Rental Increases?!!?! :(

[muratkorman]

I don't understand why all the house owners are categorized under "greedy people". In my previous post, I mentioned that they would try to rent their flats with current rates. Some may become too greedy and they may even ask for prices above avarage, but it is a risk they take. Finally, if you can find a similar flat with less cost, you would choose that. I would really call them poor if they receive a rent from the tenant 40-50% less than the current rates. Why do you expect the landlords to be helpful and tolerant to you anyway? They have made an investment and they try to make profit out of it. Let me divert this issue with a solid example. Let's say you have money in a bank and you get a nice interest rate. One day the bank says "Sorry but I have to lower my interest rates". However there are banks which still provide same interest rates you used to receive. Do you still keep your money in that bank or change it?

I am also against landlords who ask incredible amounts which the flat doesn't deserve, but anyway if nobody bothers to rent that flat, he will be losing at the end, won't he?

Instead of complaining about landlords, it is better to accept the current situation and prepare yourself for the worst. Before the contract expires, check the current rates, make your investigations and prepare a "B Plan" in case you need to move out.

[Superglide]

In case you didnot see it Murat:

I also observed how rental prices boomed just when I arrived in Singapore. Many colleagues of mine who arrived a few months earlier could find better deals. Luckily I could find some reasonable condo at the end. Then the rise continued and I felt even luckier that I didn't arrive recently. But I must admit that some comments in this thread are so harsh and I feel like some hatred against landlords is created.

I am a tenant myself and I would be angry with my landlord when he wants a 50% rise at the end of my contract. But some of you seem to forget the basic principle : supply and demand. When your contract is about to end, landlord will try to get the best rate. If there are people willing to pay that money he asks, why do you complain? You either negotiate and agree somewhere in the middle or evacuate the place. If you were a landlord, you would try to get the best rate rather than renting your apartment to the same tenant who pays 30-40% less than the avarage rates.

I believe this increase will stabilize and rent prices will even fall, but it is not easy to guess when. I also find it very expensive to live here, but this is the fact and I prepare myself for a worse situation rather than hoping the global economic crisis hits also here and affects the rent prices. I find that approach very narrow-minded as there will be more serious consequences.

You sound so sweet and naive Murat.

How long have you been here?

Wait a few more years and let's discuss this once again.

It is nowhere a matter of supply and demand, bollocks my friend. It is an airbubble, created with hoax criteria such as the IR, the growth towards a 6.5 million people population, competitiveness in the region and so forth.

When certain high end projects, that were completely hyped, hit record prices of 3k psqf and above, the market got way overheated and speculation rules.

Supply and demand, so you're saying there is a shortage?

Show me where. Have a look at several condos with absurd prices, they are still half empty.

As said, let's wait a few years when you have experienced a few leases and landlords.

[muratkorman]

Superglide, from the way you write, I would imagine an old wolf who has seen many things in life and probably a lot in Singapore. The interesting thing is your ability to tag a person (myself in this particular occasion) "naive" with just reading a post. I guess that comes from your life experience.

You are right that I haven't been here for a long time, but I am not claiming to analyze the situation correctly. I just give my opinion on it. This is the way I see it and I don't expect everyone to support it. However, this thread has become a whining and cursing platform rather than coming up with some useful solutions. In fact, there is only one solution : You either pay what they ask or move to another flat within your budget. As long as tenants are not protected with Singapore laws, you can't change this fact, can you?

[Superglide]

Brother, I didnot call you naive, I said you sound naive, a subtle difference!

I agree the moaning doesnot help, one either puts up with it or leaves.

But it is funny to see the minute you as an expat write in support, the local greedy landlord replies to you and asks for mercy, poor guy.

My 8 years in Singers have tought me to never believe a local by word, but always follow my instinct and make my own decisions.

I am not a cynic, but sms was spot one when he said: this country has 1st world infrastructure, but 3rd world citizens.

Just my opinion of course...

[gmail]

Hi,

One question, who push up the rent. Landlord or expats?

[MblSH]

Landlords?

But you question probably implies that expats did, so it'd be interesting to hear why do you think so

[gmail]

Who feels for the poor house owner who have to endure low rental but high interest rate for the last few year! Be realistic, lower your expectation and move to a cheaper location. I am sure there are many out there.

We should also feel for all poor folks who bought IT stocks in 2000, right? And for the ones that suffered from nigerian 419 scams, while we're at it.

If you buy on the peak in hopes of making a quick buck, you deserve what you get, so I, personally, don't feel anything for poor owners. Whoever feels different may start feeling for the current new crop of homeowners who are busy buying flats off one another at exorbitant prices in new developments that aren't even built yet.

'Endure low rental', exactly. They had to endure their own greed and shortsightedness; there's no sure foolproof way to make money in any kind of business, real estate included, otherwise everybody would be flying around in private jets

As for cheaper location, there aren't any, and it's understandable. No matter what you have paid originally as a homeowner, you'd be a fool to rent out lower than everybody else.

Sorry if that came out harsh, but I don't see anybody feeling for me as a tenant

Max

Well Max,

You are spot on. "You'd be a fool to rent out lower than everybody else"
By the way, many of the homeowners who are busy buying flats off one another at exorbitant prices in new developments that aren't even built yet
also include many foreigner cos' i don't know whether they are working here. i'm sure this is not the only country with high rental.

