Asset Smart

10/03/2022

Questions You Should Ask Before Selling Your Private Property - Part 3

Checklist 7-8-9

#7 Do you have outstanding bank loan? What is the outstanding amount?
- Contact your bank to get the outstanding amount.

#8 Do you have a lawyer to help you with this transaction? Drop us a message if you need one and we will help you with our good lawyers at Apex Law.

#9 Which agent would you like to engage?

As you can see there many things to consider when selling your property. You are the only one that can fully understand your specific needs and wants. Share them with us and we will gladly assist you from start to key.

Are you ready? Be ready!

What would you like to read about, did we miss anything? Let us know in the comments.

08/03/2022

9 Questions You Should Ask Before Selling Your Private Property - Part 2

Checklist 4-5-6

#4 If there are any profits from the sale, be very clear on what you are going to do with the profits. It matters so that your money works for you.

5. Do you have any outstanding administration issues to be settled with the MCST?

6. Are you looking at a specific time frame to sell your property?
- Getting keys to your new house soon?
- Expecting a new family member in the near future?
- Financial obligations to take care of?
- Other reasons? (Known only to you).

Follow us as we reveal the the remaining checklist in our next post.

06/03/2022

9 Questions You Should Ask Before Selling Your Private Property - Part 1

Ready to make that move? Upgrading to realise a dream or downgrade to solve a problem. Before you consider selling your Private Property, you would need to check and ask yourself.

Follow us as we reveal the 9-question checklist over the next 3 posts.

Checklist 1-2-3

#1 Why do you want sell?

You want to upgrade, downgrade or just in need of funds? Understanding the reasons, will help you to understand your selling objectives.

#2 When did you purchase the property? Are you subjected to any Seller's Stamp Duty (SSD)?

3. Where will you be staying after selling your property? This is one question that must not be left unclear.

Watch for Part 2 of the checklist!

04/03/2022

Considerations When Buying Property

“Forewarned, forearmed; to be prepared is half the victory” - Miguel de Cervantes

Knowledge is power, with that being said, you should be aware that if you don’t have all the information needed, or if you think you have all the information, you are going down a dangerous road.

This article explains what you should be looking out for and considering when buying your first property.

Knowing the Real Cost of Home Ownership

Below is a list of items you should take note of. This list is not exhaustive we will add to this list if needed. This applies to both HDB and Private Properties.

Stamp duty

Take note, for Private Properties, the Stamp Fees must be paid when you see the lawyer to exercise the Option to Purchase. So typically, you would need to produce a total of 7-8% (4% Option Exercise Fee + 3-4% Stamp Duty) of the purchase price when you meet your lawyer

Although you will be using cash to pay for the stamp duty, you can apply to the CPF Board to get back this sum.

Bank Interest Rates

You will need to understand and take into account the interest rates you are charged

Take note of the lock in period for the loan. You will also need to understand the difference between fixed interest and floating interest rates

CPF Interest Rates

Yes, CPF has interest. The CPF Board changes interest on the amount of funds you use. As it stands the interest rate is 2.5% per annum. Don’t worry, this interest still belongs to you.

Loan Installment

Take note that you can use your CPF Ordinary account and or cash to pay for the loan installment.

Realize that you would have to pay for this installment in good economic times or in bad times. Makes sure you have plans to cover the installments.

Legal Cost

For every sale and purchase, there are some legal cost. Speak to a lawyer to find out the cost. This cost can be covered by using your CPF Ordinary Account

Admin Fees

There might be some admin fees. This is mostly for a HDB sale/purchase. Fees include caveat fees and relevant searches cost. You will need to use cash for this cost

Valuation Cost

If you are taking a bank loan or if you are using your CPF funds for the purchase.

The Cost:
o HDB: S$120
o Private Property: $400-600
(Please check with your banker or lawyer on the details)
o Insurance
There are a few of types of insurance for a
property; some examples are for mortgage,
fire and theft.
(Check with one of our bankers or insurance agent)

Deposit Cost/Amount

The deposit varies on the property type and if it’s a resale or new launch or BTO. We will discuss on Resale for HDB and Private Property

The typical deposit amount is as follows:
o HDB $1,000 Option Fee & $4,000 Exercise Fee
o Private Property 1% Option Fee & 4% Exercise
Fee of the purchase price.
o Renovation Cost

This an important cost, because this is a big-ticket item. If you are not careful, this cost can become a balloon that blows up in your face. We advise you to get a few quotes to understand the cost to renovate your new property. We will share more about this in the coming articles

Not Checking for “Defects”

