is this e right time to lowball resale?

[Okuhida]

All that has nothing to do with property price lol.

Gdp still down 40%. Covid still here. U gotta be quite stupid to not be able to find other investment besides a bet on property which is a bet on a vaccine surely occuring lol.

Watever floats your boat i suppose.
I guess analysts downgrade property and are highly paid and whole damn market consisting of tons of participants sell off property stocks are for no reason

Sinkies are known to be narrow minded anyways. One dimensional thinking, one track mind. No innovation and risk averse.

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Wow long debates and arguments. Something I wish to point out, it is not representative of the economy to harp on a 40% GDP contraction which happened because of circuit breaker. It is not a free market fall and GDP is definitely going into a growth using Q2 as the base. I’m not optimistic of the economy in the next 9-12 months but 40% contraction is scaremongering.

Also, it is pretty naive to think that the stock market will soar in the worst case scenario you painted here that is a protracted recession. I’m vested in the equity markets, more so with the recent price correction, but it is not logical to think that property is doom because there is not cure for COVID-19 and hence go make money in stocks.

Lastly, let’s not forget the extraordinary measures by central governments all over the world. One thing in relation to the property market is mortgage deferment. It was quoted above that property prices dropped in 2009, lagging a recession in 2007. I’m not familiar with that era but supposedly the price drop lasted 2 years? A homeowner who does not have 2 years mortgage buffer can make use of the mortgage deferment now to build up significant buffer in the event they might need it 1-2 years later.

 

[1993newbie]

Lel, not in my kaypo list.

So u going to view forett this weekend?

 

[windwaver]

https://www.propertyguru.com.sg/pro...-correction-during-pandemic-orangetee-amp-tie

HDB Resale Market Avoided Major Price Correction During Pandemic: OrangeTee & Tie

Despite the COVID-19 pandemic and circuit breaker measures, HDB resale prices remained stable. However, HDB resale transactions fell by over 41.9% to 3,426 units during Q2 2020.

 

[NiShiZhu]

Wow long debates and arguments. Something I wish to point out, it is not representative of the economy to harp on a 40% GDP contraction which happened because of circuit breaker. It is not a free market fall and GDP is definitely going into a growth using Q2 as the base. I’m not optimistic of the economy in the next 9-12 months but 40% contraction is scaremongering.

Also, it is pretty naive to think that the stock market will soar in the worst case scenario you painted here that is a protracted recession. I’m vested in the equity markets, more so with the recent price correction, but it is not logical to think that property is doom because there is not cure for COVID-19 and hence go make money in stocks.

Lastly, let’s not forget the extraordinary measures by central governments all over the world. One thing in relation to the property market is mortgage deferment. It was quoted above that property prices dropped in 2009, lagging a recession in 2007. I’m not familiar with that era but supposedly the price drop lasted 2 years? A homeowner who does not have 2 years mortgage buffer can make use of the mortgage deferment now to build up significant buffer in the event they might need it 1-2 years later.

Some who apply for defer mortgage payment are not becoz they r jobless or facing financial difficulty.
They probably just wanted to build up more cash during this period.
At least I know many of such cases within my circles of frens.
With such scheme, why not make full use of it?

 

[drkcynic]

Some who apply for defer mortgage payment are not becoz they r jobless or facing financial difficulty.
They probably just wanted to build up more cash during this period.
At least I know many of such cases within my circles of frens.
With such scheme, why not make full use of it?

My wife does mortgages and she said majority of the applicants are D 9 10 11 owners and most are triggered by their wealth bankers.

There you go, the rich gets richer.

 

[Okuhida]

Some who apply for defer mortgage payment are not becoz they r jobless or facing financial difficulty.
They probably just wanted to build up more cash during this period.
At least I know many of such cases within my circles of frens.
With such scheme, why not make full use of it?

Haha I made use of that because the money meant for monthly repayments are sitting in CPF earning more interest than the housing loan so it simply made financial sense.

 

[NiShiZhu]

My wife does mortgages and she said majority of the applicants are D 9 10 11 owners and most are triggered by their wealth bankers.

There you go, the rich gets richer.

Haha I made use of that because the money meant for monthly repayments are sitting in CPF earning more interest than the housing loan so it simply made financial sense.

