Treasure Crest

PatrickTheStarFish

PatrickTheStarFish

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ecobuyer said:
I would expect the median psf to be around $720 psf (plus minus). This is arriving it by taking into account the fall in property prices since the peak in 2013.

For second-timers, the psf is effectively higher if they have to pay resale levy.

Second-timers also have to ask how much can they get from their resale flat when they eventually have to sell come TOP.

A 5-room Sengkang resale flat fetched around $530,000 in 2013 but about $450,000 now.

How about 2 - 3 years later?

Check out median resale hdb prices at
http://www.hdb.gov.sg/cs/infoweb/residential/buying-a-flat/resale/resale-statistics
Click to expand...
Will u go for this if you are a first timer?
 
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ecobuyer

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This is tough to answer as it depends on several considerations.

The intent of EC is good. However, one has to ask whether it is still worthwhile to buy new ECs given the relatively high EC price and, more significantly, the price differential between new ECs and new private condos have narrowed over the years?

My heart goes to those who bought ECs but eventually have to surrender them for various reasons, one of which is unable to form a family nucleus in the next 3 years + 5 years of MOP. It was recently reported that the number of divorces and annulments in Singapore last year was more than 7,000.

So, you have to seriously ask how strong and committed is your marriage to each other.

Another group is those who could not afford the subsequent loan payments eg due to retrenchments, sudden illness. This affects both first-timers and second-timers.

For second-timers, the concern is what if HDB resale prices fall further in the next 2 - 3 years and they could not meet the loan obligations. As shared in my earlier post, a 5-room Sengkang HDB flat has fallen from $530,000 in 2013 to $450,000 now.

You can check the number of returned ECs (and private condos) at squarefoot.com.sg. For these returned units, the buyers have to pay termination fees.

Yes, there are some savings from buying new ECs. But there are restrictions and risks too eg you can't buy another private condo in the next 8 years, the risk of returning the EC unit and the termination fees.

Should property prices come down in the next 8 years, would you miss the boat in that you can't buy a private condo due to the EC restrictions.

So, you have to carefully consider not just the savings but also the potential risks and restrictions.

Is the savings/ risk ratio appropriate in your case?

Is it worthwhile?
 
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windwaver

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ecobuyer

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ecobuyer said:
This is tough to answer as it depends on several considerations.

The intent of EC is good. However, one has to ask whether it is still worthwhile to buy new ECs given the relatively high EC price and, more significantly, the price differential between new ECs and new private condos have narrowed over the years?

My heart goes to those who bought ECs but eventually have to surrender them for various reasons, one of which is unable to form a family nucleus in the next 3 years + 5 years of MOP. It was recently reported that the number of divorces and annulments in Singapore last year was more than 7,000.

So, you have to seriously ask how strong and committed is your marriage to each other.

Another group is those who could not afford the subsequent loan payments eg due to retrenchments, sudden illness. This affects both first-timers and second-timers.

For second-timers, the concern is what if HDB resale prices fall further in the next 2 - 3 years and they could not meet the loan obligations. As shared in my earlier post, a 5-room Sengkang HDB flat has fallen from $530,000 in 2013 to $450,000 now.

You can check the number of returned ECs (and private condos) at squarefoot.com.sg. For these returned units, the buyers have to pay termination fees.

Yes, there are some savings from buying new ECs. But there are restrictions and risks too eg you can't buy another private condo in the next 8 years, the risk of returning the EC unit and the termination fees.

Should property prices come down in the next 8 years, would you miss the boat in that you can't buy a private condo due to the EC restrictions.

So, you have to carefully consider not just the savings but also the potential risks and restrictions.

Is the savings/ risk ratio appropriate in your case?

Is it worthwhile?
Click to expand...

To add on, if you have plans to have children or have children, are there pri schools nearby? Are they difficult to get in?

One member shared Nan Chiau Pri is 700m away. This seem short distance to an adult. But can your child walk to the school or do you need to arrange for school transport (which costs $)?

As shared in previous page, only about 1 out of 3 children living within 1 km can get to Nan Chiau Pri.

What if your children is posted to a much farther school? This might involve school transport, which add on to the costs etc.

There are much more considerations like

Where are the nearby amenities?

How is the traffic congestion, especially during peak hours when you need to rush to work? Can the one-lane traffic cope?

