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Since 2008, HDB flat owners have been enjoying steadily rising resale and Cash-over-Valuation (COV) prices. To look at a graph of the rise and fall of resale prices is to be reminded of the tracks of a roller coaster. No, I’m not talking about some “kiddie coaster” like the Shrek ride at Universal Studios Singapore – I’m talking about one of those coasters with a huge incline that’s both terrifying and exhilarating to ride on.
Yesterday’s announcement by the Monetary Authority of Singapore (MAS) that it would exempt owner-occupiers of residential properties from the current TDSR rules was an interesting move – especially when you consider how quick MAS moved to contest a Forbes article about a potential housing debt and credit bubble in Singapore.
Rejection is one of the worst feelings in the world, especially when you dedicate yourself to accomplishing one of your dreams. You might be working up the courage to ask a girl out, putting in extra hours of study to get into NUS, or spending years saving up for your dream home… just to see your efforts go down in flames, Hindenburg-style.
The days when property was affordable and home loan applications were easy are long gone. Home buyers now have to deal with increasingly complex property financing regulations, tighter borrowing restrictions, and massive amounts of paperwork.
You can approach the new year in two ways: You can have the depressed feeling that nothing will change, or the uplifting feeling that nothing will change. It mostly depends on how many properties you own. If the answer is “none”, or “I failed to rob sufficient banks to buy a one room apartment in this country”, then your mood is probably down. Here are seven resolutions you can make, so you can join the money wagon in the coming year:
The HDB concessionary loan is supposed to make housing affordable – an objective it fulfilled until interest rates plunged. Then suddenly, the interest on a HDB loan rose way above that of a bank loan. It’s a flaw that needs correcting, and it probably shouldn’t have carried on for almost 10 years. Here’s our opinion on the tweaks needed:
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:
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: