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Urgent loans can help you overcome short term hurdles

Click on Urgent loans can help you overcome short term hurdles
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Author: Ravi Philemon

Urgent loans can give you fast access to the cash you need and overcome a short-term financial hurdle

By: Hitesh Khan/

Sometimes life throws you a curve ball and you don’t have the financial capacity to cope. It could be an illness or injury, expensive car repairs or a short-term cash flow problem when several unexpected bills drop into your inbox at the same time.

urgent loans

Image credit: Public Domain Pictures

When this happens, you might need urgent loans to help pay your bills and get your finances back on track.

Urgent loans short-term loans designed to provide the funds you need in an emergency. You can use this money for just about any purpose, from urgent repairs to paying essential bills, and you must repay it during a term ranging from 2 days to one year.

Although a good credit history makes it easier to gain loan approval, some lenders also offer urgent loans to borrowers with bad credit.

More stringent personal loan restrictions to kick in from next year

There are several types of loans available to borrowers in Singapore:

1. Short-term loans

Also known as ‘Payday loans’, they are usually loans of between $1,000 and $35,000, and you typically pay the money back in line with when you receive your regular income. Payday loan lenders generally lend on the principle that the greater the risk that you represent to the lender, the higher the interest rate on the loan. Interest rates on loans with bad credit tend to start at a very high range.

2. Unsecured short-term loans

These types of personal loans do not require you to offer an asset as collateral for the loan. Usually available with a minimum loan term of one year, short-term unsecured loans need you to meet strict lending criteria and typically come with higher interest rates and fees than secured loans.

3. Secured short-term loans

If you do not qualify for a traditional loan and cannot stomach paying high interest rates under any circumstances, consider a secured personal loan. Secured loans offer a lower interest rate option for those with poor credit, since there is no credit check necessary — the lender has an asset that can be claimed or repossessed in case of non-payment. However, secured personal loans are limited to the value of the asset (or less, depending on the lender’s policies). You also have to weigh the lower interest rate against the risk of having an asset repossessed.

5 tips for boosting your chances of getting personal loans

Urgent loans usually include the following features:

  • Short-loan terms. You typically have between 2 days and 1 year to pay back the money you borrow.
  • A loan from $1,000. If you choose a loan from a payday lender, loan amounts range from $100 up to $2,000. Depending on your financial circumstances and the lender, it may be possible to borrow more through a secured or unsecured short-term loan, sometimes with amounts of up to $10,000 available.
  • High fees. Short-term loans also tend to attract higher fees than traditional personal loans. Look for establishment costs and ongoing monthly charges when you compare loans.
  • Fast application and approval. As these loans usually involve borrowing a small amount for a short period, many lenders offer quick and easy applications. Some lenders can also provide instant loan approval and transfer the funds into your bank account within one business day.
  • Missed repayment penalties. One final feature you should be aware of with urgent loans is that lenders usually impose strict penalties if you miss a repayment. These fees can be substantial and could lead you further into debt.

Nobody wants to pay a higher interest rate than he or she has to, so consider the purpose of your urgent loans before applying. Is it for debts or upcoming expenses that require immediate attention, or can the loan wait until you have an opportunity to build up your credit score and receive a better rate?

Only you can answer that question, but at least be sure to ask the question before you rush into getting urgent loans.

urgent loans do ensure that you have alternatives, but be sure to check them out thoroughly. Review the terms to make sure that you understand all the fees and potential charges, and calculate the total amount of money you will pay over the life of the loan. Choose poorly, and you could be caught in a seemingly endless debt cycle. Choose wisely, and you could be on your way to improving your financial position while rebuilding your credit.

How to Secure a Personal Loan Quickly

If you have limited capital and are searching for a personal loan to expand your business, 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.

The post Urgent loans can help you overcome short term hurdles appeared first on iCompareLoan Resources.

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New private home sales crashed in December

Click on New private home sales crashed in December
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Author: Ravi Philemon

Statistics from the Urban Redevelopment Authority (URA) showed that new private home sales crashed 50.1 per cent month-on-month in December 2018 to 601 units. In comparison, 1,201 units new private homes sales were made in November.

On a year-on-year basis however, new private home sales climbed 39.7 per cent.

URA noted how Parc Esta reported the most units sold in December with 160 with at a median price of $1,687 psf. It was followed by Whistler Grand with 128 units sold at a median price of $1,327 psf. Rounding up the top five private residential projects for December were Riverfront Residences (47 units sold), Parc Colonial (43 units sold) and Stirling Residences (34 units sold).

Commenting on the new private home sales for December 2018, Ms Tricia Song, Head of Research for Singapore, Colliers International said:

“Despite the sharp drop-off in new private home sales in December against November, the number of units sold last month – 602 (excluding Exec Condos) – was actually quite encouraging considering the absence of any new project launches and the year-end festive period where market activities tend to slow substantially. In fact, it was the highest sales done in the month of December since 1,410 units were sold in December 2012.

