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GE coming liu!
G always try to time just before thier GE with a lot of sweeteners. But just a coin always have 2 sides, too much of one thing can "backfire" or boomerang.
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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Negotiate price and sign OTP, then get valuation report for loan. The sequence seems wrong to me.
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Not sure what MND is trying to achieve with this latest policy twist.
The COV (or un-COV) and the resultant final price is a manifestation of the end supply/demand of flats, value of time and premium/discount on size/location. To say that there are sellers who set a COV before selling and thus "hold back the market from declining", ignores the fact that a growing number (now coming to half) of the transactions are actually below valuation. And the main reason why COVs exploded and generated political heat in the first place is HDB's own failure to provide proper housing supply to meet demand.
There is also a natural cap on HDB prices - the buyers are limited in the COV they can pay, the loan they can take (even more so after recent administrative measures) and final price they are willing to part with for the home, regardless of what the sellers are asking.
As the housing market is returning to balance, they are now turning the entire buy/sell process into a tikam black box - and all because they cannot manage the political heat from fluctuating COV values. So design a process where people can pretend it does not exist. You are not allowed to know your own flat's value before selling, but can reference a completely irrelevant cluster next door which is 20 years older/younger to get your own price before selling. Ho ho ho... and good luck if your cluster has only 2 transactions over the last 12 months (the limit which they provide the data) and they are 60k apart.
I only pity those who are trying to enter into transactions now. Buyers are of course happy - but they will be sellers too one day.
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(10-03-2014, 10:31 PM)Freenasi Wrote: Negotiate price and sign OTP, then get valuation report for loan. The sequence seems wrong to me.
i feel the same uneasiness too when i first read it. Who likes to pay OTP $ without more than 99% sure to purchase (getting an approved loan from the bank first with the valuation).
If i am a seller i will have my problems too. Singapore G always like to be the first in anything in the World. i think it's O. K. to be trying to be the first but not usually at the "expense" of Singaporeans. "The daft Singaporean" as quoted by an OLDMAN.
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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10-03-2014, 10:56 PM
(This post was last modified: 10-03-2014, 10:57 PM by thefarside.)
Loopholes anyone?
1. Ask friend to sign OTP. Lend him 1k
2. Pay you 1k option fee. OTP price for your flat is +150k (or some high number) against the record price in your area. Lets say 900k.
3. Commission valuation
4. See valuation report
5. Let option lapse
6. Buy friend coffee.
HDB will then set rules around exercising of OTP, possible transaction prices, illegal use of phantom buyers for transaction etc.
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Ha! Ha!
If only you do that, you don't have enough clout. But it really can be a loophole if more and more people willing to do that. Is it against the law then?
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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This looks to be quite a radical move.
However, I think the overall impact is to push prices downwards.
Without knowing the valuation, you really won't know for sure how much cash you have to cough out when you sign the OTP.
So people will think twice on the price before signing OTP.
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Good job, Mr Khaw.
More transparency and more timely data.
Just like what he did for medical costs.
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster
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