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Subscribe to this list via RSS Blog posts tagged in DBS

The-Clement-Canopy-preview.original.jpg

DBS Bank and United Overseas Bank (UOB) are offering mortgages with zero percent spread to compete for the chance to fund the purchase of a minimum of 1,225 homes in this year’s first two property launches, reported the Business Times.

DBS’ special-promo is based on the 18-month fixed-deposit home-loan rate (FHR), while the benchmark for UOB is the 36-month FHR. As the current rates are 0.6 percent and 0.65 percent respectively, these are the effective lending rates until the project obtains its temporary occupation permit (TOP), which is usually in three to four years. Thereafter, DBS will charge a one percent spread for its loan, while UOB’s spread is 0.9 percent for the first year after TOP and 0.95 percent subsequently.

Based on a $1 million loan with a 25-year tenure, the amount to be repaid for a DBS loan at FHR + zero percent ranges from $5,193 to $5,947 per annum, but after TOP at FHR + one percent, it amounts to $19,207 for the fifth year.

According to some experts, banks offering such housing loans are suffering a loss, unless they can cross-sell other financial products, like mortgage insurance. While there is no lock-in period, this type of housing loan only applies to developments under construction and comes with one-time free conversion for a limited time only. The promo from DBS ends next Monday (6 March), while UOB is believed to be mulling over the expiry date.

This means there is enough time to take advantage of the offer to buy a unit at the two projects. In fact, DBS and UOB personnel were present last weekend during the launch of the 505-unit Clement Canopy condominium. They are also expected to be on hand at the launch of the 720-unit Grandeur Park Residences this weekend.

 

Credits: Property guru

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We look at some of the most common mistakes first-time investors make when buying Australian property.

1. Re-selling to locals only

Investors who are familiar with the rules of investing in Australian properties are well aware that foreigners can only buy “new homes” in the country. When you sell property, the buyers have to be either Australian citizens, permanent residents or holders of a valid visa that allows them to purchase Australian property. Many foreign purchasers are concerned about this, and some are even deterred from investing in Australia because of this. More important is the type of property one should invest in, its location, and what properties locals are searching for, which brings us to the next ‘mistake’.

2. Understanding the lifestyle

It is common for investors to use their local cultural beliefs to influence their overseas property purchases. For instance, there are many Asian investors who will not buy East facing properties because they want to avoid the morning sun. However, most Australians love the sunshine. In Melbourne, many people look forward to sunny days, especially during winter, as the weather can be quite cold and gloomy.

3. FIRB approval

Many buyers always ask: “What if I can’t get FIRB (Foreign Investment Review Board) approval after signing the contract?” As long as the development satisfies the ‘New Dealing’ criteria and is marketed overseas, this means that foreigners are allowed to make a purchase. They just need to apply to the board to inform them of their intention. Records show that nearly 100 percent of applications are usually approved.

4. Rental guarantee / Incentives

Do not be easily persuaded to make a purchase if the property you are considering offers a rental guarantee or other incentives like free stamp duty, etc. Potential buyers must recognise if it’s a genuine incentive. Projects that do not offer any incentives are often a much better investment.

5. Think outside the CBD

Very often, Asian buyers are only willing to invest within the central business district (CBD). Distance from the city centre should not always be used as a gauge when it comes to investing. The area’s infrastructure, as well as proximity to schools, employment centres and transportation that can affect the value and rental price should be taken into consideration. Australia is a large country, and the majority of Australians live in the suburbs. Much of their daily activities revolve in and around their neighbourhoods. Some residents visit the city just a few times a year. Data also shows that some of the suburbs yield very attractive returns compared to the city and city fringe areas. Very often, it is the suburbs which top the charts for growth or returns, and not the CBD.

6. Cheap doesn’t mean good

Cheap is not always good. Many investors are attracted to properties that are priced too low. Very often, such units have compromised on quality, design, and functionality, which will greatly affect your return, growth and resale value.

Credits: Propertyguru

 

 

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Posted by on in New Launches

Apart from price, location and flat type, what are some other factors first-time BTO buyers need to consider before applying? We let you in on three important tips.

1) Know your timeline. After your e-application for a flat in your neighbourhood of choice, you will likely have to wait about one month before the HDB issues you a ballot number (also called a queue number).