Developers’ sales last month fell by 49.9% from November to 602 (excl. ECs), but were up by 39.7% against the 431 units transacted in December 2017. After accounting for units that were returned in the quarter, we estimated the total new home sales for the full 2018 to come in at 8,706 units, down by 17.6% from the 10,566 units in 2017 – broadly in line with Colliers’ forecast. Including ECs, developers sold a total of 605 new units in December.

new private home salesHome buyers continued to pick up units from projects that were launched in November – notably Parc Esta and Whistler Grand – as well as those from earlier launches. The top-selling private residential projects in December were: Parc Esta which sold 160 units at a median price of SGD1,687 psf; Whistler Grand which moved 128 units at a median price of SGD1,327 psf; Riverfront Residences where 47 units were transacted at a median price of SGD1,313 psf; and Park Colonial which sold 43 units at a median price of SGD1,729 psf.

Projects that have continued to sell well seemed to have found the right pricing formula in the post-cooling measures regime. These projects – Riverfront Residences, Park Colonial, Stirling Residences and The Tapestry – are now seeing total sell-through at 40-65%, while holding prices relatively steady at SGD1,313 – 1,745 psf.

Looking ahead, we expect sales to be supply-led again as the pace and number of new launches continue to dictate takeup rate. In 2019, we estimate that 55-60 projects that make up over 17,000 units could be launched. However, some of these may spill over to 2020 depending on market conditions.

Fourth Avenue Residences, Fyve Derbyshire and RV Altitude have started previews in early January and would be launched in the next few weeks.”

New private home sales are likely to remain fairly subdued in January due to the limited number of launches and the Chinese New Year festivities in February, said Ms Song. She added that other potential projects that could be put on the market in Q1 2019 include: Treasure@Tampines, former Normanton Park and former Amber Park.

Colliers said that in the near-term, it believes demand side factors such as household income growth, job security, household formations should continue to support the private residential market. For 2019, it forecasts that developers could potentially sell 9,500-10,000 new homes given the steady pipeline of upcoming projects.

Commenting on the new private home sales, CBRE said that for the whole of 2018, 9,264 units were sold, a shade paler to last year’s total of 10,566 units which can be partly attributed to the July cooling measures.

It added: “Going forward, benchmark land prices are likely to prop up selling prices. The government intervention and weak sentiments will cause prices to grow on a more moderate and sustainable trajectory. On the other hand, demand will be kept in check with tighter financing requirements as well as higher financing costs in a rising interest rate environment.

As a result, despite the robust pipeline of launches coming onto the market, CBRE expects sales momentum for 2019 to slow down to the underlying demand levels we have witnessed from 2014 to 2016, on the back of global uncertainties and weak sentiments.

This year, we expect developers to focus on clearing their existing inventory. Nonetheless, government land sales will continue to attract developers that have been successful in moving sales over the past 12 months or those who have smaller land banks.”

How to Secure a Home Loan Quickly

Are you planning on buying residential property 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 New private home sales crashed in December appeared first on iCompareLoan Resources.

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Singapore home price growth to moderate to 2% in 2019

Click on Singapore home price growth to moderate to 2% in 2019
for the source.
Author: Ravi Philemon

One of the the world’s most recognised statistical rating organisations has predicted that the home price growth here will moderate in the next two years. According to Fitch Ratings in its 2019 Global Housing and Mortgage Outlook report, Singapore home prices are expected to show moderate growth of 2% in 2019 and 3% in 2020.

home price growthThe report said: “Fitch expects home price growth to be moderate at 2% in 2019 and 3% in 2020, as a fresh round of regulatory tightening from 2018 and rising interest rates are likely to weigh on buyer sentiment.”

The report referred to the authorities raising the additional buyer’s stamp duty on purchases other than first homes for Singapore residents by an additional 5-10 pp in July 2018, and the tightened various Loan-To-Value limits each by 5pp (including to 75% for first homes and 45% for second homes) as reasons for the home price growth moderation in the next 2 years.

The report noted that the moves were aimed at cooling the property market as home price growth had begun to accelerate again.

It added that the rising mortgage rates should further temper property price inflation but there will still be upward price pressure as household income is expected to continue to grow faster than home prices, which will improve affordability.

Delinquencies to Rise
Fitch expects the housing non-performing loans (NPL) ratio to rise to 0.7% in 2020 from the 0.4% projected for 2018 as Singapore mortgage rates continue to climb. Mortgage rates in this primarily floating-rate market are expected to follow the policy rate, which should be influenced by further US rate rises, as short term rates in Singapore and the US have historically shown a fairly strong correlation.

Fitch however expects that any increase in delinquencies would be limited due to support from rising household incomes, a tight labour market and strong household balance sheets.

Fitch forecasts the unemployment rate to remain low at 2% in 2019 and 2020. The housing NPL ratio was 0.4% in 2Q18 and the statistical rating organisation expects it to rise only slightly to 0.55% in 2019 and 0.65% in 2020.

Moderate Lending Growth
Fitch forecasts moderate growth in mortgage lending of 3% in both 2019 and 2020. The agency expects owner-occupied home purchases to remain the main driver of mortgage loan growth, though momentum is likely to be weak in 2019-2020 due to slowing home prices, rising interest rates, low population growth and the regulator’s cooling measures.

List Sotheby’s compiles list of neighbourhoods for super-rich in Singapore

In October last year, a note by analysts at Morgan Stanley said that Singapore private home prices may rise as much as 10 per cent by the end of this year. According to the note, Singapore private home prices are set to double by 2030 as faster income growth overpowers recent property curbs and higher interest rates.