[jockney]

bottom line is....people dont need to pay high rent if they dont want, just go and find a cheaper place somewhere else unless their old ego wont let them???
a lot of people want to live in these fancy places to keep up with their colleagues etc, instead of paying what they can afford, they live on the edge financially to look good amongst others...sad, but its not jus here it happens, I see it in the UK all the time.

[gmail]

Landlords?

But you question probably implies that expats did, so it'd be interesting to hear why do you think so

Max,

Read on what jockney has to said.

[Plavt]

Well Max,

"You'd be a fool to rent out lower than everybody else"

Really? Why? You would probably never be stuck for tenants if you did since as one poster mentions many condos are still half empty.

[sprite]

bottom line is....people dont need to pay high rent if they dont want, just go and find a cheaper place somewhere else unless their old ego wont let them???
a lot of people want to live in these fancy places to keep up with their colleagues etc, instead of paying what they can afford, they live on the edge financially to look good amongst others...sad, but its not jus here it happens, I see it in the UK all the time.

And a lot of people get stuck because their rent doubles in 2 years. Seems like a lot of landlords are the ones living on the financial edge with an ego problem.

[jockney]

my company pays a certain amount and i put my ego aside and got an apartment within the budget,suitable for my wife and son.
I could have paid a lot more, fed my ego, kept up with the other ego trippers, but chose not too.
remember you are living in a vibrant city, that is safe, healthy,prosperous and you wont get that cheap anywhere>???
I am a londoner....now that is expensive!
bottom line is i am comfortable with myself, so dont need to furnish my life with things to try and boost my ego and give me a lift and pretend to be something i am not..
Uk has fell into a trap(materialistic society), sothat in itself will force prices up as sellers no buyers want it??

[gmail]

bottom line is....people dont need to pay high rent if they dont want, just go and find a cheaper place somewhere else unless their old ego wont let them???
a lot of people want to live in these fancy places to keep up with their colleagues etc, instead of paying what they can afford, they live on the edge financially to look good amongst others...sad, but its not jus here it happens, I see it in the UK all the time.

And a lot of people get stuck because their rent doubles in 2 years. Seems like a lot of landlords are the ones living on the financial edge with an ego problem.

Well you got the choice not to get stuck here.right?

[sprite]

my company pays a certain amount and i put my ego aside and got an apartment within the budget,suitable for my wife and son.
I could have paid a lot more, fed my ego, kept up with the other ego trippers, but chose not too.
remember you are living in a vibrant city, that is safe, healthy,prosperous and you wont get that cheap anywhere>???
I am a londoner....now that is expensive!
bottom line is i am comfortable with myself, so dont need to furnish my life with things to try and boost my ego and give me a lift and pretend to be something i am not..
Uk has fell into a trap(materialistic society), sothat in itself will force prices up as sellers no buyers want it??

My company pays a housing allowance as well. We looked around, found a place within our budget and moved in. Did we have a big ego when we lived within our housing allowance? Now with outrageous rental increases, we might have to downsize considerably -- so it's our big egos that find that a little unfair? My family has to move into 1/2 the place just two years later, that's ridiculous. I don't know why you keep refering to ego. It makes no sense in this context.

Gmail, of course we can move from Singapore if it gets too expensive, but I'm not sure that is in the best interest of the economy? Don't they need our expat dollrs?

[keepitreal]

Every person I bump into in my Service Apartment seems to have an astronomic package. The first question I asked one of the lucky guys was whether his company has increased his housing allowance in line with the current market and yes they did, so i ask how much is your budget, and he says 12k - what a joke. If anyone is to blame it is the company's paying the employee leases but also crap agents per my story below...

I just got here and don't like what I have seen - cowboy agents just like the UK. My condo hunting started last week with an agent approved by my bank. first of all she takes me and my family to places where we had no intention of living, wasting a day and when I finally tell her that we are only interested in east coast, she picks us up the next day saying that our first apppointment is in Holland and is 1.5k out of my budget. Finally we make our way to the east coast where we she gives us a 20 minute talk on how hot the property market on the east coast is and you need to move quick as places are being snapped up quicker than you've had time to sneeze.

We saw a good condo on the East Coast which we loved, $500 p/month out of our budget but we went for it - she said it was a good deal as 3beds on this developed were priced at $6k+ so we put an offer in. Coincidently, got in contact with another agent the next day who had a very similar apartment but a couple of floors lower and was asking 500p/month less. We went in at full asking price and we now have the LOI signed and deposit paid.

Another agent recommended to me by a colleague contacted me the same day I paid my deposit on the 2nd apartment and she showed me a magnificent condo the following day with great faciliities not far from the other condo but for 4.7k and it had been on the market for 1 month- of course the wife wants this one and won't listed to reason so we are now proceeding with this and swallowing the 5k deposit I made on the 2nd condo. We should have probably negotitiated on the price and I guess this is a lesson to everyone that you should always negotiate and not be as naive as we were as it has ended up costing us. Feel absolutely gutted because that cash would have been needed badly in this overheated market. I guess there is zero chance in geting back, unless anyone knows how???

One other thing to point out is that the market could be leveling off now the International School year has started. Apparently there is always a price hike in June/July/August as families look to settle in time for the beginning of the school year.