post

How much is your home worth? Some things are within our control

Click on How much is your home worth? Some things are within our control
for the source.
Author: Ravi Philemon

Although many things are not within a homeowners control when determining how much is your home worth, others are.

By: Hitesh Khan/

A lot of things factor into how much your home is worth, such as the location, the square footage, the school district and the number of bedrooms and bathrooms. Although several of those parameters aren’t easily changed, some are under a homeowner’s control.

As an astute homeowner, your job is to consider both what you can do to improve your home worth, as well as what you may (inadvertently or otherwise) be doing to decrease it. Completing renovations and repairs might pay off to varying extents.

In other cases, you may just have to put up with some of the things you don’t love about your home, but letting a house slip into disrepair is a surefire way to decrease its value. Whatever path you choose, it’s crucial to be aware of how you’re affecting your home’s bottom line and to understand what can be done to raise it back up.

One of the main things to remember while trying to boost your home worth is that people have a wide variety of tastes. Those tastes may vary greatly both geographically and demographically. A house with the flexibility to suit a big slice of the population pie will be more in demand than one highly customized to any one particular lifestyle. The more people who find a house attractive when it hits the market, the better off you’ll be.

The property market rises and falls, and if you’ve tried to unload a private residential property at a decent price during the real estate chaos that occurs during one of the market lows, you’re probably all too aware of how difficult that can be when the market is flooded. The more comparable homes on the market, the harder it is on your home worth, especially when buyers are scarce.

Property Valuation Singapore – Three methods that you need to know

Many aspects of a neighborhood can detract from how much buyers will be willing to offer. If you live by an airport or MRT tracks, for example, the resulting noise pollution might devalue your home. Light pollution from a nearby expressway or sports stadium could make buyers wary, too.

Having bad neighbours will also affect how much you can command for your properties. When you have bad neighbours, in some cases there won’t be much you can do, but in others you might meet with success. Be sure to document your complaints and deliver them respectfully. It may also be a matter you can bring to the police or to your MP.

If the schools in your area is a well-known one, that could up the value of your home. It’s very common for homebuyers to want to move to places with top-notch schools. People with children will usually be especially cognizant of the quality of the schools in the areas they’re targeting their search. Other buyers, aware of the impact schools can have on property value, may make it a consideration as well.

home worth

Image credit: Wikimedia Commons

Needless to say, interior paint plays a big part in home worth, and if your house is in desperate need of a fresh coat, that flaw could be wreaking havoc on your home’s value. Even if you spend time and money repainting your home, a buyer might still be put off by the colour (or colour scheme) you choose. If you’re planning on painting, your best bet is to pick popular home colours in order to appeal to the largest buyer-base possible. Neutral colours are the most widely used; blue and various shades of beige or cream are good bets.

If your home is lacking in storage space, that also may be a point of contention. Warm and inviting – and not overly lived in – are what you’re going for. Most importantly, if you manage to lure potential buyers into your home, they’ll quickly take note of several things. Is the house cluttered with your possessions? Are there pictures of your family adorning every wall? Is the home dusty and dimly lit? These issues are easily remedied, but if you don’t find the time to take care of them, your home will probably have trouble selling for your asking price.

If your house is in need of a serious repair then that will most certainly be a point of contention. You need to get major repairs sorted out or risk shaving off a significant portion of your asking price; otherwise, you’re just asking future homeowners to foot the cost. They won’t and it will affect your home worth.

Do you know enough about how property valuation is done in Singapore?

Knowing how to calculate the property valuation is of paramount importance to a home owner. It can help you determine whether you are overpaying for a home, or whether you have gotten yourself a real bargain. Paying the right price is just one way you can avoid overspending on your property.

Another smart way to avoid overspending on your property is to get the right loan. Getting the right loan can be a much simpler task, but only if you get the right person to it for you. Get in touch with iCompareLoan’s loan consultant to help you get the best loan deal at the right price.

The iCompareLoan mortgage brokers 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.

The post How much is your home worth? Some things are within our control appeared first on iCompareLoan Resources.

post

Business financing with debt requires creative thinking

Click on Business financing with debt requires creative thinking
for the source.
Author: Ravi Philemon

Business financing with debt involves a loan – you get the funds and promise to pay them back with interest. Unsecured debt refers to a loan where the lender does not take a specific form of security: for example, a credit card, some lines of credit, private borrowing from family or friends.

By: Hitesh Khan/

Business financing with debt

Business financing with debt involves a loan (Image credit: Hloom via Flickr)

Secured debt refers to the lender taking some form of collateral in exchange for the loan: for example, title to the vehicle to secure a vehicle loan; mortgage on your private residence or business premises; title to equipment, signs or other assets that are financed.

What the lender is really concerned with is your ability to generate enough cash flow to make your payments, so make sure your presentation focuses on what is important to the lender – a solid plan and the experience and ability to repay.

It is your integrity and business experience that the lender really is relying upon when you are trying for business financing with debt.

When trying for business financing with debt with lenders, remember that your presentation and loan application must emphasize your character and credit-worthiness and business experience.

Personal Loans
Financing a business with personal loans is perhaps the most common form of debt – quite literally, you borrow the money personally and invest it in your business. It is typically used at start-up or early stages where the business itself has not established enough history or performance to be able to borrow in its own right.

Financing a business with SME loans
The SME loans are actually made and administered by banks and other lenders who will do so because the Singapore Government guarantees your loan if you are approved, so the lender has less risk than if they loaned directly to you.

Financing a business by leasing assets
Especially for start-ups, leasing can be an attractive and viable alternative when financing a business. Your equipment or vehicle vendor wants to sell something to you, so many have leasing programs to facilitate the sale. There are also leasing companies that operate independently of any manufacturer and will lease just about anything you might need. Many leases provide for an option to buy the asset outright for a fairly nominal amount at the end of the lease, which can be attractive if the asset still has useful life.

Leasing also has an advantage if your bank doesn’t want to provide all you financing needs – sometimes lenders have limits on how much business they can underwrite with a particular borrower. However, if you have a banking relationship, be sure to discuss potential leases with your banker before signing contracts. As with any other type of borrowing, you must know what you need and how you are going to repay.

Factoring is popular in some industries
An even more specialized source of financing a business that is operating and sells on credit is Factoring its accounts receivable. Basically, you sell your account receivable contract at a discount – you get less cash than if you waited to collect the full amount, but you have the cash now rather than later.

It is generally done in certain industries like the garment industry, which has a long cycle from production to retail to payment. It is quite expensive since your discount is paying for the cost of debt plus the costs of paperwork and servicing and a profit for the factor.

Home equity loan
Another source for financing a business, if you have a private property is a home equity loan. If you have built up equity in your home, a lender will loan you money and take back a mortgage on your home as security. But remember, if you don’t repay, you risk losing your home, so it is always important that you are confident that you are able to make all payments as scheduled.

Cash surrender value [CSV] of life insurance
You might have been paying for a life insurance policy that builds up a cash value in addition to the face value it would pay. Most insurance companies will loan you money with the CSV as security. This is a rather expensive method of financing a business and should probably be considered only for those near retirement and whose beneficiaries could operate with the reduced benefit they would receive if you die while the loan is outstanding.

Credit cards
Credit cards can also be a source for financing a business when you are first getting started. Generally expensive, if you use them, always make at least the minimum payment on time since problems here affect your credit rating faster than with almost any other type of debt.

How to Secure a Personal Loan Quickly

Do you want to expand your business and are considering business financing with debt? The 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

The post Business financing with debt requires creative thinking appeared first on iCompareLoan Resources.

post

4089 HDB flats launched in September 2019 BTO and ROF exercises

Click on 4089 HDB flats launched in September 2019 BTO and ROF exercises
for the source.
Author: Ravi Philemon

On Sep 11, the HDB announced that it has launched 4089 HDB flats for sale today, comprising 3,373 Build-To-Order (BTO) flats and 716 re-offered balance flats, across various towns/estates. This will be the first sales exercise where buyers can benefit from the higher income ceilings and Enhanced CPF Housing Grant (EHG), announced by Minister Lawrence Wong on Sep 10.

September 2019 BTO Exercise

4089 HDB Flats

4089 HDB flats launched in September 2019

Of the 4089 HDB flats, 3,373 BTO flats on offer are spread across three projects.  Two projects, Punggol Point Cove and Punggol Point Crown, are in the non-mature town of Punggol, whilst Tampines GreenGlen project is in the mature town of Tampines. A wide selection of flats, ranging from 2-room Flexi to 5-room flats, is offered to meet the diverse housing needs of first-timers, second-timer families, elderly and singles.

The 4089 HDB Flats will Enjoy Higher Income Ceilings and Enhanced CPF Housing Grant

With effect from 11 September 2019, the monthly household income ceiling for eligible families buying flats from HDB has been raised from $12,000 to $14,000.  For eligible singles, the income ceiling has been raised from $6,000 to $7,000.

To further support Singaporeans in buying a flat, HDB has also introduced a new Enhanced CPF Housing Grant (EHG) to replace the Additional CPF Housing Grant and Special CPF Housing Grant. The EHG is available to eligible first-timers buying new or resale flats, regardless of flat type and location.

Eligible first-timer families with a monthly household income of up to $9,000 will be able to enjoy the EHG of up to $80,000, when they buy a flat that can cover them and their spouses to the age of 95. For those who do not meet this condition, the amount of EHG that they can enjoy will be pro-rated.

With the enhancements, those buying a 5-room flat in non-mature towns or a flat in the mature towns can now receive more housing grants. The flat prices in this sales launch, and the indicative prices after factoring in the EHG, are shown in Table 1.

