Democratic state senator blasts Amazon’s HQ2 as a PR scam, saying ‘New York fell for it’

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Democratic state senator blasts Amazon’s HQ2 as a PR scam, saying ‘New York fell for it’


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“I don’t think it’s worth providing $3 billion and setting a precedent” for other companies to pick the city’s pockets, state Sen. Michael Gianaris says.

Economic growth will top 3% again next year, Trump advisor Hassett says

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U.S. economic growth will defy expectations again in 2019 thanks to a business investment boom and President Donald Trump’s trade strategy, White House economic advisor Kevin Hassett said Wednesday.
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Investment property – Is it the best way to beat inflation?

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Author: Ravi Philemon

Is your buy-in to investment property the best way to beat inflation?

Left uninvested and at the current rate of 2% inflation in Singapore, your money will lose 25.99% of its value in 20 years. This means your S$100,000 today will only be worth S$74,008 in 2038. Everything is affected by inflation, including the cup of coffee you had today. With inflation, the same cup you had today will be quarter lesser in 20 years.

Inflation is the financial equivalent of high blood pressure. You don’t see it, you rarely feel it, but it will kill you if you let it. If we think back to past year even, the price of goods and services doesn’t seem to have changed that much.. We only identify with the danger of inflation when we look back at our previous lives as children.

investment property

Image credit: Public Domain Pictures

So how best to beat inflation? Some say that besides diversifying your portfolio, an investment property is the best way to beat inflation.

Yale economist and Nobel prize winner Robert Schiller in his book, Irrational Exuberance, says that over the very, very long-term property prices don’t beat inflation. In fact, by owning an investment property which you have not properly planned for, you may end up paying more than the actual worth of your property.

Having crunched the numbers, Shiller debates this topic openly and robustly. He says that, overall, the housing market doesn’t have a great long-term return. It barely outpaces inflation, in fact. He told USA Today: “If you look at the history of the housing market, it hasn’t been a good provider of capital gains. It is a provider of housing services…Capital gains have not even been positive. From 1890 to 1990, real inflation-corrected home prices were virtually unchanged.”

The Washington Post analyzed Shiller’s data and reported that, over the past 100 years, home prices have only grown at a compound annual rate of 0.3%, adjusted for inflation. The S&P 500, on the other hand, has had an annual return of 6.5%. That’s an awfully big difference.

New home sales momentum upbeat despite sales slump

But does Shiller’s hypothesis hold true for a small, land-scarce country like Singapore? Let’s analyse.

Take for example, if you were to take a 20-year-mortgage loan for $2 million which offers you 2% for the first 3-years and 2.5 per cent thereafter, you will be paying over $512,000 just in interests alone.

This means that if your investment property is worth about $3 million today, you would have paid over $3.5 million for it over a 20-year-period.

So is it a good deal to put money down on an investment property?

The Government’s Private Residential Property Price Index shows that prices of private properties had almost doubled in the last 20 years.

The Government data suggests that although a private property may dip sharply over certain years, observed over a longer 20-year-period, it always appreciates. So the lesson really is if you are a short term investor in Singapore’s residential properties, don’t overestimate the returns on this investment.

In fact, no investment property can guarantee a perpetual positive return. And there is always the probability that your rental returns cannot cover all expenses related to your investment – expenses like loan repayment, management fee, property tax and maintenance and repair cost.

Renting your property – what you need to know

While that single real estate asset might help protect you against inflation, a well-balanced stock and bond portfolio seems to be a better investment. But a lot of people’s portfolios are mostly made up of their home value. You wouldn’t put 80 percent of your portfolio in a bond simply to protect against inflation (unless maybe you were nearing retirement) so why would your home make up that same amount? That’s the argument against buying a home as an investment.

As Forbes contributor Jamie Hopkins says: “When making the decision it is important to understand that buying a home might not be a great financial investment and to not forgo all of your investable assets in order to purchase a home because you are really purchasing a right to housing and not a long-term investment designed to generate income.

“You might still be able to time the housing market just right and sell at a higher rate than Shiller’s data shows. But most experts agree: while housing is an investment, it’s not a great investment. So, if this is your only basis for buying a home, it’s probably not the best one.”