This is for resale and you will need to do this when you are viewing the property, before you confirm or make a deposit for the property

Things you need to take note of are:
o Leaks on the ceiling
o Cracks on the wall
o Damage on the floors
o Mould on the walls
o Lightings that are not working
o Pipe leaks

If there are any “defects”, you would have to take note that you would have to spend more on the renovations

Stay Update on the Latest Housing Prices and Valuations. Understand the latest housing trends

Before you commit to a purchase, be sure to get a rough valuation done

You don’t want to have to pay more than you have to for a purchase

Not Planning Ahead

This is by far can be the most costly item that if overlooked can cost one “an arm and a leg”. Think three to five years ahead from the day you receive the keys to your new property. Not only should you be focused on the purchase, you should also be focused on selling the property when the time comes. Ask yourself; will it be easy to sell the property? Will it be easy to rent this place out?

If the economy turns, will you still be able to service the mortgage payments and maintain the property?

Hope the above helps you with your purchase. There are many cost involved with purchasing, you would need to understand all of them. Let us help you to navigate through them all. Send us a message, we are more than happy to share with you all that you need,

26/02/2022

So You Want To Be The Lord Of The land?

Here are some important factors to consider before you rent out your property.

The Rules In Singapore Cannot Be Taken Lightly, Especially HDB's.

A rhetorical statement but one that cannot be ignored. Make sure you are eligible to rent and no occupancy rules are broken. Don't do anything illegal like say subletting your whole HDB flat without meeting the Minimum Occupation Period (MOP) or getting approval first before the meeting the MOP. HDB will repossess your flat and you would then have a beachfront view along the shoreline of Changi beach, tent and all.

Check HDB's Rules On Renting

Since we are discussing rules and regulations, make sure you have an idiot proof and meticulously tight tenancy agreement. Mandatory terms to include are immigration status, rental amount, lease term, termination, notice period and the security deposit. Remember, check all the tenants IDs! This is so important. So many landlords have gotten into trouble by not doing this properly.

What’s The Cost Of Doing?

Once you have checked and passed the legal red tape, decide if you are going to employ the services of a property agent to secure tenants. Do note that getting a property agent will cost you about a month’s rent.

You would also need to consider the need to touch up the property. Small things like getting a fresh coat of paint, fixing broken cabinets and changing the lights; things like that.

Home Is Where The Heart Is?

Are you looking to rent out the whole unit or just a room? If you're renting out the whole unit, you will need an alternative place to stay. If it's just a room for minor rental yield, check how many will be living in that one room. Be sure to check the demography of your potential tenants. Would you prefer a student who locks himself in the room or a cabin crew who flys off every now and again. Check on the credibility of the tenant and their ability to pay. Better to rent out to a hardworking hawker than a well-dressed ju**ie who may abscond from your property with the television set and computer mouse.

Complacent Ones Fail To Check How Much They Have In Their Coffers

You are renting out the room/flat to make money, not lose money. Most move into a private property and rent out their HDB flat to get higher rental yields or stay in their HDB flat and rent out their private property so that they have the convenience of the HDB estate.

If you are planning to purchase a private property to rent out, you must make a cash payment of between 5% to 55%, it depends on whether you have an existing housing loan and your CPF account balance. Plus you may have to pay the additional buyer stamp duty of 17-25% which in turn depends on the number of properties you currently own. Your profile as a buyer also affects your loan amount.

You thus need to have a lot of liquid funds on standby. If you don't have the money, don't jump into it. As your friendly bookie at the Coffeeshop would say.... No money, no talk.

Let's Get Back To The Basics, Have Money Sense

You are renting out to become an affluent landlord. What you do with your rental income is important. Instead of blowing it at your favorite watering hole, choose to invest your money in either paying down the loan amount for the property so you would clear the loan as soon as possible or saving up to invest in another property.

Your Responsibilities: Other Than Counting The Rent Coming In?

Well it’s your responsibility to keep the place in working order. If there are pipe leaks, it’s your responsibility to have it fixed. If the air-condition breaks down, and the tenant has been maintaining them, you would have to fix it. These are some of the things you have to do.

A Bit Of Advise

Don't be stingy and don't be greedy. A dollar today is worth more than having none tomorrow. Let's say you are renting out the property at $2.8k. The tenant offers $2.6k because he has to pay $200 alimony to his jilted ex wife every month. Say yes. Having some revenue is more fun than having no revenue.

If you have already purchased a property with the intention of renting it out for investment, we can give you an idea of how much your property is worth, simply drop us a message.

Most importantly, have fun being a landlord. All the best.

