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Executive Condo (EC) bubble?

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Old 15-02-2019, 03:15 PM   #46
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Like that 3-bedroom is at least $1 million.



If a 30yr $500K housing loan (2%) is taken, that's like paying $1848 each month with $823 going to to bank as interest each month.

People in Singapore so rich want to support the banks so much?
1 million is nothing these days.
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Old 15-02-2019, 03:29 PM   #47
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If a 30yr $500K housing loan (2%) is taken, that's like paying $1848 each month with $823 going to to bank as interest each month.
Are you sure you understand how mortgage loan works?

Looks like you do not own any property... yet...
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Old 15-02-2019, 05:13 PM   #48
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Like that 3-bedroom is at least $1 million.



If a 30yr $500K housing loan (2%) is taken, that's like paying $1848 each month with $823 going to to bank as interest each month.

People in Singapore so rich want to support the banks so much?
Mortgage interest rates is amortized, you pay more interest during the start vs the end, it's not a front on add on method
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Old 15-02-2019, 05:15 PM   #49
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Hmm actually EC will still remain affordable which in align to Govt objectives but getting smaller.
Last time 2015 4bedrm condo 700xx
2018 3bedrm 700xx
2020 3 bedrm 700xx

Still affordable ar.. 700xx ppl still can buy, still worth it.
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Old 15-02-2019, 06:51 PM   #50
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It is a bubble what. Just that people all hope to ride the wave and make some money.
Everyone wants to buy a EC and hope to sell for a profit 5 years later.
Problem is, who is going to buy from them?
Opposite my block got those private condo on market for 2 years no one buying, no one renting. No more influx of rich china migrants.

Already 1000 psf, who is gonna buy a leashold at higher price from you. Somemore room so small.

Those old enough will remember the bubble of 1997.

Condo facilities...pls la. How often u use the swimming pool ( which is more like a waddle pool)
Anyone one can buy, u still gonna get Ur hordes of ceca looking proudly as their nosiy kids scream at the top of their lungs while running around.

I rather buy a good old hdb in a nice area close to mrt, food and facilites, with nice people that I already see with my eyes and invest the rest of my money in safe index funds. A good old hdb with a nice corridor, large bed rooms and friendly neighbors that bring u snacks during cny...water your plants for you. A good old hdb where I don't stress over a 800k mortgage...

Get it no?
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Old 15-02-2019, 08:22 PM   #51
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It is a bubble what. Just that people all hope to ride the wave and make some money.
Everyone wants to buy a EC and hope to sell for a profit 5 years later.
Problem is, who is going to buy from them?
Opposite my block got those private condo on market for 2 years no one buying, no one renting. No more influx of rich china migrants.

Already 1000 psf, who is gonna buy a leashold at higher price from you. Somemore room so small.

Those old enough will remember the bubble of 1997.

Condo facilities...pls la. How often u use the swimming pool ( which is more like a waddle pool)
Anyone one can buy, u still gonna get Ur hordes of ceca looking proudly as their nosiy kids scream at the top of their lungs while running around.

I rather buy a good old hdb in a nice area close to mrt, food and facilites, with nice people that I already see with my eyes and invest the rest of my money in safe index funds. A good old hdb with a nice corridor, large bed rooms and friendly neighbors that bring u snacks during cny...water your plants for you. A good old hdb where I don't stress over a 800k mortgage...

Get it no?
Actually I feel the same way as you. After I bought my EC, I thought it was nothing special. Looks nicer on the exterior, yah, so what when the inside is so small.

I miss the openness of HDB, both interior and the void deck area. But nowadays looks like HDB are also like condo becoming smaller and smaller.
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Old 15-02-2019, 08:36 PM   #52
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Mortgage interest rates is amortized, you pay more interest during the start vs the end, it's not a front on add on method
Ah, I was wrong to use the absolute amount.

Ultimately, over the period of the loan, a typical salary man is spending the same % (interest paid/mortgage) of time "working for the bank". I really cannot stand the thought of that.
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Old 15-02-2019, 10:56 PM   #53
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Mortgage interest rates is amortized, you pay more interest during the start vs the end, it's not a front on add on method
Actually how it works ah ? Cause if loan 10years, first few years repay interest and lesser go to principal.
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Old 16-02-2019, 06:37 AM   #54
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Hmm actually EC will still remain affordable which in align to Govt objectives but getting smaller.
Last time 2015 4bedrm condo 700xx
2018 3bedrm 700xx
2020 3 bedrm 700xx

Still affordable ar.. 700xx ppl still can buy, still worth it.
think now hard for ec to be 700k liao... now like 900k at least...

put the ec tag aside and imagine u can buy as property investment and rent it out. u rather buy this or buy reits/stocks? at these levels the rental yield does not make much sense.
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Old 16-02-2019, 08:24 AM   #55
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Ultimately, over the period of the loan, a typical salary man is spending the same % (interest paid/mortgage) of time "working for the bank". I really cannot stand the thought of that.
I used to think similarly like you, perhaps as I was brought up with thinkings that it is not good to owe money.

