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buying ec singapore

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Wd40
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Re: buying ec singapore

Post by Wd40 » Fri, 17 Apr 2015 12:13 pm

Barnsley wrote:
If you are better off then clearly its not wasted ......

Is all money you spend that is not on "assets" wasted?
I get your point and thats exactly how I console myself, however, the longer I stay, at some point the amount of rent that I have paid is going to accumulate to a significant figure, that its going to hurt, that could have been saved, with some better planning and risk taking.

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Wd40
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Re: buying ec singapore

Post by Wd40 » Fri, 17 Apr 2015 12:34 pm

Besides, we shouldn't compare with India. I wonder if I had spent the same 6 years in another developed country, I would have probably had a PR by now and a house and I could have settled down as well.

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Re: buying ec singapore

Post by JR8 » Fri, 17 Apr 2015 1:41 pm

Wd40 wrote: I get your point and thats exactly how I console myself, however, the longer I stay, at some point the amount of rent that I have paid is going to accumulate to a significant figure, that its going to hurt, that could have been saved, with some better planning and risk taking.
The Opportunity-Cost of owning a place also accumulates into a significant figure.

Say:
You rent a place worth $100k for $5k a year.
or
You own a place worth $100k for which you paid cash. But you could have instead invested that money instead and earned 5% on it, which would pay to have rented it.
'Do it or do not do it: You will regret both' - Kierkegaard

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Re: buying ec singapore

Post by Wd40 » Fri, 17 Apr 2015 3:01 pm

Good point, however, with mortgage rates at 1.5% and rental yields at 4% there isn't much opportunity cost. When leverage is 4-5 times your downpayment.

Ben Bernanke has made a joke of us prudent savers. We had got it perfectly right until 2008 and then Ben came and rescued the dumb risk takers.

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Re: buying ec singapore

Post by JR8 » Fri, 17 Apr 2015 4:34 pm

Wd40 wrote:Good point, however, with mortgage rates at 1.5% and rental yields at 4% there isn't much opportunity cost. When leverage is 4-5 times your downpayment.

Compared to say a current gross yield on Glaxo of 10.00%*? That being before you might crank it up via margin leverage.

I don't know if your yield is gross or net, but even if it's a fully-factored net, i.e. net 2.5%, on a market as volatile as property, I wouldn't touch it. If that yield figure is gross, then gawd 'elp-yer!

A property investment has to clearly stand and make it's own case from day one, and be bullet-proof (within all reason) for the future. e.g. What happens when rates rise to 3%? And/or when you get a 6 month void and a tenant trashing a place, and so on. You need to be sure you can stay afloat through thick and thick, particularly in the earliest years of such a venture.

* Includes their 'Specials' scheduled for this year resulting from the Novartis deal.
'Do it or do not do it: You will regret both' - Kierkegaard

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Re: buying ec singapore

Post by ecureilx » Fri, 17 Apr 2015 6:44 pm

Wd40 wrote:Besides, we shouldn't compare with India. I wonder if I had spent the same 6 years in another developed country, I would have probably had a PR by now and a house and I could have settled down as well.
After PR would you have stepped up to Sc ? Image

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Re: buying ec singapore

Post by Wd40 » Fri, 17 Apr 2015 7:07 pm

Yeah, probably. I don't see anything to lose, only loss is cpf cannot be withdrawn for life, but I will get a brand new HDB for cheap. These days lots of Indian PRs are converting to citizenship, for this very reason. They already enjoyed a resale HDB and now they want to sell it and get another brand new one, otherwise, I dont see any reason why so many Indians are anxious about their citizenship application. I mean, if they already have PR, why so anxious about the citizenship outcome? <wink> Rockstar_Sg <\wink> :D

On a related note, today I was filling up the forms for a citibank NRI account in India and one of the pages had the FATCA declaration part in it which wanted me to specify if I am a US citizen/Green card holder or even if have stayed there long enough to get a green card. So the US citizenship affects you where ever you go in the world, SG citizenship, I dont think will be a problem.