Two weeks after that, you have to decide on which unit you want, and pay the option fee; you should also apply for your loan soon after.

In four months, the HDB will contact you to sign the agreement for lease, whereupon you must fork out the down payment for your flat. If you selected a completed unit, you can collect your keys immediately. If not, you will have to wait till it is completed before collecting your keys.

2) Get the best queue number possible. This doesn’t depend purely on luck, though it does play a part. You can participate in as many BTO exercises as you want, but remember that if you reject an invitation to select a flat, you will automatically be placed at the back of the queue.

In order to avoid this, participate selectively. Also, applying for a unit in a severely oversubscribed neighbourhood drastically reduces your chances of getting a good queue number, and your options may be reduced to units that are far from ideal. So weigh all the pros and cons very carefully before even applying for your flat.

3) Determine your level of patience. While there is a considerable period between application and key collection, it pays to wait for the right BTO launch.

If you plan to live in more popular neighbourhoods, such as Tampines or Clementi, it is wise to wait for new flats to be released, instead of applying where many already have.

However, if you do not wish to wait out the typical two- to three-year BTO construction period, the Sale of Balance Flats (SBF) exercise is a viable option. The frequency of the SBF varies, but the upside is that you can move in as soon as six months after applying.

credits: propertyguru

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General Storage Company (GSC), a wholly-owned subsidiary of Singapore Post, has acquired the Store Friendly Self Storage Group (SFG) from Store Friendly Asia – the largest self-storage network in the region.

The acquisition of Singapore-based SFG, which provides personal and business storage facilities services, amounted to $12 million in cash and was funded from SingPost’s internal resources.

GSC may pay another $4 million to Store Friendly Asia if certain conditions are met.

“The acquisition will increase GSC’s presence across Singapore, making us the self-storage provider with the most number of facilities here (15). Customers of Store Friendly, especially those operating e-commerce businesses, will benefit from our value-added services such as parcel delivery,” noted GSC’s Group CEO Helen Ng.

In a statement released via SGX on Tuesday, SingPost said the deal is not expected to have any material impact on the net tangible assets or earnings per share of the group for the financial year ending 31 March 2016.

credits : propertyguru

Tagged in: Ascott DBS H1 2014 Overseas
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Posted by on in New Launches

 

They expect tepid take-up for these EC units, especially when property developers have limited room to adjust prices downwards for sites acquired at high prices.

Meanwhile, there are still 2,100 unsold units from 12 EC projects launched. Data from the Urban Redevelopment Authority (URA) shows that vacancy rate of completed and available ECs rose to 15.1 percent in Q1 2015 from 11.5 percent in the previous quarter.

Nicholas Mak, executive director of SLP International, said the EC market is like “a person drowning in the sea with two heavy millstones — the mortgage servicing ratio (MSR) restriction and falling resale HDB prices — around his neck”.

“The upgrade resale levy will be the third millstone that will seal its fate,” added Mak.

JLL national research director Ong Teck Hui noted that the MSR has reduced the affordability of ECs and also restricted the pool of eligible buyers, resulting in lower demand and take-up rates in EC projects.

With the total debt servicing ratio (TDSR) capping outstanding liabilities of borrowers at 60 percent of gross monthly income, the 30 percent MSR for EC units purchased directly from developers has become redundant, explained consultants. The MSR has even led to a peculiar situation in which buyers can get a higher loan quantum for a private condominium than for an EC, making the latter less “affordable”.

Moreover, EC projects are subject to a 15-month waiting period from the date of site acquisition to their actual launch. Prior to this, an EC project can be launched as early as six months from the date of acquisition of the site.

Consultants also noted that market conditions can drastically change during the waiting period. And once the building plans are finalised, it is very hard for developers to respond to these changes, said ERA Realty key executive officer Eugene Lim.

“Furthermore, during the 15-month waiting period, a buyer might have an increase in salary that could disqualify him from buying an EC unit as the buyer’s average gross monthly household income must not exceed $12,000,” stated Mak.

As such, Lim reckons it may be good to align the loan rules for ECs with that of private properties.

On the other hand, Ong feels it may be timely to review the 15-month waiting period, should the bids for EC sites continue to moderate.

 

Taken ST Property

Tagged in: DBS
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Posted by on in New Launches

The number of developments that have received an award for user-friendly design from the Building and Construction Authority (BCA) has reached a record high of 37 in 2015, reported the media.