How to Secure a Home Loan Quickly

Are you planning to put money in an investment property but are ensure of funds availability for purchase? Don’t worry because iCompareLoan mortgage broker can set you up on a path that can get you a home loan in a quick and seamless manner. We are the experts who do the work for you for free, while you lean back, rest and rely on our professionalism at absolutely no cost to you.

Our brokers have close links with the best lenders in town and can help you compare Singapore home loans and settle for a package that best suits your home purchase needs. Find out money saving tips here.

Whether you are looking for a new home loan or to refinance, the Mortgage broker can help you get everything right from calculating mortgage repayment, comparing interest rates all through to securing the best home loans in Singapore. And the good thing is that all our services are free of charge. So it’s all worth it to secure a loan through us.

For advice on a new home loan.

For refinancing advice.

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Pearl Island 6 Bedrooms bungalow for sale for $26.3 million

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Author: Ravi Philemon

A 6 bedroom bungalow is up for sale at the exclusive Pearl Island for $26.3 million. The 10,215 sq. ft. single family home with 6 bedrooms and 7 bathrooms, is marketed by List Sotheby’s International Realty.

Pearl Island is in Singapore’s Central Region and is an island within an island.

The island in Sentosa is 10 minutes drive from the Central Business District, and a mere 20 minutes from Singapore’s Changi Airport. The tree-lined boulevard of the development is flanked by 2 world-class golf courses. It is also Singapore’s only waterfront community of high-end residences and a marina/yacht club.

Pearl Island evokes a sense of romanticism of a private island, and is alluring because it is an ultra-private community and a sanctuary. To build upon the concept of an island within an island, each bungalow is conceived as an island, with a shallow pool of water surrounding it.

As befits waterfront living, water is used as a unifying factor linking all the individual plots, creating a body of water, with the bungalows likened to boulders sitting in the water.

10 minutes drive from the CBD, 20 minutes from Singapore’s Changi Airport, along a tree-lined boulevard flanked by 2 world-class golf courses, arrive at Singapore’s only waterfront community of high-end residences and a marina/yacht club.

pearl island

image credit: List Sotheby’s

Besides being in a coveted location, the 6-bedroom bungalow in Pearl Island is an ultra niche luxury development in the exclusively gated sanctuary in the Southern Residential Precinct of Sentosa Cove. It is a lavish warerway villa which has a private pool, as well as a private berth.

Pearl Island is an island on an island, an island on Sentosa island itself. Sentosa is a resort island just 10 minutes from the new monetary hub of Singapore and also of Asia. Sentosa Cove is a special enclave on Sentosa Island where the lure of the sea and the beauty of island living is commemorated as well as amplified.

Pearl Island, the last of Sentosa Cove’s river plots for luxury household advancements, is a special sanctuary, and an epitome of restorative living. It is near, and yet far from the hustle and bustle of the city. An ample residential island within 117 hectares of the Cove’s green area, Pearl Island spans 19,150.9 square metres and 14,840.4 square metres.

Luxury Sentosa Cove penthouse sold by Kong Hee at loss of over $2 million

Situated conveniently among the green Sentosa Golf Club, the cerulean sea and also the shiny Tanjong Coastline, buyers of the 6-bedroom bungalow will be privy to the plentiful picturesque delights of nature. All within the Cove’s specifically gated southern household precinct.

Pearl Island @ Sentosa Cove is a luxurious and exclusive residential development that is situated at Sentosa Cove in District 4, Singapore. It covers a land area of more than 159,000 square feet. It only has 19 bungalow units. Tenure is 99 years and TOP date is be on 2012.

The developer of Pearl Island is Xingmeng Land Pte Limited and its architect consultant is Eco.id Architects. This project is the last area in Sentosa Cove that is developed into a residential haven. The 19 bungalow units at Pearl Island Sentosa will have their sizes range from 609 square meters up to 1083.9 square meters. Their build up area range from 613 square meters up to 1047 square meters.

Luxury property prices in Singapore surged to become the world’s fastest appreciating market globally

A recent research report by List Sotheby’s International Realty said that Singapore’s luxury property segment saw a 42 per cent drop quarter-on-quarter. The report said the local luxury property segment as a whole took a hit after the property cooling measures with 13 Good Class Bungalows (GCBs) being sold along with 1 bungalow in Sentosa Cove and 61 luxury apartments.

