.
New EC units are sold with initial eligibility and ownership restrictions similar to public housing, and will be fully converted to private housing after 10 years.
ECs cater to families whose household incomes are above the $8,000 income eligibility criterion for new HDB flats, but earn below $10,000. Eligible first-timers who purchase new ECs can also apply for a $30,000 CPF housing grant.
As with other HDB launches, 95 per cent of flat supply will be set aside for for first-timers during the first month of sale. Second-timers buying new ECs do not need to pay any resale levy.
For enquiries, interested buyers can email to hdblandsales@hdb.gov.sg, call 6490 3037 or 6490 3446, fax to 6490 3005 or access HDB's enquiry form at www.hdb.gov.sg/hdblandsales.
The sites at Sengkang and Yishun offer 900 units in total. -AsiaOne
Thu, Jan 14, 2010
AsiaOne
The Housing Development Board (HDB) is launching two Executive Condominium (EC) housing sites in Sengkang and Yishun tomorrow.
The two EC housing sites are Compassvale Bow at Sengkang and Yishun Avenue 11 and have a combined yield of about 900 units.
The tender for Compassvale Bow will close on Mar 4 and the tender for Yishun Avenue 11 will close on Mar 11.
Compassvale Bow is located near to Buangkok MRT station and is easily accessible from major expressways such as TPE and KPE. Grocery shopping facilities and eateries are a stone's throw away. Recreational choices such as Punggol Park and Sengkang Sports and Recreation Centre are within easy reach.
Yishun is well served by a comprehensive network of roads and expressways such as Yishun Avenue 2 and SLE. Yishun and Khatib MRT stations and Yishun bus interchange are also within the vicinity. The site is also only a few minutes' walk from Yishun Park and is near to shopping and dining conveniences.
New EC units are sold with initial eligibility and ownership restrictions similar to public housing, and will be fully converted to private housing after 10 years.
ECs cater to families whose household incomes are above the $8,000 income eligibility criterion for new HDB flats, but earn below $10,000. Eligible first-timers who purchase new ECs can also apply for a $30,000 CPF housing grant.
As with other HDB launches, 95 per cent of flat supply will be set aside for for first-timers during the first month of sale. Second-timers buying new ECs do not need to pay any resale levy.
For enquiries, interested buyers can email to hdblandsales@hdb.gov.sg, call 6490 3037 or 6490 3446, fax to 6490 3005 or access HDB's enquiry form at www.hdb.gov.sg/hdblandsales.
Thursday, January 14, 2010
AsiaOne : $100,000 difference for flats in the same estate
$100,000 difference for flats in the same estate
Property experts have their say on why this could happen. -AsiaOne
Thu, Jan 14, 2010
AsiaOne
They are in the same estate, but the price range for similar sized HDB flats in some estates could vary by about $80,000 to $100,000.
In HDB's annual report for 2008/2009, published figures show that the price range of new four-room flats offered in Punggol was $223,000 to $327,000. The difference of $104,000 meant that flats in the highest price range was 46 per cent more than the price of the lowest priced units.
In Sengkang, the difference was $85,000 or 44 per cent, with flats ranging from $190,000 to $275,000.
These two areas show the largest difference in prices, according to the table published by HDB.
HDB states in its annual report that the price differential may not be directly comparable as "it may be affected by different attributes of flats offered such as location, design, storey-height, orientation, etc".
Mr Tan Kin Lian, president of the Financial Services Consumers Association of Singapore (FiSCA), told Shin Min Daily that he finds the price difference hard to understand. He felt that the price difference for flats in the same area should be about 10 to 15 per cent.
HSR Property director Mr Jeffrey Hong feels that part of the reason lies in fluctuations in last year's property market, when the beginning of the year saw much lower prices compared to the latter half of the year.
HSR Property Executive Director, Mr Jeffrey Hong.
For example, $20,000 to $23,000 was the average price of a four-room flat in Punggol at the beginning of 2009, but by the end of the year, it had risen to about $280,000 on average.
Mr Lim Yong Hock
Mr Lim Yong Hock, senior vice president of PropNex told Shin Min that as Punggol and Sengkang are big housing estates, and some parts are not fully developed, thus resulting in large price premiums for areas which are near the MRT stations and town centres.
