3-Room HDB Flat @ Low COV in Ang Mo Kio For Sale

Ang Mo Kio Estate - One of the nicest matured estates in Singapore to live in, located in the central of the Island, Prices of the HDB Flats of course still climbing upwards, but as compared to its neighboring estate - Bishan, it is still more affordable. 

And BUYERS, if you don't mind low floor, you still get pretty good deals to buy a property with low CASH/COV (Cash-over-value) for a 700+ square feet with 2 good-sized bedrooms, with one attached bathroom in the Master Bedroom, Spacious Living Room & a Big Kitchen cum Dinning corner, not forgetting the Storage Room too!  

ATTENTION: Newly Listed in the resale market - 3NG HDB Apartment along Ang Mo Kio Ave 3, 3-bus stops from AMK Hub & MRT, Opposite Schools and near all amenities, Windy with no blockage and it is eligible to All Races @ an Amazing Low COV! Direct Buyers May Call Me To View.

Far East buys Amber Glades for $118.12 mil

Far East Organization (FEO) has paid $118.12 million for Amber Glades (below) in a collective sale. The residential development at 30 and 32 Amer Gardens occupies a land area of 40,917 sq ft, which could yield a GFA of 114,567 sq ft. FEO’s purchase price translates into a unit land price of $1,066 psf ppr.

“This is reflective of the market price in the Amber area, in which another nearby residential development, Marine Point, was sold last month at about $1,056 psf ppr,” says Tang Wei Leng, executive director of investment services at Colliers International, which brokered the deal. Amber Glades now has 63 units. Each owner will walk away with $1.3 million to $2.2 million from the sale. FEO, which made the purchase via subsidiary Tuas Hi-Tech Park Pte Ltd, could build a new development with 114 units, of around 1,000 sq ft each.

CDL bids $127.8 million for Robertson Quay hotel site

CDL, via Novel Developments Pte Ltd and New Vista Realty Pte Ltd, has put in the highest bid of $127.8 million (out of a field of nine bidders) for a hotel site at Robertson Quay. The 99- year leasehold site can have a GFA of up to 136,175 sq ft, which can be used to construct an estimated 350 rooms. Under conditions of the tender, 40% of the GFA can be used for commercial or residential purposes.

5 Reasons to Invest in Singapore Property

Are properties good investments? I have some experience investing in property (in addition to writing a property blog), and in this post I will share my opinion with you. But please note that this is not financial advice – every individual’s situation is different so do your sums (or consult your advisor) before you make any investments.
Here are my top reasons why properties make good investments:
1) Cheap leverage available to help you boost your return.
One of the biggest advantages of investing in property over other assets is that you can borrow a large sum of money at a low interest rate to buy a house. If the price of your property goes up, your return on the money you invested is multiplied.
Of course if prices fall, your equity will decline even faster. But as long as you are not too greedy and have holding power, over the long term you will usually come out fine.
And when you buy the right property at the right time, you can make a lot of money. Imagine getting a bonus of several YEARS pay when you sell your property for a profit.
2) Can generate passive rental income.
You can rent out your property (or a room in your property if you are living in it) to generate rental income. This rental income can help to offset your mortgage, part of which is going towards the principal repayment, thus helping you to build equity in your investment. If your yield is high enough, you can even get positive cash flow after paying off your mortgage and the maintenance fees.
3) Ability to make enhancements
If you’re the kind of person who likes to fix things, you can add value to the property by doing a renovation, or sprucing up the interior design. Even just a fresh coat of paint can do wonders for the value of the property.
4) No capital gains tax
Like stocks, there is no capital gains tax when your property appreciates in price and you sell it for a profit (unless the IRAS comes after you as a property trader). Contrast this with your employment income where up to 20% of it (depending on your tax bracket) goes to the taxman.
5) Property is a well trodden path towards wealth creation.
If you look at the Forbes 40 richest people in Singapore, you will see many people who made their fortunes developing and investing in real estate on that list. Or just look around you – the average Singaporean’s wealth probably comes more from the appreciation of his HDB flat than from any other asset.

Disadvantages of investing in property

But properties do have some disadvantages versus other types of investments that you should be aware of.
One disadvantage is that properties are troublesome to buy and maintain. House hunting can take lots of effort and time, the negotiations to buy can be complicated, then there are the repairs, dealing with tenant complaints and so on.
Also properties are an illiquid asset – that means it is not as easy and as quick to convert to cash when you need it. Selling a property may take months depending on the market.
And the biggest obstacle for most people when investing in properties is that it requires a large amount of capital to get started. Saving enough money to buy one property could take a couple 3 to 5 years of scrimping.

Greed, Caution

Please note that I am not recommending that you go and invest in properties right away. In fact, now that prices (based on the URA Price Index) have surpassed the peak in 1996, you should be extra careful. Don’t forget Warren Buffett’s advice: “Be fearful when others are greedy and greedy when others are fearful.”
And property is not the only avenue through which investors can make money. A smart investor can make money in any asset class IF he knows what he is doing. You need to figure out where your interests, knowledge and abilities lie before investing. And I wholeheartedly believe that you should only invest in something you know (i.e. don’t blindly follow the crowd).
The point of this article is that because of the advantages I have described above, and based on my experience and what I have observed, property is the most common way for the average person to build up a significant amount of wealth.

