Is EC a sure thing?

[SBC]

There is no subsidiary for EC. Private is forced to sell lower due to HDB policy which limits its market segment.

 

[hindsight]

http://sbr.com.sg/residential-prope..._source=facebook.com&utm_campaign=buffer#show

From the article:

According to Celine Chan, research analyst at OrangeTee, market timing was the main differentiating factor between the ‘losers’ and ‘winners’. The 13 projects that sold at a loss at MOP, she said, were launched during 1996 to 1999, just before the Asian Financial Crisis, when property prices were at their peaks.

“Projects which were launched during 2001 to 2005 - a period of sluggish growth, managed to achieve returns of at least 25% at MOP. These projects benefited from the subsequent upturn of the Singapore property market,” she explained.

There is no sure thing in property.

 

[SBC]

Agreed. But if there is enough holding power to ride the wave, property can still make money.

 

[SBC]

Sunday Times saying "Investors are seeing opportunity in EC market"

 

[w1rbelw1nd]

Agreed. But if there is enough holding power to ride the wave, property can still make money.

Need to consider the comparison also... Money earned compared to khong ghuan tin? Or stocks?

Use initial capital as base or initial property value as base of investment?

Sent from OnePlus A0001 using GAGT

 

[SBC]

Key difference between property & stock. Property is leverage in a way. Just pay the deposit & maintain monthly mortgage repayment.

Stock is not meant to include CFD when I made this statement.

 

[doody_]

From the article:

According to Celine Chan, research analyst at OrangeTee, market timing was the main differentiating factor between the ‘losers’ and ‘winners’. The 13 projects that sold at a loss at MOP, she said, were launched during 1996 to 1999, just before the Asian Financial Crisis, when property prices were at their peaks.

“Projects which were launched during 2001 to 2005 - a period of sluggish growth, managed to achieve returns of at least 25% at MOP. These projects benefited from the subsequent upturn of the Singapore property market,” she explained.

There is no sure thing in property.

Perhaps you missed their previous article which clearly stated that all ECs were profitable upon privatisation. The only difference is whether the appreciation beat the market average or not, and that was based on the timing.

 

[hindsight]

Perhaps you missed their previous article which clearly stated that all ECs were profitable upon privatisation. The only difference is whether the appreciation beat the market average or not, and that was based on the timing.

My point was that ECs aren't a "sure thing" in that you don't get to buy something thats worth $100 for $50. These ECs were only profitable after 10 years because the market had already recovered by then, it had nothing to do with privatisation.

An EC is just like any other property investment, its not immune to the ebb and flow of the market, so its definitely not a "sure thing".

Oh btw not all of them were profitable after 10 years, chestervale is only up 5% after 10 years so its really a net loss after you factor in interest and transaction fees.

 

[Shion]

Sunday Times saying "Investors are seeing opportunity in EC market"

Sunday Times is rubbish

 

[haohaowan2]

the space in EC is really very small.. ppl live inside dunno can get use to it ?

 

[SBC]

Property size getting smaller is not just happening to EC. Is getting widespread from HDB to EC & condo.

Zhen hu & developers know that the multiplication.
Psf * size. To make the pricing affordable, the size need to get smaller.

MBT once said Singaporeans like to stay in smaller houses.

 

[wira]

ECs getting more expensive now with the income ceiling raised as well.

Not like last time when ECs can be bought for < $500k.

 

[SBC]

These days a 3BR EC will cost easily 800k. Considered cheap compared with condo over 1mil.

 

[kuang89]

so is it propped up and bull? I do not like the way these EC are being marketed. There is nothing to earn when you have to pay maintenance for it and the market sentiments.

No one mentioned these facts for a particular EC launch:
- says it is situated right beside mrt when the walking distance is 1 km. And there is no shelter for more than half of the way. Shelter by bus only.

- It is literally built next to a religious building where there is always many many cars parked illegally by the road on certain days.

- Behind the area is an army camp within 500m - 1km radius yet they say it is a Greens view

- Claims it is near to a LRT station that connects you quickly to the newest downtown line when the nearest LRT station takes more than 5 mins to walk with no shelter.

