EC penthouse sold for record S$2.05m
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doodbug:
I fully agree. I work in a tertiary institution and it strikes me how graduate couples feel today. A young graduate couple today, finds cars and housing out of reach. And I don't think their expectations are unreasonable - they're typically looking for a 4 room resale flat near their parents' place etc. It will take them years to save up for the COV. They compare themselves with their parents, and some feel that they are 'worse off'. They feel that so much is out of reach. If this continues, we will have a growing group of apathetic and disenfranchised electorate.
Actually, I personally think that the part I highlighted is unrealistic. What is now a mature estate was not necessary so when the parents bought their flats. It used to be, for example, that estates like Tampines, Clementi and Yishun were considered really ulu. When Marine Parade HDB flats were first launched, people were concerned about flats built on reclaimed land. Bishan was a cemetary... And so on and so forth... The present day equivalent to what they were back then is BTO in non mature estates.
As for cars, buy second hand. They are good enough for many millionaires. They should be good enough for a young graduate couple. And how many of their parents could afford to buy and maintain a car fresh out of school? Even in the 1990s, my contemporaries generally did not buy new cars until they were reasonably established in their careers. And these were people who were in the top 0.1% of their cohort. Are these young graduates even in the top 1% of their cohort, much less 0.1%? -
I feel the HDB flats are still generally quite affordable for young couples if we are talking about just standard flats. A 3 rm flat in a location like Bukit Batok going at about $250K(w/o grants) should not be too much of a stretch for these couples.
Our system is fair as every citizen gets 2 bites of the cherry and most will upgrade from there . Selling these subsidised flats 5 years later will undoubtedly earn you quite a tidy sum.(provided economy is still strong then).
If course if these people are looking only at bigger flats in mature estates as their first home, then they must be prepared to pay a premium.
As for ECs,I’m sure KBW is not going to close one eye to this so there’ll be new rules soon for the developers to adhere to -
Rational_Parent:
You have to think outside the box, if I may say so. Think savings, not just of the purchaser but of his/her relatives who are willing to contribute and may even agree to cohabit in that large unit or just as a joint investment. And then there are possibilities of the purchaser or his/her kin enjoying a windfall such as winning lotteries and/or come into a huge inheritance which the authority also cannot begrudge. With such a unique and only unit in a development, it is surely bound to attract tremendous interests and sell very profitably in the future. Therefore, bottom-line, it is a very sound investment and indeed a star buy. I think even banks will not be too perturbed in financing this purchase because of the above-mentioned, provided they are doing it within the rules. And one cannot begrudge the purchaser as well for he/she is also playing within the rules and wants to maximize his/her benefits like all sane humans do.sleepy:
[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.
Bank cap interests repayment at 40% of income. Even if wanna pay more than 40% bank don't accept.
My guess is this couple will not be taking 80% loan. Possibly much lower loan%. Alternatively, if they are young couple, can stretch loan for a loooong period. Interests component will be super high though :shock:
The issue is not with the purchaser but with the government and EC developers for lack of control and for blurring the original concept of ECs as being for the \"sandwiched group\". If the reason for the cost of housing to rise is due in part to supply is not catching up with demand then building such large unit is definitely not helping because three other reasonable sized units could have been built in place of it.
There will sure be new rulings in the pipeline concerning public housing, and changes to ECs rulings will definitely take centre-stage. But those lucky ones with penthouses will be just that - lucky ones.[/quote]And there you go, new rulings to cool the property market and some heated heads. Somehow one cannot help but feel sentiments, whether from public, feedbacks, and even forums such as this KSP, do get to the authority. The speed at which actions are taken is not really surprising, what with a by-election around the corner. The by-election will also hold back the imminent fare hikes in public buses and MRT for sure.
I wonder how those who bought properties for investment now feels. But that guy who bought the 2.05m EC unit can now smile forever and there's not a lot anyone can do about it. One lucky bloke. -
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Rational_Parent:
Be assured, it is entirely possible to lose money on ECs.
I wonder how those who bought properties for investment now feels. But that guy who bought the 2.05m EC unit can now smile forever and there's not a lot anyone can do about it. One lucky bloke. -
3Boys:
Being one of a kind penthouse in an EC development at a cost of $470 per sq. ft, I would say highly unlikely. At current rate, 470 per sq. ft. plot cost is even lower than many HDB resale flats. But I were him, I'll not sell for there'll never be a better property deal for a penthouse at that size/cost.
Be assured, it is entirely possible to lose money on ECs.Rational_Parent:
I wonder how those who bought properties for investment now feels. But that guy who bought the 2.05m EC unit can now smile forever and there's not a lot anyone can do about it. One lucky bloke. -
What will be impact of the cooling measures?
Will property price drop bcoz of drop in demand? Or will property prices not affected even thou there are less buyers bcoz there’ll still be a large number of pple who can well afford?
The property measures definitely affect those who can barely afford…
But these pple are unlikely the ones who will cost the price to go up right…? hence my question on removing these group of pple will have impact on the price or not… -
Rational_Parent:
Being one of a kind penthouse in an EC development at a cost of $470 per sq. ft, I would say highly unlikely. At current rate, 470 per sq. ft. plot cost is even lower than many HDB resale flats. But I were him, I'll not sell for there'll never be a better property deal for a penthouse at that size/cost.[/quote]Is this not with loads of open terrace and roof space, like what minister Khaw was referring to?
Be assured, it is entirely possible to lose money on ECs.3Boys:
[quote=\"Rational_Parent\"]
I wonder how those who bought properties for investment now feels. But that guy who bought the 2.05m EC unit can now smile forever and there's not a lot anyone can do about it. One lucky bloke. -
limlim:
If you a first time buyer, these measures do not hit you too hard. It hits those who are trying to procure additional properties for investments.What will be impact of the cooling measures?
Will property price drop bcoz of drop in demand? Or will property prices not affected even thou there are less buyers bcoz there'll still be a large number of pple who can well afford?
The property measures definitely affect those who can barely afford..
But these pple are unlikely the ones who will cost the price to go up right..? hence my question on removing these group of pple will have impact on the price or not..
People 'think' they can afford because interest rate are low. It is exactly this sandwich class that need to be discouraged from overextending in property in the vain hope of a quick buck.
These measures will cool prices (or at least dampen intake increase ).
Looking for a cloud in a silver lining are you? I suppose in limlim's world every gment policy is meant to disadvantage the masses........
So in your view have they gone too far, or not done enough? What else you would do to make life even more difficult for the well heeled? -
I'm just try to learn something from KSP..
very limited in awareness on properties and policy impact. At this moment, I'm more interested to ask question.. not making judgements or comments.. :evil:
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