~Mr Propwise

Strata landed homes attract...?

Cluster housing combines features of landed homes with common/recreational facilities
LANDED properties shone brightest in the private residential properties category in 2010 when prices soared by some 30.8 per cent year on year (based on the Urban Redevelopment Authority's property price index) compared to non-landed properties which appreciated by 14.0 per cent. Prices of detached houses took the lead, increasing by 37.6 per cent year on year while the prices of semi-detached and terrace houses went up by 26.3 per cent and 26.1 per cent respectively.
For the whole of 2010, there were a total of 543 strata landed property sales, excluding enbloc sale transactions. This was slightly higher than that in 2009 when about 511 strata landed units were sold. Average transacted prices of strata landed housing increased by 12 per cent to 28 per cent for freehold and leasehold properties respectively. While prices of apartments increased by some 15 per cent in general, strata landed housing, in particular leasehold properties, performed better.
Strata landed houses are low-rise landed residential properties that do not come with land titles but are instead strata titled. In some instances they may also be known as cluster housing for those in landed locations while those in mixed landed or non-landed developments are called townhouses.
Legally, the ownership structure of strata landed housing is similar to condominiums where the land in the development is shared among all owners and subjected to procedures like voting being required on issues such as major alterations and addition works, election of a management committee or disposal of property whether in part or whole.
The concept of strata landed housing has been around for 18 years since it was introduced in 1993. The intent was to add variety and choice for home buyers who prefer to live in landed housing but would like to enjoy communal facilities such as gyms, clubhouses, swimming pools and security services within a gated community.
Broadly, strata landed housing can include any one or a combination of bungalows, semi-detached houses or terrace houses within a development and should be located in designated landed housing areas.
Bigger houses
Cluster housing appeals to buyers who enjoy communal facilities and require larger living spaces but cannot find suitable units in condominiums. Similar to landed properties, cluster houses, typically about two to three storeys high, come in sizes ranging from about 2,500 sq ft (terrace) to as much as over 7,000 sq ft (detached/bungalow).
A set of revised strata housing guidelines came into effect on Feb 3, 2009 in which strata landed housing were prescribed a minimum plot size per unit depending on the conventional landed housing form. Under the guidelines, strata landed housing for bungalow, semi-detached and terrace houses require a minimum plot size of 400 sq m, 200 sq m and 150 sq m respectively.
The revised guidelines reduce the number of strata houses allowable per development and were implemented to resolve concerns of increasingly congested strata landed developments. After all, strata-landed property buyers, in particular those with larger families, prefer the bigger built-up space typical of landed homes but want to have condominium facilities as well.
While foreigners in general are not allowed to buy landed residential private properties, they may purchase strata landed properties within developments with condominium status without seeking approval from the Land Dealings (Approval) Unit. Some recent new projects in this category include D'Leedon and The Vision where one in every 10 strata landed property buyers within the development is a foreigner.
Rental performance
Investors' interest also picked up as strata landed homes command a higher rental yield compared to similar sized landed properties. Tenants are often willing to pay higher rentals for the convenience of communal facilities like the pool, gym and playgrounds and in some cases for the close proximity to good local and international schools.
Some new cluster homes can command rental yields of some 4 to 5 per cent compared to 2 to 3 per cent for landed homes. For example, cluster homes in districts 10 and 11 with average sizse of 3,000 to 4,500 sq ft can command monthly rents of $10,000 to $19,000 while similar sized suburban ones can get $5,000 to $12,000.
Upcoming supply
There is an ample supply of private residential units, in particular non-landed properties. As at the end of the fourth quarter 2010, there was a total supply of 65,699 uncompleted units of private housing from projects in the pipeline. Of these, 32,776 units were still unsold. This includes 16,104 non-landed and 1,034 landed private residential units which are uncompleted, planned and under construction. The number of new landed properties is significantly lower because of limited land supply.
Strata landed projects are becoming increasingly attractive and are preferred alternatives over non strata landed projects as they offer the best of both worlds - having landed properties' spaciousness, condominium facilities and gated security.
To cater to rising demand and expectations, developers have increasingly built more strata landed projects with condominium like fittings. For example, the upcoming Eleven @ Holland comprises 82 luxurious units with private lifts complete with swimming pool and clubhouse. Some other new strata landed properties coming onstream include Watercove Ville (80 units), Poets Villa (40 units), strata housing at Westwood Avenue (93 units) and Cluster Housing at Mount Rosie Road (193 units).
Outlook
As 2011 gets underway, the property market is caught in another round of government cooling measures, this time even more aggressive than the last three rounds. The fourth round of measures is evidence of the government's strong determination to stabilise the property market, and prevent a bubble from forming.
Some had wondered if the market for strata landed homes will be significantly affected. Demand has been fairly stable over the past five years with an average 480 units changing hands each year with the exception of the recessionary year in 2008 and notwithstanding three rounds of cooling measures in 2009 and 2010. Sub-sales activities for strata landed homes are fairly low as most buyers are genuine home owners motivated by bigger space needs and long-term investors looking for stable returns.
The outlook for the strata landed market looks positive as its current pricing level still lags that of comparable landed properties.
The new measures will invariably affect current buyers' sentiment. However, what is more important is that the measures should not be viewed as permanent. The government welcomes long-term investors who believe in the Singapore story and not short-term liquidity swishing around, pushing up prices artificially.
With Singapore expected to run at full employment and a positive economic outlook in 2011, the tight labour situation should continue to draw more foreign talent. The leasing market is expected to remain active. While prices have increased significantly and can be expected to stabilise, rentals should continue to increase - making strata landed houses an attractive investment, especially when current interest rates are low.
Perhaps we can take a leaf from experiences in the US, Europe and Australia. Home buyers and investors should evaluate their property position and undertake some form of stress testing for scenarios such as property prices suddenly falling and interest rates spiking, all of which may arise from unexpected external events that may negatively impact our open economy. If one can stomach the short-term downside risks, one can enjoy the potential upside returns from long-term property investments.
article extracted from the Business Times

