Datacrunch Real Estate

20/08/2024

Starting from August 20, navigating the path to your dream HDB home just got a major update!

The singapore government has announced significant policy shifts impacting HDB loan policies and grants, aimed at cooling the HDB resale market while bolstering support for first-time home buyers.

What’s New?

The HDB loan-to-value (LTV) limit has been reduced from 80% to 75%, encouraging prudent borrowing in a robust resale market.

Enhanced CPF Housing Grant (EHG) for first-time buyers has substantially increased to up to S$120,000 for families and S$60,000 for singles, boosting from the prior S$80,000 and S$40,000, respectively.

Why This Matters?

These changes mark a critical turn in Singapore's housing policy, particularly aimed at making homes more accessible for lower-to-middle-income families and ensuring a stable, sustainable property market.

The Impact?

In light of these updates and continuous market adjustments, the timing is crucial for prospective home buyers. Considering the current support mechanisms and the possibility of even tighter borrowing measures, securing your dream HDB flat now could be a prudent move, ensuring you maximize the financial aids available while navigating a cooling yet competitive market.

Read further here:

This is the fourth round of property cooling measures since December 2021. Read more at straitstimes.com.

16/08/2024

When you are viewing a home (HDB or Private Property) to purchase, there are many things to look out for. Here are 3 of them you should pay particular attention to.

- Trunking of the air-conditioning units (if any). Best trunkings are always in full view and not hidden behind wardrobes, providing difficult access for servicing issues. Also not if there are dark marks or patches which will indicate that the trunking was not done properly when installed.

- Ceilings of the unit. Especially the toilet bathrooms will show you any signs water damage. This will also indicate if the waterproofing of the above unit is done properly.

- The number of built in cupboards, cabinets and wardrobe. Simply because it will cost you money to tear them down.

25/03/2024

If the property you are looking at is within 5km from the following airbases and airports in Singapore

Paya Lebar Airbase
Tengah Airbase
Sembawang Airbase
Seletar Airport
Changi Airport

Ask if there’s a flight path above your unit and if so, how often do they fly over your unit for a better and more informed purchase decision.

11/03/2024

Back in 2019, Cuscaden Reserve launch price was on average S$3,800 psf. Now, it's being relaunched at S$2,900 psf (estimated). I went to do abit more research to see if it's could be a good deal now and noticed 2 things.

1. It's a leasehold among majority freehold properties. The nearest other leasehold properties in the vicinity is the Loft (500m) and Orchard Bel Air (160m). The other surrounding properties around Cuscaden Reserve are

3 Orchard by the Park - Freehold
Cuscaden Residences - Freehold
St Martin Residence - Freehold
Sage - Freehold
The Grange - Freehold
Orchard Bel-Air - Freehold
One Tree Hill Residence - Freehold
Rainbow Mansions - Freehold
Tomlinson Heights - Freehold
The Boulevard Residences - Freehold
TwentyOne Anguilia Park - Freehold

2. Reason why there's a big drop in the sales price was because the deadline for additional buyer’s stamp duty (ABSD) for developers was approaching.

If you recall, I wrote about these 2 points one month ago.

1. Do not buy a property where you are first in the location - (e.g. leasehold among freeholds)

2. To avoid the ABSD deadline. Developers can do the following. Buy their unsold units. Sell their units at a lower price

However, with the sales transactions we can get from the Loft and Orchard Bel Air, we can still see if the price Cuscaden Reserve are now selling at is a good price or can they still afford to go lower.

Here's the framework on how I would approach doing the calculations for Cuscaden Reserve.

1. Find a similiar unit type and size from the Loft and Orchard Bel Air
2. Calculate the annual growth rate of leasehold properties in this location.
3. Calculate the ICR (Income capitalisation rate) and GRM (Gross Rent Multiplier) and average it out among the 3 developments
4. As Cuscaden Reserve has already TOPed, we don't need to use the 'Time value of Money' formula to estimate the value of the unit.
5. We already have the rent transactions although we won't be able average it as there are only 2 transactions currently for 1 and 2 bedrooms each)
6. Reverse engineer the formula for ICR and GRM to calculate the property value of Cuscaden Reserve.

Use this number as a guide and compare it to the sales price to know if Cuscaden Reserve will be an investment for you.

06/03/2024

In this tough real estate industry where there's always a constant need to rebrand ourselves so we always appear at the top of our clients mind as the preferred realtor of choice, I'm extremely excited to share that I've been recognized as ERA's 2023 Top 20% Achiever!

Thanks to all my amazing clients (past, present, and future) for their trust and support.

Here are some notable highlights from 2023:

Sales:

- Closed highest sales transactions in Punggol and Ang Mo Kio, setting records on PropertyGuru.

- Achieved impressive capital gain appreciation (S$70,000) on a condo in just one year using real estate investing calculations

Rental:

- Exceeded expectations with record-setting rents in Keppel Bay and Punggol.

For a further elaboration on what achievements I made in 2023, do check out the post on the comments below

Are you looking to buy, sell or rent your property in 2024, here's how I can help

Buying:

- Property analysis using real estate investing formulas

- Loan Mortgage Assistance or Refinancing

- House Inspection Checklist

Selling/Renting:

- Professional Photography, Videography, 360 Home Tours and Floor Plans

- Home Valuation Reports

- Effective negotiation techniques to achieve your asking price

Interested? DM me or visit my website on the comment section below

Let's make your real estate journey a success!