Property experts have their say on why this could happen. -AsiaOne
Thu, Jan 14, 2010
AsiaOne
They are in the same estate, but the price range for similar sized HDB flats in some estates could vary by about $80,000 to $100,000.
In HDB's annual report for 2008/2009, published figures show that the price range of new four-room flats offered in Punggol was $223,000 to $327,000. The difference of $104,000 meant that flats in the highest price range was 46 per cent more than the price of the lowest priced units.
In Sengkang, the difference was $85,000 or 44 per cent, with flats ranging from $190,000 to $275,000.
These two areas show the largest difference in prices, according to the table published by HDB.
HDB states in its annual report that the price differential may not be directly comparable as "it may be affected by different attributes of flats offered such as location, design, storey-height, orientation, etc".
Mr Tan Kin Lian, president of the Financial Services Consumers Association of Singapore (FiSCA), told Shin Min Daily that he finds the price difference hard to understand. He felt that the price difference for flats in the same area should be about 10 to 15 per cent.
HSR Property director Mr Jeffrey Hong feels that part of the reason lies in fluctuations in last year's property market, when the beginning of the year saw much lower prices compared to the latter half of the year.
HSR Property Executive Director, Mr Jeffrey Hong.
For example, $20,000 to $23,000 was the average price of a four-room flat in Punggol at the beginning of 2009, but by the end of the year, it had risen to about $280,000 on average.
Mr Lim Yong Hock
Mr Lim Yong Hock, senior vice president of PropNex told Shin Min that as Punggol and Sengkang are big housing estates, and some parts are not fully developed, thus resulting in large price premiums for areas which are near the MRT stations and town centres.
AsiaOne : Two-room flat costs more than a four-room
Two-room flat costs more than a four-room
A two-room flat in Chinatown was sold for the record price of $245,000. -AsiaOne
Wed, Jan 13, 2010
AsiaOne
[Photo: Mr Adrian Wee (28, left) of OrangeTee was the agent who handled the transaction for the former home owner, Mr Tan (43, right).]
A two-room flat in Chinatown was sold for $245,000 recently, creating a new record for the re-sale price of HDB two-room flats.
Located at Jalan Kukoh, the flat is on a higher floor of block 10, and is about 40 years old.
Photo: Courtesy of Mr Adrian Wee
Home owner Mr Tan, a 43-year-old advertising executive, bought the unit with his wife two years ago at about $145,000. They decided to sell as they want to move to a larger flat.
"We bought this unit because we wanted to live in Tiong Bahru, but could not afford a four-room flat in this area. Now, we want to upgrade to a larger flat. We also find it too noisy as it is near the highway," he told Shin Min Daily.
According to OrangeTee property agent Mr Adrian Wee, 28, the new flat owners are a young couple with one child. Besides the central location, the flat is also near to where their parents stay. As they also like the simple, open layout of the flat, they did not object to the noise from nearby traffic.
The flat's floor area of 53 square metres includes a living room and one bedroom; an additional storeroom was added by the former home owners. The price of $245,000 is about $45,000 above valuation.
Mr Tan says that although he made a tidy profit from the sale, the price over valuation of his new four-room flat is also quite substantial, so it is just enough to cover his costs of buying a new home.
According to HDB figures, the average price of a two-room flat in Tiong Bahru was about $190,000 to $220,000.
ECG Property CEO Mr Eric Cheng says that the price is high, but still reasonable for the prime location.
"Some couples prefer flats in mature estates as they are near the city and they can save time and transport costs," he told Shin Min.
PropNex CEO Mr Mohd Ismail said that many of the home owners are elderly, and most of them have no intention of selling their flats, so it can be hard to find one on the market.
"For this price, a young couple can get a new four-room flat in Punggol," he said.
A two-room flat in Chinatown was sold for the record price of $245,000. -AsiaOne
Wed, Jan 13, 2010
AsiaOne
[Photo: Mr Adrian Wee (28, left) of OrangeTee was the agent who handled the transaction for the former home owner, Mr Tan (43, right).]