However, if you think deeper, you would realise that mortgage loans work for both you and the bank. It is a Win-Win. Try asking your friends and relatives for loans of a few hundred k or m. Who would lend you? Only banks will if you are credible.

If you prefer to be debt free, then try saving hard for 30 years before buying a house in cash. So in 30 years’ time, how much do you think an EC (or similar) would cost? Can you buy at the same price as now? Where would you be staying this 30 years, and you may get married and have children?

Well, unless you are a bloodsucker waiting to inherit from your parents...
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Old 18-02-2019, 01:21 PM   #56
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Spoke to an agent recently. She hinted that the indicative launch price for Sumang EC will be starting from $1100psf.. at this rate is there any point for ECs anymore?
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Old 18-02-2019, 01:38 PM   #57
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Spoke to an agent recently. She hinted that the indicative launch price for Sumang EC will be starting from $1100psf.. at this rate is there any point for ECs anymore?
You know what's funny? People expect their salaries and bonuses to increase year on year but expect everything else to stay stagnant.
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Old 18-02-2019, 01:56 PM   #58
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this is how the market is..
if you try searching for resale HDB, 500k 4room less than 10 years, you will only find places like jurong, cck, sembawang, punggol, sengkang, some are not near mrt either.

you don't see the rise in prices because you are an owner of a property
if you are planning to move house, try searching for resale HDBs, chances are most of them won't catch your eye either because its way too expensive.

4rm whampoo bto starts from 500k++, and that is BTO, will it raise to 700k-800k in the future ? very likely. (52xk + buyer stamp + reno cost + interest etc) break even cost to sell after MOP will be 640k+ minimally.

a new launch condo for 1k+ PSF seems reasonable considering the market now, but of course.. it doesn't make sense to pay 1k+ PSF if the surrounding private resales are at 1k+ PSF as well. top up another 200-400PSF you can get better locations (further away from punggol) @ riverfront, florence, affinity, treasure etc

some of the recent bounced out EC units are already priced at 1k PSF (wandervale), should just accept reality as it is, if you are looking to move, should really consult your agent relatives/friends, property prices are not going to drop any time soon unless it crashes.
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Old 18-02-2019, 04:32 PM   #59
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It is a bubble what. Just that people all hope to ride the wave and make some money.
Everyone wants to buy a EC and hope to sell for a profit 5 years later.
Problem is, who is going to buy from them?
Opposite my block got those private condo on market for 2 years no one buying, no one renting. No more influx of rich china migrants.

Already 1000 psf, who is gonna buy a leashold at higher price from you. Somemore room so small.

Those old enough will remember the bubble of 1997.

Condo facilities...pls la. How often u use the swimming pool ( which is more like a waddle pool)
Anyone one can buy, u still gonna get Ur hordes of ceca looking proudly as their nosiy kids scream at the top of their lungs while running around.

I rather buy a good old hdb in a nice area close to mrt, food and facilites, with nice people that I already see with my eyes and invest the rest of my money in safe index funds. A good old hdb with a nice corridor, large bed rooms and friendly neighbors that bring u snacks during cny...water your plants for you. A good old hdb where I don't stress over a 800k mortgage...

Get it no?
it's easy to be seduced by the experience of those from the merdeka generation who played the property game with easily available credit and low transaction costs
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Old 18-02-2019, 07:56 PM   #60
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Agree.
Average 1kpsf at least.
You say these people are silly, but this is the trend. What can you do?

this is how the market is..
if you try searching for resale HDB, 500k 4room less than 10 years, you will only find places like jurong, cck, sembawang, punggol, sengkang, some are not near mrt either.

you don't see the rise in prices because you are an owner of a property
if you are planning to move house, try searching for resale HDBs, chances are most of them won't catch your eye either because its way too expensive.

4rm whampoo bto starts from 500k++, and that is BTO, will it raise to 700k-800k in the future ? very likely. (52xk + buyer stamp + reno cost + interest etc) break even cost to sell after MOP will be 640k+ minimally.

a new launch condo for 1k+ PSF seems reasonable considering the market now, but of course.. it doesn't make sense to pay 1k+ PSF if the surrounding private resales are at 1k+ PSF as well. top up another 200-400PSF you can get better locations (further away from punggol) @ riverfront, florence, affinity, treasure etc

some of the recent bounced out EC units are already priced at 1k PSF (wandervale), should just accept reality as it is, if you are looking to move, should really consult your agent relatives/friends, property prices are not going to drop any time soon unless it crashes.
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