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According to a report today by the Singapore Real Estate Exchange (SRX), the cash-over-valuation for HDB resale flats has dropped below $10,000 in November. We’re not going to bust out the “we told you so” chant, but it’s worth taking a chill pill and having a look at what’s going on and what this really means for you.
How can taking out a home loan possibly be any more painful that it is now? Thanks to MAS property financing regulations and stricter limits on borrowing, the home loan process is a lot like trying to outrun a huge boulder, Raiders of the Lost Ark-style – except the boulder is made out of paperwork you need to fill out.
Welcome to the world’s most expensive housing market. If you want your own house in Singapore, then you are one bank loan away from rationing individual bee hoon strands. On the upside, expensive housing can also mean big pay offs. Check out MoneySmart’s primer on private vs. public housing, before making your purchase:
A few months ago, I predicted that flat sellers would flinch first, and resale prices would plummet. Or maybe it was some guy I interviewed in that article, and I’m just taking credit. “You can’t do that!” Why not? I buy them lunch. Which is going to be a lot more than some property agents can afford, at the rate sales are going:
Back in 2011, I was convinced banks installed revolving doors just for home loan customers. People refinanced more often than we got to change underwear in NS. It was an industry norm; you’d pick the cheapest loan for three years, and then refinance on the fourth. Now from 2013 onward, it might not be that easy…but you can still save money:
Why does everyone assume you’re rich if you buy an EC? That doesn’t make sense. By the time you make the down payment and cover the installments, the EC means you’re pretty much the opposite of rich. Here’s a run-down on the painful differences, when you choose an EC over a BTO flat:
So you want to buy a BTO flat. Good on you, and congratulations on this new milestone in your life. There’s just one issue facing you: the steps, processes and terms. Which are so labyrinthine, you could house a decent sized family of minotaurs in them. I suggest you check out our handy flowchart, and save yourself the trouble of devising new profanities for phone operators:
Your HDB Concessionary Loan was on the verge of approval, when the new cooling measure kicked in. And I understand if you were a bit upset. But on hindsight, telling the phone operator to meet face to face if “he’s a real man” and to “come get some” was probably a bad idea. While I help you to prepare for this showdown, may I suggest you consider a bank loan instead?
Affordable housing is a big ticket issue right now. And when our government tackles a problem, they do it with a uniquely Singaporean slant: That is, the unshakeable conviction that anything worth doing is worth overdoing. Enter the latest HDB Cooling Measures:
Fixed rate home loans are consistent alright. People take them, and then consistently suffer. And this week, the already pricey fixed rates have gotten even higher. It leaves home buyers in a tight spot: Pick consistent rates that are too high, or pick fluctuating rates and court financial meltdown? The answer is somewhere in between: