Free advice/discussion on buy/sell of Resale flat (Part 5)

abutan

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Hi Vinz,

Can I ask you, normally young couples buy new flats in the outlying areas like Sengkang & Punggol, after 5 years of staying and if they decide to upgrade to condo and sell off their flats, based on your experince, normally they will make a profit right?
 

vinz

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Hi Vinz,

Can I ask you, normally young couples buy new flats in the outlying areas like Sengkang & Punggol, after 5 years of staying and if they decide to upgrade to condo and sell off their flats, based on your experince, normally they will make a profit right?
Hi, based on last time brand new flat selling price (4rm usually below 200k), after 5yrs if a couple sell off usually can get back 50-100k CASH proceed. (after their CPF goes back of course)

Nowadays I am not so sure since even a 4rm flat at Punggol can be sold by HDB at 250k range. So in order to fetch 50k cash proceed, 5yrs down the road the house must be able to sell off at 320k-350k range... (which is still possible looking at recent transaction of 300k - 370k range)

So my suggestion is to buy a brand new flat if you are eligible for it.
hahaha....
 
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sevenfightclub

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Owner looking to sell at 460k, which means a COV of 30k (neg) based on valuation of $430k.

For the location this price is quite reasonable.

Similar unit of 86sqm sold for $455k,
another 88sqm sold for $468k.

All race eligible to buy.
(Racial quota very tight for this area)

Are you interested to view?

Holland Village 4i for sale
vinz

Hi

I like the area a lot. I'm just not sure I can afford such a high COV leh...
 

Gaddy23

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hi vince. im looking for a flat in either bukit batok or clementi area. 3 room flat. do u think a budget of 220k including cov is reasonable? whats the market cov for these locations? not fussy about location and floor. thanks.
 

vinz

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hi vince. im looking for a flat in either bukit batok or clementi area. 3 room flat. do u think a budget of 220k including cov is reasonable? whats the market cov for these locations? not fussy about location and floor. thanks.
Refer to below HDB website, do a search on Bt Batok 3rooms, u will see the recent transacted prices (inclusive of COV)

HDB resale Transactions

Your budget of 220k is still ok, but only for selected location which u can see from the search. Most COV is between 5k - 15k recently.
 

elaine_limsp

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Contra issue

Hi Vinz

Buyer should be cautious of when entering such a agreement. What are the dangers of doing contra?

1) when i sign the OTP, is there a clause inside that states that the contra period?
2) when contra period is up, if the seller decides not to sell the flat, what are the safe guards for the buyer? I mean, it does not make sense for the buyer to wait 90 days and after which, the seller decides not to sell and waste the buyer time, especially when the buyer needs the flat.
3) the seller agent also mentioned something about the rental of the flat. How is this related to contra?

Would appreciate your kind advice
 
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vinz

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Hi Vinz

Buyer should be cautious of when entering such a agreement. What are the dangers of doing contra?

1) when i sign the OTP, is there a clause inside that states that the contra period?
2) when contra period is up, if the seller decides not to sell the flat, what are the safe guards for the buyer? I mean, it does not make sense for the buyer to wait 90 days and after which, the seller decides not to sell and waste the buyer time, especially when the buyer needs the flat.
3) the seller agent also mentioned something about the rental of the flat. How is this related to contra?

Would appreciate your kind advice
Hi,find it very weird that you copied the exact same questions someone else had asked and post it here and also pte msg me.

You can find the answers in the below thread.

Burning Qns: HDB Contra
 

yoki80

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bro vinz

got some query on the rental recontract, previously my frens and I rented a hdb. He is leaving soon and I will be taking the unit myself. When I look at the last agreement there is a clause renewal commission which sound like this

In the event that the landlord should grant the tenant an extension of the said term herein then the landlord and the tenant should pay the agency renewal commission of half percent and GST for every one (1) year or less period od extension of lease. (what does it mean). The contract was entered by my frens and I, does it mean i still have to pay commission of the half percent of the rental or what...actually the wording itself is confusing of the amount to be paid...??

Now that I m the only person taking over and the previous agent is basically doing nothing on this renewal, do i still have to fork out the commission. Where the agent involvement was nil.