Noting the Singapore private home prices hike in four of the five previous rate-hike cycles, the American multinational investment bank and financial services company said faster economic growth, the Republic’s attraction as a global hub, as well as demand from buyers flush with cash from en bloc sales, will underpin the housing market.

Morgan Stanley’s bullish prediction on the upward direction of the Singapore private home prices comes after another prominent real estate services company suggested that the property market here will collapse after the property cooling measures.

Cushman & Wakefield Inc in speaking to Bloomberg pointed out that the Government’s latest property cooling measures have caused the en bloc sales market collapse. In referring to data compiled by her company, Christine Li, head of research for Singapore at Cushman said, “the collective sales market was decimated after the recent cooling measures.”

New home sales for first 3 quarters at an encouraging 7,220 units, URA data shows

Morgan Stanley analyst Wilson Ng and his colleagues said: “Contrary to common perception, we believe housing supply/demand dynamics remain favourable, and we anticipate a wave of capital inflows into the housing market. Housing supply is still below historical averages and set to fall.”

The property cooling measures – higher additional buyer’s stamp duty (ABSD) and lower loan-to-value (LTV) limit – took the market by surprise as recent trends suggest that the private residential market is finding its own equilibrium. The en bloc sales market collapse have been amplified by developers being less active in the collective sale market, while new homes sales at some recent launches have moderated.

The introduction of these fresh property cooling actions a year into market recovery, after four years of decline, was aimed at calming the euphoria in the private residential sector. Home prices had risen by 3.9 per cent in Q1 2018, and another 3.4 per cent in Q2 according to flash estimates. The price growth – which was tapered in the last quarter – was largely driven by the brighter economic outlook, pent-up housing demand and more positive market sentiment.

Morgan Stanley analysts however, feels that there is no need to be alarmist. It expect policy interventions to apply equally to both up- and down-cycles.

How to Secure a Home Loan Quickly

If you are to keen invest in properties before the home price growth escalates, but are ensure of funds availability for purchase, our mortgage consultants at iCompareLoan can set you up on a path that can get you a home loan in a quick and seamless manner.

Our consultants 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 your existing one, 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 Singapore home price growth to moderate to 2% in 2019 appeared first on iCompareLoan Resources.

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Commercial loans are easier to get if you know what lenders are looking for

Click on Commercial loans are easier to get if you know what lenders are looking for
for the source.
Author: Ravi Philemon

Commercial loans are not given out just because you walk into a lender’s office with a great business plan

By: Phoenix Lee/

Commercial lending can be used for initial expenses, financing ongoing operations, or major investments in equipment, but financial institutions do not dish out commercial loans just because you walked into their office with a great business plan.

The most common – and generally the easiest – reason to get a commercial loan is for expanding your business, either by opening new locations, entering new territories, or otherwise increasing the scope of your current operations. Lenders see that your business is succeeding and are willing to loan you money to do “more of the same.”

Other reasons for a bank loan are to:

  • improve facilities and conduct renovations
  • invest in major equipment
  • boost working capital
  • build up inventory

Unfortunately, the time when you need money the most is when it’s hardest to get commercial loans: during the startup phase.

You simply won’t get a new business loan by walking into a bank with an idea and enthusiasm – and the same goes for buying an existing business. You need to demonstrate an understanding of the industry, business acumen, and commitment. You need to be clear on how much you need. Thoroughly research costs and understand how the flow of cash in your business will influence your ability to repay a loan.

Before getting commercial loans, you should know what banks look for and prepare for it:

  • Character and credit history of the borrower
  • Loan documentation: financial statements, tax returns, and a business plan
  • Cash flow history and projections for the business
  • Collateral that is available to secure the loan

Get a credit report on yourself and your business. The smaller the business, the more closely the experience, know-how and overall character of the owner(s) will be evaluated. You are often judged on your personal credit – especially if your business does not have a long operating history.

You need to build a credit history to give banks an idea of how responsible you are – they will assume that you operate your business in the same manner that you manage your personal finances.

  • You need to monitor what banks see when they pull your credit report.
  • Check your credit report well in advance of seeking a loan because it can take up to four weeks for errors to be corrected.
  • Continually monitor your credit to check for errors or omissions.
  • Know your credit score. The higher the score, the lower risk you pose to lenders — and the lower interest rate you will be able to secure.
  • Every commercial lending application you submit will be listed on your credit record – if you are turned down by one lender, the next will see that you were declined already. Make sure to do everything you can to get it right the first time.

commercial loansBe prepared to have several key documents on hand before you even set foot in a bank. These should include personal financial statements, tax returns, monthly cash flow projections, and a well-prepared business plan.

You will need financial statements for your business to show how much it’s worth and how much money you are making. Prepare detailed pro-forma statements. These give projections about what your business will be worth going forward. Be sure you have an updated business plan. Prepare a plan with as much detail as possible – including bios of you and your partners, your track record, your strategies and advantages, and more. Supply a well-organized plan of how you intend to use the loan.

5 tips for boosting your chances of getting personal loans

The most important component to a lender is whether the business’s ongoing sales and collections represent a sufficient and regular source of cash for repayment on a loan. A business’s cash flow will usually include not only the money that goes in and out of the business from its operations (sales less expenses), but also any cash flow from investments or financial activities (e.g., payments and receipts of interest and dividends, long-term contracts, insurance, sales or purchase of machinery and other capital changes, leases, etc.)

