Stubborn HDB Property Bubble?

Some of my friends painfully resisted buying a flat for the past few years, hoping that the property bubble will pop when the global recession erupted. But to their disbelief, the prices and cash over value (COV) continue to defy gravity and broke new highs. This prompted me to take a closer look at this bubble, why is it so stubborn!?DemandLooking at the past prices (available data from 04 to … [Read more...]

HDB to build more new flats

With HDB resale flat prices hitting new highs recently, causing cash-over valuation (COV) to go up, Mr Mah made the promise to push out enough flats for first-time home buyers.His advice for them is to go for new flats, where there is no COV."What HDB is going to do is to build more new flats for first-timers, so this will help take care of the first-timer market, and that will help to reduce some … [Read more...]

Valuer for HDB units, an easy job?

After years of painful search and watching the property prices continue to defy recession forces, a friend of mine finally settle for flat in a mature estate with about $50k above (already high) valuation. Querying the valuation of the flat, I discovered it is valued at the higher tail end amongst recent HDB resale transaction. And yet my friend is paying $50k above this.HDB valuation methodologyI … [Read more...]

Condominiums – Opportunity or Trap

Upgrade or downgrade?I came across the following article in the 联合早报: 是享受还是受罪. It described someone nearing retirement who 'upgraded' to a condominium of 102 sqm and a new mortgage to pay off, by selling his fully paid up EA flat of 145 sqm. When enquired about his rationale, the simple answer was " no choice, for the comfort, for a better external outlook, will have to suffer a bit".Selling like … [Read more...]

Q: HDB Outstanding Loan vs CPF

This is the first time that I received a query on personal finance issues from a reader. I'm pretty 'shocked' actually because I am not a qualified financial adviser but the average Joe facing the same day to day financial problems like man on the street. The reader has given me permission to post it my site and what's better than to open this question to people here whom I believe have more … [Read more...]