Table 1: 4089 HDB Flat Prices in September 2019 BTO Exercise

Town Contract Flat Type Transacted Prices
of Resale Flats
in the Vicinity #
Selling Price
(Excluding Grants)
Selling Price
(Including Grants^)
Non-Mature Town
Punggol Punggol Point Cove

Punggol Point Crown

2-room
Flexi *@
$230,000  –  $255,000 From  $109,000 From  $29,000
3-room $335,000  –  $360,000 From  $205,000 From  $130,000
4-room $440,000  –  $480,000 From  $287,000 From  $227,000
5-room $560,000  –  $688,000 From  $423,000 From $378,000
Mature Town
Tampines Tampines GreenGlen ~ 4-room $400,000  –  $465,000 From  $312,000 From  $267,000
5-room $470,000  –  $575,000 From  $418,000 From  $388,000
Note:

1)    *     2-room Flexi flats come in two sizes – 36 sqm (Type 1) and 45 sqm (Type 2).

^    The starting prices of flats in Table 1 are based on 99-year leases.  For illustration purposes, the assumed EHG amounts are:

i) 2-room Flexi flat: $80,000

ii) 3-room flat: $75,000

iii) 4-room flat: $60,000 in non-mature towns and $45,000 in mature towns

iv) 5-room flat: $45,000 in non-mature towns and $30,000 in mature towns

The starting prices after grant amounts are illustrative, assuming that the household incomes of eligible first-time buyers of flats in the mature towns are higher. The actual grant amount received will depend on the buyers’ income and eligibility.  Read more on the EHG in HDB infoWEB.

~   Prices include the costs of floor finishes, internal doors and sanitary fittings.

#    Details on the comparable resale flats can be found on the HDB e-Sales website. In making comparison, please take into account the differences in attributes between the comparable resale flats and the BTO flats.

    @   Singles who apply for a 2-room Flexi flat under the Single Singapore Citizen (SSC) Scheme will pay $15,000 more than couples. Eligible singles can also apply for the EHG of up to $40,000. The actual grant amounts will vary according to income.

2)  Selling prices are rounded up to the nearest thousand dollars.

Application for the 4089 HDB Flats

Application for the flats offered in the September 2019 BTO and ROF exercises can be made online on HDB InfoWEB from 11 September 2019 to 17 September 2019. Applicants can apply for a flat under either the BTO or ROF exercise, but not both. If they apply for a BTO flat, they must select only one flat type in one town/estate. If they apply for a ROF flat, they do not have to indicate flat type and town/estate as ROF applicants book a flat from the available units according to their balloted queue position, subject to eligibility and ethnic quota.

Applicants who wish to take up an HDB housing loan for their flat purchase need to produce a valid HDB Loan Eligibility (HLE) letter when they book a flat, except for young couples who are eligible for deferment of income assessment.

HDB advised applicants to apply for a BTO flat in the non-mature towns to enjoy a higher chance of success in securing a flat. It added that those with more urgent housing needs and who are less particular about flat attributes may wish to consider applying for an ROF flat.

Upcoming BTO Launch in November 2019 and February 2020

In November 2019, HDB will offer about 4,500 BTO flats in Ang Mo Kio, Tampines and Tengah. In February 2020, HDB will offer about 3,000 BTO flats in Sembawang and Toa Payoh.

How to Secure a Home Loan Quickly

The iCompareLoan mortgage brokers 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.

The post 4089 HDB flats launched in September 2019 BTO and ROF exercises appeared first on iCompareLoan Resources.

Will buying a home make us happier?

Click on Will buying a home make us happier?
for the source.
https://i1.wp.com/www.propertysoul.com/wp-content/uploads/2016/12/cropped-heading.jpg?fit=32%2C32&ssl=1 Author: Property Soul

This week the government announced higher CPF grants and a raised income ceiling for first-time HDB buyers. More citizens are now eligible to buy new BTO flats or resale HDB flats. A recent advertisement from the CPF Board is seen at MRT platforms with a headline that reads, “In 2018, nearly one million Singaporeans used… [read more]

The post Will buying a home make us happier? appeared first on Property Soul.

post

Jervois Road GCB up for sale at $38.8 million

Click on Jervois Road GCB up for sale at $38.8 million
for the source.
Author: Ravi Philemon

The Jervois Road GCB has a land area of 19,333 sq ft

Jervois Road GCB

The tender for the Jervois Road GCB which sits on an elevated land closes on Oct 23 2019, at 3pm (Image credit: JLL)

A two-storey, freehold Good Class Bungalow (GCB) at Jervois Road is up for sale. Priced at $38.8 million and with a land area of 19,333 sq ft, the Jervois Road GCB commands a per square feet price (psf) of $2,007. JLL is the exclusive marketing agent for the Jervois Road GCB.

Situated along Jervois Road, off River Valley Road, in prime District 10, the Jervois Road GCB is minutes away from Orchard Road and the Central Business District.

JLL said that the Jervois Road GCB for sale has a wide frontage of close to 40m and provides an opportunity for redevelopment.

The Jervois Road GCB is within the Chatsworth Park Good Class Bungalow area, and is on elevated land. The tender for the property closes on Oct 23, at 3pm.

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 – such as the Bukit Pang GCB – 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 landed 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.