8 years later when you can sell or you need to sell for whatever reasons, can you fetch a good price?

How many EC and private condo units are there in Sengkang? Why should potential buyer choose your development over other developments?

What are the unique selling points of Treasure Crest over other ECs and private condos?

Buying a house require much thinking and planning which you have to discuss with your family members.

Wish you luck!
 
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derong07

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Pls dun come tmr morning. :D
So tat my buyers have a higher chance. Hehe. Juz joking.
Good luck to those balloting tmr!

Buy only if it is within ur comfortable budget. :)
 
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Kuinny

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ecobuyer said:
This is tough to answer as it depends on several considerations.

The intent of EC is good. However, one has to ask whether it is still worthwhile to buy new ECs given the relatively high EC price and, more significantly, the price differential between new ECs and new private condos have narrowed over the years?

My heart goes to those who bought ECs but eventually have to surrender them for various reasons, one of which is unable to form a family nucleus in the next 3 years + 5 years of MOP. It was recently reported that the number of divorces and annulments in Singapore last year was more than 7,000.

So, you have to seriously ask how strong and committed is your marriage to each other.

Another group is those who could not afford the subsequent loan payments eg due to retrenchments, sudden illness. This affects both first-timers and second-timers.

For second-timers, the concern is what if HDB resale prices fall further in the next 2 - 3 years and they could not meet the loan obligations. As shared in my earlier post, a 5-room Sengkang HDB flat has fallen from $530,000 in 2013 to $450,000 now.

You can check the number of returned ECs (and private condos) at squarefoot.com.sg. For these returned units, the buyers have to pay termination fees.

Yes, there are some savings from buying new ECs. But there are restrictions and risks too eg you can't buy another private condo in the next 8 years, the risk of returning the EC unit and the termination fees.

Should property prices come down in the next 8 years, would you miss the boat in that you can't buy a private condo due to the EC restrictions.

So, you have to carefully consider not just the savings but also the potential risks and restrictions.

Is the savings/ risk ratio appropriate in your case?

Is it worthwhile?
Click to expand...
Hi Ecobuyer, thanks for sharing your views. Agreed with you totally but I don't think many will register. There are many people still harbouring the condo dream and will pay through their nose to buy one.

So I suspect the take up rate for tomorrow may still be good maybe 30-40%? SK/Punggol area got a lot of young families.

For the part about 2nd timers selling off the HDB flat upon EC TOP, I know of one case where the family was so worried about the future decline of property prices that they recently sold their HDB 5 room flat but their EC TOP only comes in another 1-2 years. They wanna lock in the resale price now which they considered still high. In the meantime, the whole family ~ parents, grandparents and 2 children have to put up with the inconvenience to stay with their relatives until their EC TOP. Worth it or not, I don't know. But I just find it ironic. They bought a EC supposedly a value buy but end up worrying price will drop further that they quickly sell their HDB and the whole family got to put up with the inconvenience.
 
Urahara86

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Kuinny said:
Hi Ecobuyer, thanks for sharing your views. Agreed with you totally but I don't think many will register. There are many people still harbouring the condo dream and will pay through their nose to buy one.

So I suspect the take up rate for tomorrow may still be good maybe 30-40%? SK/Punggol area got a lot of young families.

For the part about 2nd timers selling off the HDB flat upon EC TOP, I know of one case where the family was so worried about the future decline of property prices that they recently sold their HDB 5 room flat but their EC TOP only comes in another 1-2 years. They wanna lock in the resale price now which they considered still high. In the meantime, the whole family ~ parents, grandparents and 2 children have to put up with the inconvenience to stay with their relatives until their EC TOP. Worth it or not, I don't know. But I just find it ironic. They bought a EC supposedly a value buy but end up worrying price will drop further that they quickly sell their HDB and the whole family got to put up with the inconvenience.
Click to expand...

this is a sad story of the family to be suffering due to the lure of making money out of the home investment..
 
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Pynchmail

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Urahara86 said:
this is a sad story of the family to be suffering due to the lure of making money out of the home investment..
Click to expand...

For those considering a PC instead of EC because there is no MOP, please remember that there is Seller's Stamp Duty which is a tax on seller if a PC is sold within four years of purchase. The tax is 16% if you sell within one year, 12% within two years, 8% and 4% in the next two years. Serious money if you need to sell within four years of buying.
 
