Parc Greenwich EC

[momoeagle]

i bought this unit when fernvale point not even up. so. cheap la. cuz v ulu until nothing nearby. not even Greenwich V. it was seletar hills marketplace. lol

So 500k not bad liao.
Happy family, even considering EC, means everything going smoothly for you.

Congratulations! Happy for you.

 

[ypurple]

hi, i am trying to understand whether EC is good for investment like what many agents says. I hear many agents mentioning about buying Ec and then once it TOP, can use the profit to upgrade to a bigger size PC or purchase a 2nd property to sit on rent. I dont see how it works if net return is around 175k assuming psf goes to 1,600 in 2030 (but of coz if psf goes to 2k, then it is a different story). Did i miss anything here purely from investment perspective? Thank you

EC Price (4 bedded)	1,500,000	sqf: 1,206
BSD	3%​	45,000
Resale levy		55,000
Maintenance (5 years)		22,800
Initial Capital	25%​	375,000
Loan amount	75%​	1,125,000
Interest accrued over 9 years and sell in 2030	1.30%​	131,625
Gross P&L when psf goes to	1,600	429,600
Net P&L over 9 years		175,175
Net Return over 9 years		47%​
Annualized return		4%​

 

[skpuppy]

I think I posted this before

 

[skpuppy]

hi, i am trying to understand whether EC is good for investment like what many agents says. I hear many agents mentioning about buying Ec and then once it TOP, can use the profit to upgrade to a bigger size PC or purchase a 2nd property to sit on rent. I dont see how it works if net return is around 175k assuming psf goes to 1,600 in 2030 (but of coz if psf goes to 2k, then it is a different story). Did i miss anything here purely from investment perspective? Thank you

EC Price (4 bedded)	1,500,000	sqf: 1,206
BSD	3%​	45,000
Resale levy		55,000
Maintenance (5 years)		22,800
Initial Capital	25%​	375,000
Loan amount	75%​	1,125,000
Interest accrued over 9 years and sell in 2030	1.30%​	131,625
Gross P&L when psf goes to	1,600	429,600
Net P&L over 9 years		175,175
Net Return over 9 years		47%​
Annualized return		4%​

To summarise what some said here. they feel this kind of investment is ultra low risk and sure earn. Where and what kind of investment can give such a returns?

To me, if psf stays at $1400, no difference from leaving money in cpf. You still need to add in mortgage/ terms insurance. If psf above $1600, 4% is ok lo. To me, over a period of 9 years, I can’t see how a basket of stocks like US, India, Singapore, Europe, China etf will be riskier than 4 walls

 

[fluxos]

I think I posted this before

The video and the financial calculation is missing the one big piece of the puzzle.... which is, you are staying in it.

1) EC is your primary home. It is a shelter for you and your family. That is priceless.
2) You need to add in the rental cost you save by staying in a similar unit. A fair market rate rental yield is 3% (usually higher than this for new developments). So assuming 1.5M purchase, you are getting SGD45k worth of rental value per year x 6 years of staying = SGD270k. This needs to be added into your nett profit calculation.

 

[ypurple]

The video and the financial calculation is missing the one big piece of the puzzle.... which is, you are staying in it.

1) EC is your primary home. It is a shelter for you and your family. That is priceless.
2) You need to add in the rental cost you save by staying in a similar unit. A fair market rate rental yield is 3% (usually higher than this for new developments). So assuming 1.5M purchase, you are getting SGD45k worth of rental value per year x 6 years of staying = SGD270k. This needs to be added into your nett profit calculation.

I understand if it is for own living . That’s why I’m saying purely From investment perspective as the location is not good for me, but I’m trying to understand whether it is like what many agent say that should sell your existing property regardless to get an EC as it is offers such good and stable return. Thanks

 

[fluxos]

I understand if it is for own living . That’s why I’m saying purely From investment perspective as the location is not good for me, but I’m trying to understand whether it is like what many agent say that should sell your existing property regardless to get an EC as it is offers such good and stable return. Thanks

Another important point to consider is, what is the alternative?

1) Continue to stay in existing property - what is the expected growth of your current property? Only you will know the answer to this. Most HDB appreciate only for the first 5-10 years. After that, due to age and lease decay, most actually stall and start to depreciate instead.

2) Buy brand new private condo? Buy resale condo? Positive returns are not guaranteed, especially in this period where prices are high relatively. If you're confident and know what you're doing, then go ahead?

3) Buy brand new HDB/EC. You know the answer. Super safe. Low entry price. 99% make money.

 

[ypurple]

Another important point to consider is, what is the alternative?

1) Continue to stay in existing property - what is the expected growth of your current property? Only you will know the answer to this. Most HDB appreciate only for the first 5-10 years. After that, due to age and lease decay, most actually stall and start to depreciate instead.

2) Buy brand new private condo? Buy resale condo? Positive returns are not guaranteed, especially in this period where prices are high relatively. If you're confident and know what you're doing, then go ahead?

3) Buy brand new HDB/EC. You know the answer. Super safe. Low entry price. 99% make money.

Thank you

 

[momoeagle]

hi, i am trying to understand whether EC is good for investment like what many agents says. I hear many agents mentioning about buying Ec and then once it TOP, can use the profit to upgrade to a bigger size PC or purchase a 2nd property to sit on rent. I dont see how it works if net return is around 175k assuming psf goes to 1,600 in 2030 (but of coz if psf goes to 2k, then it is a different story). Did i miss anything here purely from investment perspective? Thank you

EC Price (4 bedded)	1,500,000	sqf: 1,206
BSD	3%​	45,000
Resale levy		55,000
Maintenance (5 years)		22,800
Initial Capital	25%​	375,000
Loan amount	75%​	1,125,000
Interest accrued over 9 years and sell in 2030	1.30%​	131,625
Gross P&L when psf goes to	1,600	429,600
Net P&L over 9 years		175,175
Net Return over 9 years		47%​
Annualized return		4%​

EC is good because you buy it at a discount compared to new launch.
So for own stay, it is really good.

