15/12/2021
Hoh Hoh Hoh, Santa Claus 🎅🏼 dish out early X’mas present 🎁 . Instead of announcing cooling measures at 5pm, he announced it at 11:40pm for it to take effect at 12mn so that Buyers & Agents don’t have to Chiong Showflat and can have beauty sleep 😴 💤.
1) Good news for first timers for both Singaporeans & SPRs, no increase in ABSD. So, if you haven’t own any properties yet, what are you waiting for ??? ☎️ Jas Chua 97334135 to find out where and what to buy.
If you are thinking of switching jobs, better buy a property first as Banks will only grant you a loan upon seeing consistent pay for last 3 months.
2) TDSR has dropped another 5%. If you are earning $10K a month, your total debt including car loans, mortgage loan, etc is capped at $5500 per month instead of $6000 per month now. Thanks to TDSR cooling measure, we don’t see many people defaulting loans. Now you know why there’s not much Firesales 🔥 during this Covid compared to Asian Financial Crisis & SARS period?
The only thing you can thank Covid is HDB prices rose more than 15% since Q1 2020 after declining about 9.9% over 5 years between 2014-2018 and remaining flat in 2019. Pte prices had rose by only 9% since Q1 2020. Congrats to those who had heed my advice to cash out their HDB at its peak to upgrade to condo. I had helped many clients to cash out their 30+ year old HDB at $500K with an average of $30-$50K COV and upgraded to a 20year old condo at $900K. Have you regretted not knowing me earlier 😅? I have many more other strategies to share with you ...
3) HLE loan to value (LTV) dropped from 90% to 85%. This means for people who are buying HDB and taking HLE loan, you will need to have more cash and CPF now. Definitely this will help to prevent public housing from rising further.
I can see a property bubble for HDB market. COV is on an average of $30K to $50K now, with valuation price kept low to suppress the market. The high COV in hdb has resulted in many switching from bank loan to HLE loan. Why? Can you imagine if you take a bank loan, you need to pay 5% cash + $50K COV? WoW, that’s about $80K cash??? Seriously, most HDB buyers don’t have this amount of cash, otherwise, they could have easily afford a $1.6m condo, thus they end up paying a whopping 2.6% interest rate for HLE loan instead of 1.1% bank loan interest rate. Just yesterday, I was joking with a colleague when handing him a HDB OTP that now is the time to sell HDB and rent first or buy a condo ah. Better buy a $1m condo where only $50K / 5% cash is needed as most of the time, bank’s valuation can match selling price than to pay a $50K COV for HDB!!! I just helped a Seller to sell his 3RM HDB at $418K when the highest record is only $376K 😛. Since he’s single, I told him to rent for 6 mths first before downsizing to 2RM as I foresee a cooling measure coming to cool down HDB prices. New high records are set every day 🤦♀️. Buy 4D also not so zhun on guessing cooling measures coming, just the next day Ah.
I really feel for the first timers who just got married and needed a roof over their head who can’t afford the COV. Hopefully this HLE LTV lowers HDB prices.
4) In conclusion, with these cooling measures in place, property prices will come down a bit. Good for Buyers, not so good for Sellers who are getting more n more greedy 😆.
https://www.channelnewsasia.com/singapore/property-cooling-measures-absd-tdsr-ltv-loan-hdb-2382301?fbclid=IwAR1bVVYPWWYRQU2fsUZ1WMwoaj1asfVzDgKIf8Sve1XeIsLyYPqXpaqac6Q
