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Rents are sky high!

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teck21
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Re: hi

Postby teck21 » Fri, 01 Oct 2010 11:58 am

Strong Eagle wrote:non HDB prices have not been curtailed in any manner.


Disagree with you on this one SE. Some of the measures they have taken will really impact upon private property.

The one restricting second mortgages to 70% of valuation in particular. It does look as if it 'only' targets buyers of a second property, but it definitely does impact genuine upgraders as well, whether from HDB to private, or private to.. better private.

Now these people absolutely must sell their existing property first before committing to their 'new' property, otherwise it is classed as a second property which subjects them to the new rules.

And I have known quite a few people who have purchased a second property in the past year or so, and I can safely say that under the new rules, they couldn't have done it from an affordability point of view, or certainly would have had to scale down their purchases.

The second issue with having to sell first before buying is the timing one. You sell your property first, takes a while to get paperwork done to prove to the bank you have sold it. Then buying another one to stay in results ina period of homelessness, something which people generally didn't have to deal with under the old rules.

SMS: yeah, 10m would have been my figure too!

Go ahead, lead the high life on the run here if you're just gonna do a little one, but one that size and still hang around waiting to be exposed (as they invaiably will be) is really quite unbelievavble.

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Saint
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Re: hi

Postby Saint » Fri, 01 Oct 2010 12:15 pm

teck21 wrote:
The second issue with having to sell first before buying is the timing one. You sell your property first, takes a while to get paperwork done to prove to the bank you have sold it. Then buying another one to stay in results ina period of homelessness, something which people generally didn't have to deal with under the old rules.



I don't believe this is entirely true as I'n sure they've given you 6 months to sell the first property after buying the second one.

teck21
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Postby teck21 » Mon, 04 Oct 2010 10:23 am

Saint, this only applies to people buying a HDB apartment from the resale market who concurrently own a private property.

Let's say someone who lives in a still-under-mortgage HDB or private apartment wishes to upgrade to a better dwelling.

In order not to be subject to the 70% financing rule, at the time he/she seeks financing for the condominium, he/she must already have proof to present to the financing institution that the first property has already been sold.

This person cannot simply tell the institution that the proeprty will be disposed of within 6 months. It must have been sold already.

In the case of new launches which are years away form completion at launch, obviously pretty much everyone in this group will be taking a second mortgage since they can't jolly well sell their existing home and rent for a few years while waiting.

They can, but generally they won't.

Basically, all of the government's measures have removed an element of demand, in varying degrees from most property segments in the market.

They are dead serious on controlling prices because all evidence points to economic growth in the immediate future points to a slowdown on the most recent year.

And they also know the low interest rate environment is fuelling alot of the home purchases, many from first timers who have never seen anything but 1.someting percent rates and have no idea what a rise to 4% might mean for their monthly payments.

Ultimately though, I think it's just the boom-bust feast-famine cycle at work driven by the same underlying human attribute, regardless of whether demographics change.

Just like how iron ore producers and hopefuls everywhere in the world where iron ore exists in mineable quantities are rushing to produce more and more for China whose demand for the metal is expected to increase at the same pace forever.

Which is nonsense of course yet that doesn't stop these companies from digging, drilling and mining at a pace that will eventually produce more iron ore than the world could ever need in a few years.

Dot.com boom. I can't rememebr now the name of the Harvard (I think) study I read analyzing (can't remember if it was written in the midst, or pos after it) the assumptions behind the growth of the then-hot tech companies. I believe it was 7 (or maybe 10) companies, such as Sun, Oracle and not even Microsoft.

Based on various projections made by analysts, the authors of the paper concluded that their stock price growth, if they did follow these projections meant that in X number of years, these same companies would account for 70% of the enitre market cap of either NASDAQ/Dow/some combination of it/something else totally outcapping othwer heavyweights like GE, Boeing, Microsoft etc put together.

But it's been many years since I read that, and I can't seem to find it anywhere now, so m y memory's a bit hazy.

Which of course is absurd.

What's different this time? The manifestation of human greed is different, it is couched in different terms and rationalizations.

I don't see how the end result will be any different from any other time in history.

Insanity is doing the same thing over and over and expecting a different result. What do we do? We merely pretend to be doing something else.

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ksl
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Postby ksl » Wed, 06 Oct 2010 12:57 am

sundaymorningstaple wrote:
ksl wrote: this guy was plane stupid,


I know you probably meant "plain" stupid, but to me there is a hidden truth in it. He was also "plane" stupid as well. Once I reached 10M I would have been on a "plane" and outta here, post haste! :lol:
So its too late to say its my wise quack :cry: Actually you are quite wight, I plane forgot about the spelling :oops:

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nakatago
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Postby nakatago » Wed, 06 Oct 2010 9:49 am

ksl wrote:Actually you are quite wright, I plane forgot about the spelling :oops:


history reference wise-crack consistency fail. :P

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Re: Rents are sky high!

Postby Koalabear » Fri, 08 Oct 2010 9:59 am

revhappy wrote:Hi Guys,

I am in the process of house hunting since my lease is getting over by sept end. I have noticed that its really hard to find a decent 3 room HDB flat for anything less than 1.8k. Most of the flats are going at 2.2 -2.7k average. Its really getting crazy. If our economy keeps booming I wonder where will prices end up a year from now.


are u serious? we are renting our condo at 2.7k

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Postby Koalabear » Fri, 08 Oct 2010 10:09 am

sundaymorningstaple wrote:
ksl wrote: this guy was plane stupid,


I know you probably meant "plain" stupid, but to me there is a hidden truth in it. He was also "plane" stupid as well. Once I reached 10M I would have been on a "plane" and outta here, post haste! :lol:


At least that guy is a complete genius at beating the biggest bully business in Singapore. I salute him for that.

He bought the Ferrari to mix in his target circles and pull a few more strings. Sadly, he was too greedy in wanting to earn another few mils.

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Re: Rents are sky high!

Postby ScoobyDoes » Fri, 08 Oct 2010 4:05 pm

Koalabear wrote:
revhappy wrote:Hi Guys,

I am in the process of house hunting since my lease is getting over by sept end. I have noticed that its really hard to find a decent 3 room HDB flat for anything less than 1.8k. Most of the flats are going at 2.2 -2.7k average. Its really getting crazy. If our economy keeps booming I wonder where will prices end up a year from now.


are u serious? we are renting our condo at 2.7k



Friends of ours do indeed say they can rent out their 3-Rm HDB for 2.2k. This is all the more crazy given their mortgage is ~$460 per month.


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