I was thinking to just enter a new agreement with the landlord myself for the new lease. Hence, it is not a renewal and need not to pay commission as there is no agent involved. Doable?
 

tanalley

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Any idea where I can find info about the different flat type? 4i, 4NG etc etc, can't seem to find it on the HDB website.
 

elaine_limsp

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Hi,find it very weird that you copied the exact same questions someone else had asked and post it here and also pte msg me.

You can find the answers in the below thread.

Burning Qns: HDB Contra
Seller back out after 1st appointment date - Contra

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Hi Vinz

I am the buyer of the new unit, the seller back out, refuse to sell his unit to me, after going through the first appointment. I know I will be the one to sue the seller, however, the seller claim he does not have money and may end up bankrupt.

I manage to cancel the other buyer of my old unit, due to the other party refuse to sell his unit to me.

However, now the issue, I would like to get compensation. Any Idea what is the reasonable amount I should be getting?

Claiming back my deposit, HDB registration fee for doing a contra, income loss due to 1st appointment, loss of my sale of my old unit to the other buyer, to ask for the difference of expense of getting another unit which may cost more expensive. Asking for difference for purchase, may be difficult as the seller keep on saying he maybe bankrupt anytime.

Of course, another question, I know you are agent, which is quite sensitive. Can I also sue the agent as he did not ensure the seller is able to find another unit when he decides to sell the flat unit to us. This agent is not our selling agent, we just approach him directly. This agent somemore dare to say once sign the OTP, this seller definitely have to move out by the 2nd appointment date, if seller default just sue him. Initially, we thought sueing may not appear in our mind. Now after going through, suing matter is not easy and is a lengthy procedure.

I may have to go through the small claims tribunal to get back all my money. Do you think you can advise on this issue, how high is the chance of getting my money?
 

vinz

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bro vinz

got some query on the rental recontract, previously my frens and I rented a hdb. He is leaving soon and I will be taking the unit myself. When I look at the last agreement there is a clause renewal commission which sound like this

In the event that the landlord should grant the tenant an extension of the said term herein then the landlord and the tenant should pay the agency renewal commission of half percent and GST for every one (1) year or less period od extension of lease. (what does it mean). The contract was entered by my frens and I, does it mean i still have to pay commission of the half percent of the rental or what...actually the wording itself is confusing of the amount to be paid...??

Now that I m the only person taking over and the previous agent is basically doing nothing on this renewal, do i still have to fork out the commission. Where the agent involvement was nil.

I was thinking to just enter a new agreement with the landlord myself for the new lease. Hence, it is not a renewal and need not to pay commission as there is no agent involved. Doable?
Hi there, the clause is there, so of course u have to follow the clause.

But if the agent already MIA and not bothered abt this renewwal, you can do whatever you want with the landlord. (i assume landlord dont want agent involvement too)

Take note, since whatever new tenancy agreement is signed between u and landlord, make sure the clause protects you in case the landlord would suddenly want to stop rental after a few mths and ask u to move out etc.

A standard T.A should have clauses protecting both landlord and tenant's interests.
 

vinz

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Seller back out after 1st appointment date - Contra

--------------------------------------------------------------------------------
Hi Vinz

I am the buyer of the new unit, the seller back out, refuse to sell his unit to me, after going through the first appointment. I know I will be the one to sue the seller, however, the seller claim he does not have money and may end up bankrupt.

I manage to cancel the other buyer of my old unit, due to the other party refuse to sell his unit to me.

However, now the issue, I would like to get compensation. Any Idea what is the reasonable amount I should be getting?
Whatever amount you loss or incurred due to him backing out of the deal. Of course must have documentation proof.

Of course, another question, I know you are agent, which is quite sensitive. Can I also sue the agent as he did not ensure the seller is able to find another unit when he decides to sell the flat unit to us. This agent is not our selling agent, we just approach him directly. This agent somemore dare to say once sign the OTP, this seller definitely have to move out by the 2nd appointment date, if seller default just sue him. Initially, we thought sueing may not appear in our mind. Now after going through, suing matter is not easy and is a lengthy procedure.