You may need to provide collateral. Collateral may be defined as property that secures a loan or other debt, so that the property may be seized by the lender if the borrower fails to make proper payments on the loan.

More stringent personal loan restrictions to kick in from next year

In order to ensure that the particular collateral provides appropriate security, the lender will want to match the type of collateral with the loan being made. For example, the useful life of the collateral will typically have to exceed, or at least meet, the term of the loan. Consequently, short-term assets such as receivables and inventory will not be acceptable as security for a long-term loan, but they are appropriate for short-term financing such as a line of credit.

How to Secure Commercial Loans Quickly

If you are searching for a business expansion 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 – whether it is business expansion loans or mortgage loans – 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.

The post Commercial loans are easier to get if you know what lenders are looking for appeared first on iCompareLoan Resources.

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Land tenders for GLS closed with bids received above expectation

Click on Land tenders for GLS closed with bids received above expectation
for the source.
Author: Ravi Philemon

The Urban Redevelopment Authority today announced that it has closed land tenders for hotel site at Club Street and residential site at Kampong Java Roa. The public tenders for the two sites at Club Street and Kampong Java Road were launched on 27 September 2018 and 31 October 2018 respectively. The Housing & Development Board (HDB) said in a separate announcement that it has closed the land tender for the land parcel at Tampines Avenue 10.

For the land parcel at Club Street, 8 bids ranging from $314,007,600.00 to $562,200,000.00 were received. For the land parcel at Kampong Java Road 7 bids ranging from $321,823,399.00 to $418,380,000.00 were received.

The following bids were received for the land parcel at Tampines Ave 10:

S/N Name of Tenderer Tender Price
($)
$psm/GFA
($)
1 Hoi Hup Realty Pte Ltd and
Sunway Developments Pte Ltd
$434,450,000 $6,222.87
2 MCC Land (Singapore) Pte Ltd $431,618,000 $6,182.31
3 CDL Constellation Pte Ltd and
TID Residential Pte Ltd
$414,288,000 $5,934.08
4 Qingjian Realty (Residential) Pte Ltd. and
Evia Real Estate (8) Pte Ltd.
$408,888,899 $5,856.75
5 Sim Lian Land Pte Ltd $377,250,000 $5,403.57
6 Creative Investments Pte Ltd,
Santarli Capital Venture Pte Ltd and
Kay Lim Realty Pte Ltd
$364,488,988 $5,220.78
7 JBE Development Pte Ltd $335,000,000 $4,798.40
land tenders

Image credit: Youtube Screengrab

The Government agencies said that a decision on the award of the land tenders will be made after the bids have been evaluated and that this will be published at a later date.

Commenting on the Government land tenders for three sites – Club Street, Kampong Java Road, and Tampines Avenue 10 EC which closed on 15 January 2019, Colliers International said all the top bids have come in above its expectation, particularly for the hotel site in Club Street.

Ms Tricia Song, Head of Research for Singapore, Colliers International said:

“Broadly, the outcome of this batch of public land tenders reflects the impact of the new cooling measures that were introduced in July 2018, as developers shift their focus to the hotel and executive condo (ECs) segments amid brighter outlook for the tourism industry and continued appeal of the ECs among middle class households in Singapore. Meanwhile, the relatively tight bidding – especially among the top and second highest bids with a difference of 0.27% – for the District 9 Kampong Java Road site shows that developers are more cautious about the residential market.

What stood out in this latest batch of land tenders is the fairly aggressive bid for the Club Street plot – the first hotel site to feature in the GLS Confirmed List since the Bukit Chermin Road plot in H2 2008 land sales programme.

Club Street (Hotel)
While the SGD562.2 million bid (SGD2148.5 psf per plot ratio) may seem particularly bold, we think the bidder Midtown Development – which has developed hotels including Hotel 81 – would be working on a basic economy model, potentially build up to 800 rooms on the site, assuming thereby making more efficient use of the plot. This could bring the breakeven cost to SGD800,000 per key and still generate decent yield. In addition, there is a 4,800 sqm commercial space component that could support income.

The wide price gap of 12.4% between Midtown and the second top bidder – United Venture Investments (No. 1) Pte. Ltd or UOL, reflects the confidence of the former in the location amidst a general return of interest in the hotel sector.

Kampong Java (Private Residential)
The Kampong Java site, the first private residential land tender to be launched on the Confirmed List since the minimum average unit size guidelines, saw a good turnout of seven bidders. However, the top bid was below our expectations, a testament to the cautious mood of the developers.

The top bidder is Chip Eng Seng, who has been rather successful with its Park Colonial launch since July 2018 and is ready to replenish its landbank. At SGD1,192 psf ppr, we expect a breakeven price of SGD1,700 psf and a selling price of SGD1,900-2,000 psf.

Tampines Avenue 10 (Executive Condominium)
The top bid of SGD578 psf ppr for the Tampines Avenue 10 EC plot is the second highest on record for EC land, after Sumang Walk’s SGD583 psf ppr in March 2018. ECs have remained popular with developers post-measures given the limited supply. The new minimum average unit size of 85 sq m should also have minimum impact for ECs as ECs are targeted at families in the first place and the average unit size suggested by the development cap of 700 units is well above the 85 sq m.

