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Home mortgage refinance calculator is most beneficial to save money

Click on Home mortgage refinance calculator is most beneficial to save money
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Author: Ravi Philemon

For many people, the best way to learn if in fact they should refinance is to use a home mortgage refinance calculator

By: Hitesh Khan/

Refinancing is often booked as one of the most beneficial ways to save money on your home mortgage. This is not always true and the fact is where you save the money may not be exactly where you want to.

For many people, the best way to learn if in fact they should refinance is to use a home mortgage refinance calculator to help them to break down the facts of their loan and really understand if this is the right decision.

For a good amount of those that do this, the benefits are there. For others, you may end up paying far more than you realized that you would.

What Makes Refinancing Worth It?
There are many things that play a role in whether or not refinancing is a good move. The first thing is to determine what your overall goal is by refinancing. It can answer many questions for you including providing you with these benefits. Why do you want to refinance?

  • Do you want to save money on your loan in total?
  • Do you want to save money per month on your mortgage payment?
  • Do you want to borrow more money and still have just one loan?
  • Do you want to cut down your terms so that you are paying off your loan sooner?
  • Do you just want a lower interest rate or a different type of loan?

The humble mortgage calculator is an essential tool for all types of home buyers

All of these things are good reasons to refinance, but the picture has to be brightened a bit more so that you can see the details of how this will affect your total home ownership abilities.

home mortgage refinance calculatorYou can learn the details by using a home mortgage refinance calculator to help you.

Depending on what your goals are, you will be able to see if this is a wise move or if you should be looking for another solution to your problem.

How To Break It All Down
For anyone looking to invest in a mortgage or to refinance their mortgage, the goal is to know what to expect. You should know what you are going to pay per month. You should know how much you will pay in all (interest and principle together) as well as how long you will be making payments. When you refinance your loan, you take what you currently have and make changes to it in the hopes of accomplishing your goals.

For example, if you want to save money on your loan in total, then you will want to be sure to get a lower interest rate on your loan or use a shorter terms for that loan. If you want to have a smaller monthly payment to pay on your loan, then the best course of action here would be to extend the terms of your loan back to their original terms (if you have been paying on your 30 year mortgage for 5 years, instead of having just 25 more to go, you would re-extend them to 30 years and start over.)

Mortgage Broker Singapore – Should I use one?

Using A Mortgage Calculator To Get Answers
When it comes to refinancing, you want to know what you will save. You can use a home mortgage refinance calculator to help you to learn this. Here’s an example of what refinancing may cost you or save you.

Your original interest rate: 2.6 per cent
The original amount you borrowed to buy your home: $2,000,000
The original loan term that you had: 30 years
The number of months left to repay the original loan: 120
New interest rate you can get: 2
New loan amount you are borrowing: $1,800,000
New loan term: 30 years

The results are simple to see. Your old loan would cost you about $9,073 per month in payments while the new loan will save you by reducing your monthly payment to $7,629. This is a savings per month of $1,444, which is significant for most people. This saves you over $17,328 per year by refinancing.

This is an ideal investment because you are doing several key things. First, you have a reduction in the interest rate of your loan, which nearly always saves you money. More so, you are also seeing a reduction in the amount of money that your new loan will be. If this is the same as the original loan, you may not see as much savings.

In this type of loan, you are refinancing and will save money, but that is not always the case. If you refinance for a longer term, as in this case, you do lose the time and payments that you have made currently on your home. Yet, when you reduce the amount that you are borrowing this is not a factor. What is important to note is that all of these variables can change. The interest rate available to you can be based on your credit score. If you are looking for an adjustable rate loan, then there is no definite way to see what could and could not happen in terms of cost.

The best thing for anyone that is considering a mortgage refinance to consider is to use a good home mortgage refinance calculator to help you to clearly see how much money you could save, how much money you can keep in your pocket each month!

For most people, the goal is to lower their monthly payment, but remember too that you can drop your terms, increase them, or even borrow against the equity that is in your home to pay down credit cards or to buy something. Refinancing your loan puts you in the position to make decisions with your money.

Use a home mortgage refinance calculator to help you to see where and how you should do this. It will clearly help you to find the most beneficial investment in the short term and in the long term.

The humble mortgage calculator is an essential tool for all types of home buyers

After reading this article, if you are persuaded into trying out a mortgage calculator, you can try the range of useful ones we have at at www.iCompareLoan.com.

For advice on a new home loan.

For refinancing advice.

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Price of executive condominiums shoot up with supply and demand imbalance

Click on Price of executive condominiums shoot up with supply and demand imbalance
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Author: Ravi Philemon

The price of executive condominiums have shot up almost 25 per cent due to the supply and demand imbalance say property market observers.

JLL in noting that the supply of executive condominiums are drying up said “only three new EC units were sold in December 2018, from among the few left-over units in new EC projects.”

It added: “An EC in Rivercove Residences was sold for $964 psf while two units in Northwave were sold at a median price of $908 psf. The year as a whole saw 628 new ECs launched and 1,137 units taken up. The supply and demand imbalance resulted in the median prices of new ECs shooting up from $793 psf in 4Q17 to $989 psf in 4Q18, a 24.7 per cent increase.”