I feel it is not so right to say such things. Although the term near is subjective, but if you had to walk 10 mins everytime you want to take a train, do you find it near?

Not to say about proven track record of ECs when in all honesty track records do not mean anything or hold any tangible assets.

 

[doody_]

so is it propped up and bull? I do not like the way these EC are being marketed. There is nothing to earn when you have to pay maintenance for it and the market sentiments.

No one mentioned these facts for a particular EC launch:
- says it is situated right beside mrt when the walking distance is 1 km. And there is no shelter for more than half of the way. Shelter by bus only.

- It is literally built next to a religious building where there is always many many cars parked illegally by the road on certain days.

- Behind the area is an army camp within 500m - 1km radius yet they say it is a Greens view

- Claims it is near to a LRT station that connects you quickly to the newest downtown line when the nearest LRT station takes more than 5 mins to walk with no shelter.

I feel it is not so right to say such things. Although the term near is subjective, but if you had to walk 10 mins everytime you want to take a train, do you find it near?

Not to say about proven track record of ECs when in all honesty track records do not mean anything or hold any tangible assets.

That is all marketing talk, buyer has to do their own research. For example usually they advertise property as "x mins walk to MRT". This is highly subjective, a young person could walk in 5 minutes but an older person could take 10 minutes. You might also want to take 10 minutes so as not to sweat.

 

[henrylbh]

That is all marketing talk, buyer has to do their own research. For example usually they advertise property as "x mins walk to MRT". This is highly subjective, a young person could walk in 5 minutes but an older person could take 10 minutes. You might also want to take 10 minutes so as not to sweat.

"x mins walk to MRT" is very subjective. One way to measure, is the time you leave the lift to reach the MRT or bus stop. The time I leave the lift and reach the mrt is 4 min at most

 

[provisure]

so is it propped up and bull? I do not like the way these EC are being marketed. There is nothing to earn when you have to pay maintenance for it and the market sentiments.

No one mentioned these facts for a particular EC launch:
- says it is situated right beside mrt when the walking distance is 1 km. And there is no shelter for more than half of the way. Shelter by bus only.

- It is literally built next to a religious building where there is always many many cars parked illegally by the road on certain days.

- Behind the area is an army camp within 500m - 1km radius yet they say it is a Greens view

- Claims it is near to a LRT station that connects you quickly to the newest downtown line when the nearest LRT station takes more than 5 mins to walk with no shelter.

I feel it is not so right to say such things. Although the term near is subjective, but if you had to walk 10 mins everytime you want to take a train, do you find it near?

Not to say about proven track record of ECs when in all honesty track records do not mean anything or hold any tangible assets.

i think i know which ec you are referring to.. hehehe.

 

[kuang89]

EC is not no good, if you wanna stay where, no one can say is waste of money...but then, i find it is too oversell liao

 

[microtek]

so is it propped up and bull? I do not like the way these EC are being marketed. There is nothing to earn when you have to pay maintenance for it and the market sentiments.

No one mentioned these facts for a particular EC launch:
- says it is situated right beside mrt when the walking distance is 1 km. And there is no shelter for more than half of the way. Shelter by bus only.

- It is literally built next to a religious building where there is always many many cars parked illegally by the road on certain days.

- Behind the area is an army camp within 500m - 1km radius yet they say it is a Greens view

- Claims it is near to a LRT station that connects you quickly to the newest downtown line when the nearest LRT station takes more than 5 mins to walk with no shelter.

I feel it is not so right to say such things. Although the term near is subjective, but if you had to walk 10 mins everytime you want to take a train, do you find it near?

Not to say about proven track record of ECs when in all honesty track records do not mean anything or hold any tangible assets.

I never believe any of the marketing hype. I have even gone down to an actual condo site to see how far it is from the MRT and scout out the surrounding area. You need to do your own research.

 

[doody_]

I never believe any of the marketing hype. I have even gone down to an actual condo site to see how far it is from the MRT and scout out the surrounding area. You need to do your own research.

That is definitely part of the due diligence required before buying a property. We're talking about a 6-7 figures purchase.