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Urahara86 said:
hi yeoster! good to know that, we may be neighbors in future! i selected about 60 units..hope to get my first choice!:D
Click to expand...

Wahsey how on earth did u guys manage to shortlist sooooo many units?? I only manage 5! It's take it or leave it situation later haha....good luck to all!
 
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ecobuyer

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Pynchmail said:
For those considering a PC instead of EC because there is no MOP, please remember that there is Seller's Stamp Duty which is a tax on seller if a PC is sold within four years of purchase. The tax is 16% if you sell within one year, 12% within two years, 8% and 4% in the next two years. Serious money if you need to sell within four years of buying.
Click to expand...

To clarify,

Using a new under construction private condo say High Park Residences in Sengkang as an example.

If one bought a unit during its launch last year 2015, the seller stamp duty starts from the time you bought.

Now, the seller stamp duty (for those who bought a year ago) is reduced to 12%.

In 2019, near TOP, there will be no seller stamp duty as 4 years have already passed.

The monthly payment is progressive i.e. even for a $1 mil property, interest payment is relatively manageable in the initial years.

More significantly, in the event of a divorce, you could still hold on to your private property (if you bought in your own name or you could do some transfer) unlike new ECs where you must "return" the unit if you have divorce or unable to pay monthly instalments in the next 3 years + 5 years of MOP.

Also, for couples with existing flats, you can ask for remission ("refund") of ABSD upon TOP of your private property but have to sell your current flat within 6 months of TOP (just like new ECs). You can find out more in URA or seek any professional agent on this.

In short, private condos are subjected to ABSD for the next 4 years (typically the construction period if you bought during launch) while ECs are subjected to 3 years + 5 years of MOP and termination charges apply.

ABSD can be "refunded" for couples with existing property. However, resale levy must pay and cannot be refunded (for second-timers).
 
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PostCountWarrior[+1]

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ecobuyer said:
To clarify,

Using a new under construction private condo say High Park Residences in Sengkang as an example.

If one bought a unit during its launch last year 2015, the seller stamp duty starts from the time you bought.

Now, the seller stamp duty (for those who bought a year ago) is reduced to 12%.

In 2019, near TOP, there will be no seller stamp duty as 4 years have already passed.

The monthly payment is progressive i.e. even for a $1 mil property, interest payment is relatively manageable in the initial years.

More significantly, in the event of a divorce, you could still hold on to your private property (if you bought in your own name or you could do some transfer) unlike new ECs where you must "return" the unit if you have divorce or unable to pay monthly instalments in the next 3 years + 5 years of MOP.

Also, for couples with existing flats, you can ask for remission ("refund") of ABSD upon TOP of your private property but have to sell your current flat within 6 months of TOP (just like new ECs). You can find out more in URA or seek any professional agent on this.

In short, private condos are subjected to ABSD for the next 4 years (typically the construction period if you bought during launch) while ECs are subjected to 3 years + 5 years of MOP and termination charges apply.

ABSD can be "refunded" for couples with existing property. However, resale levy must pay and cannot be refunded (for second-timers).
Click to expand...
ok recently ur views more balanced, maybe u r not property agent :D

anyway I think most have made up their minds already. Good luck to those who really wanna buy, hope u get a good unit!
 
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Pynchmail

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Yes, you are right. The time difference between 5 years MOP and 4 years seller's tax will be smaller if you buy after TOP. But you will be left with less desirable left over units.
 
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ecobuyer

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I 101% not property agent.

Using High Park Residences as an example

The median psf of 3-bedroom is about $915 psf while 4-bedroom is about $880 psf.
Median means 50% of the 3-bedroom is less than $915 psf and 50% of the 3-bedroom is more than $915 psf ...

Source:
http://www.propertyguru.com.sg/new-project-launch/reviews/high-park-residences-review-111264

Typically, new ECs should be priced about 20% cheaper than comparable private condos given the various restrictions of new ECs and the lower land cost for new ECs.

Applying a 20% discount, one should be able to determine the median psf of new ECs.

One may argue whether High Park Residences is a good benchmark.

I chose it because:
It was the last private condo launched in Sengkang
It has 3-room and 4-room units available
It is next to a LRT and has 118 facilities

Hope it will give yet another perspective on what should be a reasonable price for new ECs.

Ultimately, potential buyers have to judge whether it is a good buy or not, whether new ECs or private condos.
 
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