OLA EC @ Anchorvale

sgpropertyblog

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absolutely right.

second timer topping up 300-400k cash with a big loan after, not sure if it makes sense esp if the property does not appreciates.

lets assume price is $1M.. your downpayment is $277,600 (cpf/cash with the first $50k in cash)oni including Stamp Duty and legal fees..
even for first timers, they also pay the same downpayment
 

momoeagle

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lets assume price is $1M.. your downpayment is $277,600 (cpf/cash with the first $50k in cash)oni including Stamp Duty and legal fees..
even for first timers, they also pay the same downpayment

$1M is for a 925 sqft home, for $1080 psf.
Slightly smaller than a 4-rm HDB flat by about 75 sqft.
 

birmingham123

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Maybe see it in another way.

EC launch prices has increased by 7.5% p.a. over past 5 years, vs 3.5% p.a. in median household income.


4% difference p.a. over 5 years is a lot! EC affordability has already dropped substantially. And still, we have "no choice".

Yes. You are right. No choice if one is looking at new launches since this pricing is the norm now and people are still buying. And since you only prefer space, just look at resales jumbo unit lor. And that is another choice.
 

momoeagle

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Yes. You are right. No choice if one is looking at new launches since this pricing is the norm now and people are still buying. And since you only prefer space, just look at resales jumbo unit lor. And that is another choice.

People are still buying at these prices. That's why Singaporeans are really rich.

Man, EC launches should be raised further to $1200 or $1300 psf, and eventually even hit $1600 psf to be similar to SKG launch price, since people are willing to pay higher and higher.

Agents earn more since it is % commission, developers earn more. Buyers also have more paper gains. Everyone wins in this win-win situation!
 

saggice

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lol even with 16k combined income but with all the taxes and high living standard in singapore... ppl still can save so much money!!! good lah..
 

birmingham123

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People are still buying at these prices. That's why Singaporeans are really rich.

Man, EC launches should be raised further to $1200 or $1300 psf, and eventually even hit $1600 psf to be similar to SKG launch price, since people are willing to pay higher and higher.

Agents earn more since it is % commission, developers earn more. Buyers also have more paper gains. Everyone wins in this win-win situation!

Might raised but not that much I guess. If no Wuhan virus still got chance to raise that high maybe
 

momoeagle

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Might raised but not that much I guess. If no Wuhan virus still got chance to raise that high maybe

If doesn't raise much, then can wait to buy due to depreciating value of $ over time.

If raise a lot, then I also no $ to buy. :s13:

Either situation I will still wait.
1 more week to see how the bidding for Fernvale Lane EC will be like.
 

Passerboy

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People are still buying at these prices. That's why Singaporeans are really rich.

Man, EC launches should be raised further to $1200 or $1300 psf, and eventually even hit $1600 psf to be similar to SKG launch price, since people are willing to pay higher and higher.

Agents earn more since it is % commission, developers earn more. Buyers also have more paper gains. Everyone wins in this win-win situation!

Not possible for EC to reach $1600psf in 10 years, cos EC is tied down by MSR and individuals are not able to loan as much to buy an EC as compared to a PC, unless there are changes to loan restrictions, but I would think in due time it could be close to $12xxpsf.
 

tanjiakpeng

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Not possible for EC to reach $1600psf in 10 years, cos EC is tied down by MSR and individuals are not able to loan as much to buy an EC as compared to a PC, unless there are changes to loan restrictions, but I would think in due time it could be close to $12xxpsf.
Well that's where those with higher income but lower than 16k step in.

Assuming 50k expenses a year a couple can save 100k per yr.

Downpayment should be fulfilled easily for those 10-16k per year. I haven't taken into account bonus yet which could net off the cpf contribution.
 

Passerboy

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Well that's where those with higher income but lower than 16k step in.

Assuming 50k expenses a year a couple can save 100k per yr.

Downpayment should be fulfilled easily for those 10-16k per year. I haven't taken into account bonus yet which could net off the cpf contribution.

But in that case, wouldn’t a PC appeal to them instead of an EC?
 

momoeagle

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Well that's where those with higher income but lower than 16k step in.

Assuming 50k expenses a year a couple can save 100k per yr.

Downpayment should be fulfilled easily for those 10-16k per year. I haven't taken into account bonus yet which could net off the cpf contribution.

Sounds reasonable. 50k expenses is plenty.


Some interesting calculations:

For a $1.8mil property (1125 sqft if $1.6k psf), they would still need $800k outside of a 35 year $1M loan.
Assuming $100k savings per year, that would still need 8 years of saving, that after buying the property, would leave them with near zero savings. Ouch.

And assuming the couple earns $16k right off graduation from university, the guy would be at least 34 years old. And the loan will only be fully paid by 69 years old.

