Tips on buying a flat (what your agent won’t tell you)

Tips on buying a flat (what your agent won’t tell you)
The HDB resale market is stirring. Many are house-hunting now as prices are expected to rise further. How should you navigate the market and the agents to get the best deal? The Sunday Times serves up some tips from property experts.
By Tan Hui Yee, Housing Correspondent
1 Get armed

READ up on the facts. After deciding what type and location of flat you want to buy, go online to the Housing Board website - www.hdb.gov.sg - and follow the links under ‘home seekers’ to ‘HDB housing market statistics’ - to find out the median resale prices and average amount people paid above valuation for the flats.

If you are eyeing flats in a particular block, you could also call up agents marketing flats in nearby blocks to find out what kind of prices they are seeking, said Mr Albert Lu, managing director of C&H Realty.

Visit the location at different times of the day, to get a feel of what it’s like to live there, suggested Mr Eugene Lim, an assistant vice-president of ERA Singapore. Some people, he said, buy a flat near MRT stations because it is convenient to get around, but realise too late that it comes at a price: The frequent rumbling audible from their flats as trains roll by.
2 Set the rules of the game

DECIDE if you want to hire a housing agent to help you with your purchase, or if you want to go it alone.

Although commission structures are not fixed under the law, buyers typically pay their housing agent a 1 per cent commission for HDB transactions.

If you are doing it yourself, check out the HDB website to find out the procedures involved, or attend its monthly resale seminar.

Most agents representing sellers charge buyers the 1 per cent fee if they are not represented by another broker. This practice has been called into question by the Consumers Association of Singapore because of the possible conflict of interest that may arise, when an agent represents both buyer and seller in the same transaction.

Some agents turn down requests from independent buyers to view the flats that they are marketing if the buyer says he will not be paying the 1 per cent fee.

These agents argue that there is a higher chance of an independent buyer tripping up a transaction if he does not use the services of a broker.

Whatever you decide to do, it is best to make it clear upfront if you are opting to go it alone.

A senior division director of PropNex, Mr Eric Cheng, advised independent buyers to state clearly when they first contact brokers marketing the flats they are considering, that they will not be paying them a fee.
3 Act the Sherlock

LIVING in high-rise, densely packed public apartments has its own quirks. You never know, for example, if an owner is selling the flat because he has been harassed for repayment by loansharks at his home. If you buy his flat, you may end up being harassed yourself even if you had nothing to do with the debt.

To avoid this, Mr Cheng suggests taking a walk down the staircase closest to that flat. If loansharks have left graffiti there (’0$P$’ - which means ‘owe money pay money’) or at the void deck, it could indicate that the flat is being targeted.

Another problem, more common in older resale flats, is leaky ceilings. This happens when shoddy renovation upstairs or age creates kinks in the waterproofing layer in your ceiling.

To spare yourself the hassle of living with this or trying to fix the leak, look out for watermarks on the ceiling when viewing flats.
4 Be shameless

DON’T give up if one agent turns down the price you offer for a flat. You may get lucky with another agent marketing the same flat.

Some flat owners do not give exclusive marketing rights to one agent, preferring instead to pay a commission to whoever gets them a deal. This means that if Agent A thinks that your offer of $200,000 for the three-room flat you are looking at is too low, Agent B might find it a worthy offer to discuss with the owner.

Agents, however, are unlikely to disclose that they are marketing a flat which they have no exclusive rights over. C&H’s Mr Lu suggests you suss that out by looking up property advertisements. If there are three or more ads for a unit in that particular block in one day, chances are, that flat you are eyeing is being peddled by more than one agent.
5 Keep your cool

IT IS common for agents to arrange viewings for as many as 10 to 20 interested parties within a half-hour slot, to heighten the sense of competition among buyers. Some agents will tell you they already have offers for the flat - when they don’t - just to get you interested.

There’s an easy way to call their bluff, according to Mr Chandran Pillay from Global Real Estate Services. If an agent tells you that someone has already offered $480,000 for a flat, make him an offer of, say, $460,000 on the spot. If he tries to negotiate with you, that $480,000 offer is most likely a fake. If it had been genuine, he would have turned your lower offer down immediately.

Some agents, said PropNex’s Mr Cheng, arrange for potential buyers to view a unit, but cancel it at the very last minute on the pretext that the buyer has changed his mind about selling the flat. After a few days, they call buyers to say that the flat is back on the market, and tell them they will have ‘first priority’ at the viewing. This creates a sense of urgency by making the buyer feel that he had almost missed out on a good deal.

Whatever you are faced with, keep your sense of perspective - in this case, the prevailing market price of the flat you have in mind.
6 Watch out for upgrades

IF A flat you are interested in is being upgraded by the Housing Board, find out who is paying for the work. Upgrading could range from changing doors and toilets to adding lifts to every floor of a block. The HDB bills owners for upgrading after the work is done, and the owner of the flat at the point of billing is responsible for payment.

If the seller wants to factor the upgrading cost into the price, ask for a receipt to show that he has paid the upgrading bill, or check with the relevant HDB office, suggests Global Real Estate’s Mr Pillay.
7 Take your time

BUYERS and sellers of HDB flats must use the standard HDB Option to Purchase form for the resale transaction. Under this arrangement, the buyer gets 14 days to consider his purchase after paying the seller a non-refundable option fee not exceeding $1,000.

Once a seller grants an option, he is not allowed to sell the flat to another person within that same period. If, after 14 days, the buyer decides not go ahead with the deal, he forfeits the option fee. If he goes ahead with it, he signs on the same form and pays another fee to the seller to exercise his option.

Do not feel pressured to exercise an option on the spot, unless you are very sure about your decision and your ability to finance it. If, for example, you abandon the purchase after exercising the option, the seller can claim damages from you.
8 Don’t even think about it!

ABOUT two years ago, it was common for buyers and sellers to collude to artificially inflate the price of a flat, such that the buyer could get a bigger housing loan than he was allowed.

This illegal ‘cashback’ arrangement is no longer rampant, after the Government clamped down on the practice in April 2005.

Another under the table practice, however, still exists - ‘cash down’. This usually involves someone who bought a flat at a high price during the property peak of the 1990s and is selling at a loss now because valuations since then have fallen.

If he had used a lot of his Central Provident Fund (CPF) savings to buy the flat, the sale proceeds from that flat would have to be refunded into that retirement savings account.

However, by underdeclaring its sale price, he can get some cash in hand.

For example, someone who bought a flat for $380,000 in the 1990s may find that it can be sold for only $300,000 now. He may offer to sell it to you at a discount - at, say $290,000.

In return, he will ask you to declare the sale price of $270,000 and pay him the difference of $20,000 in cash. This way, he gets some cash out of the sale, instead of having the entire sales proceeds end up in his CPF account.

Avoid getting entangled in such illegal arrangements. Under the Housing and Development Act, you can be fined up to $5,000 and jailed up to six months for giving such false information.
9 Be a busybody

DON’T be afraid to ask all the questions that you need to know about a flat before deciding on your purchase.

A housing agent acting for the seller may not voluntarily disclose information that may hurt the chances of the unit being sold, but he is obliged to tell the truth when asked, said Mr Cheng.

If, for example, you cannot bear the thought of living in a flat in which someone has died, be sure to ask the agent at point blank whether it happened in the flat you are inquiring about.
Source : Straits Times - 26 Aug 2007

Singapore Property - Buy , Sell , Rent , Invest
Mindy Yong
(+65)91002985
mindy@mindyyong.com

Up to $10m more a year for private estates’ upgrading

Up to $10m more a year for private estates’ upgrading
By Joyce Teo
CHANGES to the seven-year-old Estate Upgrading Programme (EUP) for private estates will further improve the living environment for private estate residents.
New measures announced yesterday by National Development Minister Mah Bow Tan and Minister of State for Finance and Transport Lim Hwee Hua will see private housing estates get better coordination in major upgrading works as well as access to extra funding.

The scope of the Estate Upgrading Committee, which currently manages projects in private estates, will be widened to oversee and coordinate all major upgrading works across the different public agencies.

The committee, which is chaired by Parliamentary Secretary for National Development Mohamad Maliki Osman, will also see senior representatives from public agencies such as the National Parks Board and the Land Transport Authority on it.

These will help tackle the problem of a lack of coordination - a complaint residents from private estates have raised.

Another change will give private estates access to the Community Improvement Project Committee (CIPC) funds, something which only HDB estates are allowed to touch at the moment.

These funds can be used for minor improvement projects such as a playground, ramp or barbecue pit, or for maintenance works.

‘When we did the survey, not many private estate residents wanted big upgrading plans,’ said Mrs Lim, referring to studies done by the Committee on Private Estates, which she headed. ‘They just wanted things to work.’

Soon, newer private estates will be able to tap on these funds without having to wait for the EUP, which is typically open to estates aged at least 30 years.

A $700,000 pilot programme will be initiated in three GRCs: Aljunied, Holland-Bukit Timah and Tanjong Pagar to test out the effectiveness of these changes.

Since the EUP started in 2000, about 23,000 homes in 30 private estates - out of more than 200,000 private homes - have been upgraded. These include Serangoon Gardens, Hoover Park and Opera Estate.

The Government sets aside about $20 million each year for EUP projects. Mr Mah, who was given a tour of Braddell Heights, said it will bump up the EUP budget by $5 million to $10 million each year. This amount will come from CIPC funds.

Braddell Heights is one of five estates in the latest batch chosen for EUP. It will undergo a $5.5 million upgrading over a two-year period starting early next year.
Source : Straits Times - 26 Aug 2007

Singapore Property - Buy , Sell , Rent , Invest
Mindy Yong
(+65)91002985
mindy@mindyyong.com

Why S’pore can’t afford to go slow but must not leave the poor behind

Why S’pore can’t afford to go slow but must not leave the poor behind
By Jeremy Au Yong
AS TEMPTING as it is to slow down, Singapore has no choice but to press ahead with economic development, said Prime Minister Lee Hsien Loong yesterday.

But in racing ahead, the country must not leave behind the poor and those who cannot catch up.

‘The reason why we’ve not been able to slow down is not because we don’t know that it takes a lot of effort to keep on changing, but it’s because the world is moving so fast. If we don’t move we are in serious trouble,’ he added at a Young NTUC dialogue in Ang Mo Kio.

In a survey by the dialogue’s organisers, 14 per cent of the participants thought Singapore should not continue pushing forward so fast.

The issue is also coming up for debate in Parliament tomorrow. Four MPs have put in questions related to fears that Singapore’s economy may be overheating. Some are concerned that the booming economy has been pushing up prices.

Responding to a comment from a dialogue participant that the economy was moving too fast, Mr Lee said that the concern is a longstanding one.

The late union leader Nithiah Nandan had told him 10 years ago that the pace of change then made it difficult for people on the ground to catch up.

Yet, Mr Lee said Singapore has gone even faster in the decade since, to keep pace with developments elsewhere.

An example of a fast mover is China. He recounted a recent conversation he had with a Jurong Secondary School student, who remarked that after a recent trip to Shanghai, it struck him that the city took just half the time - 20 years - to reach the same stage of development as Singapore.

Asked Mr Lee: ‘At that pace, in 20 years’ time, are we going to be abreast of them?’

He added that in the midst of the competition, Singapore should not forget those who are having trouble keeping up, noting that it is a challenge Shanghai also has to grapple with.

He said: ‘So we have to carry our people along and I think there’s some comfort that the Chinese will also have to do this. So if we do it well, we can go ahead together. Then I can tell even more people: ‘Let’s move, the wind is blowing, let’s go for it. If the wind is blowing and you put your sails down, I think we will lose’.’

Source : Straits Times - 26 Aug 2007

Singapore Property - Buy , Sell , Rent , Invest
Mindy Yong
(+65)91002985
mindy@mindyyong.com

PM: CPF annuity to be flexible, basic and cheap

PM: CPF annuity to be flexible, basic and cheap
Manpower Ministry to form committee, including experts, to draft proposals
By Peh Shing Huei
PRIME Minister Lee Hsien Loong gave his assurance yesterday that the new compulsory annuity scheme will be flexible, basic and cheap.
Responding to concerns that the policy would be forced through, he revealed that the Manpower Ministry is forming a committee to come up with proposals.

The committee will include unionists, social workers, insurance industry experts and other financial figures.

The goal: a longevity insurance or annuity scheme ‘with as much flexibility in it as possible’. An annuity works when a person invests a lump sum with an insurer, which then pays him a monthly sum for life.

‘I don’t want to have anybody who’s 85 or 90 years old saying, ‘My CPF is finished, I have no insurance, and now I need to live and I have nothing, nobody to look after me, medical care, house, food, everything’,’ Mr Lee said at a dialogue with about 150 members and guests of the National Trades Union Congress at the Ang Mo Kio Hub.

He announced plans for the compulsory annuity scheme last Sunday in his National Day Rally speech. Questioned about it by anxious unionists yesterday, he said that he would leave insurance experts to work out the details.