And a few bros in this forum are doing that too.

 

[rlskyline]

My wife does mortgages and she said majority of the applicants are D 9 10 11 owners and most are triggered by their wealth bankers.

There you go, the rich gets richer.

hmm does it really make sense to defer as interest rate is so low now?
my fren who deferred has additional interest cost of 20k over the whole tenor of the loan cos of deferring.

 

[Forever84]

hmm does it really make sense to defer as interest rate is so low now?
my fren who deferred has additional interest cost of 20k over the whole tenor of the loan cos of deferring.

Some people just get a kick out of it

If your installment is 10-20K per month, bank just free up 120k cash flow for u, no questions asked, u can take the money throw into gold or stocks, what's a 1% interest rate

Anyway like I said, I know some people just get a kick from being able to "earn", cheap thrill.

 

[Okuhida]

hmm does it really make sense to defer as interest rate is so low now?
my fren who deferred has additional interest cost of 20k over the whole tenor of the loan cos of deferring.

Assuming your friend did not leave the sum he deferred sitting idle and channel it to some moderate investments, he should easily gain upwards of $27K over an estimated 25yrs loan tenor. It makes sense precisely because home loan interest rate is low but it is difficult to explain if someone has no knowledge of financial concepts.

 

[rlskyline]

Assuming your friend did not leave the sum he deferred sitting idle and channel it to some moderate investments, he should easily gain upwards of $27K over an estimated 25yrs loan tenor. It makes sense precisely because home loan interest rate is low but it is difficult to explain if someone has no knowledge of financial concepts.

yup I get your point. unless one is confident of using the deferred money to generate higher returns, it makes more sense to clear more loan while interest rate is low. but to each his own.

 

[Forever84]

yup I get your point. unless one is confident of using the deferred money to generate higher returns, it makes more sense to clear more loan while interest rate is low. but to each his own.

Clearing a loan in a low interest environment is the worse thing u can do, no matter your risk tolerance

Even a money market fund or some simple instrument can beat the current sibor

 

[PrataKosong]

Logically, this is the most serious crisis we are facing within this 20 years.
Sharp observers are able to point out there’s not even much dent to our property price and all these could be due to our govt’s close monitoring and in time policies to deal with different challenges.
In good times, Govt tighten the CMs, in bad times, Govt loosen some of the policies.
If 40-50% drop, no need wait for covid to kill us, we will all be sleeping on the streets.

That was why I felt that the previous poster's time frame of 3 to 5 years is too long.

Asian Financial Crisis saw a 45% drop in the property market over 18 months.

Since this COVID induced economic crisis is much more serious, affects more industries and impacts a wider portion of the globe than the Asian Financial Crisis, we should be seeing a 10% to 20% immediate drop (once the borders were closed and flights suspensed) followed by a further 30% to 40% drop over the subsequent months.

We all know that it didn't play out as expected.

Yes the multiple rounds of cooling measures have, for better or worse, artificially put brakes on the property market between the period 2013 to 2017 and 2019 onwards.

This gives the government control on the direction that the property market can take.

Anyway, my personal opinion is that if there really a 40-50% plunge in the property market, the middle class will be sleeping in the streets. The lower income will be taken care of by the govt. And the rich will just get richer.

 

[NiShiZhu]

@bro prata, yes what u said makes absolute sense.
Housing is one of our closest basic necessities and he thinks Govt will do nothing to allow 40-50% plunge?
Some pple just talk w/o common sense. It will be a mockery on our CMs.
To begin with, I don’t think anyone here is so bullish to shout 40-50% increase in the near future. Property price is going to pace gradually in times to come.

Guess He still live in the era of 2008 where property price can be flipped 3 times within a month with no holds barred.
40-50% plunge? he’s basically talking nonsense and being hostile hurling “wtf views” on others when others shared different opinions from his.
Unfortunately, occasionally, there would bound to have minority of edmwers doomsayers coming here and spread fear to suit their own agenda w/o backing up facts. If property price can plunge 40-50%, his stocks will all become trash.
No need wait for covid kill us, the marginal call can kill us already, all can get ready to buy a sleeping bag and sleep on the street.

 

[Missbrightside]

Sorry to go off topic but I wanted to get you guys opinion if you’ll stay in a resale flat that someone recently died in before?