A two-room flat in Chinatown was sold for $245,000 recently, creating a new record for the re-sale price of HDB two-room flats.
Located at Jalan Kukoh, the flat is on a higher floor of block 10, and is about 40 years old.
Photo: Courtesy of Mr Adrian Wee
Home owner Mr Tan, a 43-year-old advertising executive, bought the unit with his wife two years ago at about $145,000. They decided to sell as they want to move to a larger flat.
"We bought this unit because we wanted to live in Tiong Bahru, but could not afford a four-room flat in this area. Now, we want to upgrade to a larger flat. We also find it too noisy as it is near the highway," he told Shin Min Daily.
According to OrangeTee property agent Mr Adrian Wee, 28, the new flat owners are a young couple with one child. Besides the central location, the flat is also near to where their parents stay. As they also like the simple, open layout of the flat, they did not object to the noise from nearby traffic.
The flat's floor area of 53 square metres includes a living room and one bedroom; an additional storeroom was added by the former home owners. The price of $245,000 is about $45,000 above valuation.
Mr Tan says that although he made a tidy profit from the sale, the price over valuation of his new four-room flat is also quite substantial, so it is just enough to cover his costs of buying a new home.
According to HDB figures, the average price of a two-room flat in Tiong Bahru was about $190,000 to $220,000.
ECG Property CEO Mr Eric Cheng says that the price is high, but still reasonable for the prime location.
"Some couples prefer flats in mature estates as they are near the city and they can save time and transport costs," he told Shin Min.
PropNex CEO Mr Mohd Ismail said that many of the home owners are elderly, and most of them have no intention of selling their flats, so it can be hard to find one on the market.
"For this price, a young couple can get a new four-room flat in Punggol," he said.
AsiaOne : Flat owners to register subletting of rooms with HDB
Flat owners to register subletting of rooms with HDB
Tue, Jan 12, 2010
AsiaOne
From February 1 this year, flat owners who sub-let rooms in their HDB flats will have to register with the Housing & Development Board (HBD) within seven days.
They will also be required to notify HDB when they renew or terminate the sub-letting of rooms, as well as any changes to their sub-tenants' particulars. However, there is no need to seek prior approval for sub-letting of rooms.
HDB said that the new rule will support the Ministry of Home Affairs (MHA)'s on-going efforts to eradicate loan-sharking activities, and will better protect DB residents. Through this, HDB will be able to capture the particulars of those who rent rooms in HDB flats.
The requirement will apply to both new and existing cases of room sublets.
For tenancies that commenced before February 1, owners will be given a six-month grace period from that date to register. Meanwhile, for sublets from February 1, owners will have to register with HDB within 7 days from the start date of subletting.
According to a statement from the HDB, the following information must be provided:
Sub-letting commencement date
Sub-letting expiry date
No. of rooms sublet
Rental per month
Name of sub-tenants
Househould structure of sub-tenant
UIN/FIN of sub-tenant
Nationality of sub-tenant
Citizenship of sub-tenant
Ethnicity of sub-tenant
Work pass of sub-tenant (e.g. work permit, employment pass)
Sector which sub-tenant works in
Reasons for subletting
Registration may be done either online, or at the Branch Office, where staff will be able to guide them on the registration process.
Flat owners who flout the rule will face a penalty of up to $3,000. Those who repeatedly fail to comply with the requirement may find their flat compulsorily acquired by HDB.
Apart from this new rule, the other terms and conditions for sub-letting of rooms are unchanged.
Tue, Jan 12, 2010
AsiaOne
From February 1 this year, flat owners who sub-let rooms in their HDB flats will have to register with the Housing & Development Board (HBD) within seven days.
They will also be required to notify HDB when they renew or terminate the sub-letting of rooms, as well as any changes to their sub-tenants' particulars. However, there is no need to seek prior approval for sub-letting of rooms.
HDB said that the new rule will support the Ministry of Home Affairs (MHA)'s on-going efforts to eradicate loan-sharking activities, and will better protect DB residents. Through this, HDB will be able to capture the particulars of those who rent rooms in HDB flats.
The requirement will apply to both new and existing cases of room sublets.