Nearby, new private condo project The Tapestry has sold 561 units or 65% as of end-December 2018 at an average price of SGD1,350 psf since its launch in March 2018.

We expect a breakeven price of SGD920 psf ppr and a selling price of SGD1,050 psf.”

How to Secure a Home Loan Quickly

Are you planning on buying residential property 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 Land tenders for GLS closed with bids received above expectation appeared first on iCompareLoan Resources.

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5,000 households disposed their private properties after purchasing HDB resale flats

Click on 5,000 households disposed their private properties after purchasing HDB resale flats
for the source.
Author: Ravi Philemon

In keeping with the Government policy requirement to dispose private property when buying HDB resale flats, 5,000 households disposed their private properties in the last eight years. The Minister for National Development revealed these figures in answering a parliamentary question.

The Minister responded to the Workers’ Party MP, Muhamad Faisal Abdul Manap who asked:

“…with regard to the requirement to dispose private property within six months of the effective date of purchasing a non-subsidised or resale flat how many cases of private residential property in Singapore and overseas have been so disposed since the inception of this policy; how many appeals asking for retention of such property have the Ministry received; and how many of such appeals are approved and what is the basis for the approval.”

The Minister responded to MP Faisal and said:

“HDB flats are meant for owner-occupation. To reinforce this principle, buyers of HDB resale flats are not allowed to retain ownership of local or overseas private properties.
Since the policy was introduced in Aug 2010, slightly over 5,000 households have disposed of their private properties when they purchased flats from the resale market. In the last 3 years, about 1,200 households appealed to retain their private property. Of these, HDB acceded to about 300 appeals after considering the specific facts of each case, taking into account factors such as the owner’s share in the private property, and the reasons why the private property cannot be recovered for his or her own use.”

HDB chief suggests buyers should pay less for resale flats with shorter leases

The Government policy requirement to dispose private property when buying HDB resale flats came into effect in 2010. The policy required private property owners who buy an HDB flat to dispose of their private homes within six months.

Prior to the policy introduction, around half of private property owners who buy an HDB flat sold their private properties. The other half did not dispose their private property and held on to both properties.

dispose private property

Image Credit: Wikimedia Commons

The policy to dispose private property meant that investors who were till then able to purchase HDB flats and keep their private property for investment purposes, were unable to do so.

The Government enacted the policy to dispose private property as a counter-measure as Singapore’s strong economic growth, low interest rates and high liquidity continued to push home prices up in 2010. This sparked concerns of a property bubble.

Before the introduction of the policy to dispose private property, private home prices were up 38 per cent year on year, while HDB resale prices climbed 15 per cent over the same period.

‘Older HDB flats still have values’, Minister assures homeowners

Then Minister for National Development, Mah Bow Tan, justified the introduction of the policy to dispose private property and said: “If the current momentum in the market continues, what will likely happen is that a property bubble will form. And when the bubble bursts – not if, but when it bursts – there will be severe implications for individuals as well as for the economy as a whole. Furthermore, the very low interest rates we are seeing today are not sustainable in the long run.”

With the policy initiatives introduced in 2010, HDB owners who want to own a private property can purchase one after the 5-year Minimum Occupation Period. In contrast, a private property owners who want to buy HDB flats need to sell any private properties that they own.

The policy to dispose private property means that if you want to own both a HDB flat and a private property, you need to buy a HDB flat first, wait 5 years, and then buy a private property after that. The policy changes also required HDB flat owners to occupy their flats for a minimum occupation period of 5 years before they are allowed to invest in local and overseas private property.

When the policy was introduced, some had argued that a fairer, more efficient way would be to re-look the Minimum Occupation Period, especially for those who are not taking any government grants to buy their HDB flat. The policy may disadvantage some group of people – for example, an elderly couple who would like to buy a 3-room resale HDB flat to stay in while they rent out their private property unit for passive income.

When buying HDB resale flats, private property owners, along with their spouses, co-applicants and any occupiers listed in the resale application, must dispose of any existing ownership or interest in any private residential property within six months from the completion of the purchase of a resale flat.

How to Secure a Home Loan Quickly

If you want to enquire about upgrading from an HDB flat to a private property and have questions if you can do that, the mortgage consultants at iCompareLoan mortgage 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. Plus you can find out about 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.

If you need advice on a new home loan.

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Business lenders will loan you money if you have these factors

Click on Business lenders will loan you money if you have these factors
for the source.
Author: Ravi Philemon

There are five basic factors that all business lenders look at before they will agree to loan you money for your business.

By: Hitesh Khan/

1. Credit history. One of the primary factors business lenders look at is the condition of your personal and business credit. This is reflected in your credit score. Before you even start shopping for a loan, request a copy of your credit report from all major reporting agencies. Review it carefully for mistakes, and resolve any discrepancies before you start the application process. Your personal credit score is associated with your personal tax number, but business credit reports are tied to your corporate tax number.

Business lenders will want to review both the credit history of your business (if the business is not a startup) and, because a personal guarantee is often required for a small business loan, your personal credit history.