The post Jervois Road GCB up for sale at $38.8 million appeared first on iCompareLoan Resources.

post

Starting a business with restricted financing options requires a mindshift

Click on Starting a business with restricted financing options requires a mindshift
for the source.
Author: Ravi Philemon

In an environment of restricted financing options for start-up businesses where funds are limited, a mindset shift is required

By: Hitesh Khan/

We are conditioned to begin the process of looking for new business opportunities by asking: “Where is there a gap in the market and how can I fill that gap?” A gap could be an unfilled customer need or a new invention yet to be brought to market.

Next, we establish a goal to create a venture that will fill that gap. We consider the resources necessary to make our goal a reality and go out in search of those resources. We write a business plan and present it to potential financiers with the promise of a return on investment.

If the financiers like us and like our idea, they provide us with the capital to start the business. If not, we are stuck. Most times, people find it difficult to raise the resources they require, causing the entire project to fall on its head.

There is an alternative route to creating a new venture. Instead of starting with the question, “Where is there a gap in the market and how can I fill it?” ask yourself, “What do I have and who do I know?”

restricted financing options.

Image credit: Flickr l Aleksandr Zykov

Carefully examine the resources and relationships over which you have influence, and consider how you can put these to work quickly and effectively to create an offering that the market needs or wants. You can experiment using different combinations of resources to test how the market responds to different offerings and over time create an offering that is really valuable to others.

With this approach, an entrepreneur’s goals emerge over time, taking resources, connections and contingencies into account.

They are not fixed at the start of a project as they are when the traditional approach is applied.

More stringent personal loan restrictions to kick in from next year

Here are some principles and guidelines that will provide you with a better chance of effectively launching a business with restricted financing options.

1. Start with what you have

At the outset of looking to start a new business with restricted financing options, take stock of what you have at your disposal. Consider your:

  • Skills – what can you do?
  • Experience – what have you done in the past?
  • Knowledge – what do you know?
  • Tangible resources – what do you own and what do you have access to?

2. Take into account who you know

What you have needs to be combined with who you know for it to have real power. Take stock of the relationships you have with others, map out your network of connections and consider how your connections could enable you to use what you have more effectively.

3. Invest what you can afford to lose

There is a big difference in your mindset if you start with the perspective that “I am investing this amount and I expect a 30% return” versus “I can afford to lose this much, therefore I will put it into the business and see if I can make it work”.

If you have only put in what you can afford to lose, you maintain flexibility in the business and minimise stress in managing it. If you are only willing to invest when you expect that you can get a specific return, there is a strong chance that you may never take the leap and launch the business you always dreamed of owning.

An example of this is the entrepreneur who refuses to leave a well-paying job until he finds an opportunity that he predicts will pay more, versus one who decides to invest a small portion of her savings and two years of her life in a project that she believes is worth that amount of time and money – irrespective of whether it will pay more than what she currently earns.

This is one good reason why those with restricted financing options should never not consider using a personal loan to finance their businesses.

5 tips for boosting your chances of getting personal loans

4. Experiment and adapt

With this mindset, flexibility and adaptability are a competitive advantage. You succeed not by becoming too fixated on a single goal or outcome but by being responsive to changes in the environment. Existing firms typically take longer to adapt than new firms because they have more incentive for things to remain the same and they have established routines and practices that reinforce the status quo.

New firms are not tied to the way things have always been done and thus entrepreneurs can benefit from shifts in consumer preferences, or shifts in technology or changing legislation by realigning their businesses to take advantage of such developments.

How to Secure a Personal Loan Quickly

Do you want to expand your business but have restricted financing options? 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

The post Starting a business with restricted financing options requires a mindshift appeared first on iCompareLoan Resources.

post

Conservation shophouses in Geylang and Joo Chiat launched for sale

Click on Conservation shophouses in Geylang and Joo Chiat launched for sale
for the source.
Author: Ravi Philemon

Knight Frank Singapore on Sep 3 announced that two sets of key area conservation shophouses in Singapore are up for sale. The first of the key area conservation shophouses is a row of 7 freehold adjoining conservation shophouses in Geylang, while the other are 2 freehold adjoining conservation shophouses at Joo Chiat Road.

Both sets of key area conservation shophouses are up for sale via Expression of Interest (EOI).

key area conservation shophousesRow of 7 freehold, adjoining conservation shophouses in Geylang

The subject shophouses are located prominently at the prime corner of Geylang Road and Lorong 14 Geylang, in close proximity to Aljunied MRT station. They have a total land area of 10,520 sq ft and gross floor area of approximately 18,000 sq ft, and are zoned Commercial with a plot ratio of 3 under the Master Plan 2014.

The block of shophouses are currently fully tenanted and comprise a corner coffeeshop, mobile phone retailer, Thai massage parlour and other retail trades. The properties are suitable for F&B outlets and retail uses on the ground floor, whilst the upper floors can be designated for office use.