This is a drop of 42% from the 8 GCBs, 4 Sentosa Cove bungalows and 119 luxury apartments sold in Q2 2018. List Sotheby’s said these figures show that the cooling measures have a greater impact on the luxury property segment of Sentosa Cove and luxury apartment segments than on the GCB segment.

The reduced sales in the first 2 luxury property segments could be attributed to a drop in foreign and permanent resident (PR) buyers who are hit by the higher ABSD rates, said the niche real estate services company. It added that as GCBs are restricted properties which only locals can buy, the segment was relatively more resilient.

GCBs are restricted properties and only Singapore citizens are eligible for ownership. An earlier report by List Sotheby’s noted that in recent years, GCB buyers tend to be families who are upgrading from smaller bungalows, Singaporean entrepreneurs in their late 30s as well as newly-minted high-net-worth (HNW) citizens. This group is likely to continue to support the GCB market in the luxury property segment.

While foreigners are allowed to own bungalows in Sentosa Cove, the additional buyer’s stamp duty (ABSD) is still a daunting factor to a foreign buyer. The cooling measures involve raising the ABSD for home buyers and reducing the loan-to-value (LTV) ratio by 5 percentage points for all housing loans granted by financial institutions.

How to Secure a Home Loan Quickly

Are you planning to invest in the luxury property in Pearl Island but ensure of funds availability for purchase? Don’t worry because iCompareLoan mortgage broker can set you up on a path that can get you a home loan in a quick and seamless manner. We are the experts who do the work for you for free, while you lean back, rest and rely on our professionalism at absolutely no cost to you.

Our brokers have close links with the best lenders in town and can help you compare Singapore home loans and settle for a package that best suits your home purchase needs. Find out money saving tips here.

Whether you are looking for a new home loan or to refinance, the Mortgage broker can help you get everything right from calculating mortgage repayment, comparing interest rates all through to securing the best home loans in Singapore. And the good thing is that all our services are free of charge. So it’s all worth it to secure a loan through us.

For advice on a new home loan.

For refinancing advice.

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5 tips for boosting your chances of getting personal loans

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Author: Ravi Philemon

There’s no universal formula for getting personal loans approved. Requirements such as credit score and minimum income requirement vary by lender, and some non-traditional lenders consider data like free cash flow or education level.

By: Hitesh Khan/

But all financial institutions which give out personal loans have one thing in common – they want to get paid back on time – and this will determine getting personal loans.

This means they approve only borrowers who meet their requirements. Here are five tips to boost your chances of qualifying for personal loans.

1. Clean up your credit before getting personal loans approved

Credit scores are major considerations on personal loan applications. The higher your score, the better your approval chances. A credit score is a number that the lenders consider before they determine if they should approve your application for loans in Singapore.

It is a joint effort between all the major lenders here, where data about consumers’ credit history is pooled together and aggregated. Within the aggregated data, lenders would have access to records that show the number of accounts that you have across different banks, and your payment history.

After crunching the available data, each account holder is then assigned a credit score. This indicates how good or bad of a risk you might be to the lender as a customer. The higher the number (up to 2,000 and AA rating), the better your credit score.

Although the the exact weightage of how your credit score is calculated isn’t public knowledge, the factors that the Credit Bureau of Singapore (CBS) uses in determining your credit score is.

Factors like usage patterns of loan facility (e.g. if you have been making large purchases or transactions lately); your recent credit account activity (The number of credit facilities an account holder has is considered by banks as liabilities as they may perceive that you are over-extending yourself); and your account delinquency data, or how you have fared as a customer (this means where possible, always avoid making late or partial payments for your facilities).

Other factors considered by CBS include your credit account history, or how long you have been a customer (factors like if you have you been a loyal customer of your bank since you received your first credit card from them); how much available credit do you have (your credit score is affected by the number of accounts you have with various banks in Singapore); and enquiry activity of how many organisations have asked about you (having too many enquiries might indicate to banks that you could be taking on more debt than you should).

getting personal loans

image credit: Alpha Stock Images

2. Rebalance your debts and income before getting personal loans approved

Applications for personal loans usually ask for your annual income. This means you can include money earned from part-time or freelance work. So if your income is not up to the mark of the lender, you should think how to supplement your income or to get a raise in your current job.

What’s equally important for getting personal loans is for you to pay down your debts as well.

Boosting your income and lowering your debt improves your debt-to-income ratio, which is the percentage of your monthly debt payments divided by monthly income. A lower debt-to-income ratio shows your lender that your current debt is under control and you can take on more.

3. Be careful of how much you ask for 

Most lenders will usually have a maximum amount an applicant with a certain income level can apply for, but requesting more money than you need to reach your financial goal can be seen as risky by lenders. Also, be mindful that a larger personal loan squeezes your budget, as higher loan payments impact your ability to meet other financial obligations, such as education loans or mortgage payments.

4. Do you need a guarantor for getting personal loans approved?

A guarantor or co-signer to personal loans is a third party in the loan contract. In the event of a default by the borrower the co-signer is legally obliged to repay the loan. So, if your credit scores are in the “fair” range, adding a guarantor with stronger credit and income can increase your chances of approval. But you should have an honest conversation with the prospective guarantor so they fully understand the risks before agreeing.

Best Personal Loans in Singapore (2018)

5. Find the right lender before getting personal loans approved

Most financial institutions and non-traditional lenders disclose their minimum requirements for lending. If you meet a lender’s minimum qualifications and want to see estimated rates and terms, you can pre-qualify for financing. But pre-qualification is not the same as putting in an application for personal loans. You may pre-qualify for a loan and yet your loan application may be rejected once you put in a formal application – and the more formal personal loan applications you put out, the more the impact is on your credit score.

This is one good reason why you need to work with trusted loan specialists like those at iCompareLoan. Our Loan specialists are able to not only pre-qualify you with multiple lenders and compare rates and terms, they are also able to get you the best personal loans which has costs and payments that fit into your budget.

How to Secure a Personal Loan Quickly

Do you want best personal loans but not sure if you qualify? Don’t worry because iCompareLoan loan specialists can set you up on a path that can get you a loan in a quick and seamless manner.

We also can arrange the Best Home Loans in Singapore as our brokers have close links with the best lenders in town and can help you compare Singapore home loans and settle for a package that best suits your home purchase needs.

Whether you are looking for a new home loan or to refinance, our mortgage brokers can help you get everything right from calculating mortgage repayment, comparing interest rates all through to securing the loan. And the good thing is that all our services are free of charge. So it’s all worth it to secure a loan through us.

For advice on a new home loan  or Personal Finance advice.

If you want to speak to our Panel of Property agents or loan specialists.

If you need refinancing advice, we are here

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Amazon, derided as a ‘job killer,’ actually boosts local employment and business, Morgan Stanley says

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Amazon, derided as a ‘job killer,’ actually boosts local employment and business, Morgan Stanley says


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In cities with multiple Amazon fulfillment centers, job creation was “well above the national average.” The e-commerce giant has been “both a net job creator and a catalyst for stronger job growth,” Morgan Stanley found.
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Even the best personal loan will put you on downward spiral if you default

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Author: Ravi Philemon

Personal loans are a way to use tomorrow’s income today, and unlike other loan products like mortgage loans or education loans, the process involved to apply for best personal loans is relatively simple.

by: Hitesh Khan/

But you must note that the interest rates are much higher than, say, for a car loan. This is because personal loans are unsecured loans, which means that the personal loan is not backed by any asset. The loan amount and interest rate depend on different parameters such as your income, credit history, repayment capacity, and others.

As even the best personal loans come with high interest rates, continuous default will put you on a downward spiral.

Here are some of the lowest personal loan interest rates offered by various banks:

Personal loans are basically unsecured loans which typically from $1,000 – $100,000 with fixed or variable interest rates that can be used to make a large purchase or to consolidate debt. Borrowers can use personal loans for credit card debt consolidation, business expansions, home improvements, medical bills and other major life expenses. Once recent study showed that personal loans are now the fastest growing consumer debt.

best personal loans

image credit: InvestmentZen

The best personal loans typically have a set term of three to five years and generally charge a fixed interest rate.

One report showed that millennials are driving the growth of the personal loan market. The report added that this category of people are rapidly coming into their earnings and credit wheelhouse – and because it takes time to become creditworthy, a higher proportion of millennials end up taking personal loans.

Even the best personal loans can get you into trouble if you get into a loan default. A loan default or loan delinquency is your failure to make loan repayments when they are due. Extended delinquency can result in a loan default. It is the failure to repay the loan as per the terms agreed between you and credit institution.

With loan default, the interests owed on your personal loans snowballs, drastically reducing your credit score and impacting your ability to receive future credit for lives other needs like the best home loans. Besides your personal properties being seized for default, the lending agency will also send a debt collection agency after you. The debt collection agency will try to contact you to repay, and this may include them trying to reach you at your place of work, or at home in full view of all your neighbours.

So, the rule of the thumb is, if you think you are going to default, contact your lender to discuss restructuring your best personal loans.

It is better to contact you lender to restructure rather than face the dire consequences of defaulting on a loan, which includes:

  • Employment difficulties,
  • Having money from seized from your accounts,
  • Legal proceedings, and
  • No access to crucial loans.

If the debt collection agency is not able to collect the delinquent loan, sooner or later it will reach a lawyer’s desk, and a collection attorney may take you to court after issuing a final letter calling upon you to pay your debt. If the debt is deemed valid, the court can issue a judgment against you, ordering you to pay it — and legal fees. Once you go to court, your default becomes a matter of public record.

A court judgment may allow a creditor to put a lien on your property, which means that if you ever sell it you’ll be forced to cover over some or all of that debt. A lender or collector can also ask a judge for an execution order.

Fortunately, you lender can’t go to the police to recover the personal loan extended to you. Personal loan cases are treated as civil cases instead of criminal cases, so the police will take a hands-off approach. But be mindful that if the amount owed to all of your creditors (including credit cards and car loans) is at least $10,000, you can be made bankrupt in Singapore.

The problem however isn’t just being declared bankrupt. The Official Assignee can seize your belongings which in Singapore can include, property, tools of your trade, property held in trust for someone else, and even clothing and furniture.

In fact, if you even try to take vacation, you will need the OA’s permission or you can be fined up to $10,000 and/or jailed for up to 2 years.

How to Secure a Personal Loan Quickly

Do you want best personal loans but not sure if you qualify? Don’t worry because iCompareLoan loan specialists can set you up on a path that can get you a loan in a quick and seamless manner.

We also can arrange the Best Home Loans in Singapore as our brokers have close links with the best lenders in town and can help you compare Singapore home loans and settle for a package that best suits your home purchase needs.

Whether you are looking for a new home loan or to refinance, our mortgage brokers can help you get everything right from calculating mortgage repayment, comparing interest rates all through to securing the loan. And the good thing is that all our services are free of charge. So it’s all worth it to secure a loan through us.

For advice on a new home loan  or Personal Finance advice.

If you want to speak to our Panel of Property agents or loan specialists.

If you need refinancing advice, we are here

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Woodlands Regional Centre White site released by URA

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Author: Ravi Philemon

The Urban Redevelopment Authority (URA) has released the first White site in Woodlands Regional Centre for sale today under the Reserve List of the 2nd half 2018 Government Land Sales (GLS) Programme.

Planned to be seamlessly connected to the existing Woodlands MRT station, this 2.75ha mixed-use site can potentially generate some 115,000 m2 of gross floor area (GFA) for office, residential, retail and entertainment uses and become a distinctive development in Woodlands Regional Centre.

Woodlands Regional Centre – key commercial hub in the North

Comprising 100 hectares of land, Woodlands Regional Centre will be developed into a sizeable commercial hub and bring jobs closer to homes in the North region.

Over the next 15 years, Woodlands Regional Centre will become home to new spaces for industry, research and development, learning and innovation.

Rapid Transit System ‘Go-Ahead’ to add buzz to prospects of Woodlands

It is well connected to other parts of Singapore via the existing North-South Line (NSL) and the upcoming Thomson-East Coast Line (TEL).

Woodlands Regional Centre, which comprises the two complementary precincts of Woodlands Central and Woodlands North Coast, will provide attractive and accessible commercial facilities and amenities to support many businesses in the northern part of Singapore. This will include the upcoming high density agri-tech hub in Sungei Kadut and the surrounding food manufacturing cluster.

Woodlands Central will be transformed into a bustling commercial and community node with a mix of office, retail, residential and attractive public spaces for live, work and play. New public spaces planned for the precinct can be enjoyed by more than 27,000 households in the vicinity. Woodlands Central will also serve as a community gathering point for the residents in Woodlands and the rest of the North region.

In addition, the mixed-use business cluster in Woodlands North Coast, including future industrial and business park spaces, is envisioned to provide flexible work spaces that encourage experimentation and innovation and are geared towards the needs of both SMEs and MNCs.

When fully developed, Woodlands Regional Centre will have about 700,000m2 of commercial space and offer approximately 100,000 new jobs.

Private residential units to increase substantially with new releases from GLS programme

White Site at Woodlands Central

SWoodlands Regional Centretrategically located above the upcoming Woodlands TEL station, the White site will enjoy direct connection to both the TEL and the NSL lines. The sale of this site will help catalyse the continued development of Woodlands Regional Centre.

At least 45,000 m2 of the maximum permissible GFA of the development will be set aside for office use. The remaining GFA can be for additional office, retail, entertainment and residential uses. These should offer a range of housing and lifestyle options well integrated with attractive landscaped public plazas and gathering spaces that will further enhance the vibrancy and street level experience of Woodlands Central.

The new development will have a direct basement connection to the future Woodlands TEL station, providing shoppers and commuters with easy access to the Thomson-East Coast MRT Line that can bring them to the Central Business District, Marina Bay and the shopping, dining and entertainment options at Orchard Road.

URA said that through a comprehensive network of pedestrian links and cycling paths, the future development will be seamlessly connected to the surrounding amenities and other developments within Woodlands Regional Centre.

Details of White Site at Woodlands Avenue 2

Location Woodlands Avenue 2

 

Site Area Plot 1: 21,055.7 m2 (Land Parcel)(1)

Plot 2: 6,450.3 m2 (Land Parcel)(1)

Plot 3: 746.2 m2 (Air space stratum)(2)

Land Use Zoning White site

 

White Site
Maximum Permissible Gross Floor Area

 

115,747 m2
Allowable Development

 

Mixed-use development with:

 

a) At least 45,000 m2 of the maximum permissible GFA for office use;

b) A maximum GFA of 33,000 m2 for commercial uses (exclude office and commercial school)

 

The remaining GFA can be developed for additional office, commercial school, serviced apartments and/or residential flats.

 

Strata Sub-division Apart from any GFA for residential flats, the rest of the GFA in the development is to be contained in not more than 8 strata lots.

 

Maximum Building Height Plot 1

Low-rise zone: Maximum 5-storey and subject to the Land Transport Authority’s (LTA) loading requirements for areas above Woodlands TEL station

 

High-rise zone: 90m AMSL

 

Plot 2

90m / 100m AMSL(3) and subject to LTA’s loading requirements for areas above Woodlands TEL station

 

Lease Period 99 years

 

(1) Subject to cadastral survey

(2) Estimated horizontal cross-sectional area and subject to cadastral survey

(3) AMSL means Above Mean Sea Level

(source: URA)

How to Secure the Best Commercial Loans Quickly

iCompareLoan is the best loans portal for commercial-property-seekers, buyers, investors and real estate agents alike in Singapore. On iCompareLoan, you will be able to find all the latest news and views, informational guides, bank lending rates and property buying trends, and research data and analysis.

Whether you are looking to buy, sell or refinance apartments, condominiums, executive condos, HDB flats, landed houses or commercial properties, we bring you Singapore’s the most comprehensive and up-to-date property news and best home loans trends to facilitate your property buying decisions.

Our Affordability Tools help you make better property buying decisions. iCompareLoan Calculators help you ascertain the fair value of a property and find properties below market value in Singapore.

Our trademarked Home Loan Report is a Singapore’s first one-of-a-kind analysis platform that provides latest updates of detailed loan packages and helps property agents, financial advisors and mortgage brokers analyse home loan packages for their clients and give unbiased home loan/commercial loan analysis for their property buyers and home owners. Our distinguished Panel of Property Agents who are users of our Home Loan report can give the best all-rounded advise to real estate seekers.

All the services of our mortgage consultants are ABSOLUTELY FREE, which means it’s all worth it to secure a loan through us.

Whether it is best home loans, best commercial loans or refinancing of existing loans or SME loans, CONTACT US TODAY!

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Savills Research: Residential property demand moderated by cooling measures

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for the source.
Author: Ravi Philemon

The revised 12% ABSD for Singaporeans buying their second residential property and the 20% ABSD on foreign buyers dealt the private residential market a one-two punch, said a research report by Savills Singapore.

Although Savills believes that both developers’ and buyers’ resilience would hold out against the latest measures, it said that after five months the market is beginning to develop characteristics that differentiate it from previous cyclical epochs.

“Government measures and the tsunami of collective sales from May 2016 to July 2018 have, in our opinion, been the generating sets of this new topology, which we are only just beginning to get a glimpse of. We believe that some (there are others) of the new market characteristics which have revealed themselves are:

  • Developers adopting a 5 July pricing strategy for RCR projects;
  • Buying continuing past maiden launch;
  • Losing the stepping up of prices at sequential launches.

Given that this is just a residential brief, we will not be showing the full slate of statistics to support the abovementioned characteristics. We will merely summarize what we have quantitatively found from a sample of projects that were launched from 6 July onwards.”

residential propertySavills said developers adopting 5 July pricing strategy for RCR residential property projects

“Prior to 6 July, our in-house developed model showed that developers were pricing towards the right tail of the price per sq ft (psf) distribution. In two instances, one in Q2/2018 and another on 5 July 2018, new launch prices were closing in or exceeding the second positive standard error.

However, since the measures came into effect, developers have been pricing their new launches around the mean of our model, albeit slightly towards the right of the mean. This was the case for The Tre Ver and Jadescape. For Parc Esta, the average price of S$1,680 psf was slightly to the left of our mean.

The results from the first month of launches for these projects show that if there are no confounding effects, say competition from launches in the vicinity that the subject property cannot clearly differentiate itself from, healthy take-up rates were achieved. Jadescape and Parc Esta achieved 27.1% and 23.5% sales respectively in the first month or first weekend of launch. From the sample of developments that we analyzed, we believe that prices of new launches are generally in line with our mean statistic.

However, this may not imply that prices are flat because many of the recent launches in the RCR tended to take reference from Park Colonial, which not only had over 270 caveats registered on the eve of the cooling measures but was done at prices significantly higher than our model’s mean price.

In short, for subsequent launches in microlocations that had not seen any major new offerings for years, but where the developer was still benchmarking against Park Colonial, prices were still higher against the background sale prices in those micro-locations.

The time needed to allow for this adjustment in new launch prices across the island means that there will continue to be some mild positive momentum to prices for one to two quarters after the cooling measures have taken effect…”

The report also noted that buying continues for residential property past maiden launch weekend

“In the aftermath of the implementation of the TDSR framework in June 2013, not only were sales at the initial weekend launch lower, but the rate of sales slowed to almost negligible in the months after that maiden launch.

This time round, we see continued sales at projects like Riverfront Residences, The Tre Ver, Jadescape, The Affinity at Serangoon, The Tapestry and Stirling Residences. We believe that continuing sales may be indicative of the psychological momentum of buyers.”

Condo buyers seem to be streaming back to the property market

Losing the stepping up of prices at sequential launches of residential property

“This effect was observed not in those Q3/2018 launches but for those done in November. In prior cycles, the norm was for developers to price subsequent launches higher. However, after the July cooling measures, developers appeared to adopt a more cautious stance and moved away from the old practice. We see that at play at Whistler Grand.

Although the median price achieved on the weekend of its launch was almost similar to Twin View’s (a neighboring project) launch price in May 2018, it was nevertheless placed significantly to the left of our model’s mean price. That strategy paid off because the developer managed to sell over 22% of the total number of units in the first weekend of
launch…

Although we believe that the market is still resilient against the backdrop of cooling measures, there are challenges ahead.”

Private residential properties prices increased marginally in Q3, URA statistics

Savills research report said that demand for residential property exists so long as pricing is in line with the attributes of the development and consumer sentiment remains strong. It added that developers will have to price the residential property with greater finesse, taking into account commission rates as well.

“Price  undercutting may not generate the required sales levels because the cooling measures have affected the rate of sales, which is not necessarily price sensitive.

For instance, we are finding more HDB dwellers, who hitherto had not considered moving to private properties, now considering that option. However, it takes time, rather than a consideration of how high private residential prices are, for these households to make that decision to sell their HDB flats.

Ultimately, it now comes down to whether developers of large projects have the steely resolve to hold their ground and not give in to the noises generated by those in the negative quarters.”

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