Trump will have a harder time turning things around as the China trade war drags on

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No president wants to face voters in an economic downturn. But if that were Trump’s only concern, he never would have pursued his haphazard trade policy in the first place, John Harwood writes.
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Financial lenders look at 5 Cs before granting you a business loan

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Author: Ravi Philemon

Over the years, financial lenders have developed several simple approaches to assessing the feasibility of making a loan. These approaches can be used regardless of the type or size of business involved.

By: Hitesh Khan/

If you are planning to ask for a loan, use the following factors as a checklist to improve your chances of getting the loan. The process will identify weaknesses that can be corrected before you ask for the loan.

financial lendersGetting approval for a loan is a good thing, getting rejected may be even better. Even after going through this exercise, the lender may reject your loan request. However, don’t take the rejection personally. Financial lenders are in the business of making loans. But something in your request caused the rejection of your loan. Talk to the financial lenders and ask why the loan was rejected.

Financial lenders may have identified a weakness in your business that can be corrected before it causes major problems down the road.

All borrowers should examine the lender’s perspective of the loan requested and the circumstances surrounding the business owners and the business itself.

The 5Cs financial lenders look at before dishing out loans

  1. Credit score – In 2010, the Credit Bureau (Singapore) introduced blended score to help banks better assess SMEs’ creditworthiness. The score blends business owner’s credit data, company’s tradelines and public registry data to increase credit risk transparency of small and medium-sized enterprises (SMEs) with a view to lessening the challenges they face in obtaining financing.
    In partnering with FICO, Credit Bureau (Singapore) developed a credit risk score that factors in the credit performance of both the business owner and his company, known as an “SME Blended Score”. Supported by SPRING Singapore, the scoring system is the first of its kind in the Asia Pacific to assess SMEs’ creditworthiness and is aimed at helping banks to make more informed credit decisions and SMEs to increase their access to financing.A good score can also enhance SMEs’ creditworthiness and increase its access to trade credit.
  2. Competency – Does the individual have a thorough understanding of the market and industry in which he/she will be competing?  Does the borrower have industry contacts and know the industry players?  Does the individual have experience in starting and running a business?
  3. Character – Does the individual display characteristics of honesty and integrity?  Borrowers should present themselves as upstanding, responsible members of the community and be able to back up this claim with references. Borrowers also need to show they can be trusted to be up-front and transparent about problem areas.
  4. Commitment – Is the individual committed to the business ventures and willing to do what is necessary to make it successful and repay the loan?
  5. Track record – Does the individual have a track record of successfully starting new businesses or did past attempts fizzle?  Does the borrower have a track record of loan repayment?

Besides the 5Cs, there are other factors which affect the outcome of your business loan application

  1. Returns (cash flow) – Will the use of the loan funds create sufficient returns (cash) to repay the loan? Remember that the returns must first cover all of the costs associated with the project or business before funds are available for loan repayment. You may need to create a cash-flow budget to show how the loan funds will create sufficient cash flow to meet the loan principal and interest payments. It is also important that the timing of the cash flows correspond to the loan repayment schedule. If the loan will not create an income stream, describe and document how the loan will be repaid.
  2. Risk – What can go wrong with the project or business? What is the probability that something will go wrong? Is the business sufficiently capitalized to handle risk?  What risk management strategies are available to help mitigate the risk? Are there contingency plans in place to mitigate risk? Are there alternative sources of cash from which payments can be made?
  3. Collateral – Financial lenders often want protection in case of default on the loan by the borrower. Financial lenders may use the property being purchased as collateral for the loan. Additional collateral may be required as well as a personal guarantee by the borrower or other representative.

The Business

  1. Track record – If this is an existing business, what has been the financial track record of the business over recent years? Does the business model seem viable and profitable?  Have sales increased?  Has equity grown?
  2. Leverage – Can the business take on additional debt and maintain a reasonable debt-to-asset ratio?  Is the business positioned to adequately meet its loan repayment requirements along with covering the other financial demands of the business?

The Circumstances

  1. Industry – The state of the industry in which the borrower will operate is also important to the lender. Is it a new and expanding industry or a mature and stable one? The lender will be interested in who your competitors are and your strategies for competing with them.
  2. General economy – What are the conditions of the general economy at the time of the loan request and the projected state of the economy for the coming several years (during the repayment period of the loan)? Are there societal trends that will affect the viability of the business and loan repayment capacity? Will impending regulations create problems?

