New EC at Sumang Walk

sgpropertyblog

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You've to pay additional 3% for the deferred payment scheme which makes this EC even more costly. If one needs deferred payment in order to afford this EC, it probably means they can barely afford it and shouldn't buy.

Yes, DPS is at additional 3% in price, but bear in mind, for NPS, you are also paying the interest( progressively to the bank), so ultimately, the price difference is actually less than 3%..

For ie, $1M price in NPS , assuming interest rate 2.5% for 30yrs tenure,max loan 75% ( for illustration only)

first 5% Foundation - monthly installment $197.56 [ monthly interest of $104.17 and principal of $93.39 ]

next 10% reinforced concrete - monthly installment $597.18[ monthly interest of $311.33 and principal of $$285.86]

so when u add up all this interest that you pay to the bank, the price difference is actually not 3% .. ( meaning either you pay the interest to the bank, or you pay to the developer )


The government scrapped away the DPS for private condo, except for EC, have anyone wondered why ?
 

momoeagle

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The government scrapped away the DPS for private condo, except for EC, have anyone wondered why ?
It was in the archives. DPS when introduced actually boosted sales of flagging PCs. Removed, I think in Oct 2007, to ensure people don't over commit on properties they can't afford.

It definitely makes it easier to afford, and I was considering using the scheme.
 

sgpropertyblog

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It's typically about some future transformation, how punggol will be home to SIT, and industrial hub, as well as one more MRT line on the far north west. And SIT being just a few streets away.

And maybe, just maybe, about seletar aerospace on the east side, although that's still a little far.

Then about the other transformation of the North South corridor.

And also to create the "scarcity" effect, share about land space in punggol and how other potential new condos or residential areas are in worse location, such that Sumang is the best possible location, because it is also at the waterfront.

Something like that 😉

lols… yup yup.. part of it.. but still got something else..
 

momoeagle

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lols… yup yup.. part of it.. but still got something else..
hmm

also about creating fomo effect by listing the next few ECs, how their psf will likely be even higher because their psf ppf is higher, and all sorts of possible reasons 😀
 

Braun8

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3% of $1M is $30,000, this $30,000 is much more than the paltry interest payment to the bank during the construction phase.

The interest rate duing the launch is 2.07%, not 2.5%.

Even with deferred payment scheme, the buyers stilll need to get a bank loan to pay for this EC, they still have to pay interest to the bank.


Yes, DPS is at additional 3% in price, but bear in mind, for NPS, you are also paying the interest( progressively to the bank), so ultimately, the price difference is actually less than 3%..

For ie, $1M price in NPS , assuming interest rate 2.5% for 30yrs tenure,max loan 75% ( for illustration only)

first 5% Foundation - monthly installment $197.56 [ monthly interest of $104.17 and principal of $93.39 ]

next 10% reinforced concrete - monthly installment $597.18[ monthly interest of $311.33 and principal of $$285.86]

so when u add up all this interest that you pay to the bank, the price difference is actually not 3% .. ( meaning either you pay the interest to the bank, or you pay to the developer )


The government scrapped away the DPS for private condo, except for EC, have anyone wondered why ?
 

Braun8

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It was in the archives. DPS when introduced actually boosted sales of flagging PCs. Removed, I think in Oct 2007, to ensure people don't over commit on properties they can't afford.

It definitely makes it easier to afford, and I was considering using the scheme.

Yup, if people need DPS to afford a EC, it probably means they can barely afford it and overstretching themselves. People like this shouldn't buy as they will become slaves to their property.
 

Merg91

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Lol.
Who says SG never experience the recessions or crashes (AFC, GFC etc?)
It is how the leaders handle it.

Of course, Majullah Singapura!

yes yes economy will never crash. Sg will never go into recession. Lawrence Wong is a super powerful minister that will ensure recession never comes to Singapore.

Huat ah! Majulah Singapura!
 

mikeeeey

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Those on the ground will know...

Market has been bad for the past 2-3 years

Its just timely to "formally acknowledge" now.. If you get what I mean then good. If not then lets move on.


IF you are hoping to get a lelong price for a property. I wouldnt say its impossible. But chances are you wont be able to get it. You are likely to hear it before you can even smell it. Then the boat leaves..
 

bojangle

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Yup, if people need DPS to afford a EC, it probably means they can barely afford it and overstretching themselves. People like this shouldn't buy as they will become slaves to their property.

not only DPS, some upgraders even needs to get bridging loan to overcome the initial payments. Which is the case for me as my funds are tied up when fully paid up my flat.
Agent keep pyscho me to do DPS and bridging, after deep consideration decided to forgo and get a PC instead with lesser upfront and not paying the stupid interest for DPS, bridging and resale levy. :s22:
 

sgpropertyblog

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3% of $1M is $30,000, this $30,000 is much more than the paltry interest payment to the bank during the construction phase.

The interest rate duing the launch is 2.07%, not 2.5%.