29/02/2024

Looking to buy a property as a buyer, rent out your property as a landlord, or moving into your rental property as a tenant? Here's a home inspection checklist for you that will assist you with the following:

- Questions to ask before buying a property and inspection checklist (for buyers)
- Areas to inspect before taking back the unit, a handover/takeover report and a return of deposit form (for landlords)
- Areas to inspect and note before moving into a rental unit (for tenants)

You can download the Home Inspection Checklist here: https://www.datacrunchrealestate.com/home-inspection-checklist/

27/02/2024

In 2023, almost 1.8 million SGD was lost by 300 people to rental scammers. If you are a tenant in Singapore looking to rent your next room, here are the top 5 steps you can take to prevent being scammed

Step 1: Avoid Facebook or Carousell Listings if possible

Majority of scams take place via Facebook or Carousell listings. If possible, go through Propertyguru, 99.co or SRX Websites as only approved agents can list properties there.

Step 2: Check CEA Registry of Agent

The agent should have a valid record. Check CEA Registry on the validity of their license with their Name, Contact Number or CEA License Number.

Generally, if they are anxious to show you a picture of their CEA identity card, it's a scam.

Step 3: CEA Identity Card

On viewing day, the agent should be wearing a lanyard with the CEA identity card to identify as a registered agent.

A common scam tactic is to tell you that their assistant will show the unit on their behalf. They are not allowed to do that.

Step 4: Check the Tenancy Agreement

Check for unusual clauses and inconsistencies in the tenancy agreement. Compare it with the standard one from Council of Estate Agencies (CEA)​.

Check for skewed logos or clauses that make no sense at all. It's a tell-tale sign of a scam.

Step 5: Check Owner IC and Ownership

If the property is represented by an owner and no agents are involved, check the validity of the owner's IC as well as the ownership of the property.

If you are interested, I've created a short PDF download where I've included links to do all the necessary checks on the agent and owner to prevent you from being a victim of rental scam.

You can download it here: https://www.datacrunchrealestate.com/rental-scam-checklist-for-tenants/

In 2023, almost 1.8 million SGD was lost by 300 people to rental scammers. If you are a tenant in Singapore looking to rent your next room, here are the top 5 steps you can take to prevent being

22/02/2024

Just like buying stocks. By the time you hear about how much the prices have risen and how you missed out and that you should get in as soon as possible, there’s not much profit left to be made already.

21/02/2024

Looking to purchase a property and want to make sure that your property still has room to grow in terms of capital gain appreciation and not wait for the next real estate cycle peak for it to jump (which can take between 10 - 20 years). Here’s a 4 step simple checklist you can use.

1. Find out the seller’s purchase price and how long ago was the purchase date.

2. Find out the seller’s asking price.

3. Place all 3 numbers (Purchase Price, Asking Price and Years) into an Online Compound Annual Growth Rate Calculator

4. Find out what the growth rate is.

If the growth rate is above 5%, It’s very likely you are buying an overpriced property and will have to contend with 0-1% annual growth rate at least till the next peak. Look for properties who exhibit 2-3% annual growth rate for the best chance of capital appreciation for your new investment property.

14/02/2024

Here's why it's a good idea to keep some money in your CPF OA account (S$20K) when you purchase your HDB Flat (Resale or BTO).

In the unfortunate event that you might lose your job, this money in the OA account can be used to pay for your monthly mortgage which will be one less expense to think about while you search for your next job within the next 3 - 6 months.

06/02/2024

Looking to buy a BTO (Built to Order) HDB flat or already got one and waiting for the selection? Here are the top 8 criteria for your selected unit to have the best resale potential, whether you are planning to sell after MOP or in 30 years time.

1. Buy from the 6th level onwards

For some reason, chinese Singaporeans prefer units from the 6th level onwards. And considering that they make up the majority, it would make sense to include them as your target market.

2. Buy North-South Direction Facing

Because the sun rises from the east and sets in the west and Singaporeans don’t generally like the sun, it’s the best facing you can get for your unit.

3. Buy Corner Units

For privacy reasons

4. Buy furthest away from the lift

For privacy reasons too. Or at least try to avoid those units where the lift opens and the first thing they see is your flat.

5. Buy furthest away from the garbage chute

For smell reasons. Even if they don’t smell.

6. Buy not facing the expressway

For noise reasons. Although there are some people who use the sound as white noise for sleeping

7. Buy not facing the multi-story carpark

Not sure why. But buyers don’t like having to face cars driving around in the multi-story carpark.

8. Buy as close as possible to bus-stops or MRT stations

For convenience. It also shaves some time off your projected time to reach your destination from your home.

All of these criteria will still apply for HDB Resale and private residential properties as well. Happy House Hunting! And for those who have gotten a HDB BTO Unit. Congratulations!

26/01/2024

Looking to buy a Singapore private residential property in 2024? Here are the top 5 things I've learned about helping clients buy properties for investment or homestay.

1. Don't buy properties that have already jumped in price. If you do so, your property price will stay relatively stagnant until the next peak of the real estate cycle.

2. Know that even in the same development, there will also be a possibility that the 2 bedrooms rent and capital gain appreciation might not increase at the same rate as the 1 bedrooms or 3 bedrooms

3. Do not buy a property where you are the first in the location

1st 1 Bedder in an area where there are only 2 bedrooms - 4 bedrooms properties
1st Freehold in an area where there are only leasehold properties
1st Leasehold in an area where there are only freehold properties

4. For a higher chance of capital gain appreciation, buy in districts where there are plans for redevelopment for business reasons, not for building gardens and parks reasons.

5. Know that the longer you hold a property, the higher probability that you will be able to reach the 2% on average capital gain appreciation for your property