Ms Mary Sai, Executive Director of Investment and Capital Markets, Knight Frank Singapore, says, “There is potential for a prospective buyer to refurbish the shophouses based on conservation guidelines by URA. As this is a secondary settlement area, there is also room for rear extension of up to a maximum height, subject to approval from the authorities.”

As the shophouses are zoned Commercial, there will be no Additional Buyer’s Stamp Duty and Seller’s Stamp Duty payable. Foreigners and companies are also eligible to purchase the properties.

Ms Sai further shares, “Geylang is an area with rich architectural heritage and has been earmarked as 1 of 5 key growth areas in Singapore. The shophouses are situated within the bustling part of Geylang, surrounded by F&B establishments and hotels. The combined large floor plate of the 7 adjoining shophouses allows for flexibility in space reconfiguration for the new owner, to meet needs be it for owner-occupation or investment.

“As such, the owners are expecting a healthy interest from both investors and corporate entities in acquiring the freehold commercial asset.”.

The guide price for the 7 shophouses is approximately S$40 million to S$42 million.

2 freehold, adjoining shophouses at Joo Chiat Road

Under the same sale exercise are 2 freehold, adjoining shophouses at Joo Chiat Road. Located near the junction of Joo Chiat Road and Koon Seng Road, the shophouses are nestled within the popular food street comprising a mix of hotels, restaurants and F&B outlets. Shopping amenities are easily accessible at the plethora of neighbouring malls including Parkway Parade, 112 Katong, Kinex, Paya Lebar Square and SingPost Centre. Both Marine Parade MRT station (currently under construction) and Paya Lebar MRT Interchange are also in the vicinity.

The shophouses have a land area of 2,393 sq ft and a gross floor area of approximately 4,600 sq ft. Under the Master Plan 2014, they are zoned Commercial with a plot ratio of 3.

Ms Sai reveals, “We expect good levels of interest from owner-occupiers and investors looking to develop a presence in the Joo Chiat conservation area. The unique architectural façade and character of the shophouses are unrivalled in cosmopolitan Singapore, coupled with the vibrancy and interesting trade mix of the neighbourhood.”

The guide price for the 2 tenanted shophouses is S$7 million to S$7.5 million.

The EOI for both sets of key area conservation shophouses will close at 3pm on 3 October 2019.

Mr Paul Ho, chief mortgage officer at iCompareLoan said, “shophouses are perceived as attractive investments because they can hold their values because of their central locations and the freehold/999-year-leasehold of many of these properties. Shophouses are also valued because they give prominent presence to a business entity for them to be visible in a highly competitive environment.”

The biggest gainers following the 2018 property cooling measures is likely be owners of strata portfolio of offices and shophouses approved for commercial use. The property cooling measures affected almost all categories of buyers and is predicted to achieve its intended objectives of cooling demand and moderating price growth.

One report said investors looking for alternatives to park their money in the wake of property cooling measures, would divert their attention to the strata office and shophouse markets as they are not subjected to this round of purchase or sales restrictions/encumbrances.

Properties such as the key area conservation shophouses launched for sale by Knight Frank may be bought under personal name, but total debt servicing Total Debt Servicing Ratio (TDSR) will apply on the individual’s income on such purchases. To buy a commercial or industrial property under company name, total debt servicing ratio TDSR also 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.

How to Secure a Commercial Loan Quickly

Are you planning to purchase similar rare freehold two-storey shophouses 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.

Whether you are looking for a new commercial loan or refinancing 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.

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

To speak to our Panel of Property agents.

If you need refinancing advice.

The post Conservation shophouses in Geylang and Joo Chiat launched for sale appeared first on iCompareLoan Resources.

post

Three GLS sites tender awarded amid uncertainties

Click on Three GLS sites tender awarded amid uncertainties
for the source.
Author: Ravi Philemon

Three GLS sites tender awarded to highest bidders

The Urban Redevelopment Authority (URA) has awarded the tenders for the sites at Tan Quee Lan Street, Bernam Street and one-north Gateway to the three entities, namely GLL D Pte. Ltd., Intrepid Investments Pte. Ltd. & Hong Realty (Private) Limited; HY Realty Pte. Ltd.; and TID Residential Pte. Ltd. respectively.

The companies submitted the highest bids in the tenders for the three sites.

The sites at Tan Quee Lan Street, Bernam Street and one-north Gateway were launched for tender on 29 March 2019, 30 May 2019 and 27 June 2019 respectively. The tenders for these sites closed on 5 September 2019. The land parcels were offered for sale on 99-year lease terms.

Details of the three GLS sites tender awarded land parcels and the successful tenderers are provided below:

LOCATION ALLOWABLE DEVELOPMENT SITE AREA MAXIMUM PERMISSIBLE GROSS FLOOR AREA (GFA) SUCCESSFUL TENDERER TENDERED PRICE

($PSM of GFA)

Tan Quee Lan Street Residential with Commercial at 1st Storey 11,530.8 m2 48,430 m2 GLL D Pte. Ltd., Intrepid Investments Pte. Ltd. and Hong Realty (Private) Limited

 

$800,190,000

($16,522.61)

Bernam Street 3,846.2 m2 28,001 m2 HY Realty Pte. Ltd.