If you want a lender to consider your business loan applications better, it is important to obtain a credit report on yourself and your business before you apply for credit.

If you discover any inaccuracies or problems, you can correct them before any damage to your loan application has occurred. If you can, find out which credit reporting company your prospective lender uses and request a report from that company.

Before you apply for commercial credit, you should review a credit report on your own business, if your business has been in existence for a while. Most conventional lenders will expect a minimum of four or five trade experiences listed on a business report before they consider the business creditworthiness. If you have been operating your business without credit, or with personal assets, you should consider making some trade credit purchases in order to establish a credit history for your enterprise.

Consumer credit agencies are required to remove any information from the report that cannot be verified or has been shown to be inaccurate. However, before you submit a letter disputing any debt to the credit reporting company, it’s often a good idea to contact the relevant creditor directly. If an error was made, you can often clear up the dispute more quickly if you take the initiative.

If the dispute is not resolved and your credit report is not adjusted, you have the right to file a statement or explanation regarding the alleged debt with the credit report.

2. Vested interest. Business loan applicants should have a reasonable amount of equity invested in their businesses.

business lendersBusiness lenders want to know that you will work hard to make your business a success.

When they see that you have invested a substantial amount of your own money in your venture, they will assume that you will work hard to make it a success. Also, strong equity with a reasonable amount of debt can help a business weather tough economic times. Little or no equity leaves a business vulnerable, increasing the risk of default.

3. Working capital. Working capital is your current assets less your current liabilities. Working capital can also be thought of as cash on hand, or what is available to pay current debts and keep your business running. A lack of adequate working capital increases the risk that your business will fail, and makes business lenders much less likely to issue you a loan.

Close look at small business loan documents now could save you headaches later

4. Ability to repay. Business lenders want to see two sources of repayment: cash flow from your business and a secondary source — typically collateral. Lenders will look at your past financial statements, including those of any business partners. They will want to see your:

  • Personal assets and liabilities
  • Personal tax returns for the past three years
  • Balance sheets for the past three years
  • Profits and loss statements for the last three years
  • Accounts receivables and payable aging

If your business has consistently made a profit, you are more likely to get approved. But if your business has not been consistently profitable, you can increase your chances of getting a loan by including detailed information of new opportunities, new contracts, or other information showing that your company is not a “risky business.”

Many lenders also require evidence of collateral. Collateral can be business assets and personal assets outside the business. If you plan to purchase equipment and other assets with borrowed funds, you can assume that this will be used as collateral for the loan.

There are credit cards which will give you a credit limit even if you don’t earn 30K

5. Experience and character. With a few exceptions — franchises are a notable one — you should have experience in the type of business you plan to run. If you don’t, lenders may expect you to hire or partner with people who have appropriate experience. At the very least, you should be able to point to business acumen and managerial experience.

How to Secure a Business Expansion Loan Quickly

If you are searching for a business expansion 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 – whether it is business expansion loans or mortgage loans – 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.

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Boutique Hotel at Desker Road for sale at guide price of $28 – $30 million

Click on Boutique Hotel at Desker Road for sale at guide price of $28 – $30 million
for the source.
Author: Ravi Philemon

A 25-room freehold boutique hotel on Desker Road in the Little India vicinity is up for sale by expression of interest (EOI). The site has a guide price of about $28 million to $30 million, according to marketing agent Knight Frank.

hotel

Image credit: Knight Frank Singapore

The property is currently operating under the name of Hotel Marrison @ Desker, with an average occupancy rate of over 85% in the last two years.

It sits on a land area of 6,664 sq ft, with a total gross floor area of about 12,270 sq ft. The property comprises six adjoining units of two-storey shophouses with attic, and has an eating house situated on the ground floor. It has dual frontages onto Kampong Kapor Road and Desker Road.

The EOI exercise will close on Feb 26, 3pm.

Singapore is one of the world’s leading destinations for business travellers and leisure-seeking tourists due to its geographical location, stable business environment, enticing retail offer and world class infrastructure.

New hotel brands are set to make their mark. As a haven for long-term investment, Singapore remains popular among investors seeking hotel ownership within the region. ​​​

A JLL Research Report titled ‘Singapore – The Next Chapter in Hotels and Tourism’ released in 2017 noted that in 2017, just over 3,000 new hotel rooms will enter Singapore leading to an increase of approximately 5% on existing rooms.

The report said:

“The bulk of this new supply comes from the midscale market (37%) followed by the upscale market (33%). The growth of both markets is in line with a structural shift in corporate accommodation requirements via new employment industries growing in prominence. These new industries include financial technology or ‘FinTech’, where professionals in this sector often have lower corporate travel budgets preferring both midscale or upscale hotels as opposed to luxury.

More ‘affordable luxury’ hotel brands are now making headway in Singapore as they embark on a spate of new launches. Affordable luxury hotels are increasingly common as the concept of luxury democratises. According to a report by Euromonitor, affordable luxury has emerged as a growing sector – a result of the upscaling of mass market accommodation options and the anti-premiumisation of the traditional luxury market.

The ‘luxury’ segment (28% of new supply) is also notable. New entrants to the market will include Sofitel Singapore City Centre, The Duxton Club-House,a Luxury Collection Hotel, the InterContinental in Roberston Quay and an Andaz located in Bugis – the first Hyatt-operated hotel in Singapore since the Grand Hyatt in Scotts Road opened in the early 1970s.