50k expenses (assuming it stays constant, and increases with further increases in salary) + another 50k loan repayment, would then enable them to save another 50k a year. Using the savings, they could then pay down the remaining loan probably as fast as 15 years after receiving the key, and so start with near zero savings at the age of 50, but a fully paid condo.


Interesting fact:
Household income between $10k to $16k consists of 26% of the households in 2018.

Given there are around 1.7 mil households in SG, that is still 442k households. Probably 1% at any time is looking for a new launch EC, that's still 4k households. Not bad... Now I can see why last few ECs are almost selling out.
 

Eraval

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Well that's where those with higher income but lower than 16k step in.

Assuming 50k expenses a year a couple can save 100k per yr.

Downpayment should be fulfilled easily for those 10-16k per year. I haven't taken into account bonus yet which could net off the cpf contribution.


The more accurate thing is that developers will push govt to increase the ceiling again to 18k or 20k to allow more people to buy


You see Piermont the sales so cui but Parc Canberra dare to sell even higher, why? Cause ceiling raised liao, just slap the tag 'near MRT' then huat liao
 

birmingham123

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Sounds reasonable. 50k expenses is plenty.


Some interesting calculations:

For a $1.8mil property (1125 sqft if $1.6k psf), they would still need $800k outside of a 35 year $1M loan.
Assuming $100k savings per year, that would still need 8 years of saving, that after buying the property, would leave them with near zero savings. Ouch.

And assuming the couple earns $16k right off graduation from university, the guy would be at least 34 years old. And the loan will only be fully paid by 69 years old.

50k expenses (assuming it stays constant, and increases with further increases in salary) + another 50k loan repayment, would then enable them to save another 50k a year. Using the savings, they could then pay down the remaining loan probably as fast as 15 years after receiving the key, and so start with near zero savings at the age of 50, but a fully paid condo.


Interesting fact:
Household income between $10k to $16k consists of 26% of the households in 2018.

Given there are around 1.7 mil households in SG, that is still 442k households. Probably 1% at any time is looking for a new launch EC, that's still 4k households. Not bad... Now I can see why last few ECs are almost selling out.

If 1.8m, make more sense to buy private condo. Loan amount can be double right ? 16k income can buy 2.3million cluster housing at watercove already
 

momoeagle

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If 1.8m, make more sense to buy private condo. Loan amount can be double right ? 16k income can buy 2.3million cluster housing at watercove already

Ya lor. Developers must be rather crazy to build and sell $1.8M EC hor?
 

tanjiakpeng

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The more accurate thing is that developers will push govt to increase the ceiling again to 18k or 20k to allow more people to buy


You see Piermont the sales so cui but Parc Canberra dare to sell even higher, why? Cause ceiling raised liao, just slap the tag 'near MRT' then huat liao

i think this will be the inevitable.

the government raised the bto/ec income ceiling too slowly and shot 2 bullets within 5 yrs and pushed it to 16k. i am expecting 18k and 20k to come very soon within the next 5 yrs given how wages are increasing and how the workforce is transforming to higher skilled workers
 

Passerboy

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i think this will be the inevitable.

the government raised the bto/ec income ceiling too slowly and shot 2 bullets within 5 yrs and pushed it to 16k. i am expecting 18k and 20k to come very soon within the next 5 yrs given how wages are increasing and how the workforce is transforming to higher skilled workers

Or they could take away the MSR loan requirement and peg it to TDSR rate, or even scrap EC when EC prices are near PC prices. Would see the response of OLA first
 

tanjiakpeng

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Or they could take away the MSR loan requirement and peg it to TDSR rate, or even scrap EC when EC prices are near PC prices. Would see the response of OLA first

they still need a segment for the sandwiched class between hdb and condo

otherwise hdb prices will be pumped up, with resales selling to this sandwiched class, and risk affordability which becomes political

unless bto prices continue to increase and reach current resale levels, i think it is unlikely ec will ever be removed
 

Clazav

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At least one thing fair is that, when ec ceiling raise, bto ceiling raise too, as well as combined salary ceiling for other subsidies. So if everything moves in similar pace.

Or they could take away the MSR loan requirement and peg it to TDSR rate, or even scrap EC when EC prices are near PC prices. Would see the response of OLA first
 

Eraval

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If 1.8m, make more sense to buy private condo. Loan amount can be double right ? 16k income can buy 2.3million cluster housing at watercove already


If you looking at Watercove, my advice is to take a look at the Shoreline Residences just across the road. Owners now willing to take a loss to sell their houses. 1.8mil can get something similar to Watercove liao.

Of course its not cluster housing but you get your own pool at the rooftop.
 

Passerboy

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If you looking at Watercove, my advice is to take a look at the Shoreline Residences just across the road. Owners now willing to take a loss to sell their houses. 1.8mil can get something similar to Watercove liao.

Of course its not cluster housing but you get your own pool at the rooftop.

If one can afford Watercove or Shoreline Residences, why would he be looking at OLA. Big price difference.
 
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