 

$440,900,000

($15,745.87)

one-north Gateway 5,778.7 m2 14,447 m2 TID Residential Pte. Ltd. $155,738,074

($10,779.96)

Commenting on the three GLS sites tender awarded, Colliers International said that the developers have taken a disciplined approach to land acquisition amid uncertain times.

Ms Tricia Song, Head of Research for Singapore at Colliers International, said: “If there was a theme to sum up developers’ mindset from the batch tender results released by the Urban Redevelopment Authority on 5 September, ‘safety first’ would be quite apt.”

The three GLS sites tender results showed that size is a major consideration for developers

three GLS sites tender

Among the three GLS sites tender awarded, results for Tan Quee Lan Street particularly surprising (Image credit: URA)

She added that the three GLS sites tender outcome were all moderate with the results for Tan Quee Lan Street particularly surprising.

“This site in Bugis was widely anticipated to witness stiff competition among developers, but it only attracted two bids which turned out to be a bit of an anticlimax. Meanwhile, Bernam Street in the Tanjong Pagar area only pulled in four bids.”

Colliers believes that the lukewarm response to the Tan Quee Lan Street and Bernam Street sites potentially reflects developers’ concerns over the macroeconomic headwinds and weaker economic outlook ahead. In contrast, the tender for one-north Gateway was better received and the top bid was well within our forecast.

Ms Song said: “We can infer from one-north Gateway’s popularity that size is a major consideration among developers – this being the site on the Confirmed List that could yield the lowest number of potential units (165 units).”

TAN QUEE LAN STREET
The response for the site was surprisingly underwhelming, especially given the 10 bids received for the nearby Middle Road site. The Tan Quee Lan plot received just two bids, with the top bid from the partnership of GuocoLand, Intrepid Investments and Hong Realty. The other bid was placed by a tie-up between City Developments and MCL Land.

We think some developers could have been put off by the hype over the site and expected aggressive bidding for it. In addition, there might be worries about competition from the Middle Road site and the Midtown Bay project.

Nonetheless, the top bid of SGD800.19 million or SGD1,535 per square foot per plot ratio (psf ppr), is still relatively in line with market expectations and is still a benchmark land pricing for a residential site in the area. The site offers an opportunity to build a signature project on top of the Bugis (Downtown Line & East-West Line) MRT interchange station. We expect a breakeven cost of SGD2,200 psf, and the developer could look to sell for above SGD2,400 psf.

The highest bid for the Tan Quee Lan Street site is 5.3% above the SGD1,458 psf ppr top bid for the Middle Road site.

This site complements the nearby Guoco Midtown and Midtown Bay, which GuocoLand is developing, offering more choices of private housing to support the growing commercial enclave of Duo, South Beach and Midtown in the area.

According to the URA, about 580 residential units can be built on the site. The serviced apartment Gross Floor Area (GFA) shall not exceed 14,530 sq m. A maximum of 2,000 sq m of the total GFA of the development may be developed for commercial uses at the 1st storey.

BERNAM STREET
The Bernam Street site received just four bids with the top bid of SGD1,462.8 psf ppr, which is below market expectations.

The poor response could be due to concerns of increased competition that could potentially arise from the CBD Incentive Scheme unveiled in the URA Draft Master Plan in March 2019. The Scheme encourages the conversion of ageing commercial space to residential and mixed-use space.

We estimate breakeven could be about SGD2,150 to 2,200 psf and the developer can build smaller units to cater to city living. We observed that 99-year leasehold residential projects in this area, such as Altez, Skysuites@Anson and Icon transacted at SGD1,700 to 2,500 psf on average in the past 12 months, depending on age and unit size.

ONE-NORTH GATEWAY
The one-north Gateway site received nine bids, highest since the GLS tender for the Middle Road plot. This came as no surprise as it is the smallest site on the Confirmed List (165 units) and hence of a palatable development quantum which appeals to more developers. It is also deemed to be at a lower risk of not being able to sell-out within the ABSD timeline of five years.

There is also less competition in the locale, as it is the only new land supply in 10 years within the growing one-north technology enclave.

The top bid of SGD155.7 million or SGD1,001.5 psf ppr is in line with our expectations. We project a breakeven cost of SGD1,500 to 1,550 psf. We believe the developer could look to sell above SGD1,600 psf, taking into account the minimum average unit size requirement of 85 sq m.

The adjacent project, one-north Residences, which was completed in 2009 have transacted at around SGD1,500 psf for units around 900 to 1,000 sq ft in the year-to-date 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.

For advice on a new home loan.

For refinancing advice.

The post Three GLS sites tender awarded amid uncertainties appeared first on iCompareLoan Resources.

post

7 HDB Schemes Singaporeans must know

Click on 7 HDB Schemes Singaporeans must know
for the source.
Author: Si jie LIM

7 HDB schemes that Singaporeans must know in order to take advantage of buying a Singapore property.

https://pixabay.com/photos/singapore-building-sky-blue-1445373/

To make home ownership a reality for Singaporeans, HDB has introduced different HDB schemes to make homes more affordable. But there’s just one problem: All the schemes that are meant to help Singaporeans are published separately, making it difficult for Singaporeans to read everything at one go. It is no wonder why some Singaporeans end up buying their HDB without leveraging on the available schemes.

That’s why we decided to write this guide so that Singaporeans will not make the silly mistake of missing out on HDB schemes that were meant to help you in the first place.

7 HDB Schemes Singaporeans Must Know To Avoid Making Silly Mistakes

  1. Staggered Down Payment Scheme

When you made up your mind and sign the Agreement of Lease with HDB, the next thing you need to think about is making down payment. Most people know that you need to make a down payment within 4 months of booking a flat. But do you know what is the down payment amount you need to make?

What Is Staggered Down Payment Scheme?

Under the HDB staggered down payment scheme, you don’t need to pay all the down payment upfront. You have the option of splitting the down payment into 2:

  1. Within 4 months of booking a flat
  2. The rest can be settled upon collection of keys to your new home

How Can You Stagger Your Down Payment Under The Scheme?

The amount that you need to pay under the staggered down payment scheme depends on whether you are taking a HDB or bank loan. Here’s how much you need to pay depending on your loan type:

  • HDB Loan
Down payment at Signing of Agreement for Lease 5% of home value using CPF Ordinary Account savings or cash
Payment during Collection of keys 5% using CPF Ordinary Account savings or cash
  • Bank loan (with 75% loan ceiling)
Down payment at Signing of Agreement for Lease 5% in cash + 5% using CPF Ordinary Account savings or cash
Payment during Collection of keys 15% using CPF Ordinary Account savings or cash
  • Bank loan (with 55% loan ceiling)
Down payment at Signing of Agreement for Lease 10% in cash
Payment during Collection of keys 35% using CPF Ordinary Account savings or cash

HDB Schemes Eligibility – Staggered Down Payment Scheme?

Since HDB is giving you an option to stagger your HDB down payment, why not take up their goodwill? In that way, you get more time to prepare for your second down payment. However, not everyone is eligible for the scheme. There are a few criteria you need to fulfill for eligibility:

  1. At least one of you is a first-time applicant
  2. Applying for a maximum flat size of 5-room
  3. The younger of the two applicants has yet to reach your 30th birthday
  1. Deferred Down Payment Scheme

Nowadays, it is not uncommon to hear of Singaporeans right-sizing their homes. Right-sizing allows Singaporeans to unlock value in their homes for their retirement needs. To help retirees smoothen the right-sizing process, HDB introduced the Deferred Down Payment scheme. For retirees who are downsizing to a 2-room Flexi or 3-room BTO flat, you can defer your down payment till the collection of your keys. This will help ease the cash flow of homeowners with funds tied in your existing flat.

The Deferred Down Payment scheme is automatically offered to flat buyers above age 55. You don’t need to apply for it.

  1. Fresh Start Housing Scheme

The Fresh Start Housing scheme is part of the government’s initiatives to give financial support to low-income families. In particular, the scheme aims to help low-income families that are living in public rental flats to own a 2-room flexi flat. The Fresh Start Housing scheme comes with a few key features:

  1. It lets you take up an HDB Concessionary Loan with reduced interest rate (subjected to credit assessment)
  2. You can receive a Fresh Start Housing Grant of $35,000 for a 60/65-year lease (adjusted based on lease year)
    1. $20,000 will be a lump sum disbursement into your CPF Ordinary Account just before key collection
    2. Remaining $15,000 will be disbursed over 5 years into the CPF Ordinary Account after key collection
  3. Cap on resale levy (max $30,000) when you buy your next home
  1. Parenthood Priority Scheme

As part of the government’s plans to encourage more childbearing, the Parenthood Priority scheme was introduced. This scheme allows first-timer married couples (with or expecting a child) to have priority allocation when buying an HDB flat. At every BTO exercise, up to 30% of BTO flats will be set aside for these (soon-to-be) parents.

  1. Parenthood Provisional Housing Scheme

As an extension to the Parenthood Priority scheme, the Parenthood Provisional Housing Scheme lets first-timer married couples rent an HDB flat at a lower rate while waiting for their BTO HDB flat to be completed. The rental is typically 50% (or more) lower than the market rental rates.

  1. Deferred Income Assessment “HDB Schemes”

Unlike the old days, couples nowadays tend to think much further compared to their parents’ generation. As such, most couples prefer to get their own home first before committing to a marriage. Coupled with a few years of waiting needed for a BTO HDB flat, this has led to later parenthood years. To help young couples settle down earlier, the Deferred Income Assessment “Scheme” was announced.

Instead of assessing your income at the point of housing application, this scheme allows you to defer the income assessment date. For uncompleted flats (i.e. BTO), income assessment only takes place 3 months before flat completion. This allows young couples who are in the early stage of their career to apply for their ideal home without being restricted by their current income (or lack thereof).