New entrant Yotel will open with 600 ‘cabin’ rooms in Orchard Road in September 2017. A growing number of similar-styled hotels have opened in recent years across Asia to cater for the rise in single travellers looking for lower-priced fully-equipped rooms at an affordable nightly rate. This hotel concept offers opportunities to socialise with other guests in shared leisure facilities. This is the first foray of the Yotel brand in the region.

Looking forward, new room supply into Singapore is expected to taper down significantly in 2018. It has been around three years since Singapore’s government released land for future hotel development under the Government Land Sales (GLS) programme and given current sentiment, new plots for hotel development are unlikely.”

The report noted that in terms of room supply, the market is nearing the end of a protracted rise in new hotels.

“Known new hotel projects post-2018 suggest substantially slower hotel supply growth longer term. Market commentators have been quick to highlight an apparent ‘oversupply’ in the city but it should be noted that occupancy has still comfortably withstood rates above 80% over the last year.

Overall, Singapore’s hotel and tourism outlook is positive long term. Trading performance has compared favourably to many regional hub markets and it won’t be long before demand and supply are back in balance.”

As a haven for long-term investment, strong trading performance and capital appreciation in terms of hotels, Singapore is well sought after amongst investors seeking hotel ownership within the region. However, despite the significant interest, deals have been limited in recent years because of the lack of opportunity to acquire properties.

How to Secure the Best Commercial Loans Quickly

iCompareLoan is the best loans portal for commercial loans, 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 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 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 best home loan packages for their clients, so that they may 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.

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HDB rental flats are only for those with no viable housing options or family support

Click on HDB rental flats are only for those with no viable housing options or family support
for the source.
Author: Ravi Philemon

In responding to a parliamentary question of what is the demographic and socio-economic profile of HDB rental flat applicants, the Minister for National Development said that HDB’s public rental flats cater to households with no viable housing options or family support.

The Minister for National Development was responding to a question by Member of Parliament Zainal Sarpari who had asked:

  • what is the total number applications for HDB rental flats in the last two years;
  • what is the demographic and socio-economic profile of these applicants;
  • what is the percentage of rental flat applicants who have owned a HDB flat before;
  • what are the reasons why applications are not successful;
  • what are the usual circumstances that lead to the applicant needing rental housing; and
  • what housing options are available when family support is not forthcoming for the applicants in terms of alternative accommodation.

The Minister in answering the question in Parliament said that in the last 2 years, an average of about 7,300 households requested for rental flats each year,

He added that although they should meet the criteria of having no viable housing options or family support, the demographic and socio-economic profile of these households is varied.

HDB chief suggests buyers should pay less for resale flats with shorter leases

According to the data provided by the Ministry of National Development, 90 per cent of such households with no viable housing options or family support had a household income of $1,500 or less. About 40% these applicants were divorced or widowed, and a similar proportion were married.

Applicants cited various reasons for needing rental housing, such as the inability to afford a flat after divorce or due to loss of employment or medical issues. Close to half of the households in public rental have owned an HDB flat before. And the most common reasons for unsuccessful applications include having sufficient budget to buy a flat, not meeting the citizenship requirement, or having family support for alternative accommodation.

viable housing options

Copyright: iCompareLoan

The Minister said that in cases where there are viable housing options or family support, but such help is not forthcoming, HDB will refer them to a Family Service Centre for mediation or counselling assistance.

He added that if mediation is unsuccessful, and the applicants cannot afford to buy a flat, HDB will be prepared to offer an interim rental or a public rental flat.

In responding to Member of Parliament Joan Pereira’s question of whether the National Development Ministry will consider allowing grandparents and grandchildren to be considered as part of a family nucleus when renting a HDB flat under the Public Rental Scheme, the Minister responded that HDB assesses all requests for a public rental flat on a needs basis.

He added that for households that do not meet the eligibility criteria, such as grandparents requesting to rent with their grandchildren, HDB will look into their individual circumstances and assist them with rental housing if they are unable to buy a flat, and have no viable housing options or family support.

‘Older HDB flats still have values’, Minister assures homeowners

Flats under the Public Rental Scheme are heavily subsidised to cater to Singapore Citizen (SC) households who have no other housing options. As the number of rental flats under this scheme is limited, you must fulfil certain eligibility criteria to apply for a rental flat.

You can rent a flat under the Public Rental Scheme as a family or a single. If you want to rent a HDB flat under the family scheme, you must fit the following criteria:

  • You must be a SC
  • You must include at least another SC or a Singapore Permanent Resident (SPR) in your basic family nucleus.
  • Your family nucleus must comprise any of the following:
    – You and your spouse
    – If single, you and your parents
    – If widowed/ divorced*, you and your children under your legal custody (care and control)
    – Fiancé and fiancée
    – If orphaned, you and your siblings (at least 1 parent was an SC or SPR)

*If the care and control of your children under the age of 21 is shared with your ex-spouse, you must obtain his/her written agreement before you can list your children in a flat application.