For tenancies that commenced before February 1, owners will be given a six-month grace period from that date to register. Meanwhile, for sublets from February 1, owners will have to register with HDB within 7 days from the start date of subletting.
According to a statement from the HDB, the following information must be provided:
Sub-letting commencement date
Sub-letting expiry date
No. of rooms sublet
Rental per month
Name of sub-tenants
Househould structure of sub-tenant
UIN/FIN of sub-tenant
Nationality of sub-tenant
Citizenship of sub-tenant
Ethnicity of sub-tenant
Work pass of sub-tenant (e.g. work permit, employment pass)
Sector which sub-tenant works in
Reasons for subletting
Registration may be done either online, or at the Branch Office, where staff will be able to guide them on the registration process.
Flat owners who flout the rule will face a penalty of up to $3,000. Those who repeatedly fail to comply with the requirement may find their flat compulsorily acquired by HDB.
Apart from this new rule, the other terms and conditions for sub-letting of rooms are unchanged.
Monday, January 11, 2010
ASIA ONE : Sell flat for $300,000 profit? No way
Sell flat for $300,000 profit? No way
Out of 60 residents polled, 58 say they are staying put in popular HDB estate.
Mon, Jan 11, 2010
The New Paper
By Desmond Ng with additional reporting by Aretha Loh, Lim Wei Li, Nurul Asyikin Nasir, Samuel Wee and Woo Sian Boon
RETIREE Wang Mei Ling is sitting on a potential profit of about $300,000 for her HDB flat in a prime location. But she's far from happy.
Every day, she contends with a letter box stuffed with brochures and flyers from property firms. Flyers are also often stuck into the front grille of the flats there.
Residents like Madam Wang, 53, are also plagued by cold calls from agents every day, bugging them to sell their homes. Sometimes they even get accosted by agents at lift landings.
This is the flip side to the HDB property boom. Residents say they are constantly hounded despite their insistence that they don't want to sell.
Madam Wang lives in one of the most premium HDB estates - Kim Tian Road at Bukit Merah - where prices are among the highest of the 25 public housing estates.
Highest price
The highest transacted price for a five-room flat there was $668,000 last November, based on resale transactions on HDB's website. Part of the attraction is the proximity to Raffles Place, a five-minutes bus ride away.
An agent who sells a five-room flat here for $650,000 can pocket about $13,000 (if paid 2 per cent commission). These flats were built under the Selective En-bloc Redevelopment Scheme (Sers) in the late 1990s.
The New Paper spoke to 60 residents living in the four blocks there and almost all were unhappy with the hounding and the flyers.
Madam Wang, who lives with her husband and two sons, said the cold calls and flyers began during the property boom in 2007. She bought her four-room flat from HDB for $250,000 in 2000 under the Sers programme.
Said Madam Wang in Mandarin: "There are so many flyers daily that I have no use for except to pick up my dog's poo."
Another resident, who only wanted to be known as Mrs Loh, said she's annoyed by the unsolicited calls from agents. The designer said: "In December, I received two such calls. When I asked them how they got my number, they just said that they have their ways."
A 69-year-old retiree, Mr Tham F L, who receives two to three flyers every day, said: "I just chuck them in the bin without reading. What for when we don't intend to sell?"
Top dollar
PropNex's chief executive, Mr Mohamed Ismail, said this estate gets more attention from agents because there is strong demand from potential buyers willing to pay top dollar.
He said: "These are considered lucrative properties. The commission from a successful deal can be quite high. Hence there is a lot of door-knocking and telemarketing done in that area."
Though they stand to make a sizeable profit, 58 of the 60 residents interviewed said they are not interested in selling.
Forty-one of the 60 had bought directly from HDB.
Most would have paid between $300,000 and $400,000 for their new five-room flats in 2000, depending on which floor they are on. Today, the units would fetch at least $600,000.
HDB resale prices rose 8 per cent last year, despite the economic slowdown. Administrator Peter See, 51, said he'll only sell his five-room flat if some "joker offers me at least $800,000". He paid $385,000 for it nine years ago.
Mr See said: "Even if I manage to sell my place at the market price today, I would have to buy high too, unless I downgrade to a smaller unit or move away from this area." Mr See lives with his wife and daughter in a 1,237-sq ft unit. He likes the convenience of having Tiong Bahru MRT station only a five-minute stroll away.