  1. Temporary Loan HDB Schemes

One problem that existing homeowners face when you are looking for a change of flat is the problem of a lack of cash flow. While you are awaiting the sale of your existing flat, you might be forced to take up a new loan even though the sale proceeds from your existing flat could cover for the new flat purchase. To help buyers transit between homes, the Temporary Loan Scheme was implemented. The scheme lets you take up a short term loan to temporarily take care of your cash flow shortfall without committing to a long-term mortgage loan.

Housing needs of Singapore – National Development Ministry announces measures to support citizens

Bonus: Missing Out On Home Loan Deals

Lastly, one major mistake that Singaporeans tend to make is missing out on good home loan deals. For example, when your loan package is up for refinancing, do you take advantage of the opportunity to switch to a cheaper deal? You could be looking at saving a few thousand dollars of interest rate every year!

Refinancing can be easy if you know how. Search for the best home loan deals on iCompareLoan today.

Link up with Paul HO on Linkedin to track any updates if you have no enquiry now.

The post 7 HDB Schemes Singaporeans must know appeared first on iCompareLoan Resources.

post

Financing business – How much are you putting in and how much you need?

Click on Financing business – How much are you putting in and how much you need?
for the source.
Author: Ravi Philemon

Financing business involves choosing from a vast array of alternatives. Debt or equity? Secured or unsecured? Are you at start-up, already launched, profitable, looking for exit / succession funding? How much resources have you committed to financing business?

By: Hitesh Khan/

financing businessWhat does a lender or investor want from someone financing business? What are some of the myths?

Probably the most common mistake we find among those seeking financing for their business is the idea that someone else will stake them to their dreams without them taking a large share of the risk.

Think about it – how much confidence will a lender or investor have in your proposal if you don’t have enough confidence in it yourself to put your own resources at risk?

So, the most basic rule of financing business is to commit yourself and your savings or resources to the business.

For a start-up business, which might not be able to obtain funds on credit, the owner will have to come up with capital, such as from personal savings. No matter where else you look for funding, the money you put in is a strong sign of good faith and commitment to other lenders. Consider borrowing from friends and relatives and /or selling off surplus assets to provide the funds you need.

For an established family business, financing is often needed for expansion or to assist with transition of ownership from one generation to the next. As part of our succession management program, you should always consider the economics to “build or buy” as part of their growth strategy. Given the current economy, there are many businesses to buy – but certainly not without expert advice”.

Your business plan should tell you. Things like:

    • initial operating expenses such as utilities, rent, payroll
    • inventory and supplies to get started
    • computer system, software
    • fixing up your premises, office furniture, production equipment, delivery vehicle
    • perhaps funds to buy an existing business rather than starting from “scratch”, etc.

In financing business, not all of these items require cash. Alternatives include renting or leasing and even barter or exchange.

And don’t forget the important questions in financing business that go with “how much?”

    1. When do you need it? Utilities are paid after the end of the month, except for a small deposit at the beginning. Payroll is incurred weekly or monthly. Rent is usually paid along with a deposit at the beginning of the month. Inventory can be built up gradually in some cases, and suppliers often grant extended payment terms.
    2. When are you going to pay it back? You will want to earn enough to start paying operating expenses from regular cash inflow. Inventory should turn over [be sold and replaced] several times a year so that you can typically sell it and collect for the sale in around 90 days. Assets like production equipment, delivery vehicles, computer system last longer and might take around 5 years to be paid off completely.
    3. What security do you have to offer?Also known as collateral, security is what a lender has to rely on if you don’t repay. It might be business assets and / or personal assets.

There are several ways to finance business. You may have sufficient savings to cover the startup costs, you can borrow funds from the bank or family or you can look for an investor. Keeping startup costs to a minimum is nearly always the best option and the lean startup is the most popular way to start a business in the current environment.

Every business needs to raise startup capital to get started, and there is a range of options out there for you to take advantage of. What’s available will depend on how much you need, the type of business you’re planning to run, and the level of control you want to keep, but essentially funding comes as four types:

  • Your own investment
  • Investment from others
  • Bank Finance

Many companies mix and match their funding sources when they want to raise startup capital – an overdraft to cover day-to-day borrowing, a loan to buy equipment, and investment to provide a substantial amount to get the company up and running. Business financing always works easier if you lay the groundwork in advance.

If possible, get to know an independent loan consultant, before you need business financing. This will give your independent loan consultant an opportunity to get to know you and your business, how you think, what your goals are, what the financial situation of your business is. Building a relationship with a consultant you are currently working with can help them get to know the intricacies of how you operate your business.

How to Secure Small Business Loan Quickly

Before business loan application, talk to the loan consultants at iCompareLoan. We 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.

To find out more about Peer to peer lending versus that of SME loans so as to make an informed decision: SME Loans or Peer-to-peer (P2P) Lending – What is the difference?

Contact us for advice on a new SME loans.

Contact us for home loan or refinancing advice.

The post Financing business – How much are you putting in and how much you need? appeared first on iCompareLoan Resources.