Known as the BCA Universal Design Mark, this award is a voluntary certification scheme for architects and developers who promote ‘universal design’ – the concept of creating buildings that are user-friendly for everyone, including children, the elderly and persons with disabilities.

“As the agency championing universal design in the built environment, BCA is heartened to see the rise in award winners each year, from 26 when we first started the Universal Design Mark in 2013 to 37 projects this year,” said Chin Chi Leong, the agency’s Director for Building Plan and Management Division.

This year, the most prestigious platinum award was given to ITE College Central, d’Leedon condominium and the Westgate commercial building.

ITE College Central was commended for its pro-family facilities and features that took into consideration the welfare of the disabled. These include ramps and lending of wheelchairs, as well as a childcare centre and family parking lots.

Westgate, which consists of an office tower and shopping mall, was praised for its dedicated Family Zone with nursing rooms, a playground and separate restrooms for the young.

At CapitaLand’s recently completed d’Leedon project, roughly 18 percent of units have elderly and children-friendly features such as step-free entrances to the unit and individual rooms, help-call buttons in bedrooms and bathrooms, as well as main doors with peepholes at a height suitable for children and wheelchair users.

 

Taken ST-Property

Tagged in: Ascott CEO DBS
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Posted by on in New Launches

The first quarter of 2015 saw five homes auctioned off at massive losses, revealed media reports citing a Knight Frank report.

A unit at The Grange emerged as the biggest loss-making sale in the three-month period, selling for $4.2 million or down $2 million from its last transacted price of $6.2 million.

An Amber Residences unit was auctioned off at $2.7 million, achieving a loss of more than $403,000, while a Pearl Bank apartment was sold for $1.35 million, representing a loss of $300,000.

Meanwhile, an apartment in the freehold Estilo and a property at 60 Eng Kong Drive made losses of $108,000 and $38,000 after they were sold for $800,000 and $3.3 million respectively.

Residential properties accounted for the bulk of total auction listings in Q1 at 70.3 percent. The residential sector also led other sectors by selling nine of the 54 mortgagee sale properties available for auction.

 

Taken Property Guru

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And they're freaked out by its 'softer outlook'.

Singapore is a foreigner's haven in more aspects than one, but its ever-rising cost of living, property prices, and not-so-rosy economic outlook are slowly shooing expats away.

According to CIMB's Cost of Living survey, buyers responded positively to the property price cuts. Sky Vue, with its more competitive pricing, achieved a much healthier take-up rate, compared to its more expensive adjacent development, Sky Habitat.

Here's more from CIMB:

We also saw buyers reacting positively to price cuts, with Sky Habitat clearing more than 100 units since the re-launch.

This reinforces our survey results that suggest weak demand is driven more by expectations rather than affordability.

Foreigners view Singapore as a good city to own a piece of property, but cited high property prices as their key deterrent.

In a separate survey of foreigners not based in Singapore, 35% of the surveyed population believe that the biggest draw for investing in a property in Singapore is its infrastructure and security, with Singapore being seen as a clean and efficient city.

However, when asked what the main deterrent to buying a property was, the majority (83%) cited high property prices and softer outlook. Obviously, our survey also has some shortcomings as Indonesian tycoons or Middle Eastern tycoons are unlikely to take part in our survey.

In reality, these views are also reflected in lower take-ups by both foreign and investment demand. Foreign demand has fallen, now making up ~10% of new sales as compared to 15% two years ago. Investment demand has fallen as well, with upgraders making up more than 60% of new sales, vs. 50% two years ago.

Credits: Singapore Business Review

Tagged in: Ascott DBS Overseas
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Posted by on in Trends

RESIDENTIAL property prices in Singapore could fall up to 10 per cent across the board this year, an industry expert said.

Mass market homes could be the hardest hit, with price dives of up to 15 per cent, said Ms Carmen Lee, research head of OCBC Investment Research.

"We see a bit more vulnerability from the mass market segment this year, partly because we believe that the high-end (sector) already corrected more in 2013, hence it could see a slower rate of decline this year," said Ms Lee at an OCBC press briefing yesterday on the outlook for Singapore.

The property sector here is facing a triple whammy: property cooling measures that continue to bite, sizeable new supply coming onstream and looming higher interest rates following the start of the United States Federal Reserve's tapering exercise.