Even with deferred payment scheme, the buyers stilll need to get a bank loan to pay for this EC, they still have to pay interest to the bank.


yes, for BUC, the interest rates are actually much lower than 2.5%, some as low as 2%.. im using 2.5% as a conservative figures in case the interest rates goes up..

definitely need to get a loan even for DPS, unless if you can fully pay in cash / CPF.. for DPS, you only start servicing the loan after TOP ( so this 3 yrs no need to pay any interest as you have ady 'paid' the interest to developer )

what i'm trying to say here is, if based on the 3 yrs construction period ( assuming 3 yrs to TOP ), the saving that the buyer gets is not totally 3% if you choose NPS vs DPS as the interest that are payable for NPS is around $13,265 ( calculated based on interest rate 2.07% ,for 3 yrs until TOP)..

of cos, there is still saving of about $16,735 if you opt for NPS, but if this $16k can save you the hassle of selling your HDB now and get a rental unit to stay for the next 3years, isn't it better ?
 

sgpropertyblog

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not only DPS, some upgraders even needs to get bridging loan to overcome the initial payments. Which is the case for me as my funds are tied up when fully paid up my flat.
Agent keep pyscho me to do DPS and bridging, after deep consideration decided to forgo and get a PC instead with lesser upfront and not paying the stupid interest for DPS, bridging and resale levy. :s22:


very true especially if you are 2nd timers.. not because of the initial payment, but mostly due to the MSR for EC( shortfall in the loan quantum).. the bridging loan is to help with the shortfall in the loan ( before you sell your current HDB).. it may sounds very tedious and troublesome for now, but it can help with smooth transition from current HDB until key collection of EC without the need of selling first..

it is easier to get a PC instead, especially with the lesser upfront outlay etc( but also depending on your current situation, upgraders may need to pay ABSD first).. but don't forget, your monthly installment would be much higher as your loan quantum is higher..
 

momoeagle

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not only DPS, some upgraders even needs to get bridging loan to overcome the initial payments. Which is the case for me as my funds are tied up when fully paid up my flat.
Agent keep pyscho me to do DPS and bridging, after deep consideration decided to forgo and get a PC instead with lesser upfront and not paying the stupid interest for DPS, bridging and resale levy. :s22:
PC is among my considerations due to resale levy. Would highly appreciate if you could share some numbers on your calculations and considerations, be it here or pm. Thanks!
 

Braun8

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Why do you have to sell your flat now to buy EC ?? You should get a bank loan + CPF + savings to finance the 75% and stay in your flat during the construction period. Sell your flat only when the EC has TOP.

If you need to sell your flat immediately or use DPS (pay additional 3%) to buy this EC, then this EC is not affordable for you and you shouldn't buy it. The 3% DPS is a large additional cost for you and more profits for the developer.

And you're only talking about 2nd timers, what about 1st timers who don't have a flat to sell? Looks like this EC is too expensive when we are talking about needing the 3% DPS to afford this EC.


yes, for BUC, the interest rates are actually much lower than 2.5%, some as low as 2%.. im using 2.5% as a conservative figures in case the interest rates goes up..

definitely need to get a loan even for DPS, unless if you can fully pay in cash / CPF.. for DPS, you only start servicing the loan after TOP ( so this 3 yrs no need to pay any interest as you have ady 'paid' the interest to developer )

what i'm trying to say here is, if based on the 3 yrs construction period ( assuming 3 yrs to TOP ), the saving that the buyer gets is not totally 3% if you choose NPS vs DPS as the interest that are payable for NPS is around $13,265 ( calculated based on interest rate 2.07% ,for 3 yrs until TOP)..

of cos, there is still saving of about $16,735 if you opt for NPS, but if this $16k can save you the hassle of selling your HDB now and get a rental unit to stay for the next 3years, isn't it better ?
 

sgpropertyblog

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Why do you have to sell your flat now to buy EC ?? You should get a bank loan + CPF + savings to finance the 75% and stay in your flat during the construction period. Sell your flat only when the EC has TOP.

If you need to sell your flat immediately or use DPS (pay additional 3%) to buy this EC, then this EC is not affordable for you and you shouldn't buy it. The 3% DPS is a large additional cost for you and more profits for the developer.

And you're only talking about 2nd timers, what about 1st timers who don't have a flat to sell? Looks like this EC is too expensive when we are talking about needing the 3% DPS to afford this EC.


