EC penthouse sold for record S$2.05m

[Busymom]

HVR:

Income ceiling $12k. Let's say loan 80% then need to borrow 1.6 millions how to make monthly payment? Definitely have to pay cash and will any bank approves such loan? This being a 'public' and hence, 'subsidized' project, if the buyers have so much cash to pay upfront then shouldn't enjoy any grant at all.

Totally agree.

[Mawar]

It depends on whose perspective. Maybe the other family members do not qualify or are ineligible to take advantage of the grant. Since others are taking their bites of the cherry, they band together to find a loophole. All legal and good. So they use the names of the younger family members to register for a unit. Win win for all.


The family in this case already owns several properties. They will not stay in a HDB. But a 2.05M penthouse is a different story. When the timing is right, they make a killing and share the loot. Again, win win while enjoying the grant, location and view.

[White_Gale]

Wow…that is a sky high price to pay.

[straffan23]

Well, according to the article

1. The unit was bought in proxy of a sibling living and working in the US.
2. The father will pay for most of the cost.
3. The father has several other properties in SG.

Here’s what I think. The government should tweak its grant system to include fine prints like these:
1. If you take the grant (hence eligible to purchase), you MUST take between a min % (to max %) of loan to qualify - you you didn’t even need the min loan amount, you obviously don’t need the gov. grant!
2. Cannot refinance or pay up on the principal sum during the MOQ. So, even for those that can pay up, they will have to deal with the interest during the MOP.

I see so many young couples, well to do, purposely purchasing a BTO or EC just "because they can". It is a god-given right for Singapore citizen. Nevermind they are living in a condo, or landed property, or they own a thriving business… and to make it worse, some has absolutely no intention of moving in for the MOP!!

[Mawar]

This is just the way it is. We know of a few couples who are living in landed properties with their parents and keeping their flats vacant. Just waiting to offload come maturity. Like FD.

[MMM]

HVR:

Income ceiling $12k. Let's say loan 80% then need to borrow 1.6 millions how to make monthly payment? Definitely have to pay cash and will any bank approves such loan? This being a 'public' and hence, 'subsidized' project, if the buyers have so much cash to pay upfront then shouldn't enjoy any grant at all.

Precisely. Had the same thought as well. For the target income group, how can they afford to pay for a $2.05MM property if not family support. If some is buying without family support, that sounds like a stretch. Only can afford to pay for the instalment??? I still find that EC positioning doesn't make sense...

[3Boys]

MMM:

HVR:

Income ceiling $12k. Let's say loan 80% then need to borrow 1.6 millions how to make monthly payment? Definitely have to pay cash and will any bank approves such loan? This being a 'public' and hence, 'subsidized' project, if the buyers have so much cash to pay upfront then shouldn't enjoy any grant at all.

Precisely. Had the same thought as well. For the target income group, how can they afford to pay for a $2.05MM property if not family support. If some is buying without family support, that sounds like a stretch. Only can afford to pay for the instalment??? I still find that EC positioning doesn't make sense...

It did make sense....in the beginning.

Now its completely perverted.

[AC_Power]

EC will just be like a private condo at the end of 10 years. So if you are buying for own stay, buying an EC is much better than buying a private. CityLife@Tampinese is at PRIME location. At the end of 10 years, there is a good chance that you can sell at 100% appreciation if the market is kind to you.


The only issue is the 12k salary cap and yes, those selling at millions will require you to put down a huge amount in the downpayment. 12k combine salary would at most get you 1m bank loan if I am not wrong.

[Musings]

3Boys:

MMM:

[quote=\"HVR\"]Income ceiling $12k. Let's say loan 80% then need to borrow 1.6 millions how to make monthly payment? Definitely have to pay cash and will any bank approves such loan? This being a 'public' and hence, 'subsidized' project, if the buyers have so much cash to pay upfront then shouldn't enjoy any grant at all.

Precisely. Had the same thought as well. For the target income group, how can they afford to pay for a $2.05MM property if not family support. If some is buying without family support, that sounds like a stretch. Only can afford to pay for the instalment??? I still find that EC positioning doesn't make sense...

It did make sense....in the beginning.

Now its completely perverted.[/quote]I think our policy makers have failed to recognise and respond swiftly to economic changes. The property boom in recent years have made many cash rich and also makes people think property will definitely appreciate. Hence, the exploitation of the loopholes in the older policies to profit from this.

[pirate]

Musings:

I think our policy makers have failed to recognise and respond swiftly to economic changes. The property boom in recent years have made many cash rich and also makes people think property will definitely appreciate. Hence, the exploitation of the loopholes in the older policies to profit from this.

That's because our policy makers have absolutely no idea what to do in the face of massive QE from the US, Europe and now apparently Japan. What do our policy makers expect Singaporeans to do with their savings in the face of 4-5% inflation and practically 0% interest rates on deposits?

I bet you if some developer comes up with a 10,000 sf EC penthouse priced at $4.5-5m, it will be snapped up in next to no time.

Yah, yah. Minister is telling developers to bear in mind the spirit and intention of ECs. But isn't the spirit and intention asset enhancement? :razz: