Home loan repayment can now stretch to 50 years

Didn't the Japs has a housing mortgage policy loan of 100 years during their real estate boom years in the late 80s?

I shudder to think whether are we heading down this path?
If UOB is to offer so, likewise for other banks when young borrowers see that they can afford to pay lesser every mth and yet own that prestigious address.

I can understand they are afraid of being left behind. The govt policy are not actually encouraging much either.
Learnt recently a friend bought a Punggol 4 rm (near LRT) at $300k+

Wow... to think Punggol was supposed to be ulu last time?

Frankly if I were to do a stats chart comparision between the HDB price index vs 1. top 20% income, 2. median income, 3. bottom 20% income. from 1967 till 2011.
I am pretty sure I could see something very different.

(23-07-2012, 10:27 PM)arthur Wrote: Didn't the Japs has a housing mortgage policy loan of 100 years during their real estate boom years in the late 80s?

I shudder to think whether are we heading down this path?
If UOB is to offer so, likewise for other banks when young borrowers see that they can afford to pay lesser every mth and yet own that prestigious address.

Only possible for Freehold properties? Not sure what's the ratio of 99-Yr Leasehold to Freehold (or 999 Yrs) like in Singapore, so if it does happen, maybe only a minority of properties qualifies.

But, yes, the definition of 'Affordability' seems to be different in the mindset of those who'd either not been through a recession / high interest rate environment or had forgotten the last one..

I remember there was this development being marketed as generational living sometime back.. something like being able to live near the kids once they have all grown up (side by side unit?).

Just can't recall what was the name of it.

(25-07-2012, 10:46 AM)Blackjack Wrote: I remember there was this development being marketed as generational living sometime back.. something like being able to live near the kids once they have all grown up (side by side unit?).

Just can't recall what was the name of it.

Are you referring to "dual key units"? It is sold as one property.

It is suitable under these two (2) scenarios IMO

Scenario #1
To stay in one of the separated units and rent out the other unit for rental income. There is a lot of privacy because the tenant has his own set of keys to his unit and neither you nor the tenant will have to pass by each other's unit to get to your own unit.

Scenario #2
To stay in one of the separated unit, and your grown-up kid can stay on the other unit. Same privacy enjoyed.

*For full article, please visit the website.

The Straits Times
www.straitstimes.com
Published on Aug 06, 2012
50-year home loan a 'gimmick', says Khaw
He urges Singaporeans to remain prudent, says such loans are unwise

By chia yan min

IN THE midst of global economic uncertainties, Singaporeans should stay focused, be prudent and spend within their means, said Minister for National Development Khaw Boon Wan yesterday.

He also advised Singaporeans against taking up 50-year housing loans, which at least one bank here has recently started offering.

Calling it a "gimmick", Mr Khaw said: "Please don't fall for that, it doesn't make sense."

Last month, The Straits Times reported that United Overseas Bank (UOB) had started offering home loans spanning 50 years, likely the longest-term loan available here. Among other banks, loans range from an average of 20 to 40 years.

Said Mr Khaw: "If you immediately come out from school and want to get a five-room flat, and you think a 50-year loan will help you achieve that, I don't think that is very wise."

He was speaking on the sidelines of a National Day observance ceremony in Woodlands.

Instead, buy a three-room flat if that is what you can afford, he said. And upgrade to a bigger flat when your salary or the value of your flat grows.

Mr Khaw said he checked on the take-up rate of this new 50-year loan and "so far, the number is very few, which I think is a good sign, that Singaporeans know we should always be prudent".

When asked, UOB's head of secured loans, Ms Chia Siew Cheng, said the majority of those who take up a home loan with the bank still tend to apply for loans with a tenor ranging from 25 to 30 years.

The bank also carefully assesses each application for all types of home loans, and applicants cannot be above the age of 80 at the end of the loan period, she said.

"We are very clear with applicants that the longer repayment period and loan tenor also mean that more interest will be payable over the period of the loan," she said.

Mr Nicholas Mak, head of research and consultancy at SLP International Property Consultancy said that while a 50-year loan would allow people to take a bigger loan and buy a more expensive property, "there would not be much room to manoeuvre if the interest rate were to go up, or if the person were to lose his source of income, and the borrower might be caught in a financial vice".
-----------

(06-08-2012, 12:13 PM)Musicwhiz Wrote: *For full article, please visit the website.

The Straits Times
www.straitstimes.com
Published on Aug 06, 2012
50-year home loan a 'gimmick', says Khaw
He urges Singaporeans to remain prudent, says such loans are unwise

By chia yan min

IN THE midst of global economic uncertainties, Singaporeans should stay focused, be prudent and spend within their means, said Minister for National Development Khaw Boon Wan yesterday.

He also advised Singaporeans against taking up 50-year housing loans, which at least one bank here has recently started offering.

Calling it a "gimmick", Mr Khaw said: "Please don't fall for that, it doesn't make sense."

Last month, The Straits Times reported that United Overseas Bank (UOB) had started offering home loans spanning 50 years, likely the longest-term loan available here. Among other banks, loans range from an average of 20 to 40 years.

Said Mr Khaw: "If you immediately come out from school and want to get a five-room flat, and you think a 50-year loan will help you achieve that, I don't think that is very wise."

He was speaking on the sidelines of a National Day observance ceremony in Woodlands.

Instead, buy a three-room flat if that is what you can afford, he said. And upgrade to a bigger flat when your salary or the value of your flat grows.

Mr Khaw said he checked on the take-up rate of this new 50-year loan and "so far, the number is very few, which I think is a good sign, that Singaporeans know we should always be prudent".

When asked, UOB's head of secured loans, Ms Chia Siew Cheng, said the majority of those who take up a home loan with the bank still tend to apply for loans with a tenor ranging from 25 to 30 years.

The bank also carefully assesses each application for all types of home loans, and applicants cannot be above the age of 80 at the end of the loan period, she said.

"We are very clear with applicants that the longer repayment period and loan tenor also mean that more interest will be payable over the period of the loan," she said.

Mr Nicholas Mak, head of research and consultancy at SLP International Property Consultancy said that while a 50-year loan would allow people to take a bigger loan and buy a more expensive property, "there would not be much room to manoeuvre if the interest rate were to go up, or if the person were to lose his source of income, and the borrower might be caught in a financial vice".
-----------

It's very strange?
Isn't the 50 year loan sanction by MAS?
Now MR. COW advises young people not to take this loan.
"The Cat crying over the MOUSE"
What a joke!

NB:-
Anyway do you think young married couple have a choice?
My nephew bought only a 4-room flat at Toa Payoh and it cost i think about 400K+
And it was at least 2 to 3 years ago or more
So do you think they really have a choice, Mr COW?
"CAT crying over Mouse" by MR. COW.
Ha! Ha!

(06-08-2012, 12:42 PM)Temperament Wrote: Anyway do you think young married couple have a choice?
My nephew bought only a 4-room flat at Toa Payoh and it cost i think about 400K+
And it was at least 2 to 3 years ago or more
So do you think they really have a choice, Mr COW?
"CAT crying over Mouse" by MR. COW.
Ha! Ha!

Eh... your nephew is paying a premium for location.
Got cheaper ones leh.
http://www.hdb.gov.sg/fi10/fi10297p.nsf/...Annex%20B/$file/Annex+B.pdf

I know it is expensive even for the cheap ones but normally, I am not sympathetic to those who bought flats at good location and complain that they are expensive.

(06-08-2012, 01:26 PM)yeokiwi Wrote:

(06-08-2012, 12:42 PM)Temperament Wrote: Anyway do you think young married couple have a choice?
My nephew bought only a 4-room flat at Toa Payoh and it cost i think about 400K+
And it was at least 2 to 3 years ago or more
So do you think they really have a choice, Mr COW?
"CAT crying over Mouse" by MR. COW.
Ha! Ha!

Eh... your nephew is paying a premium for location.
Got cheaper ones leh.
http://www.hdb.gov.sg/fi10/fi10297p.nsf/...Annex%20B/$file/Annex+B.pdf

I know it is expensive even for the cheap ones but normally, I am not sympathetic to those who bought flats at good location and complain that they are expensive.

Ha! Ha!
On the contrary. My nephew thinks he has got a "bargain".
Some of his friends (housing agents) told him at the time when he purchased this flat from HDB, a lot of "AH Tiongs" (sorry no offence) just bought SinKapore's flats like buying "roti prata".
Some without even flying here to inspect the flats, first.
Because flats here are still "quite cheap" for them compare to flats in Shanghai or maybe some other 1st cities of China.
So now you know why our younger generations have to take up to 50 years loan.

By the way my 19 years old 4A flat still worth more than 400K+.
Partially or mainly because there are a lot of people (FTs) buying our flats like buying "roti prata".
i think it's very sad for our next, next generations, because more FTS will surely come as long as PAPYs "profitted".
So now you know why. Don't you?
But of course not the COW & CAT crying over Mouse)

(23-07-2012, 10:27 PM)arthur Wrote: I can understand they are afraid of being left behind. The govt policy are not actually encouraging much either.

Learnt recently a friend bought a Punggol 4 rm (near LRT) at $300k+

Wow... to think Punggol was supposed to be ulu last time?

The pricing policy of the government for BTO flats is at a 'discount' to market prices of resale flats.

So yes, there has been a lot of new BTO flats building, but the prices has not come down.

In a sense, I pity the younger generation, for a 4 room BTO near boon keng MRT, they have to pay $500K - $600K. If the want cheaper, they have to go Punggol...

This approach of pricing at 'discounts' to market, has the good effect of building up country's coffers and encourage couples to retire later... kill so many birds with 1 stone.

Believe not many can outlive this 50 years loan.