Retiree Fong Shao Chuan, 71, did sell his four-room flat for $540,000 in June last year. He paid HDB $270,000 for it nine years ago. He said he did it to help finance his daughter's $600,000 purchase of a new five-room flat in Pinnacle@Duxton.
Said Mr Fong in Mandarin: "I wouldn't have sold my flat if I didn't have to help my daughter. I am going to move in with her to take care of my grandchildren."
PropNex's Mr Ismail said flats in this estate command a premium due to its proximity to town. They are also newer than other flats in that area.
He said: "If these home-owners want to continue a certain lifestyle - the convenience of living near town - they'll have to pay a high price for a replacement unit in that estate.
"For those who are still working and can afford the monthly instalments, there's no urgency to sell."
And there's the possibility of their units fetching even higher prices in the future, he added.
Out of 60 residents polled, 58 say they are staying put in popular HDB estate.
Mon, Jan 11, 2010
The New Paper
By Desmond Ng with additional reporting by Aretha Loh, Lim Wei Li, Nurul Asyikin Nasir, Samuel Wee and Woo Sian Boon
RETIREE Wang Mei Ling is sitting on a potential profit of about $300,000 for her HDB flat in a prime location. But she's far from happy.
Every day, she contends with a letter box stuffed with brochures and flyers from property firms. Flyers are also often stuck into the front grille of the flats there.
Residents like Madam Wang, 53, are also plagued by cold calls from agents every day, bugging them to sell their homes. Sometimes they even get accosted by agents at lift landings.
This is the flip side to the HDB property boom. Residents say they are constantly hounded despite their insistence that they don't want to sell.
Madam Wang lives in one of the most premium HDB estates - Kim Tian Road at Bukit Merah - where prices are among the highest of the 25 public housing estates.
Highest price
The highest transacted price for a five-room flat there was $668,000 last November, based on resale transactions on HDB's website. Part of the attraction is the proximity to Raffles Place, a five-minutes bus ride away.
An agent who sells a five-room flat here for $650,000 can pocket about $13,000 (if paid 2 per cent commission). These flats were built under the Selective En-bloc Redevelopment Scheme (Sers) in the late 1990s.
The New Paper spoke to 60 residents living in the four blocks there and almost all were unhappy with the hounding and the flyers.
Madam Wang, who lives with her husband and two sons, said the cold calls and flyers began during the property boom in 2007. She bought her four-room flat from HDB for $250,000 in 2000 under the Sers programme.
Said Madam Wang in Mandarin: "There are so many flyers daily that I have no use for except to pick up my dog's poo."
Another resident, who only wanted to be known as Mrs Loh, said she's annoyed by the unsolicited calls from agents. The designer said: "In December, I received two such calls. When I asked them how they got my number, they just said that they have their ways."
A 69-year-old retiree, Mr Tham F L, who receives two to three flyers every day, said: "I just chuck them in the bin without reading. What for when we don't intend to sell?"
Top dollar
PropNex's chief executive, Mr Mohamed Ismail, said this estate gets more attention from agents because there is strong demand from potential buyers willing to pay top dollar.
He said: "These are considered lucrative properties. The commission from a successful deal can be quite high. Hence there is a lot of door-knocking and telemarketing done in that area."
Though they stand to make a sizeable profit, 58 of the 60 residents interviewed said they are not interested in selling.
Forty-one of the 60 had bought directly from HDB.
Most would have paid between $300,000 and $400,000 for their new five-room flats in 2000, depending on which floor they are on. Today, the units would fetch at least $600,000.
HDB resale prices rose 8 per cent last year, despite the economic slowdown. Administrator Peter See, 51, said he'll only sell his five-room flat if some "joker offers me at least $800,000". He paid $385,000 for it nine years ago.
Mr See said: "Even if I manage to sell my place at the market price today, I would have to buy high too, unless I downgrade to a smaller unit or move away from this area." Mr See lives with his wife and daughter in a 1,237-sq ft unit. He likes the convenience of having Tiong Bahru MRT station only a five-minute stroll away.