OCBC Investment Research anticipates that some 50,000, 49,700 and 73,600 homes including HDB flats and executive condominiums will come onstream in the financial years 2014, 2015 and 2016 respectively.

OCBC believes there will be demand for about 29,000 homes a year, working on a population of six million by 2020 and average population growth of 86,000 a year from 2014 to 2020.

This figure is far lower than the projected number of new homes.

These factors are likely to bog down the property sector for the next two quarters of this year and for that reason, property stocks on the local bourse could continue to come under selling pressure.

Ms Lee expects property stocks to correct by a further 10 per cent this year. By then their valuations could turn compelling, she said.

The headwinds facing property companies could also be partly dampening investor sentiment in the local bourse which has had a weak and bumpy start to the year. The Straits Times Index (STI) has lost 4 per cent over four trading weeks so far this year.

"As a percentage of the STI, (the weighting) of property stocks is very small as the index is anchored by banks and telcos but as a percentage of sentiment, it's a lot more," said Ms Lee.

Overall, she expects decent corporate earnings growth of some 8 to 10 per cent this year, which indicates some cautious optimism for the market in 2014.

Taken from stproperty 

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Posted by on in EC

Another government agency has taken their turn to implement new cooling measures. The Ministry of National Development (MND) announced yesterday that they are introducing three new measures to better align the Executive Condominium (EC) Scheme with other public housing. And what a smack down it is. Here, we take a look at them and why the dream of owning an EC may have faded for many:

 

With ECs previously having seen record-breaking prices, the cooling measures come in the wake of all the other measures throughout the year to create a sustainable public housing market. The 3 measures to be implemented are:

  • Reduction of Cancellation Fees From 20% to 5%
  • Resale Levy for Second Time Applicants
  • Imposition of 30% Mortgage Servicing Ratio (MSR)

1. Reduction of Cancellation Fees From 20% to 5%

Previously, if you were unable to complete the purchase of your EC, you would have to pay 20% of the purchase price in cancellation fees. This could happen to couples who aren’t able to go through with their marriage for whatever reason, and that 20% in cancellation fees represents a significant financial burden, on top of the emotional stress (if any) of not getting married.

The new reduction in fees for EC buyers is similar to the current cancellation fees for Build-to-Order (BTO) flats.

2. Resale Levy for Second Time Applicants 

The second measure affects second-time applicants who are buying EC units directly from the developer, who will now have to pay a resale levy, similar to second-time applicants who are buying BTO flats.

Previously, these buyers benefit from lower prices due to the initial eligibility and ownership restrictions imposed on EC purchases, without having to pay a resale levy. You can get a full list of the details for payable levies here.

This measure aims to bring a level of fairness and parity to both EC and BTO buyers.

3. Imposition of 30% Mortgage Servicing Ratio (MSR)

This is the big one. The new 30% MSR, which affects EC purchases whose OTP was granted on or after 10 Dec 2013, is meant to encourage the same financial prudence amongst public housing buyers as the previous measures imposed by HDB and MAS earlier in the year.

ECs previously did not come under the same MSR restrictions that other public housing flats were subject to. What this meant was that with a bit of a financial stretch, you could still afford to get a 3-room EC.

Executive Condominiums For The Cash Rich Only?

That’s all great, until you consider several things:

  1. ECs vs Private Property
  2. The income ceiling for ECs

Private property now doesn’t come under the same MSR and income restrictions as ECs, hence people can choose to allocate more of their income to service a loan, allowing them to buy a more expensive place. Additionally, there is an income ceiling of $12,000 to qualify for buying an EC.

So with a combined income of $12,000 at a 30% MSR, the maximum you can borrow is approximately $800,000. What this really means is that if you are buying an EC in excess of $1 million, the amount of cash on hand you are going to need increases greatly.

If you earn more, you cannot get an EC. If you earn less, you need more cash for downpayment. So if you still want to buy, then sure – just fork out more cash. And this is assuming you are able to qualify for the maximum loan.

What Does This All Mean?