Prices of top-end condos may cruise along this year

Singapore can expect less growth in the inflow of foreign investors this year unless exciting new initiatives are announced by the government again..
THE luxury condominium market rode a strong wave of recovery in 2010. New projects that were launched saw a reasonable take-up rate and a few existing projects that were put in cold storage during the financial crisis found buyers for multiple units.
As such, land-hungry developers started hunting for development sites in the prime districts again. By end-2010, it was clear that interest in luxury homes had returned and looked set to continue in 2011.
As response to new launches in the mass and mid-tier segments picked up in the second half of 2009, developers began to test the market with new luxury projects.
More supply
Knowing that there was ample liquidity in the market, they stepped up supply in 2010 even though the take-up rate was modest. Transactions last year showed that luxury prices recovered some 20 per cent from end-2009 levels but were still about 10 per cent below the 2007 peak. Institutional investors seized the opportunity to acquire multiple units in existing developments and projects that were nearing completion.
Arch Capital bought all 34 units in Royal Oak (a refurbished project) for around $200 million or $2,337 per square foot.
Alpha Investment Partners bought 23 units in Draycott Eight - mostly tenanted - for $157 million or $2,300 psf.
Real Estate Capital Asia Partners picked up 20 units of Paterson Suites for $118.6 million or $2,700 psf.
The interest in luxury homes pushed developers to acquire prime development sites via collective sales.
Meng Garden at Lloyd Road, with a land area of 35,639 sq ft and a 2.8 plot ratio (ratio of maximum gross floor area to land area), was sold to TG Development at $137 million or $1,380 psf per plot ratio (psf ppr) including a development charge.
Robin Court and its next-door site, together with the recently purchased Robin Star, with a combined area of 64,879 sq ft and plot ratio of 1.4, cost Sing Holdings a total of $124.3 million or $1,297 psf ppr including a development charge. Serene House at Jalan Serene/Cluny Park Road was bought by the Tuan Sing Group for $99.1 million or $1,388 psf ppr including an adjoining driveway.
As these land prices would translate to breakeven costs of $1,900 psf to $2,000 psf, it shows that developers were confident that upmarket home prices would hold in 2011 and beyond.
At the close of 2010, the report card showed the highest volume of 16,292 new homes sold and a 17.6 per cent hike in the overall home price index.
It was enough to convince the government to act.
The latest property measures introduced on Jan 13 this year were meant to discourage speculative buying fuelled by low interest rates and high liquidity.
These measures were also targeted at new mass-market housing (in the Outside Central Region) whose median price had climbed from $729 psf at end-2009 to $854 psf at end-2010.
Although players in the high-end segment generally have deeper pockets, they are not entirely immune from the property measures.
The imposition of the seller's stamp duty for residential properties disposed of within four years of purchase - taxed on a reducing scale from 16 per cent of the sale price in the first year to 4 per cent in the fourth year - will tarnish the desirability of the properties as short-term investments.
The lowering of the loan-to-value (LTV) ratio from 70 per cent to 60 per cent for purchasers with at least one outstanding housing loan will increase the upfront cash burden, while limiting the LTV ratio to 50 per cent for loans to corporations and funds will deter the flow of hot money into Singapore.
These measures will weed out speculative demand leaving behind genuine buyers who either buy for owner-occupation or hold for longer term investment returns.
Assuming a healthy economy this year, sellers are not likely to reduce prices because they have holding power.
Rents in the prime residential districts (Core Central Region) have recovered by 18.6 per cent from end-2009 levels and will likely remain firm for the rest of the year.
Buyers who are looking for rental return will have to be content with a 2-3 per cent yield on luxury homes based on current price levels and rental rates.
According to the Ministry of Manpower, 58,300 jobs were created for foreigners in 2010, compared to a decline of 4,200 jobs in 2009.
However, employment numbers this year will not be as high since GDP growth is expected to slow to 4-6 per cent from 14.5 per cent last year. In terms of new supply, some 480 of the 10,399 new homes completed in 2010 were from luxury projects like 8 Napier, Ardmore II and The Orchard Residences.
New supply
Another 8,400 new homes are expected to be completed this year, with 440 units coming from luxury projects such as The Marq On Paterson Hill and Cliveden At Grange. Competition for top grade rents will be keen. As such, those who are buying luxury properties this year should be prepared to hold on to their units for three to five years before considering selling for capital gains.
Will luxury condos be the outperformers in 2011?
It would be more realistic to expect the luxury market to cruise along like it did in 2010.
Although more foreign and permanent resident buyers have bought new properties in the prime districts in 2009-10, the numbers were less than in 2006-7, during the initial excitement over Marina Bay as a global financial centre and the building of the two integrated resorts.
In the absence of similar government initiatives in 2011, we can expect less growth in both the inflow of foreign investors and home prices.As such, the volume of luxury transactions this year is likely to be around 150-200 units with prices averaging at $3,000 psf and $3,500 psf for resale and new projects respectively (equating to a 5-10 per cent increase). 