I was looking at a jumbo flat at Marsiling Rise and found out from my friend that a tenant died inside all alone during Covid period in May 2020. The owner then put the place up for sale very soon after and I happen to look at that unit before knowing this fact.

Do you think the value will drop? The asking seems quite high given the condition and history of the house, but how much lower than the asking should we offer?

 

[NiShiZhu]

Sorry to go off topic but I wanted to get you guys opinion if you’ll stay in a resale flat that someone recently died in before?

I was looking at a jumbo flat at Marsiling Rise and found out from my friend that a tenant died inside all alone during Covid period in May 2020. The owner then put the place up for sale very soon after and I happen to look at that unit before knowing this fact.

Do you think the value will drop? The asking seems quite high given the condition and history of the house, but how much lower than the asking should we offer?

A few qns u need to ask yourself
1) would u feel comfortable buying a place with unpleasant past? Furthermore it happens quite recently.
2) if u don’t mind, what’s the motivation of buying such unit? It’s not as if the price is dirt cheap or attractive enough.
3) usually after the second buyer moves in, no one will dig into the past of first owner, so I Guess when u wanted to sell in future, this incident will be irrelevant.
4) if u really like the place/location, nego the price u had in mind and tell ur agent your concerns. Hopefully this can be conveyed to the owner to reconsider his asking price.

Personally if buy for self stay, I won’t buy such unit. Rental ok.

 

[Missbrightside]

A few qns u need to ask yourself
1) would u feel comfortable buying a place with unpleasant past? Furthermore it happens quite recently.
2) if u don’t mind, what’s the motivation of buying such unit? It’s not as if the price is dirt cheap or attractive enough.
3) usually after the second buyer moves in, no one will dig into the past of first owner, so I Guess when u wanted to sell in future, this incident will be irrelevant.
4) if u really like the place/location, nego the price u had in mind and tell ur agent your concerns. Hopefully this can be conveyed to the owner to reconsider his asking price.

Personally if buy for self stay, I won’t buy such unit. Rental ok.

Thanks for your advice!
1. I’m not uncomfortable but neither am I comfortable. If the price is much lower I’ll take it.
2. Need to stay with parents who are aged/old and due to work location, Woodlands is preferable.
3. That’s true, I’ll take that into account
4. Just wondering how much lower to nego? Cause the seller seems very picky/strict on the price despite the bad history and the condition of the house is honestly quite bad as well, it’ll require an overhaul. In this economy, the seller is still quite inflexible.

 

[light84]

Logically, this is the most serious crisis we are facing within this 20 years.
Sharp observers are able to point out there’s not even much dent to our property price and all these could be due to our govt’s close monitoring and in time policies to deal with different challenges.
In good times, Govt tighten the CMs, in bad times, Govt loosen some of the policies.
If 40-50% drop, no need wait for covid to kill us, we will all be sleeping on the streets.

AFC was the most serious one. U hear of people go beedog reservoir due to financial troubles.

COVID is not as bad but it is a very slow burn. If burn until end of next year, there will be some weak owners who cannot hold so long.

Due to all the cooling measures over past few years, owners are not very leveraged. Plus Gahmen come out with unprecedented temporary interest only payment and with interest rates so low, owners definitely can hold. Once this effect wears off later in the year and there is no improvement in business sentiments, slowly some of these weak owners will offload.

 

[1993newbie]

Condo Resale Volume Near Doubles in July.

“CCR and RCR prices decrease by 1.7% and 1.4%, while OCR prices increase by 1.6% in July 2020”

> Month-on-month, overall prices increase by 0.1% over June 2020.
> Year-on-year, overall prices decrease by 0.1% over July 2019.
> In terms of regions, year-on-year, CCR and RCR prices decrease by 2.6% and 1.2% respectively while OCR prices increase by 1.5%.

https://www.srx.com.sg/research/59371/condo-resale-volume-near-doubles-in-july

 

[occifer]

Earliest to look at property is mid next year...and then 1st quarter 2022, etc.
This is a long game.
Silly to bother with it now compared to markets lol
Good luck causes vaccine to appear next year = dont bother.
Extended period with no vaccine = buy after a major drop in 3-5 yrs

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