I think you misunderstood my point, i'm not saying you have to sell your HDB now( for 2nd timers) .. but those with MSR loan shortfall will need to opt for DPS and NO need to sell your flat now.. u can carry on staying until the EC TOP.. either way , whether you take DPS or NPS, you don't have to sell your HDB now..

some buyers need to sell first before they buy is becos their CPF monies ( the next 20% ) are stuck in their current HDB.. whether they buy private condo or EC, they will have to sell first .. this part got nothing to do with affordability ady.. its more about the upfront outlay.. hope you get what im trying to say here..

whereas for first timers, their CPF monies are already inside their CPF account ( assuming they do not own any HDB ) , so they can straight away use it for the next 20% ..

moral of the story is, different ppl have different scenarios, so no one solution that fits everyone.. some can only go for PC, whereas for some, EC is better choice ( put the price aside )..
 

sgpropertyblog

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PC is among my considerations due to resale levy. Would highly appreciate if you could share some numbers on your calculations and considerations, be it here or pm. Thanks!


totally can feel you.. the resale levy is no joke.. $30k- $45k depending on your flat type is not a small amount .. but wat to do, no choice, is pay to HDB, not pay to developer .. probably they feel that u ady make your pot of gold outta your HDB, so need to pay the resale levy when you get your next subsidies housing.. even if you buy another BTO, you also need to pay hor, not only for EC..

btw, what sort of calculation that u need ar?
 

momoeagle

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totally can feel you.. the resale levy is no joke.. $30k- $45k depending on your flat type is not a small amount .. but wat to do, no choice, is pay to HDB, not pay to developer .. probably they feel that u ady make your pot of gold outta your HDB, so need to pay the resale levy when you get your next subsidies housing.. even if you buy another BTO, you also need to pay hor, not only for EC..

btw, what sort of calculation that u need ar?

My resale levy is $45k.
I just want to see what other people calculations only. Learn learn mah.

Got many considerations on my side. Among which is to pool money together with parents current place and get a semi-D instead, since need to take care of them anyway.

I'm too incapable to buy one myself... for now :(
 

bojangle

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very true especially if you are 2nd timers.. not because of the initial payment, but mostly due to the MSR for EC( shortfall in the loan quantum).. the bridging loan is to help with the shortfall in the loan ( before you sell your current HDB).. it may sounds very tedious and troublesome for now, but it can help with smooth transition from current HDB until key collection of EC without the need of selling first..

it is easier to get a PC instead, especially with the lesser upfront outlay etc( but also depending on your current situation, upgraders may need to pay ABSD first).. but don't forget, your monthly installment would be much higher as your loan quantum is higher..

Yes, the MSR and the bridging loan. You can says that bridging loan is to help you on the shortfall and repay later after you sell your flat when EC is ready so that you can continue staying. BUT, at that time when the market keep singing HDB 99yrs zero value, I do not hv much faith that I can get higher amount in 4yrs time of what I can get if sell my flat now. Not forgetting I still need repay the bridging loan and additional 4yrs accrued interest going back into CPF.
E.g. If I sell my flat today and profit about 240k, after deduct accrued interest i got 70k COV, in 4yrs time no guarantee can fetch higher, and even if it maintain at 240k profit, the accrued interest will be much higher and my COV will be lesser or maybe zero. On top of that I will hv to owe the bank on the bridging loan and still need reno funds too.
BTW, just checked on my previous flat the x-value is -8k on the price I sold after almost 2yrs.

PC is among my considerations due to resale levy. Would highly appreciate if you could share some numbers on your calculations and considerations, be it here or pm. Thanks!

My calculation is as explained above, if you consider this as a race, to me I already lose out on the price of about 80-100k if u add in resale levy, DPS and bridging loan interest. Secondly, MOP is 5yrs and waiting time for the EC to be ready is about 3-4yrs. Total 9yrs before u can start selling.
I bought a young resale PC and join the race now and use the 70k to do nice nice, in 3yrs time can start selling to any tom, dick, harry. In total i cut short the race by 6yrs.
Now I already stayed almost 2yrs, another 1yr to go if retrenchment comes and hit me, I can still run away freely without penalty. =:p
All these, just my personal views which may be wrong.
 

momoeagle

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My calculation is as explained above, if you consider this as a race, to me I already lose out on the price of about 80-100k if u add in resale levy, DPS and bridging loan interest. Secondly, MOP is 5yrs and waiting time for the EC to be ready is about 3-4yrs. Total 9yrs before u can start selling.
I bought a young resale PC and join the race now and use the 70k to do nice nice, in 3yrs time can start selling to any tom, dick, harry. In total i cut short the race by 6yrs.
Now I already stayed almost 2yrs, another 1yr to go if retrenchment comes and hit me, I can still run away freely without penalty. =:p
All these, just my personal views which may be wrong.

Oh yes, I did not really realise the impact of the extra 3% of DPS due to insufficient funds due to being "locked up" for 2 more years although I have the info already.

Based on 1.5M property, which was my target, that's another $45k, which plus resale levy would have added up to $90k extra. Minus away maybe $20k due to bank interest for NPS, that is still $70k extra.

The resale levy is already almost $35 psf for a bigger unit, and adding in the DPS extra would have bring this to $55 psf. Maybe another $10 psf if bridging loan was taken, bringing it to extra at least $65 psf.

Good call. Appreciated.
 
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