The Pros and Cons of Buying versus Renting

Home ownership is a big deal for Singaporeans. The most critical part of the 5 Cs in the Singapore Dream is the one that stands for Condo (the other four being Cash, Car, Credit Card and Career).
Thus buying a home is often an emotional decision rather than a rational one, sometimes with financially distressing consequences. To make a better decision, you should consider the pros and cons of buying a property.

The advantages of buying

1. Capital appreciation
Your home may go up in value, boosting your net worth and earning you a profit when you sell it.
2. Building equity
Rather than paying rent to a landlord which becomes an expense, by buying a place your mortgage payments are helping you build equity (once you subtract the interest payments) in your own property.
3. Rental yield
If you are buying a property for investment you can rent out the property and get a rental yield. Even if you are staying in it, you can rent out a room to get some income.
4. Hedge against inflation
During times of inflation, the purchasing power of money gets eroded, whereas hard assets (e.g. gold, property) tend to keep their value and rise in tandem.
5. Ability to leverage
Leverage magnifies your returns if the price goes up, but it also magnifies your losses if it goes down. Leverage also allows you to buy a more expensive place than you would have been able to without it.
6. Ability to make capital improvements to enhance value
When you buy a place you can renovate it (e.g. by painting it, or changing the fittings) to raise the value of your property. Contrast this to buying stocks where you are a passive investor (unless you own a significant percentage of the company).
7. Tax savings
When you sell your property and make a profit, there is typically no capital gains tax (unless you are deemed to be a property trader by the IRAS). Also the portion of your CPF that you use to make your mortgage payments is tax-free while rent payments come from your post-tax income.
8. Joy of home ownership
It’s nice to have a roof over your head that belongs to you. There’s no need to worry about a landlord raising your rent or chasing you out.

The disadvantages of buying

1. Transaction costs
When you buy you have to pay stamp duty (up to 3% of the purchase price). And don’t forget the lawyer’s fee and other administrative expenses. When you sell there may also be stamp duty (if you sell within three years), the agent’s fee etc. As a rule of thumb, the property price has to rise by around 5% for you to break even.
2. Holdings costs
When you own a property, you suddenly find you have more bills to pay – maintenance fees, property tax etc.
3. Have to deal with home repairs
If you are renting most of the time when something breaks down you can call the landlord and get him to deal with it. As an owner you have to deal with it yourself.
4. Less liquidity
Unlike a stock which you can buy and sell immediately and get your cash within a few days, selling a home and completing the sale can take several months or more.
5. Exposed to falling asset prices and rising rates
Remember the leverage mentioned above? If prices are falling, your equity in the house will fall even faster. And if you are in a negative equity situation, the bank may even ask you to top up the difference in cash. This could be devastating financially. Also if interest rates rise, your monthly mortgage payments could rise as well (especially if they are pegged to SIBOR/SOR), causing stress on your monthly cash flow situation.
6. Financial and psychological burden of having a mortgage
I’ve found that for many people when they realize they have to service their mortgage payment every month for the next few decades, it becomes an emotional burden and they become much more risk averse. So they would think twice about switching jobs (even for a better opportunity), starting a business, investing, or doing other things that could be risky in the short term but have a long term benefit to their lives. Also they tend to feel more stressed out in general from the large financial commitment and this could have deleterious effects on their health.
So before you commit to a home purchase, carefully consider the above list of advantages and disadvantages of buying, and ask yourself: “Is buying a home really the best option for me?”

Refinancing Strategies – Why Refinance?

This post is part of a series of posts on refinancing by MoneyIQ, a free Singapore home loan comparison site with mortgage broking services when I came across Mr Propwise.

Typically a housing loan interest rate would be low during the first few years, subsequently the rates would increase. Refinancing enables you to lower the interest rates on your housing loan. Also, refinancing allows you to take advantage of more flexible packages that will suit your changing lifestyle and investment objectives.  While there are costs involved, you could still end up saving a considerable amount over the entire loan tenure. Refinancing is when you switch to a new home loan with your existing bank or a different lender.