I may have to go through the small claims tribunal to get back all my money. Do you think you can advise on this issue, how high is the chance of getting my money?
It's your words against his. How do you proof that he gurantee the seller will not back out?

Yes its a lengthly pocess, I do no know how to advise you on the procedure as I have never been through it or go through it with any of my buyer.

What I advise is to settle this asap and move on with life.
As long as u get back the deposit, then maybe just close this chapter.

Legally you can be right, but you never know how many months or years this is going to take. Give and take.
 

ricothp76

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I was looking around for resale these few weeks and noticed that the COV prices are coming down, but the valuation prices are going up. This seems like leverage to maintain current prices. I looked at a Oct valuation report and a Dec valuation report for 2 units at roughly the same neighbourhood, area, floor, block and furnishing. Understand that these factors affect the valuation for resale units.

In your opinion, generally for HDB resale, would the valuation prices drop any further? Everybody says that next yr would drop further, but from what i see, it looks like valuation is increasing even though COV is decreasing so it is like not much difference.

COV is already quite low at 5-10k negotiable. Don think it will drop until 0 cash, unless of course special cases where owner is selling urgently.

My personal opinion is that the amount of COV paid to the seller would depend on how well the unit is furnished. Is that a correct assumption? I would not pay, say for example a 40k COV, for a unit that is quite in bad shape. Bad shape as in dated tiles that require to replace, wall that needs to touch up and repaint, pipes that are rusty, no aircon, build-in cabinets are rotting away.
 

vinz

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I was looking around for resale these few weeks and noticed that the COV prices are coming down, but the valuation prices are going up. This seems like leverage to maintain current prices. I looked at a Oct valuation report and a Dec valuation report for 2 units at roughly the same neighbourhood, area, floor, block and furnishing. Understand that these factors affect the valuation for resale units.
From my feel, valuation is maintaining and not going much higher. At most 1k - 10k diff, as compared to 6mths back when valuation inch higher by 10-20k every mth.

In your opinion, generally for HDB resale, would the valuation prices drop any further? Everybody says that next yr would drop further, but from what i see, it looks like valuation is increasing even though COV is decreasing so it is like not much difference.
Why would valuation drop? I dont think it will drop much (if any).

COV is already quite low at 5-10k negotiable. Don think it will drop until 0 cash, unless of course special cases where owner is selling urgently.
COV depends on owner, if valuation goes even higher, the owner can still asking for COV, its up to the buyer to decide whether to go ahead with the purchase at that price or not.

Of course if seller is realistic (not super greedy), then we have to presume he will maintain his asking price regardless how high the valuation gone up. If u are a seller, do u want to get the highest price possible?

My personal opinion is that the amount of COV paid to the seller would depend on how well the unit is furnished. Is that a correct assumption? I would not pay, say for example a 40k COV, for a unit that is quite in bad shape. Bad shape as in dated tiles that require to replace, wall that needs to touch up and repaint, pipes that are rusty, no aircon, build-in cabinets are rotting away
COV depends on both buyer and seller coming to a compromise. You be surprised that a original unit at low floor but good location (next to mrt etc) can still fetch a high COV. It's very subjective.

Some owner are realistic, some are not.
 

hoeyat

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I see some ads on papers stating that some sellers are going below valuation... Is that a sign of prices going south?
 

vinz

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I see some ads on papers stating that some sellers are going below valuation... Is that a sign of prices going south?
6mths back:
Valuation 300k, asking COV 40k , Purchase price 340k

Now:
Valuation 350k, Purchase at 340k, thus COV is 0.

Get the drift? Overall Price maintaining, valuation gone up, thus COV gone down.

Is market going down now? My say is no,but if based on COV then it yes to many people.
 

hoeyat

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Does valuation take into account the amount of reno in the flat? If so, it doesn't make sense for the seller to add another much higher COV even if the reno is tip-top & 'condo line'. I saw a 5-rm flat in clementi with 60K cov!! Seller's justification is that they spent a lot of money on reno. No doubt it's really 'condo like' but who will come out with 60k cash in this kind of economy climate?? Unless buyer is one of those en-bloc beneficiaries...
 
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