Short of saying that anyone earning below $10,000 a month can kiss their EC dreams goodbye, this does represent a significant squeeze on the ability for people to buy an EC. Let’s not forget that getting a loan in itself is already a Harry Potter-sized labyrinth you need to navigate. But if you are still looking to get an EC, you can find out the latest home loan rates and get help at SmartLoans.sg

So if you earn between $10,000 – $12,000, getting an EC now is going to be a bit more of a financial pinch. And if you earn less than $10,000 and insist on buying an EC, you are either 1) swimming in liquid cash ala Scrooge McDuck or 2) crazy.

With a predicted drop in the number of people who can now afford to buy an EC, we’re waiting to see just how much prices will drop by. We will be keeping close watch on the developments sofollow us on Facebook as we keep you up to date. In the meantime, hold on to that dream.

 

Taken from Yahoo!

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Posted by on in EC

Another government agency has taken their turn to implement new cooling measures. The Ministry of National Development (MND) announced yesterday that they are introducing three new measures to better align the Executive Condominium (EC) Scheme with other public housing. And what a smack down it is. Here, we take a look at them and why the dream of owning an EC may have faded for many:

 

With ECs previously having seen record-breaking prices, the cooling measures come in the wake of all the other measures throughout the year to create a sustainable public housing market. The 3 measures to be implemented are:

  • Reduction of Cancellation Fees From 20% to 5%
  • Resale Levy for Second Time Applicants
  • Imposition of 30% Mortgage Servicing Ratio (MSR)

1. Reduction of Cancellation Fees From 20% to 5%

Previously, if you were unable to complete the purchase of your EC, you would have to pay 20% of the purchase price in cancellation fees. This could happen to couples who aren’t able to go through with their marriage for whatever reason, and that 20% in cancellation fees represents a significant financial burden, on top of the emotional stress (if any) of not getting married.

The new reduction in fees for EC buyers is similar to the current cancellation fees for Build-to-Order (BTO) flats.

2. Resale Levy for Second Time Applicants 

The second measure affects second-time applicants who are buying EC units directly from the developer, who will now have to pay a resale levy, similar to second-time applicants who are buying BTO flats.

Previously, these buyers benefit from lower prices due to the initial eligibility and ownership restrictions imposed on EC purchases, without having to pay a resale levy. You can get a full list of the details for payable levies here.

This measure aims to bring a level of fairness and parity to both EC and BTO buyers.

3. Imposition of 30% Mortgage Servicing Ratio (MSR)

This is the big one. The new 30% MSR, which affects EC purchases whose OTP was granted on or after 10 Dec 2013, is meant to encourage the same financial prudence amongst public housing buyers as the previous measures imposed by HDB and MAS earlier in the year.

ECs previously did not come under the same MSR restrictions that other public housing flats were subject to. What this meant was that with a bit of a financial stretch, you could still afford to get a 3-room EC.

Executive Condominiums For The Cash Rich Only?

That’s all great, until you consider several things:

  1. ECs vs Private Property
  2. The income ceiling for ECs

Private property now doesn’t come under the same MSR and income restrictions as ECs, hence people can choose to allocate more of their income to service a loan, allowing them to buy a more expensive place. Additionally, there is an income ceiling of $12,000 to qualify for buying an EC.

So with a combined income of $12,000 at a 30% MSR, the maximum you can borrow is approximately $800,000. What this really means is that if you are buying an EC in excess of $1 million, the amount of cash on hand you are going to need increases greatly.

If you earn more, you cannot get an EC. If you earn less, you need more cash for downpayment. So if you still want to buy, then sure – just fork out more cash. And this is assuming you are able to qualify for the maximum loan.

What Does This All Mean?

Short of saying that anyone earning below $10,000 a month can kiss their EC dreams goodbye, this does represent a significant squeeze on the ability for people to buy an EC. Let’s not forget that getting a loan in itself is already a Harry Potter-sized labyrinth you need to navigate. But if you are still looking to get an EC, you can find out the latest home loan rates and get help at SmartLoans.sg

So if you earn between $10,000 – $12,000, getting an EC now is going to be a bit more of a financial pinch. And if you earn less than $10,000 and insist on buying an EC, you are either 1) swimming in liquid cash ala Scrooge McDuck or 2) crazy.

With a predicted drop in the number of people who can now afford to buy an EC, we’re waiting to see just how much prices will drop by. We will be keeping close watch on the developments sofollow us on Facebook as we keep you up to date. In the meantime, hold on to that dream.

 

Taken from Yahoo!

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