1. Rate and Term Refinancing

For most people, the primary reason for refinancing is to reduce the monthly installment, pay off the loan faster or reduce the interest.
i) To get a better interest rate
If interest rate has fallen since you took up your loan, then refinancing generally allows you to reduce your monthly installments.
ii) To switch from a floating loan to a fixed rate loan
If your interest has gone up and you are worried that the trend will continue, then changing to a fixed rate will prevent you from being hit by increasing monthly installment.
iii) To obtain better loan features
Perhaps your income has improved since you took up the mortgage, and you like to have a loan package that gives you the flexibility to pay off your loan faster. For example, if you have been paying $1,818 on a $300,000 loan at 4 percent for 20 years, you can shorten the tenure to 15 years by paying $2,220 a month.
iv) To reduce monthly repayment
Perhaps you are having temporary difficulties to pay your monthly installment, you may consider refinancing your loan to a longer tenure. For example, assume you have a $300,000 mortgage at 4 percent for 20 years and have been paying $2,121 a month. Refinancing to a new 25 years loan at the same rate would lower your monthly payment to $1,848.
Keep in mind that the longer the tenure, the more you will pay in interest over the entire loan tenure.

2. Taking Equity Out From Your Home

You can unlock part of the equity you have built in your property without having to sell it. By refinancing and taking an equity loan against your property, you can use the cash to pay off a major expense or consolidate your debts.
(Note that the Housing and Development Act does not allow HDB flat owners to take equity out from their HDB flats. In additional, CPF cannot be used to service the monthly installment on your equity loan.)
i) To consolidate your debts
The interest rate on a mortgage is usually lower than that of a credit card debt or unsecured line of credit. Use the equity loan to pay off these high interest debts and manage your debts under one account.
ii) To fund major expenses
Your equity loan can be considered to fund major expense like home improvements and children’s education. The equity loan can also stand by as ready cash for emergency.
Here’s an example: Let’s say you still owe $150,000 on a $250,000 house, and you want a lower interest rate. You also want $50,000 cash, maybe to spend on your child’s overseas education. You can refinance the mortgage for $200,000.

What Are The Costs?

i) Early Redemption Penalty
This refers to the penalty payable to your existing lender if you refinance to another lender within the lock in or commitment period. Typically the penalty is set at a predetermined rate peg to your housing loan. Some lenders will also have an administration fees.
ii) Legal Clawback
If you had received a legal subsidy from your existing lender when you first took up the loan, you may need to pay back the legal subsidy should you refinance within the legal clawback period.
If you are thinking of buying a new home or refinancing your current mortgage, head over to MoneyIQ to see for free what loan packages are available, how much you could potentially save on interest costs, and if any cash rewards are available.

How to save and invest for your first property downpayment......

The recent rise in the property market has added worry to those who has yet to own a home. To many people, especially the young families, will find it increasingly challenging to save enough for the downpayment of a house. If you belong to this category and wonder what can you do to put yourself closer to the reality of owning a house, I have a few suggestions in this article.

You cannot afford to do away with the discipline of saving

Like it or not, you have to save. You must be thinking this is obvious. But I must say it is easy to say then to do it. In today’s consumerism world, everyone has to battle against the urge to spend money to buy material goods to satisfy one’s desires. There are more advertisements to take away your money than to put more into your pocket. Especially for the young working adults who are empowered with a little bit of purchasing capability, it is easy for them to neglect the importance of saving, and with the proliferation of the alluring credit cards, it is too easy to spend more than what one earns. What I want to emphasize is that young adults must have the discipline to save the moment they receive the paycheck, so that they can have enough to put down a downpayment for a flat in the future. It would be too late to start saving when you want to buy a house.

How to pay yourself first?

If you find yourself difficult to save money, you can employ automatic contributions to a savings account. You can open a Save As You Earn (SAYE) account to force yourself to save. It works by using GIRO to deduct a fixed amount from your salary account on a monthly basis. There are similar programs from other banks. Do not expect much interest to be paid, the objective is to get you started and improve your discipline to save.

How to save and invest at the same time?

For people who accept market fluctuations, I would recommend you to sign up for POEMS’s Share Builder Plan and buy Straits Times Index Exchange Traded Fund (STI ETF) on a monthly basis. It works off the same concept as the SAYE account but instead of leaving the cash idling in the bank, POEMS will buy stocks in STI ETF for you. You can start with a minimum monthly contribution of S$200. This strategy is known as Dollar Cost Averaging (DCA). The advantage of this method is that you do not need to know how to time the market. You just put in a fixed sum every month, say S$200, when the stock price is low, you will buy more stocks and when the stock price is high, you will buy less. In this way, you will enjoy the discount over time. Simple and easy without the need to monitor the market. Do this for a few years and you should have enough for the downpayment. Thereafter, you find a time to sell, which is when the market is doing well. Even if the market is flat, you should be able to realise a small profit. Another good thing is that you have to understand the stock market usually leads the property market by 3 months to 1 year. Hence, if you sell the stocks during the boom time for stocks, you should be happy to sit on your cash while the stock market crashes. Soon, the property market should follow with a downturn, and this is when it would be a golden opportunity to pay for your house at a cheaper price with the cash you have made in the stock market.

What to do if I have some capital but I only want to buy a house a few years later?

If you do not want to risk your capital but would like to make some small profits, you can consider investing in UK Traded Endowment Policies (TEP). TEPs are second hand endowment policies sold in the market. The UK TEPs are regulated by the UK authorities and under the Financial Services Compensation Scheme, it offers capital guarantee up to 90% of the policy’s cash value should the insurer go bankrupt. You can expect 4-8% return per year by purchasing a policy with 4 years to maturity (better than fixed deposit!). This allow you to time your purchase of your house. The only risk turns out to be the currency risk (UK TEPs are denominated in pounds). However, given the low pounds to Sing dollar currently, the risk is mitigated. There may also be a potential for additional gains when the pounds strengthens.
The above are not the only solutions and you may have other ways to build up your capital for downpayment. I must also emphasized that these are just my opinions and not investment or financial advice to you. Your situation may not be suitable for employing these methods. When in doubt, please seek professional help.

Top 10 Cheapest Properties in Singapore??

The top 10 filtered from the Property Guru Website in Q1'11, all but one are HDB flats, and no surprise but they tend to be in the faraway corners of Singapore such as Yishun, Marsiling and Boon Lay, although there are also flats in prime neighbourhoods such as Ang Mo Kio. The cheapest home on the market in Singapore is, surprise, a landed property – but with a fatal flaw!! Read on, you will find out more...

10 cheapest homes in Singapore in descending order:

10. For $252,000 you get a 721 sqft ($350psf) 3NG (New Generation) HDB flat at Blk 118, Potong Pasir Avenue 1.  It comes with 2 bedrooms and bathrooms and is a windy, bright and unblocked unit that is near to amenities and Saint Andrew’s, an SAP school. The asking price implies a Cash Over Valuation (COV) of around $22,000.

9. For $250,000 you get a 740 sqft ($338psf) 3I HDB flat at Block 25 Tanglin Halt Road. It comes with 2 bedrooms and 1 bathroom, is a corridor unit in “simple move in condition”, and is near to amenities and a school.

8. Also for $250,000 you can get a 721 sqft ($347psf) 3NG (Modified) HDB flat at Blk 111, Yishun Ring Road. It has 2 bedrooms and bathrooms, is a corner unit on a high floor, and has designer décor. There is no COV payable.

7. In seventh place is a 3NG (Modified) HDB flat at Block 202 Marsiling Drive, also going for $250,000. At 731 sqft ($342psf) it has 2 bedrooms and bathrooms, has a great unblocked view, and is in move-in condition. You will be minutes away from amenities and within walking distance of the Woodlands checkpoint.

6. In sixth place is a 3NG (New Generation) HDB flat at Blk 565, Ang Mo Kio Avenue 3, going for $247,000. For that price you get 2 bedrooms and bathrooms and 743 sqft ($332psf) of space. The $235,000 valuation implies a COV of $12,000.

5. For just $238,000 you can buy a 3NG (Modified) HDB flat at Block 103 Yishun Ring Road. At 721 sqft ($330psf) you get a flat which has 2 bedrooms and bathrooms, and is near to the MRT, shops and schools. The apartment is in move-in condition, and is near to amenities and schools.

4. In fourth place is a $238,000 721 sqft ($330psf) 3NG (Modified) HDB flat at Block 24 Marsiling Drive. It has 2 bedrooms and bathrooms, is on a high floor, and is near to Admiralty MRT station and the Woodlands checkpoint.

3. On another end of the island you can pick up a 3I (Improved) HDB flat in Blk 185, Boon Lay Drive for $235,000. Space will be a bit tighter as it is only 624 sqft ($377psf), but still has 2 bedrooms and 1 bathroom. The asking price implies a COV of $20,000. It is near to the market, schools and Boon Lay MRT.

2. For $215,000 you can buy a 3I (Improved) HDB flat at Block 187 Boon Lay Avenue.  The ad claims that you get 2 bedrooms and bathrooms in 635 sqft ($339psf) of space. The apartment is next to Boon Lay MRT and Boon Lay Shopping Center, and can achieve a potential rental yield of 5%.

1. And the cheapest property currently being marketed on Propertyguru is, unexpectedly, a landed property. How much would you pay for a 3+1 double-storied terrace house at Geylang Lorong 3 with 1,100 sqft of built-in area and sitting on 725 sqft of land? At an asking price of $188,000 you are paying just $171psf (built-in) and $259psf (land). You are located just minutes away from Kallang MRT and town, and have amenities and a community center nearby. Sounds too good to be true? Well, this property does have a fatal flaw – it has only 9+ years of lease left. So if you buy it, you’ll be house hunting again before the decade’s up…

by Mr Propwise

How to choose the Right HDB Flat for yourself?