However, he outlined the conditions that the ultimate solutions will have to satisfy: ‘I think that we want to allow as much flexibility in the scheme as possible, keep it basic, keep it cheap, low cost.’

In his Rally speech, he said that annuities will be made compulsory for Central Provident Fund members aged below 50.

They will buy an annuity at age 55 using a small portion of their CPF Minimum Sum. The annuity will give them a monthly payout of about $250 to $300 once their Minimum Sum runs out at 85. This is meant to cover members’ needs when they outlive their CPF savings.

Said PM Lee: ‘Normally when people take up insurance, they buy in case ‘I die early, I will collect’. This is the opposite - ‘I buy, in case I live longer, then I will collect’. And I think that is a fair way to do it in principle.’

The idea has been controversial because it forces CPF members to lock up part of their CPF savings in an annuity that their families will not get back if they do not live to see 85.

Hence, the PM’s assurance yesterday that the sum to be invested in the annuity will be small. Manpower Minister Ng Eng Hen made the same promise early last week.

Asked by labour MP Josephine Teo why the scheme has to be compulsory, Mr Lee replied that a large insurance pool will be needed to keep costs low.

He added that most people would not plan for their long-term old age needs if it were left to them.

Bank employee Ng Mei Yen, 32, told Mr Lee that the key was still to educate people on retirement planning.

Mr Lee replied: ‘I agree with you. If everybody is like you I don’t need a Minimum Sum!’

The insurance, he added, will also help Singapore retain its young people and not place too heavy a burden on them.

Without it, the Government would have to take care of the elderly through heavier taxes on the young.

He said: ‘If I were you, belonging to that generation of children or grandchildren, and I had to pay taxes for the senior citizens in Singapore, I think I’d be looking for other places to work where the taxes are less and the burden is less.’
Source : Straits Times - 26 Aug 2007

Singapore Property - Buy , Sell , Rent , Invest
Mindy Yong
(+65)91002985
mindy@mindyyong.com

Tessarina For Sale @ Singapore District 10

Tessarina For Sale @ Singapore District 10

Tessarina , 2 bedrooms , 947 sq ft
. Vacant . Nice , Quiet . Near good school , Near future MRT , MGS. Move in condition .
Don’t Miss and Grab now when Jadin psf is 1800 and Graden Vista 99 Years selling at 1400 psf .

Asking About 1550 PSF - 1.67M
Address: 20 - 30 Wilby Road
Type of Development: Condominium
Tenure: Freehold
District: 10
No. of units: 443
Year of Completion: 2003
Developer: Wingtai Holdings

LUXURY FREEHOLD LIVING IN BUKIT TIMAH

The Tessarina is situated along Bukit Timah Road. The development, ideally located within the prestigious District 10 neighbourhood, is predominantly surrounded by landed estates and remains close-by to the 81-hectare Bukit Timah Nature Reserve. This allows residents to enjoy a tranquil environment amidst the green and serene setting of nature itself.

SURROUNDED BY LANDMARKS & AMENITIES

The Tessarina is merely minutes away from the Central Business District (CBD) and the major shopping and entertainment belt along Orchard Road. Within the site’s immediate vicinity are a host of preferred educational institutions from primary to university levels. For the golfing enthusiast, the development is also close to the Singapore Island Country Club and Green Fairways public course. Major bus services and taxis are easily available from the area, while access to other parts of the island is convenient via the Pan Island Expressway (PIE).

FACILITIES

Aside from the tennis courts, swimming pools, Jacuzzi and children’s playground, The Tessarina features a visually dazzling clubhouse which is set against a multi-layered landscape and houses a range of country club-type facilities with state-of-the-art theatre lounge and a fully equipped gym.

FACILITIES AT THE TESSARINA
Swimming pool
Wading pool
Tennis
Jacuzzi
Playground
Gym
Clubhouse
Basement car park
24 hours security

Singapore Real Estate - Buy , Sell , Rent Singapore Property
Buy, sell and rent Singapore real estate: private property, residential apartments, commercial and industrial properties. HDB flats for sale and rental. Foreign investors, buyers, tenants or relocating expats can easily find their ideal landed house, bungalow, semi-d, terrace, condominium, townhouse, private apartment, HDB, HUDC, office, shop, factory, warehouse & land right here.

MINDY YONG
( +65 ) 91002985
mindy@hotvictory.com ( email me )

http://www.hotvictory.com