How to Secure a Business Loan Quickly

If you are searching for a business loan, the loan consultants at iCompareLoan can set you up on a path that can get you a it in a quick and seamless manner. Our loan consultants have close links with the best lenders in town and can help you compare various loans and settle for a package that best suits your needs. Find out money saving tips here.

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.

If 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 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 your business expansion needs.

Contact us for advice on a new home loan.

Contact us for home loan or refinancing advice.

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White house park GCB for sale at $75 million

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Author: Ravi Philemon

A White House Park GCB (Good Class Bungalow) is up for sale at an asking price of $75 to $80 million. Sitting on a land of 35,290 sq ft, the White House Park GCB psf asking price is between $2,125 psf to $2,267 psf.

white house park gcb

Image credit: JLL

The White House Park GCB spans two storeys, and is possibly the highest point in the locality, said JLL. JLL, which is the exclusive marketing agent for the GCB added once redeveloped, the owner can enjoy commanding views of lush greenery.

The regular-shaped plot of the White House Park GCB has a frontage of 54 metres. The land can be subdivided into two GCB parcels, each with a generous frontage, JLL said.

While land parcels within GCB areas are required to have a minimum plot size of 1,400 sqm, land plots that are smaller than that are still considered GCBs as long as they are located within the 39 gazetted GCB areas.

The tender for the White House Park GCB will close on Sept 20, at 2.30pm.

GCBs have been in the spotlight since news broke recently that Sir Dyson had forked out $41 million for a hilltop GCB located along Cluny Road with views of the Botanic Gardens, Singapore’s first and only UNESCO Heritage Site.

List Sotheby’s International Realty (List SIR) which reported on the purchase of Sir Dyson, noted that what makes this GCB deal an even greater surprise is that landed properties in Singapore, including the 2,800 plots located in the 39 GCB areas gazetted by the Urban Redevelopment Authority (URA), are classified as restricted properties and are limited for purchase and ownership by Singapore Citizens only. Besides their rarity, GCBs also come with strict planning conditions stipulated by the URA to preserve their exclusivity and low-rise character.

Even ultra high net worth investors, such as the Dysons, need to get special approval from the government to purchase and own GCBs because they are permanent residents. Criteria include making exceptional economic contributions in Singapore and the buyer can only use the GCB for owner occupation.

According to the Singapore Residential Property Act, foreigners are not allowed to own landed properties, which include bungalows. However, foreigners are allowed to own the bungalows at Sentosa Cove, a planned resort island to attract high-net-worth (HNW) foreign investors. Foreigners are allowed to own apartments in Singapore.

More recently, a GCB plot in the prestigious Nassim Road area was bought by SG Casa Pte Ltd for a record $230 million. The price for the sprawling land of 84,543 sq ft land works out to be S$2,721 psf. The plot of lands comes with a two-storey bungalow, a tennis court and swimming pool. The site has a road frontage that is nearly 100m, and can be redeveloped into four or five bungalows.

List SIR in referring to media report suggested that the party behind SG Casa could be Eduardo Saverin. Mr Saverin became a Singapore citizen in 2012.

Sir Dyson, who is chief executive of Dyson Ltd, had earlier bought the most expensive 99-year-leasehold penthouse situated on a 62nd to 64th floor in Wallich Residence. The three-storey penthouse comes complete with a private infinity pool, jacuzzi, barbecue pit, and private lift lobby.

Besides Dyson and Saverin, another famous name that has been making rounds in Singapore’s media landscape was Jack Ma, who is said to have purchased a 30,000 sq ft site at Victoria Park Close. The Alibaba co-founder is supposedly building a two-storey bungalow with a basement and swimming pool.

The report by List SIR said, ” in light of the geopolitical tensions in Hong Kong and United Kingdom, there could be increased interest from more foreign ultra high net worth investors, the likes of Sir Dyson. Singapore’s solid economic fundamentals, sound financial framework, ease of doing business, quality education and racial harmony continue to make it one of the choice locations for potential foreign investors.”

Mr Paul Ho, chief mortgage consultant at iCompareLoan, said, “with political stability, it is understandable why Singapore looks attractive to ultra high net worth investors. Due to its limited supply and the prestige associated with these large bungalow plots, GCBs are often sought after by well-heeled individuals.”

He added, “Singapore’s business-friendly environment also attracts many ultra high net worth investors to park their assets here. Prices of GCBs have been on a steady increase since 2016 and so it is viewed as a good investment.”

How to Secure a Home Loan Quickly

Are you planning to invest in properties 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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Property research suggests trade friction weighing on commercial properties

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Author: Ravi Philemon

– The property research suggests retail rents in general remained weak in H1 2019, with ground-floor rents at Orchard Road falling 1.5% compared with H2 2018

– Trade conflict and heightened economic risks could dent consumer sentiment said the property research reports

– Colliers Research expects rental gap of business park/high-spec space and the general factory/warehouse space to widen towards the end of 2019

– With deteriorating manufacturing and trade statistics, industrial rents and occupancy could come under fresh pressure, the property research reports noted

Colliers International today released two half-yearly property research reports that examine the performance of and outlook for retail and industrial properties in Singapore during the first half of 2019 (H1 2019).

Both the retail and industrial real estate markets have been bottoming out but Colliers Research cautions that threats from the frayed US-China trade relations and gloomy economic outlook looms large and could stifle any recovery in the two property segments in the near-term.

Ms Tricia Song, Head of Research for Singapore at Colliers International, said, “With the dimmer economic outlook ahead we expect the retail and industrial property markets to face some pressure. A prolonged economic downturn, should it happen, will likely crimp consumer confidence, resulting in cutbacks on discretionary spending among households. Meanwhile, industrialists may be more cautious about their space needs and could shelf expansion plans. That said, there are pockets of opportunities for investors in both markets that will likely provide a decent yield.”

property research

Image credit: Capitaland

Retail
Data tracked by Colliers Research showed that ground-floor rents at Orchard Road declined 1.5% half-on-half (HOH) in H1 2019 to SGD40.60 per sq foot per month (psf pm), while that of Regional Centres remained flat at SGD33.60 psf pm. This is consistent with Urban Redevelopment Authority’s (URA) reported rental decline of 1.7% in H1 2019 for the Central Region.

The Colliers property research noted that rental declines have slowed since early 2018, and the large retail space completions since 2013 should finally taper off from 2020 onwards, helping to support occupancy. It estimates that average annual new supply from H2 2019 to 2023 should hover around 380,000 sq ft versus 1.04 million sq ft over the last 10 years. One of the malls slated to open later this year is PLQ Mall, the 340,000 sq ft retail component of Paya Lebar Quarters.

Meanwhile, island-wide retail vacancies have declined by 0.8 percentage-point (HOH) to 7.7% in H1 2019, likely boosted by the good takeup at Jewel at Changi and Funan. Colliers Research expects the vacancy rate to continue to trend down over 2020 to 2023 as front-loaded supply in 2018 and 2019 get absorbed.

Ms Song added, “Headwinds prevail for the retail sector as the soft economy could impact the still-fragile consumer sentiment and dent any hopes of recovery in retail rents. On a more positive note, the surge in investment sales of retail malls during H1 2019 reflected rising optimism among investors. We observed that the buyers of these malls are spread across strategic and financial buyers with developers and REITs seeking yields or future redevelopment potentials while institutional funds look for yields and value-add opportunities.”

Total retail investment sales transactions jumped 137% HOH to reach SGD2.13 billion in H1 2019, driven by higher investors’ interest. This is markedly higher than the SGD1.42 billion transacted in the whole of 2018.

Industrial
The industrial real estate sector in Singapore seemed to have found its footing, with overall rents bottoming out. However, with deteriorating manufacturing and trade statistics, industrial rents and occupancy could come under fresh pressure. Leasing demand is expected to lag behind supply in 2019 to 2021 due to the weaker trade conditions. Colliers Research estimates the 2018 to 2023 annual net absorption to come in at 8.6 million sq ft, 25% below the 10-year historical average.

Mr Dominic Peters, Senior Director of Industrial Services at Colliers International, said, “Industrialists have already become more cautious on their space requirements, renewals and expansion plans, preferring a wait-and-see approach given the gloomier economic outlook. They would also be watching the US-China trade spat closely and assessing its potential impact on their business. For landlords, we would recommend that they take this opportunity to consider upgrades and asset enhancements – especially for ageing properties – to be ready for Industry 4.0.”

Colliers Research expects the rental gap of business park/ high-spec space and the general factory/warehouse space to widen towards the end of 2019. This comes as new business park properties and high-spec spaces should continue to enjoy favorable rental growth due to their premium quality and limited stock, while older factory space may see flat to declining rents.

Business park monthly rents increased 0.5% HOH and 2.1% YOY to SGD4.33 psf in H1 2019 amid very tight supply. Colliers Research notes that tech firms continued to gravitate towards newer business park and high-tech spaces for good amenities and cost savings. Monthly rents for high-spec industrial buildings located outside of science parks and business parks increased 1.0% HOH and YOY to SGD2.93 psf. In contrast, average gross monthly rents of warehouse-logistics properties slipped 0.8% HOH and YOY to SGD1.24 psf.

Colliers Research expects capital values for prime industrial properties with freehold or longer land tenure to be firm in the near future due to their scarcity. Overall industrial capital values are expected to hold steady with yields at about 6.0% for 30-year leasehold industrial properties through to 2023.

How to Secure a Commercial Loan Quickly

Are you planning to purchase a similar prime commercial redevelopment site but unsure of funding? Don’t worry because iCompareLoan mortgage brokers can set you up on a path that can get you a commercial loan in a quick and seamless manner.

Alternatively you can read more about the Best Commercial Loans in Singapore before deciding on your purchase.  Our brokers have close links with the best lenders in town and can help you compare Singapore commercial loans and settle for a package that best suits your commercial purchase needs. Our services are also very personalised and tailored to the unique needs of the buyers.

Whether you are looking for a new commercial loan or to refinance and existing one, our brokers can help you get everything right from calculating mortgage repayments, comparing interest rates, all through to securing the final 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 your next purchase.

If you need advice on a new commercial loan  or Personal Finance advice.

If you want to speak to our trusted Panel of Property agents.

If you need refinancing advice.

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Business owners should borrow money, as it is a basic requirement

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Author: Ravi Philemon

Borrowing money is a requirement of almost business owners regardless of whether it is a start-up or an on-going business. There are several factors you should consider in creating and maintaining a lender/borrower relationship.

First, you need to create a relationship with your lender. Next, you should examine the loan request from the lender’s perspective. Finally, you should identify reasons why credit lines get in trouble.

Establishing a Relationship with a Lender

business owners

Image credit: Morgan/Flickr

All business owners – whether their businesses are large or small, well-capitalized or operating on a shoestring ‑ should develop a working relationship with their primary lender.

However, remember that the lender’s first responsibility is the financial health and profitability of the lending institution, just as your first responsibility is to your business. You would not jeopardize your business to save the lender, so don’t expect the lender to jeopardize the lending institution to save your business.

The type of relationship should be one of an arms-length business relationship between you and the lender. Your expectation should be that the only way the relationship will continue is if the relationship is in the best interest of both parties.

There are a number of steps the borrower can take to develop a relationship with the lender.

The following are some suggestions:

Select the proper lender
Shop around to find the right lender. Lenders have certain types of loans and businesses they like to work with and other types they prefer not to fund. Find out what types of loans and customers each lender is interested in serving. Your business may be too large or too small for some lenders. The lender may not have any experience funding your type of business. Most start-up business owners need lenders who understand their unique situations.

Make a professional loan request
When applying for a loan be prepared to present all aspects of your request so the lender can make an informed and accurate decision. Business owners should put in writing what you want to do. This may involve preparing a business plan.

Apply for the loan early

Business owners should not wait until you need funds to apply for the loan. This puts pressure on the lender and increases the likelihood of loan rejection. Making a loan request well in advance of the need for funds shows the lender you have good planning skills.

Establish a credit history
Borrow funds for short periods and repay promptly to establish a track record of proper loan repayment.

Get to know your lender
Invite your lender to visit your business. Introduce the lender to your employees.

Keep your lender informed
Share your plans for the future. For a start-up venture, the new business will need to have a fully developed business plan to share with the lender. Included in this business plan must be a clear indication of how the business will be financed. The plan must show how the management team will make the business successful.

Don’t surprise your lender
If you foresee repayment problems, tell your lender right away. There may be a solution and the lender can be a helpful resource. Lenders would rather restructure loans for repayment than have to foreclose on the loan.

It is perfectly normal for successful businesses to borrow money and be in debt. Also, borrowing money to make money is not really a new idea. It may seem odd for your business to borrow money when you have already got personal savings. But you saved that money for a reason — perhaps to fund children through education or provide for your retirement. Whatever that reason is, if you tie up that cash in your business, it’s not available for the original purpose. Taking out credit for your business offers a number of benefits and can improve your chances of commercial success.

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 business owners 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

Are you a foreigner and searching for expat personal loans? Don’t worry because iCompareLoan loan specialists can set you up on a path that can get you the best personal loans 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 their services are free of charge. So it’s all worth it to secure a loan through them.

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

If you want to speak to our Panel of Property agents.

If you need refinancing advice, we are here

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Home sharing platforms proliferation here inhibited by legal restrictions

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Author: Ravi Philemon

Home sharing platforms (HSPs), boosted by increasing internet penetration rates globally, have helped to rapidly expand the short-term rentals market, said a recent report by DBS. The special report on home sharing platforms added that enabling residential homes to add to supply in the hospitality sector, could benefit the travel market in general but increases competition for existing hotel players.

home sharing platformsHaving already taken significant market share in North America and Europe, home sharing platforms are turning their attention to the Asia Pacific, said the report. The DBS research indicated that growth in Asia’s short-term rental market is set to supersede those of North America and Europe at a staggering 27%.

The report on home sharing platforms aimed to answer the question of, “with the short-term rental market in Asia set to grow to US$25 billion by 2023, what does the future hold for conventional hoteliers? Will they stand the test of time in this age of digital disruption?”

DBS noted that in Singapore, the regulator has made it clear that short-term rental is legal. However, the minimum 3-month rental period for private residential properties and minimum 6-month rental period for public housing (only a foreigner on an employment pass is allowed for public housing) are prohibitive to the growth of home sharing platforms in Singapore. Hence, the level of development for Singapore’s short-term rental regulatory framework is relatively low.

The level of restriction is high, prohibiting the proliferation of home sharing platforms.

From 2014 to 2018, HDB dealt with 3,300 unauthorised flat rental cases, revealed the Minister of National Development. The Minister revealed the statistics on unauthorised flat rental cases in a written reply to a parliamentary question, in July 2019.

The Minister, Mr Lawrence Wong, was responding to a parliamentary question by Cheng Li Hui, Member of Parliament for Tampines GRC. Ms Cheng asked:

“Over the last five years, what is the number of complaints received by HDB pertaining to foreign tenants in HDB estates; what is the nature of these complaints; how does HDB follow up on the complaints; and whether measures are in place to help first-time foreign tenants of HDB flats familiarise with the norms and practices in HDB estates as well as living in Singapore.”

In revealing the figures on unauthorised flat rental cases dealt with by HDB, Mr Wong said:

“From 2014 to 2018, HDB received about 3,300 cases of feedback on suspected unauthorised flat rentals, dis-amenities or overcrowding of HDB flats by foreign and non-foreign tenants. HDB investigates every case of public feedback received, on top of the proactive inspections that it carries out. Depending on the severity and circumstances of the infringement, HDB may issue a written warning, impose a financial penalty, or acquire the flats compulsorily from the owners.

HDB actively promotes gracious and harmonious living in public housing through various initiatives. For example, HDB has a network of volunteers to help spread tips on neighbourliness at community events and door-to-door visits. HDB also gives out the Good Neighbour Awards to recognise individuals who have gone the extra mile with their acts of neighbourliness.

Besides HDB’s efforts, there are also initiatives undertaken by other government agencies. For example, the People’s Association’s nationwide network of more than 1,400 Integration and Naturalisation Champions reach out to new immigrants and help them settle into the community. The National Integration Council works with community groups, immigrant associations, schools, and other partners to help foreigners and immigrants understand our local laws, norms and culture.”

Besides revealing the data on unauthorised flat rental cases dealt with by HDB, and how HDB handles such cases, the Minister also answered a question on unauthorised short-term accommodation listings online.

In responding to Bishan-Toa Payoh GRC MP, Chong Kee Hiong, who asked: “Regarding listings of Singapore residential properties for lease periods shorter than the legally permitted durations on (home sharing platforms) such as Airbnb, what measures are in place to prevent such listings; how rigorous are the enforcement measures; whether penalties should be increased; and whether the Ministry will consider penalties for websites which host such illegal listings including temporary bans”, Mr Wong answered saying:

“The listings on websites like Airbnb typically do not contain specific information on the property and its owner, or the terms of the rental arrangement. So the key to effective enforcement against illegal short-term accommodation (STA) is not so much by targeting the listings, but by conducting investigations against all suspected cases and taking action against the STA hosts.

Over the past year, URA has been stepping up its investigations of residential units suspected of STA use. Where there is evidence of illegal STA operations, URA will take enforcement action and impose penalties on the perpetrators. For those renting out their homes on a casual basis, and caught for the first time, URA will impose a composition fine, of up to $5,000. Since May 2019, URA has issued 7 such fines.

For repeat offenders and those who undertake STA operations on a commercial scale, URA will prosecute them in court, and seek higher penalties. So far, URA has secured 4 convictions in Court. With the increase in investigation and enforcement actions, we can expect more cases to be fined and prosecuted in Court over the coming months.

There have been a few cases of estate agents who were complicit in illegal STA activities. Besides the financial penalties imposed by URA or the Courts, the CEA will separately bring these errant agents to task by revoking their registration and debarring them for a period of time.”

Secure the Best Home Loan Quickly

Do you want to buy a private residential property but are unsure of securing funds? Don’t worry because iCompareLoan mortgage brokers can set you up on a path that can get you a commercial loan in a quick and seamless manner.

Alternatively you can read more about the Best Home Loans in Singapore before deciding on your next purchase.  Our brokers have close links with the best lenders in town and can help you compare Singapore’s best commercial loans and settle for a loan package that best suits your commercial purchase needs.

Whether you are looking for a new commercial loan or for a refinancing package for your commercial properties, our brokers can help you get everything right from calculating mortgage repayment, comparing interest rates, all through to securing the best commercial loans which fits your profile. And the good thing is that all our services are free of charge. So it is all worth it to secure the best commercial loans through us.

You may contact us today for advice on a new home  or refinancing advice, or for Personal Finance advice.

You may also speak to our Panel of Property agents.

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Braddell View estate collective sale relaunch at $2.08b reserve

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for the source.
Author: Ravi Philemon

Braddell View estate collective sale relaunch set to benefit from enhancements in Bishan-Toa Payoh region under the Draft Master Plan 2019 

Colliers International today announced the Braddell View estate collective sale relaunch. Braddell View is a prominent hilltop site near three MRT stations and nature reserve, and is Singapore’s largest private residential site.

The property in Braddell Hill in Central Singapore was originally put up for sale on 27 March 2019 at the owners’ reserve price of $2.08 billion.

Braddell View estate collective sale relaunch

Image credit: Colliers International

The price of the Braddell View estate collective sale relaunch site will remain unchanged in the tender relaunch.

After factoring the 7% bonus balcony Gross Floor Area (GFA) and the estimated differential premium, the price translates to a land rate of SGD1,159 per square foot per plot ratio (psf ppr).

Braddell View, which sits on a hilltop site overlooking the lush MacRitchie Reservoir Park, comprises two shops and 918 units of apartments, maisonettes and penthouses. The plot has a lease tenure of about 102 years with effect from 1 February 1978.

Ms. Tang Wei Leng, Managing Director at Colliers International, said, “Understandably, developers are assessing the risks associated with acquiring a large site. That said, there are ways to mitigate these risks – forming a consortium to undertake development being one of them. The Braddell View site is one of a kind and presents an exciting opportunity to create a new way of living by developing innovative housing options and a vibrant residential community. In addition, the site will also potentially benefit from the upcoming enhancements in the Bishan-Toa Payoh area under the Draft Master Plan 2019.”

Future residents of the new residential development in Braddell View could benefit from the proposed transformation of the nearby Bishan Sub-Regional Centre into a business hub under the Draft Master Plan 2019. This will see the injection of new offices that are integrated with community facilities, offering greater convenience and bringing jobs closer to home.

Quality healthcare is also easily accessible as it is near Mount Alvernia Hospital which will be expanding its medical services with a new wing focusing on family-centric healthcare services. In addition, Health City Novena – which is a short drive from Braddell View – will also see new developments such as the Integrated Intermediary Care Hub, and the new National Skin Centre, which is due for completion by 2022.

Another potential development is the Toa Payoh Community Hub in nearby Toa Payoh neighbourhood. It was reported that several government agencies are looking at how the Toa Payoh town park can be integrated with other sports and community facilities.

Ms. Tang added, “Location, accessibility, convenience, good value, and being near schools are some of the key factors driving demand for homes. We believe the Braddell View site ticks the right boxes and should appeal to diverse groups of buyers given its attractive attributes. More importantly, this site offers excellent potential and will provide developers with a solid development pipeline over the next few years.”

The Braddell View estate collective sale relaunch site is located near renowned schools including Marymount Convent School, Raffles Institution, Raffles Junior College, Catholic High School, CHIJ Secondary (Toa Payoh), and Raffles Girls’ School, which is expected to be fully operational in 2020.

The Braddell View estate collective sale relaunch site is well-served by three surrounding MRT stations: the Braddell MRT on the North-South Line; and the Marymount and Caldecott MRT stations on the Circle Line. Come 2020, the Caldecott MRT station will be connected to the new Thomson-East Coast Line, providing even greater accessibility to the northern and eastern parts of Singapore.

En Bloc Sales Process Singapore – A Definitive Step-by-step Guide

In addition, the upcoming North-South Corridor (NSC) near the Braddell View site will further improve accessibility and also help to reduce travelling time to the city when it is completed around 2026. The NSC is Singapore’s first integrated transport corridor featuring vehicular expressways, continuous bus lanes and cycling trunk routes.

Depending on the size of their property, the owners of residential units could receive between $2.04 million and $4.03 million each upon the successful sale of the Braddell View. Meanwhile, commercial shops owners could receive about $529,500 to $1.2 million following the sale of the development.

Property Tax Singapore – Calculate IRAS Payment and Annual Value

Under the Draft Master Plan 2019, the Braddell View estate collective sale relaunch site is zoned Residential with a Gross Plot Ratio of 2.1 and will have a proposed total Gross Floor Area of 222,854.3 sq m (approximately 2,398,781 sq ft).

Subject to approval from the relevant authorities, Colliers estimates that a maximum of 2,620 new residential units with an average size of 85 sq m (approximately 915 sq ft) could be built on the site, subject to Pre-Application Feasibility Study approval. The collective sale tender will close at 3pm on 25 September 2019.

How to Secure a Home Loan Quickly

Are you planning to invest in properties in the District 9 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.

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.

 

The post Braddell View estate collective sale relaunch at $2.08b reserve appeared first on iCompareLoan Resources.

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Singapore REIT Fundamental Analysis Comparison Table – 12 August 2019

Click on Singapore REIT Fundamental Analysis Comparison Table – 12 August 2019
for the source.
Author: Marubozu

Technical Analysis of FTSE ST REIT Index (FSTAS8670)

FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) broke out from the 10 years resistance at 875 with significant increase in trading volume. The REIT index is currently retracing from the high 941.77 to  895.14 (-4.95%). Next immediate support zone is between 870 to 875 for a healthy correction.  Previous chart on FTSE ST REIT index can be found in the last post Singapore REIT Fundamental Comparison Table on July 1, 2019.

Based on the current chart pattern and and momentum,  the sentiment is BULLISH and the trend for Singapore REIT direction is still UPThe recent selling can be a healthy correction before the REIT index can move higher.

 

Fundamental Analysis of 42 Singapore REITs

The following is the compilation of 42 REITs in Singapore with colour coding of the Distribution Yield, Gearing Ratio and Price to NAV Ratio. This gives investors a quick glance of which REITs are attractive enough to have an in-depth analysis. Added 3 new IPO (ARA US Hospitality Trust, Eagle Hospitality Trust and Prime US REIT) in this month table. Do take note that distribution yield for these 3 newly IPO are just a projection based on the IPO prospectus.

  • Price/NAV decreases from 1.07 to 1.05 (Singapore Overall REIT sector is over value now).
  • Distribution Yield increases from 6.22% to 6.37% (take note that this is lagging number). About 33.3% of Singapore REITs (14 out of 42) have Distribution Yield > 7%.
  • Gearing Ratio at 34.7%. 24 out of 42 have Gearing Ratio more than 35%. In general, Singapore REITs sector gearing ratio is healthy. Note: The current limit of gearing ratio for REITs listed in Singapore Stock Exchange is 45% but there is a consultation paper by SGX to review the potential increase to 50-55% limit.
  • The most overvalue REIT is Parkway Life (Price/NAV = 1.63), followed by Keppel DC REIT (Price/NAV = 1.58), Ascendas REIT (Price/NAV = 1.50), Mapletree Industrial Trust (Price/NAV = 1.47), Mapletree Logistic Trust (Price/NAV = 1.30), Frasers Logistic & Industrial Trust (Price/NAV = 1.30), CapitaMall Trust (Price/NAV = 1.28) and Mapletree Commercial Trust (Price/NAV = 1.28)
  • The most undervalue (base on NAV) is Fortune REIT (Price/NAV = 0.59), followed by OUE Comm REIT (Price/NAV = 0.75) and Far East Hospitality Trust (Price/NAV = 0.75).
  • The Highest Distribution Yield (TTM) is Eagle HT (9.0%), followed by SoilBuild BizREIT (8.67%), Sasseur REIT (8.45%), EC World REIT (8.42%), Lippo Mall Indonesia Retail Trust (8.26%),  First REIT (8.11%) ARA HT (8.04%).
  • The Highest Gearing Ratio are ESR REIT (39%), Far East HTrust (39.8%) and OUE Comm REIT (39.3%) and SoilBuild BizREIT  (39.4%)
  • Top 5 REITs with biggest market capitalisation are Ascendas REIT ($9.56B), CapitaMall Trust ($9.63B), Capitaland Commercial Trust ($7.65B), Mapletree Commercial Trust ($5.88B) and Mapletree Logistic Trust ($5.52B)
  • The bottom 3 REITs with smallest market capitalisation are BHG Retail REIT ($350M), Sabana REIT ($474M) and iREIT Global REIT ($499M)

Disclaimer: The above table is best used for “screening and shortlisting only”. It is NOT for investing (Buy / Sell) decision. To learn how to use the table and make investing decision, Sign up next REIT Investing Seminar here to learn how to choose a fundamentally strong REIT for long term investing for passive income generation

  • 1 month decreases from 1.88450% to 1.88250%
  • 3 month decreases from 2.00192% to 1.99783%
  • 6 month decreases from 2.06017% to 2.05792%
  • 12 month decreases from 2.18675% to 2.18500%

Based on current probability of Fed Rate Monitor,  the probability of another 25 bps cut in Sept is 80%.

 

Summary

Fundamentally the whole Singapore REITs is over value now based on simple average on the Price/NAV. The big cap REITs are getting quite expensive and the distribution yield are still not so attractive currently although those REITs are going through minor correction now. Most of the DPU yield for big cap REIT is below 5% now. The yield spread between big cap and small cap REIT remains wide. This indicates value picks only in small and medium cap REITs.

Yield spread (reference to 10 year Singapore government bond of 1.735%) has widened from 4.205% to 4.635%.  DPU yield for a number of small and mid-cap REITs are still very attractive  (>7%) although price has started moving north. The risk premium remains attractive as compared to big cap REITs.

Technically, the REIT index is currently going through correction but still trading in a bullish up trend. This bullish sentiment may continue due to the 3 macro factors (1) low interest rate environment (2) potential relax of gearing ratio to 50-55% limit (3) TINA (There Is No Alternative) for other high yield asset classes. The positive sentiment may entice Singapore REITs to take on more debt to grow the current portfolio.

You can catch me at the coming Invest Fair 2019 as I will be sharing my view on the current Singapore REIT market. You can also catch me in between the break if you want to ask me any questions regarding Financial Planning or Investment. You can check out the registration detail here. Kenny Loh @ InvestFair2019

 

If you need an independent professional review on your current REIT portfolio and need any recommendation, you may engage me in the REIT portfolio Advisory. REITs Portfolio Advisory.  http://mystocksinvesting.com/course/private-portfolio-review/