Most young families in Singapore buy an HDB flat as their first property as it is more affordable versus private housing, and government subsidies are available for their purchase and financing. More than 80% of Singaporeans live in HDB flats, and more than 90% of them own the home they live in.
To buy an HDB flat, you need to meet a number of eligibility requirements, including the possession of a Singapore citizenship or Permanent Residence. Also note that you will be restricted by certain conditions after you purchase them, including a Minimum Occupation Period of 5 years before you can sell it, buy private property, or rent the entire apartment out (please visit www.hdb.gov.sg for more information).
Once you have checked that you are eligible and decided that buying an HDB flat is your best option, the right HDB flat for you will depend on your: 1) budget 2) desired location 3) gross monthly household income 4) timing need and 5) the size/number of bedrooms you require.
In general resale flats are more expensive than new flats in the same location, plus you have to top up the Cash Over Valuation (the median COV was $30,000 in the second quarter of 2010). But if your gross monthly household income is greater than $10,000, then you have to buy a resale flat. Also if you need a place to live in urgently and are not able to wait the 3 to 4 years a new flat typically takes to get constructed under the Build To Order (BTO) scheme, you will have to buy a resale flat. Otherwise, you can look at buying a new flat.

Income eligibility to buy new HDB flats

If you decide to buy a new flat, the type of flat you can buy is also affected by your gross monthly household income (the sum of the income your family makes).
If your gross monthly household income does not exceed $2,000, you are eligible to buy a new 2-room flat. 2-room flats are usually under 500 square feet and contain a master bedroom, kitchen, living area and storeroom. They are meant for lower income households. They are the private housing equivalent of a one bedroom apartment.
If your gross household income does not exceed $3,000, you are eligible to buy a new 3-room flat in a non-mature estate. The floor area of new 3-room flats range from 646 to 700 square feet and they come with one master bedroom, one common bedroom, a kitchen, living area, common bathroom and storeroom. They are the private housing equivalent of a two bedroom apartment.
If your gross household income is between $3,000-$8,000 you can look at 4-room, 5-room and executive flats.
4-room flats are typically under 1000 square feet in size, and have a master bedroom, two common bedrooms, a kitchen, living area and storeroom. They are the private housing equivalent of a three bedroom apartment.
5-room flats are around 1200 square feet and have a master bedroom, two common bedrooms, kitchen, a separate living and dining area, and storeroom. They are meant to provide a larger living space for extended families of 4-5 members. They are the private housing equivalent of a larger three bedroom apartment.
Executive flats are typically around 1400 square feet in size, and have a master bedroom, two common bedrooms, a kitchen, separate living and dining area, storeroom, and space for a study room. Some executive flats come with a balcony as well. They are the private housing equivalent of a 3+1 or 4 bedroom apartment.
If your gross household exceeds $8,000 but is less than $10,000, you can look at Design, Build and Sell Scheme (DBSS) flats and Executive Condominiums.
Design, Build and Sell Scheme (DBSS) flats are built by private developers who have to bid for the land, design and construct the flats. They usually come with minimal finishings and the exteriors look more like private housing but without the facilities. The HDB provides housing loan and conveyancing services to eligible buyers.
Executive Condominiums are a hybrid between public and private housing. They were introduced by the HDB to cater to young graduate and professional Singaporeans who wanted higher quality housing but could not afford private property. They are built by private developers and have condominium facilities. But they also have restrictions such as the Mininum Occupation Period of 5 years before they can be sold, and from Year 6 to 10 can only be sold to buyers who meet HDB’s eligibility requirements. From the 11th year all restrictions are lifted and they can be bought and sold freely, even by foreigners.

Are Million Dollar HDB Flats Going to be the Norm?

It was reported in the media in early October that a 1,668 square foot HUDC unit at Block 315 in Bishan along Shunfu Road was sold for $1.1 million, or around $659 per square foot. It was also reported that the flat was valued at $900,000, so the buyer paid a Cash Over Valuation (COV) of $200,000, and that he did so because the unit was on a high floor and located conveniently just outside the city. There was also talk about the en bloc potential of the estate, similar to Amberville, to explain the unusually high price paid.
I took a look at the HDB website and it appears there is another unit of exactly the same size but a lower floor in Block 319 that has also sold for $1.1 million recently. Whatever the reasons the buyers paid such a high price for it, for most Singaporeans the thought on their minds might be: “Are million dollar HDB flats going to be the norm in the future?”
These million dollar units are not your typical HDB flats. Firstly these are HUDC flats, which were built under an already phased out special scheme the Government started in the 1970s to satisfy the “sandwich class” who could not afford private properties but aspired to larger homes and nicer estates – some were even gated to give residents more exclusivity. From 1995 these estates could be privatized, thus giving rise to the talk about enbloc potential.
Secondly, at almost 1,700 square feet, these units are very large. So the relatively high per square foot price of $659 is compounded by the large flat size to give you a high absolute value of $1.1 million. New HDB flats being built now mostly only go as large as 1,200 to 1,400 square feet, so these older but larger HUDC and Executive flats also benefit from the scarcity factor.
Thirdly, these particular units are located in a prime location in Bishan near the Circle Line MRT. Bishan is a hot area with high HDB prices, and in the months of September and October the prices of resale transactions for Executive flats ranged from $648,000 to $860,000. Contrast this with a less popular area for Woodlands where the same type of flats during the same period transacted in the range of $430,000 to $616,000.
So no, I do not think million dollar HDB flats are going to be the norm unless per square foot prices in the “hot” HDB estates start to approach the $700 to $800 per square foot levels, which is when we will start to see many more of these transactions. For now, these two transactions are one offs (although similar units in those estates could also transact above a million dollars).