Retiree Fong Shao Chuan, 71, did sell his four-room flat for $540,000 in June last year. He paid HDB $270,000 for it nine years ago. He said he did it to help finance his daughter's $600,000 purchase of a new five-room flat in Pinnacle@Duxton.
Said Mr Fong in Mandarin: "I wouldn't have sold my flat if I didn't have to help my daughter. I am going to move in with her to take care of my grandchildren."
PropNex's Mr Ismail said flats in this estate command a premium due to its proximity to town. They are also newer than other flats in that area.
He said: "If these home-owners want to continue a certain lifestyle - the convenience of living near town - they'll have to pay a high price for a replacement unit in that estate.
"For those who are still working and can afford the monthly instalments, there's no urgency to sell."
And there's the possibility of their units fetching even higher prices in the future, he added.
Wednesday, December 9, 2009
S'pore property high in Asia-Pac poll
S'pore property high in Asia-Pac poll
FOR real-estate investment next year, Singapore is among the top five markets in the Asia-Pacific, says an Urban Land Institute (ULI) and PricewaterhouseCoopers (PwC) report.
According to the Emerging Trends in Real Estate Asia Pacific 2010 survey, residential properties look set to give the most promising returns, thanks to Singapore's transparent market.
Shanghai is the top investment choice, with retail, industrial and rental apartments offering the most lucrative returns.
Hong Kong is the secondmost- favoured city, with retail being the most buoyant sector.
Beijing came in third, up from last year's 12th spot. The capital city's residential and manufacturing sectors garnered positive reviews.
Seoul was fourth and Singapore came in fifth.
Mr Choo Eng Beng, PwC assurance real-estpate leader for Singapore, said: "The findings show that, despite issues with oversupply, we are still recognised as a property-investment hub."
However, he urged investors to tread cautiously as "there are concerns about the city's development prospects across most asset classes".
While real estate remains in the pink of health - the Global Property Guide reported that housing prices here jumped an all-time record 14.3 per cent in the third quarter - some say that demand in the next few quarters is likely to cool.
Mr Donald Han, managing director of real-estate brokers Cushman & Wakefield, said: "Q3 prices have gone up too fast in too short a time. The steep V-shaped recovery cannot be sustained. The market needs a breather."
Mass-market prices are also already hovering at their peak.
That is why PropNex chief executive Mohamed Ismail expects housing demand and price increases to continue "in a subdued manner" of 2 to 3 per cent in the next two quarters.
But top-tier properties priced above $2,200 psf are expected to do well, with prices climbing 25 per cent, said Mr Han.
Still, ULI chief executive Patrick Phillips said that the real-estate rebound will remain fragile.
"It is important to keep the outlook for growth in perspective.
"Spending by Western consumers is no longer acting as the primary engine of global economic growth, so a new driver is needed to boost the world's economy and, in turn, the global realestate industry," he added.
The annual report is the fourth Asia-Pacific edition, which polled more than 270 international real-estate investors, developers, company representatives, lenders, brokers and consultants across the world.
The bullish outlook is repeated across other Asia-Pacific countries.
Shanghai also came in tops as the place with the most development opportunities with survey respondents.
Mumbai and Ho Chi Minh City are second and third, respectively.
Shanghai's strong showing is a result of China's resilient economy, which led to higher transaction volumes and property prices towards the year-end, said the report.
The country has abundant liquidity and well-capitalised banks that suffered less investment losses than their European counterparts. It also enjoys confident business sentiment.
FOR real-estate investment next year, Singapore is among the top five markets in the Asia-Pacific, says an Urban Land Institute (ULI) and PricewaterhouseCoopers (PwC) report.
According to the Emerging Trends in Real Estate Asia Pacific 2010 survey, residential properties look set to give the most promising returns, thanks to Singapore's transparent market.
Shanghai is the top investment choice, with retail, industrial and rental apartments offering the most lucrative returns.
Hong Kong is the secondmost- favoured city, with retail being the most buoyant sector.
Beijing came in third, up from last year's 12th spot. The capital city's residential and manufacturing sectors garnered positive reviews.
Seoul was fourth and Singapore came in fifth.
