New MSR make PC more attractive than EC?

[ah_cheng1882]

Wah crazy ah. The government's intention is not to push people towards PC! It's to limit the amount of loans we can take to buy EC.

 

[Missumuch]

Wah crazy ah. The government's intention is not to push people towards PC! It's to limit the amount of loans we can take to buy EC.

initially govt's intention is to reduce the demand for BTO, hence they come up wif the concept of ECs.
Now they realise ECs prices is fast catching up wif PC so they try to reduce the demand for ECs so as to moderate EC land bids $.

in a nutshell, it is to create a new problem to solve the existing problem always liddat

 

[Zze121]

Gov trying very best to suppress the HDB value. One have to bear in mind that you merely buying a 99 years lease from gov, SG Gov as the owner can come out any new regulation just as they pleased.

MSR can only reduce the quantum, ultimately the PSF will still be high, u think there will still be upside on new EC?
They already started 60LH on PC, buyer will end up lugi more.
Somehow there is no complete solution to it.
MSR is more powerfully to single ppty buyer, TDSR is for investor.
They dun want us to over leverage, buy within yr means, that's the massage to us.
In fact many profited from ppty and get rich, that's the reason....

 

[nauhchop]

if buy EC, mthly repayment is capped at $3k per mth, but if u choose PC, mthly repayment will be 6k per mth.

if u say PC is not affordable for 10k earner, isn't EC even less affordable now?

Actually different people have different standards of affordability. I am trying to understand something here what is affordable?

Earn 10k pay 6k is affordable?
Earn 10k pay 8k is affordable?
Earn 10k pay 9.9k also consider affordable?

 

[nauhchop]

MSR can only reduce the quantum, ultimately the PSF will still be high, u think there will still be upside on new EC?
They already started 60LH on PC, buyer will end up lugi more.
Somehow there is no complete solution to it.
MSR is more powerfully to single ppty buyer, TDSR is for investor.
They dun want us to over leverage, buy within yr means, that's the massage to us.
In fact many profited from ppty and get rich, that's the reason....

They got rich because its an up cycle. But when its a down cycle, then its a different story for most.

 

[Missumuch]

Actually different people have different standards of affordability. I am trying to understand something here what is affordable?

Earn 10k pay 6k is affordable?
Earn 10k pay 8k is affordable?
Earn 10k pay 9.9k also consider affordable?

erm .... y ppl kept missing my point arh?

I dun mean 6k mthly loan is affordable to a 10k earner. I meant to say to an EC owner to be, PC give them more leeway on the amt of loan they can get.

 

[Zze121]

They got rich because its an up cycle. But when its a down cycle, then its a different story for most.

There is a phase refer to this that means something like the water tide and swimming truck thing...

CM ruling is like Tsunami.

 

[Zze121]

if buy EC, mthly repayment is capped at $3k per mth, but if u choose PC, mthly repayment will be 6k per mth.

if u say PC is not affordable for 10k earner, isn't EC even less affordable now?

Maybe rephrase it.

$6k limit is much better ofcourse.

 

[Zze121]

erm .... y ppl kept missing my point arh?

I dun mean 6k mthly loan is affordable to a 10k earner. I meant to say to an EC owner to be, PC give them more leeway on the amt of loan they can get.

Come to refinancing or repricing, will bank still apply MSR?
I feel that the ruling kicks in very fast nowadays.

 

[Missumuch]

Come to refinancing or repricing, will bank still apply MSR?
I feel that the ruling kicks in very fast nowadays.

I believe shd be, at least tat's wat my banker told me abt tdsr.

Im more curious on how msr will become tdsr for the EC owners after it become PC

 

[Missumuch]

Maybe rephrase it.

$6k limit is much better ofcourse.

yeah
honestly give u 30% mthly loan for EC may as well dun borrow!

 

[SKWSMC]

u mean EC will be better priced?

which developers like to trim profits?

their usual practise is shrinking the sizes to increase the psf wor!