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Re: buying ec singapore

Post by ecureilx » Sat, 18 Apr 2015 12:58 am

Wd40 wrote:Yeah, probably. I don't see anything to lose, only loss is cpf cannot be withdrawn for life, but I will get a brand new HDB for cheap. These days lots of Indian PRs are converting to citizenship, for this very reason. They already enjoyed a resale HDB and now they want to sell it and get another brand new one, otherwise, I dont see any reason why so many Indians are anxious about their citizenship application. I mean, if they already have PR, why so anxious about the citizenship outcome? <wink> Rockstar_Sg <\wink> :D

On a related note, today I was filling up the forms for a citibank NRI account in India and one of the pages had the FATCA declaration part in it which wanted me to specify if I am a US citizen/Green card holder or even if have stayed there long enough to get a green card. So the US citizenship affects you where ever you go in the world, SG citizenship, I dont think will be a problem.
maybe the HDB flipping is why ICA is looking at Indian applicants for PR and SC with jaded eyes now !

Rockstar - I think he declared he is a Malaysian ... did I miss that ? :-k

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Re: buying ec singapore

Post by sundaymorningstaple » Sat, 18 Apr 2015 8:08 am

Yeah, he's M'sian Chinese. But probably is taking lessons from an Indian colleague on flipping. :mrgreen:

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Re: buying ec singapore

Post by midlet2013 » Sun, 19 Apr 2015 1:05 am

Is there no salary cutoff to buy a new HDB. For EC, I guess it is 12k. So, even if someone converts to Citizen and his household income exceeds a threshold, it cannot be used.

I think people who are anxious may be interested in settling and not just being a PR and keeping their options open.
Wd40 wrote:Yeah, probably. I don't see anything to lose, only loss is cpf cannot be withdrawn for life, but I will get a brand new HDB for cheap. These days lots of Indian PRs are converting to citizenship, for this very reason. They already enjoyed a resale HDB and now they want to sell it and get another brand new one, otherwise, I dont see any reason why so many Indians are anxious about their citizenship application. I mean, if they already have PR, why so anxious about the citizenship outcome? <wink> Rockstar_Sg <\wink> :D

On a related note, today I was filling up the forms for a citibank NRI account in India and one of the pages had the FATCA declaration part in it which wanted me to specify if I am a US citizen/Green card holder or even if have stayed there long enough to get a green card. So the US citizenship affects you where ever you go in the world, SG citizenship, I dont think will be a problem.

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Re: buying ec singapore

Post by rit » Wed, 29 Apr 2015 10:32 am

Hi All,

I find this thread really helpful =D> since we are also started looking for condo to buy. We are Indian couple and PR in Singapore since 2 yrs. ](*,)
As one of the fellow member shared his experience about EC low quality (wall & fixtures) i dropped my plan to look for EC so if anyone of u have experience of buying condo please share the same.

thank you.

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Re: buying ec singapore

Post by JR8 » Wed, 29 Apr 2015 10:46 am

I don't think many new builds are intended to last 30 years, or perhaps max 50, so the build quality and especially the 'fit-out' seems uniformly quite poor quality.
'Do it or do not do it: You will regret both' - Kierkegaard

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Re: buying ec singapore

Post by Wd40 » Wed, 29 Apr 2015 3:06 pm

rit wrote:Hi All,

I find this thread really helpful =D> since we are also started looking for condo to buy. We are Indian couple and PR in Singapore since 2 yrs. ](*,)
As one of the fellow member shared his experience about EC low quality (wall & fixtures) i dropped my plan to look for EC so if anyone of u have experience of buying condo please share the same.

thank you.
Are you renting a condo now or HDB?

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Re: buying ec singapore

Post by zzm9980 » Wed, 29 Apr 2015 3:16 pm

x9200 wrote:
PNGMK wrote:
Wd40 wrote:Once EC is more than 10 yrs old it becomes same as a private condo and can be sold to foreigners.

Thanks. Amazing. The TRE brigade must froth at the mouth at that one.
I lived in such a condo and I would never buy anything there (at least for a regular price). The quality, I mean materials including walls and fixtures, was very inferior to anything else I lived in before and after.
Typically ECs are cheaper and not that well regarded by the locals as the regular condos.
Really? That's interesting as plenty of locals and PRs tell me to look for EC condos to buy, as they're built to "HDB Standards" which means they'll last longer than the current crop of new condos popping up every day.

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Re: buying ec singapore

Post by sundaymorningstaple » Wed, 29 Apr 2015 3:40 pm

I've heard exactly the same thing x9200. Most of the condo's are build to last 20-30 years max and then en bloc.

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