Mr Choo Eng Beng, PwC assurance real-estpate leader for Singapore, said: "The findings show that, despite issues with oversupply, we are still recognised as a property-investment hub."
However, he urged investors to tread cautiously as "there are concerns about the city's development prospects across most asset classes".
While real estate remains in the pink of health - the Global Property Guide reported that housing prices here jumped an all-time record 14.3 per cent in the third quarter - some say that demand in the next few quarters is likely to cool.
Mr Donald Han, managing director of real-estate brokers Cushman & Wakefield, said: "Q3 prices have gone up too fast in too short a time. The steep V-shaped recovery cannot be sustained. The market needs a breather."
Mass-market prices are also already hovering at their peak.
That is why PropNex chief executive Mohamed Ismail expects housing demand and price increases to continue "in a subdued manner" of 2 to 3 per cent in the next two quarters.
But top-tier properties priced above $2,200 psf are expected to do well, with prices climbing 25 per cent, said Mr Han.
Still, ULI chief executive Patrick Phillips said that the real-estate rebound will remain fragile.
"It is important to keep the outlook for growth in perspective.
"Spending by Western consumers is no longer acting as the primary engine of global economic growth, so a new driver is needed to boost the world's economy and, in turn, the global realestate industry," he added.
The annual report is the fourth Asia-Pacific edition, which polled more than 270 international real-estate investors, developers, company representatives, lenders, brokers and consultants across the world.
The bullish outlook is repeated across other Asia-Pacific countries.
Shanghai also came in tops as the place with the most development opportunities with survey respondents.
Mumbai and Ho Chi Minh City are second and third, respectively.
Shanghai's strong showing is a result of China's resilient economy, which led to higher transaction volumes and property prices towards the year-end, said the report.
The country has abundant liquidity and well-capitalised banks that suffered less investment losses than their European counterparts. It also enjoys confident business sentiment.
Tuesday, December 8, 2009
Let property assessment be more transparent
Let property assessment be more transparent
THE system of property taxation in Singapore, apart from hotels, relies on an assessment of the 'market rent' of a property called the annual value (AV). A rate (currently 10 per cent) is then fixed to the AV to arrive at the annual tax payable.
While this system has an obvious benefit of giving the taxman the upper hand to fix the level of property tax, despite market movements, it lacks transparency. The law stipulates that the property owner must pay the tax first, regardless of whether the AV was fixed correctly or not. If he disagrees with the assessment, he can object to it, and eventually go to the Valuation Review Board (VRB) for arbitration.
The channel for objection and appeal seems to provide a fair means to examine the assessment by the authorities, but it suffers two deficiencies.
First, it is time-consuming and an objection can stretch for years and still not be attended to.
Second, it is costly to start an appeal to the VRB because each case costs $200. So if a building has 100 units for appeal, it will cost $20,000.
As a start, perhaps the authorities can publish on their website the level of assessment of each year's review so property owners can know how these assessments compare with market rents.
In the long run, the Government should look into taxing property owners for the actual rents they fetch, with a right to review them if they should appear low compared with market rents.
THE system of property taxation in Singapore, apart from hotels, relies on an assessment of the 'market rent' of a property called the annual value (AV). A rate (currently 10 per cent) is then fixed to the AV to arrive at the annual tax payable.
While this system has an obvious benefit of giving the taxman the upper hand to fix the level of property tax, despite market movements, it lacks transparency. The law stipulates that the property owner must pay the tax first, regardless of whether the AV was fixed correctly or not. If he disagrees with the assessment, he can object to it, and eventually go to the Valuation Review Board (VRB) for arbitration.
The channel for objection and appeal seems to provide a fair means to examine the assessment by the authorities, but it suffers two deficiencies.
First, it is time-consuming and an objection can stretch for years and still not be attended to.
Second, it is costly to start an appeal to the VRB because each case costs $200. So if a building has 100 units for appeal, it will cost $20,000.
As a start, perhaps the authorities can publish on their website the level of assessment of each year's review so property owners can know how these assessments compare with market rents.
In the long run, the Government should look into taxing property owners for the actual rents they fetch, with a right to review them if they should appear low compared with market rents.
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