New EC at Sumang Walk

sgpropertyblog

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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.



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.


You are absolutely right when it comes to HDB pricing trend going south as the flat ages.. and also the accrued interest for your CPF is still running ( even though your house is fully paid, unless you never touch your cpf at all)..

Of cos buying EC also got its cons.. the 5yrs MOP is one of it.. without this 5yrs MOP thing, the prices sure goes up North as everyone can start to flip after 3 yrs SSD period as per private condo..

As for the construction period of 3 yrs, its the same for BUC condo oso.. unless if you buy small projects below 100 units, then probably within 1.5yrs u can collect your keys ady..
 

Braun8

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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:


My situation is little different from yours because I'm not selling my flat, so EC is not an option for me. Instead I'm planning to buy a resale PC under my mother's name to avoid ABSD. Me and wife have sufficient funds and I may also take a personal loan if needed to pay for the resale PC.

Moreover there are many resale PCs in the market that are a lot cheaper than this Sumang EC.
 

1993newbie

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On a side note, Month-on-month, overall resale prices in July decrease by 0.5% over June 2019.

IIdLuCJ.jpg

https://www.srx.com.sg/research/554...ale-prices-ease-by-05-on-above-average-volume


“ CCR and RCR record year-on-year price decreases of 2.4% and 0.9%, respectively, while OCR record year-on-year price increase of 1.8%.”


My situation is little different from yours because I'm not selling my flat, so EC is not an option for me. Instead I'm planning to buy a resale PC under my mother's name to avoid ABSD. Me and wife have sufficient funds and I may also take a personal loan if needed to pay for the resale PC.

Moreover there are many resale PCs in the market that are a lot cheaper than this Sumang EC.
 

Braun8

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On a side note, Month-on-month, overall resale prices in July decrease by 0.5% over June 2019.


Thanks for the info, but I'm in no hurry to buy. And if I don't buy, it's also ok as I already have a very nice flat to live in.
 

hbms1969

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Thanks for the info, but I'm in no hurry to buy. And if I don't buy, it's also ok as I already have a very nice flat to live in.

Same here. In absolutely zero hurry. Matter of fact, with the Dow down 800 points, i think all the more no one in their sane mind should buy (if they can afford to)

Sit tight and observe how the world happenings will affect prices.
 

Merg91

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Stock market swings are common.
If you believe Sumang will lower $100 psf because Dow Jones drops........

Recession?
You should worry about your job &a few buyers.
Most developers / the govt have gone through it before.
 
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momoeagle

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Stock market swings are common.
If you believe Sumang will lower $100 psf because Dow Jones drops........

Recession?
You should worry about your job &a few buyers.
Most developers / the govt have gone through it before.
yeah should worry about job.and ability to pay bank instalments

problem is majority of the EC buyers have not gone through a major recession before.

But most likely they have parents support and are cash rich anyway.
 

SBC

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yeah should worry about job.and ability to pay bank instalments

problem is majority of the EC buyers have not gone through a major recession before.

But most likely they have parents support and are cash rich anyway.

If that ever happens, there could be panic and erratic selling.
 

momoeagle

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Same here. In absolutely zero hurry. Matter of fact, with the Dow down 800 points, i think all the more no one in their sane mind should buy (if they can afford to)

Sit tight and observe how the world happenings will affect prices.

I actually think a recession won't come so fast yet. Business on the ground is quite good despite the stock market movements.

In fact, will be using this opportunity to slowly load up on a few more good quality companies since the cash is not going to be used for downpayment anymore.
 

momoeagle

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If that ever happens, there could be panic and erratic selling.
No erratic selling yet. Sumang buyers are stuck for 3 years for building plus 5 years MOP.

If economy that bad, want to sell also may not have buyers. Like I mentioned earlier, a $1M asset that can smell can touch but cannot feed you.
 

SBC

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BUC interest rates are usually lower. May have double whammy when rates go north.

Worst case, their existing HDB price may go south towards EC TOP.
 

momoeagle

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We have one support here, hopefully it is strong enough to hold prices. All the data and news that are coming up day by day are getting more worrying. Be thankful if the support even holds. My guess is that prices may break the support very soon.

In 2009, I rmb lots of desperate developers aro...

and in 2009 there is no remissible ABSD for developers
 

momoeagle

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BUC interest rates are usually lower. May have double whammy when rates go north.

Worst case, their existing HDB price may go south towards EC TOP.

That was indeed one of my concerns.

And the next concern is whether a not the HDB can be sold within the 6 months after receiving key.
 
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