Of course no company will want to trim profit. However if the demand is being cut away, there will be strong reason to do so. MSR will make a part of the potential customer to not have a deep pocket.
If it is a PC the developer can cut down the size to much smaller, as we know URA is stopping the MM unit now. For a EC of course the developer will try to do so too but will the URA approve it?

 

[Missumuch]

Of course no company will want to trim profit. However if the demand is being cut away, there will be strong reason to do so. MSR will make a part of the potential customer to not have a deep pocket.
If it is a PC the developer can cut down the size to much smaller, as we know URA is stopping the MM unit now. For a EC of course the developer will try to do so too but will the URA approve it?

demand is decreasing because of tdsr n CMs.
instead of trimming profits, many developers chose to trim the sqft so tat it become more affordable.

oso becos till now, we hv yet to see a reasonable land bid, hence there is oso a limit as to how much profits developers can trim.
URA isn't exactly stopping MMs. as long as u build enuff big units, u can still built MMs.

MM I suppose u r referring to 1 bedder?
currently I dun tink there is any rule saying tat EC cannot build 1 bedder.
stand to be corrected though.

even if EC developers dun build 1 bedder, gg fwd, 2, 3 , 4 bedders will oso come in compact sizes. hence it is MM in substance liao.

 

[civic3106]

Come to refinancing or repricing, will bank still apply MSR?
I feel that the ruling kicks in very fast nowadays.

If the OTP date is on or before 10 Dec 2012, 30% MSR doesn't apply to refinancing. If your banker doesn't agree, direct him/her to MAS.

 

[goodchong]

erm .... y ppl kept missing my point arh?

I dun mean 6k mthly loan is affordable to a 10k earner. I meant to say to an EC owner to be, PC give them more leeway on the amt of loan they can get.

10K salary - $2K (CPF contribution) + 2.3K ( Ordinary account) - 6K (house installment) = 4k cash every month...

it is tat bad for a couple to survive on 4K cash?

 

[haato89]

10K salary - $2K (CPF contribution) + 2.3K ( Ordinary account) - 6K (house installment) = 4k cash every month...

it is tat bad for a couple to survive on 4K cash?

Of course can survive. 1k parents 2k savings 1k expenses. In the meantime pray hard that u keep your job. Eat bread drink water sure can survive. Dunno about you but I'm looking at more than survival leh.

 

[alo]

10K salary - $2K (CPF contribution) + 2.3K ( Ordinary account) - 6K (house installment) = 4k cash every month...

it is tat bad for a couple to survive on 4K cash?

Personally I rather have more cash on hand than to pay them as interests to the bank..

 

[goodchong]

Of course can survive. 1k parents 2k savings 1k expenses. In the meantime pray hard that u keep your job. Eat bread drink water sure can survive. Dunno about you but I'm looking at more than survival leh.

Not all youngster pessimistic about their future, don't forget bonus, increment, plus saving during construction period.
EC potentially/definitely have more upside than HDB, sell it after 5/10 years, with the cash appreciation can paid off resale HDB, then, buy a 2nd property after that.

 

[nauhchop]

Of course no company will want to trim profit. However if the demand is being cut away, there will be strong reason to do so. MSR will make a part of the potential customer to not have a deep pocket.
If it is a PC the developer can cut down the size to much smaller, as we know URA is stopping the MM unit now. For a EC of course the developer will try to do so too but will the URA approve it?

Why an EC is attractive prior to all these new rulings?

1) hybrid standard of living, privatization to PC after full 10 years
2) no resale levy
3) 2nd timers eligible
4) housing grant

No.2 is taken out
No.4 should take out too. Housing grant should be a grant to help those more in need of owning a home.

Not so much of size. Statistics have shown that ec buyers are not size sensitive. They are more to price quantum sensitive. That is why 3 bedders that hit near to the 900k mark are harder to sell

 

[nauhchop]

Not all youngster pessimistic about their future, don't forget bonus, increment, plus saving during construction period.

Younger generation are very optimistic, because they never faced recession.
They forgotten retrenchment, bonus freeze, unable to find a job