Housing price anxiety

But whether we see many more of these million dollar HDB transactions or not, these stories are playing to an anxiety amongst many Singaporeans that housing prices are rising too quickly and moving out of their grasp. Indeed, from the first quarter of 2007 to the third quarter (flash estimate) of 2010, the HDB resale price index has risen by 60%, a pace which many consider too quick.
In response, on August 30 the government announced a suite of measures to drive out investors from the HDB resale market and stabilize prices. And on October 18, HDB announced further tweaks to the resale procedure for HDB flats, including enhancing the Resale Checklist for sellers and introducing a 7-day cooling-off period between the submission of the Resale Checklist and granting of the Option To Purchase.
Whether these will work to contain the rapid price increases remain to be seen, but in the near term we can expect transaction volumes to decline, with many buyers taking a “wait and see” attitude.

by Mr Propwise

What are DBSS?

For those of you who are newbies, DBSS – in typical Singapore Govt style – means Design, Build and Sell Scheme. Basically, the design, building and selling are done by private developers and agencies. When the project is done, it is handed over to HDB to manage the development.
The design, finishing and quality of the apartment unit is usually better than that of a typical HDB flat. However, DBSS units do not come with pool, gym, and the other facilities normal condos enjoy.
The usual HDB rules apply here: 5 years minimum occupation, selling to only pink and blue IC holders, as well as a new income ceiling of $10,000. Those earning under $8,000 combined salary are eligible for HDB loans. Those earning $8,000 to $10,000 are eligible only for first-timer CPF grant of $30,000.
Prices range between a high-end HDB resale flat and an Executive Condo.

Adora Green – Yishun Central/Yishun Ave 11 (approx. 800 units)

Adora Green is HDB’s latest (and seventh) DBSS offering. Although the buzz has been surrounding Adora Green for quite some time, it hasn’t been launched. Hopefully the developers will keep to their promise and launch after the Lunar New Year.
Location wise, it is about as good as it gets — it’s located in along Yishun Central and is a short walk to the nearby amenities such as Northpoint Mall, Yishun MRT, bus interchange, swimming complex and Khoo Teck Puat Hospital. Nice!
There will be 3-, 4- and 5-room flats on offer, and our sources say that there will be 160 units of 3-bedders, 520 units of 4-bedders and the remaining 120 units of 5-bedders. Pricing wise, we think it is a little too expensive. We heard that they range from $300,000 and above for a 3-room unit to $500,000 and above for a 5-room unit. Crazy, isn’t it? That’s half a million! And it’s in Yishun!

Upper Serangoon Road (approx. 630 units)

This is probably the DBSS site with only 2 bidders — remember how Kwan Hwee Investment paid $42 million more than Sim Lian’s $113 million for this site? Strangely, another condo site just across the road received more bids than this one.
A short drive brings you to Hougang Central where there is Hougang Mall, Hougang MRT (probably the nearest MRT station), and the upcoming megamall. Drive a little further along Upper Serangoon Road and you get to Heartland Mall (Kovan) and Nex (Serangoon). That’s not so bad isn’t it?
There’s also Punggol Park just a couple of minutes’ walk away, which also means it should be nice and serene at night. Oh! We forgot to mention that the KPE is also nearby, which is pretty convenient too.

Bedok Reservoir Cresent (approx. 430 units)

If you like being close to nature, then this is the place for you. The DBSS site here is flanked by Bedok Reservoir and Bedok Town Park, so there will be plenty of fresh air in the morning. This also means that some units won’t have the typical view of HDB blocks spanning as far as the eye can see.
We think this DBSS will be a hit (it’s received 6 bids!) because it will be near the upcoming Bedok Town Park MRT station. Not only that, Tampines Central, the upcoming Bedok mall and Bedok Point are a short drive away.

Tampines Avenue 5 (approx. 580 units)

Located right beside Tampines Premier, we think that this Tampines DBSS site will be a hit when it launches. Although it has the view of HDB blocks left, right, centre, it is within walking distance to Tampines Central. That’s 3 malls right there for you!
Across the road is Tampines Sports Complex (stadium, swimming pools, badminton/basketball/netball hall) where you can keep fit and catch exciting S-League matches. All-in-all, not too bad if you’re planning to upgrade your Tampines flat to a DBSS.

My pick

If I have the chance to buy & to choose, I might settle for either Adora Green or the Tampines DBSS because they are located in/ relatively near the town centre. I am not sure of how the prices for the other DBSS projects (besides Adora Green) will be like, but I really hope they aren’t too expensive!
If you had to choose, which one will it be?