Under the Joint Singles Scheme, you can apply for a HDB Rental flat if you meet the following criteria:

  • You and your listed occupier must be SCs
  • Both of you must be single
  • Any of the following are considered as singles:
    – Unmarried and at least 35 years old
    – Divorced or legally separated from spouse, with legal documents, and at least 35 years ol
    – Widowed or orphaned (at least 1 parent was an SC or SPR)

How to Secure a Home Loan Quickly

If you want to enquire if you can take a bank loan to buy a HDB flat, the mortgage consultants at iCompareLoan mortgage 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. Plus you can find out about 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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CBRE brokers the largest single-asset industrial deal in Singapore in the last year

Click on CBRE brokers the largest single-asset industrial deal in Singapore in the last year
for the source.
Author: Ravi Philemon

CBRE announced on Jan 4 that it had brokered the sale-and-leaseback transaction for a 25-hectare site in Tuas South Avenue 14. The site Tuas South Avenue 14 accommodates an integrated industrial and warehouse facility with a total gross floor area of 1.6 million sq ft.

Tuas South Avenue 14

Image credit: Google Map

The site in Tuas South Avenue 14 was sold to LOGOS and 100% leased back to REC for 20 years for the conversion of polysilicon into wafers, solar cells and solar panels.

Mr Rimon Ambarchi, Executive Director of Industrial and Logistics Services, CBRE, said, “We are delighted to start the new year strongly with the announcement of Singapore’s largest single-asset industrial transaction in the last year. Sold at S$585 million to LOGOS via a sale-and-leaseback agreement, leading solar firm REC will continue to produce solar panels at this highly advanced facility in Tuas.”

He added: “We have been experiencing strong demand from a wide variety of institutional investors for high quality industrial real estate in Singapore. These investors are attracted by the relatively strong yields that are still available in this strong core market.”

The site in Tuas South Avenue 14 is located next to the future Tuas Mega Port, which when completed in 2040, will house all of Singapore’s future container activities and handle up to 65 million standard-sized containers, an increase from the current 40 million.

JTC said in its report last year that the supply pipeline for warehouses and single user factories is mainly in the West Region, while factory stock is concentrated in the West, North East and North Regions. The successful brokering of the mega-site at Tuas South Avenue 14 comes at a time when tapering supply is coming on stream from 2019 onwards. The average rents and prices are expected to stabilise across all segments with this tapering supply.

The business park segment is expected to continue to outperform the general market given steady demand, while logistics/warehouse rents could potentially see some upside by year-end on the back of an expected reduction in vacant stock.

Investments in industrial property market rose in popularity following the cooling measures imposed on the residential segment in 2011 and 2013. Unlike residential property, industrial property is typically not an option considered by most Singaporeans unlessthey are an investor or business owner.

The pool of local buyers for the industrial property market therefore is much smaller. Furthermore, buying an industrial property is more complex and varied. It is also less speculative compared with residential property segment.

An important differentiation is that additional buyer’s stamp duty (ABSD) is not applicable for buyers of industrial property. This is a major reason for swaying potential buyers towards industrial properties.

Another key difference in buying from the industrial property market is that buyers are not able to use their savings in their Central provident Fund (CPF) to fund their purchase unlike for a residential property probably as unlike homes, these purchases are deemed non-essentials. This essentially means buyers should have enough cash to pay the down payment.

When buying an industrial property, it is important to look out for the condition of the amenities and facilities such as lift, toilets, maintenance of air conditioning, security, lighting, fire safety as you (or your tenant, or customer, or staff) will probably have to bear with the overall condition of such facilities. This is unlike residential properties where buyers only have to take into consideration their personal preferences and the fact that buyers will have some of these basic amenities in their homes.

Industrial properties in Singapore are typically leasehold, with the most common being 60-year ones. But there are industrial properties with 30-, 99-, or 999-year leases. Freehold industrial properties command a premium and are mostly situated in suburban areas.

The maximum loan tenure for purchases in industrial property market will depend on the remaining lease of the property. This typically stands at 30 years and generally they would be lower if the lease of the property becomes less.

The loan to value (LTV) is typically up to 80% for industrial property loan. Generally, banks offer a lower LTV for industrial property and are more stringent.

Total debt servicing  ratio (TDSR) is another dampener for those who want to purchase a property from the industrila segment. TDSR applies when the buyer purchases an industrial property under company name, in that it applies on the individual director’s income if the company is an investment holding company or an operating company that is loss-making or does not have sufficient cash flow to servicing the repayment.

To buy an industrial property under company name where the company is well established with an existing operating business with strong financials, TDSR may be waived on the individual. However the director is usually required to become personal guarantors of the loan the company undertakes. Hence this may affect the director’s other purchases (e.g. residential property purchases due to the loading from the TDSR for guaranteeing a loan).

Some banks sometimes advertise 100 to 120% loans, but this is due to a combination of working capital as well as industrial property loans. This however applies only to companies with strong cash flow position.

The types of loans for industrial properties are different from residential properties as the banks’ considerations are more complex and varied. This is one major reason why anyone considering the purchase of real estate from the industrial property market should engage a mortgage consultant.


If you are searching for a warehouse, our Panel of Property agents and the mortgage consultants at icompareloan.com can help you with affordability assessment and a promotional loans. Just email our chief mortgage consultant, Paul Ho, with your name, email and phone number at paul@icompareloan.com.

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