But... for investment, not necessary so.

Own stay is priceless.

One of the primary reasons I forgo in the end despite a relatively good queue number is because of the 2km radius of my current HDB with my choice Primary School, where PGW is just outside by a few hundred metres (the cut off is at the edge of Topiary).

My children's education is priceless to me, and I want the highest certainty in case government changes the Primary school policy again, though it may be unlikely. If no change and all else goes well, I should be able to sell my HDB around 2023 July if can get in by alumni without needing to ballot for within 2km. Else need to wait another 2.5 years :x

As fluxos mentioned, most HDBs peak at around the 10 year mark. That would be 9.5 years for me, so just nice.

 

[skpuppy]

Yeah. Maybe just give my views:

(1) Buying HDB BTO - can do 2 times and should utilise both. Low risk and can make money.
(2) Buy EC 2 times for those with deep pockets. I think worthwhile also if you are looking at a house to stay
(3) If you bought the first HDB and now thinking of selling and buying an EC. Seriously I am unsure. I would say yes if you want to have pool/ gym within reach, better security, better environment etc…no if you think you want to flip the EC for a quick profit.
The best would be staying in a HDB and then investing the rest of your $$. HDB can’t really drop that much. Just take it as you are expensing off your $500k HDB over 90 years. One month about $462. Where to find such a house? But if you think buying EC allow ur parents, children to have better environment, I think it is fair

 

[ypurple]

Thanks guys, for the valuable advice.

 

[skpuppy]

Since some ppl say buying to stay, try to buy something that TOP faster. One important point also. Else how to stay if the property didn’t TOP? Correct?

 

[RandomPlankton]

For mortage loan insurance, anyone knows how it works? For mine, we're getting from OCBC. But does each household need to buy 1 x loan insurance or does the husband and wife each must purchase 1 x ocbc loan insurance respectively (meaning need to pay double the amount for 2 pax coverage)?

I was told by my agent we need to buy the latter. This is because we're buying insurance to cover each other. So if one of us pass away, the other still can claim the insurance to pay the loan. True?

 

[halfnode]

For mortage loan insurance, anyone knows how it works? For mine, we're getting from OCBC. But does each household need to buy 1 x loan insurance or does the husband and wife each must purchase 1 x ocbc loan insurance respectively (meaning need to pay double the amount for 2 pax coverage)?

I was told by my agent we need to buy the latter. This is because we're buying insurance to cover each other. So if one of us pass away, the other still can claim the insurance to pay the loan. True?

yes. one each as its to ensure that if the one spouse unfortunately passes away, the remaining spouse doesn't have to worry about house payment.

 

[Motexh]

For mortage loan insurance, anyone knows how it works? For mine, we're getting from OCBC. But does each household need to buy 1 x loan insurance or does the husband and wife each must purchase 1 x ocbc loan insurance respectively (meaning need to pay double the amount for 2 pax coverage)?

I was told by my agent we need to buy the latter. This is because we're buying insurance to cover each other. So if one of us pass away, the other still can claim the insurance to pay the loan. True?

Why not get term life insurance instead? Mortgage insurance will be quite expensive for the amount insured.

 

[RandomPlankton]

yes. one each as its to ensure that if the one spouse unfortunately passes away, the remaining spouse doesn't have to worry about house payment.

Interesting. previously my hdb is deduct from cpf straight so wasn't aware got such rule.

Why not get term life insurance instead? Mortgage insurance will be quite expensive for the amount insured.

Yes. Term ins already quoted. Most likely will go with term

 

[skpuppy]

For mortage loan insurance, anyone knows how it works? For mine, we're getting from OCBC. But does each household need to buy 1 x loan insurance or does the husband and wife each must purchase 1 x ocbc loan insurance respectively (meaning need to pay double the amount for 2 pax coverage)?

I was told by my agent we need to buy the latter. This is because we're buying insurance to cover each other. So if one of us pass away, the other still can claim the insurance to pay the loan. True?

Nice thing about ocbc is they don’t need medical underwriting. Which means even if u got something serious, also can insured. Some companies ask u for 10 year history and then maybe jacked up ur premium. In the end, u suffer abuse yet pay almost same

 

[halfnode]

Interesting. previously my hdb is deduct from cpf straight so wasn't aware got such rule.


Yes. Term ins already quoted. Most likely will go with term

Term more worth it, if you had NS, can go with aviva term. I feel most value for money.

you can see from your cpf, the HPS deduction from both yours and your spouse cpf OA statements.

 

[RandomPlankton]

Why can't bank offer a "per household" loan insurance? So that whichever co-pay partner passes on, the payout would be triggered. Don't understand the logic must pay double to cover each other.

Hdb loan insurance is it the same?
Edit: nvm. Just saw halfnode which answered my question.

 

[dreamer_toons]

Why not get term life insurance instead? Mortgage insurance will be quite expensive for the amount insured.

Some may not be able to be covered under term life due to medical history. Hence, the only way is to opt for mortgage insurance which is less stringent/requires no medical underwriting.

I have also come across a coverage which the insured persons will receive all the premiums paid during the coverage period if no claim is made. But the premium is way much higher.

Nice thing about ocbc is they don’t need medical underwriting. Which means even if u got something serious, also can insured. Some companies ask u for 10 year history and then maybe jacked up ur premium. In the end, u suffer abuse yet pay almost same

There is a clause that indicates no payout will be made if there is a claim made within the 1st year of inception.