,

22/02/2022

9 Questions You Should Ask Before Selling Your HDB Flat

Ready to make that move? Upgrading to realise a dream or downgrade to solve a problem. Before you consider selling your HDB, you would need to check and ask yourself the following questions:

1. Why do you want sell? Is it to upgrade, downgrade or just in need of extra cash? There are many reasons why you would want to sell and by understanding your reasons, you will also understand the objectives.

2. Have you met the Minimum Occupation Period (MOP) of staying in your flat for at least 5 years?

3. Where will you be putting up after selling your property?

4. If there are any profits from the sale, what you are going to do with it?

5. Do you have any outstanding lease administration issues to be settled with the HDB Branch Office?

6. Is your flat affected by any upgrading or estate renewal program? If yes, you will have to check if the works have started, when is it going to be completed and if it is completed, when will the bill for the upgrading be sent. You can check it here - http://services2.hdb.gov.sg/webapp/BB33RESLSTATUS/BB33PReslStatusEnq.jsp

7. You would need to check if the sale of your flat is subjected to any ethnic or Singapore Permanent Resident (SPR) quota. This quota changes every month. Check it here -
http://services2.hdb.gov.sg/webapp/BB29ETHN/BB29STREET

8. Are you looking at a specific time frame to sell your property?
o Getting keys to your new house soon?
o Expecting a new family member soon?
o Any financial obligations that need to be taken care of soon?
o And any other needs (confidential to you)?

9. Do you still have any outstanding bank or HDB loan? If so, what is the outstanding amount?
o If you have an outstanding HDB loan, to check the outstanding balance, log into the HDB page to get this figure
o If you have an outstanding bank loan, to check the outstanding balance, you would have to contact your bank

Are you ready? Be ready! That is our main line in this article. You would need to really think about this. Contact us if you need our help to advise and with no obligation whatsoever.

13/02/2022

For the up-market housing needs. 😊

It is "substantially" smaller than the usual GCB size of 15,070 square feet.

12/02/2022

Tis The Season To Sell Or NOT?
by Andrew Nair | 22/01/22

There is never a right or wrong time to sell your flat or so you heard, let’s explore this premise.

Money, The Main Factor?

Many get excited at the potential of making money, tapping out any paper profits of the property. For example, a couple purchased a flat 5 years ago at 350k and a buyer offers 500k today. That's $150,000 more than what the flat was bought and THAT’S PROFIT!!!

What it is, as it is……. How it is now?

The HDB resale landscape has been transformed with the changes in the HDB regulations and procedures to help control the current up trend in the HDB prices.

The Government has recently introduced a series of cooling measures such as MSR or the Mortgage-Servicing Ratio. On the other side of the fence, banks have started to increase their interest rates, as they are not able to loan as much for new property purchase.

Do take note, with the decrease in the number of BTO flats and the speed in which the flats are built has increased the demand for resale flats and this means the resale price could be higher compared to the previous years.

Another point for consideration; there is a change in how people live and work. With more people and companies getting used to the idea of working from home, the demand for bigger units could continue.

Don't get caught between the devil and the deep blue sea.

Understand the reasons for selling (whether for HDB Resale or Private Property) and the current state of the market matters. Are you selling to upgrade? Selling to downgrade? Or selling to cash out? Whatever the reason, only you would know and understand.

Conclusion

1. Good time to upgrade with the changes in how people live and work
2. Not a good time to downgrade
3. If you have to sell, you got to sell

09/02/2022

A Happy and Blessed Chinese New Year to you!

AssetSmart is back to reconnect with our followers. We have in store more information on your housing needs from home loans, free consultancy to latest properties available for your new home or investment.

Follow us and like us to receive our posts and maybe some good deals.

Be Asset Smart, Be Asset Ready

01/11/2020

This is going to be the new norm

SINGAPORE-The tenders for two confirmed residential sites under the Government Land Sales (GLS) programme for the first half of the year, which attracted keen bids, were closed on Thursday (Oct 29).. Read more at straitstimes.com.

08/10/2020

Market is moving. Are you in a good position to take advantage of it?

Be Asset Smart, Be Asset Ready

Despite the recession caused by the Covid-19 pandemic, prices of private homes in Singapore picked up in the third quarter as the country entered phase two of its reopening after a two-month-long circuit breaker.. Read more at straitstimes.com.

08/10/2020

Market is moving. Are you in a good position to take advantage of it?

Be Asset Smart, Be Asset Ready

Resale prices of Housing Board flats rose in the third quarter of this year, with the resale price index reaching 133.7, said HDB yesterday.. Read more at straitstimes.com.