Executive CondominiumsCBRE too noted that the December sales data released by the Urban Redevelopment Authority (URA) indicated that just 3 units were sold from existing EC projects as there were no new launches. This brought the annual total of Executive Condominiums sold in 2018 to 1,137 units against 628 units from the only EC launch in 2018, which was Rivercove Residences, where median prices were already breaching $1,000 psf.

CBRE noted that this demand and supply imbalance is likely to favour the next launch of executive condominiums at Sumang Walk.

Executive Condo in Singapore – Step by Step Buyer Guide

Nicholas Mak, executive director of ZACD Group said the demand for executive condominiums is expected to remain robust in 2019, but the supply of new EC launches will continue to be limited. He noted that while the number of executive condominiums launched decreased significantly by 59.6 per cent year-on-year in 2018, the number of units sold dropped correspondingly by 72 per cent over the same period.

He believes that the sales of new EC units will increase when the next EC project at Punggol is launched sometime in the 2nd Quarter of 2019. The EC project by City Developments Ltd is estimated to have 820 units and is located at Sumang Walk. “If priced reasonably, the take-up rate of this project is expected to be very high,” he added.

The 628-unit Rivercove Residences EC project was launched in July last year, and saw 80 per cent of the units snapped up on the first weekend at an average of $965 per square feet (psf).

Colliers International said that given the tight supply of executive condominiums over the next few quarters, the market continues to draw strong interest from developers.

Colliers said: “The Tampines Avenue 10 site, with 7 bidders, saw a close winning margin of 0.7% between the winning and second-highest bids. The appeal of this site is that it is a relatively large, regular size plot which can support up to 695 units, located in a mature housing estate surrounded by schools and amenities.”

It noted that”the last EC site sold was at Anchorvale Crescent which was triggered for launch from the reserve list in July last year, and hotly contested with 7 bids.”

Colliers further commented that the 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 Executive Condominiums, developers sold a total of 605 new units in December.

No new Executive Condominium project on the market despite high demand

But just a few years ago, with an oversupply of Executive Condominiums, the story was quite different for the EC market. The demand for Executive Condominiums were driven by their relatively affordable price points for the ‘sandwiched’ class. In recognising this demand, the Government opened for application several sites on its reserved list for Executive Condominium developments.

An Executive Condo is a hybrid type of housing under Singapore’s public housing scheme. In the past, Executive Condo was better known as Housing and Urban Development Company (HUDC) flats. The HUDC system was later overhauled and replaced with Executive Condo.

In the first 10 years of ownership, an Executive Condo takes the properties of an HDB. It is considered as a public housing, which means that the unit can only be sold to Singapore citizens or permanent residents. Furthermore, an Executive Condo will need to fulfil the 5-year minimum occupation period (MOP) before it can be sold on the secondary market, just like any HDB.

Executive condominiums take on the characteristics of an HDB in the first 10 years. But once an Executive Condo hits the ten year mark, it will become fully privatised – this is when the executive condominium will then take the properties of a private property.

How to Secure a Home Loan Quickly

If you want to buy an executive condominium 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, 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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Park Colonial: Where Grandeur Meets Convenience

Click on Park Colonial: Where Grandeur Meets Convenience
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Author: iCompareLoan Editorial Team

Image Credits: Park Colonial, CEL Unique Development Pte Ltd

Park Colonial: A Perfect Fusion of Grandeur and Convenience

Situated a few steps away from Woodleigh MRT Station in the prime District 13, Park Colonial is an exciting new property launch by CEL Unique Development that is expected to draw a lot of attention from investors and home seeker alike. The iconic development, which sits on a 210, 402 sq ft piece of land, has 6 blocks each rising 15 storeys high and housing a total of 805 premium residential units.

Unit Mix

Park Colonial will consist of different units that are highly investible and ideal for all family sizes. All units will be designed with space, comfort and luxury living in mind. The unit types will basically feature a thoughtful mix of 1 to 5 bedroom configurations.

Here are the options you can expect:

-1 Bedroom

-1 Bedroom + Study

-2 Bedroom Classic

-2 Bedroom Deluxe

-2 Bedroom + Study

-2 Bedroom Dual Key

-3 Bedroom Classic

-3 Bedroom Deluxe

-4 Bedroom Classic

-4 Bedroom Deluxe

-5 Bedroom Luxury

Condo Facilities

Park Colonial will have a number of shared facilities put up within the development for a fun, fit and sociable life. Some of the noticeable condo facilities include a clubhouse, function room, swimming pool, gymnasium, tennis courts, sunset bar and hammock pool. Others are BBQ pits, children’s splash pool, sun decks and fun garden.

Condo Pricing

CEL Unique Development bought the plum site area where Park Colonial lies at a staggering cost of $700.7 million. That translates to about $1,110 per square foot (psf) per plot ratio (ppr). And factoring in all the construction costs plus other miscellaneous expenses, experts estimate the selling price to range between $1,720 psf to $1,800 psf.

Accessibility

Park Colonial’s strategic location assures residents of convenient movement to and from the development. There are three major roads stemming from the residential, which include the Upper Serangoon Road, the Braddell Road and the Bartley Road.

Major expressways such as the KPE, PIE and CTE are also highly accessible from the residential. That means travelling the CBD and other places a breeze.

Furthermore, Woodleigh MRT Station, which serves the North-East Line, sits right at Park Colonial’s doorstep. This provides a seamless link for commuters heading to the Serangoon MRT interchange and those further connecting to the Circle MRT.

With so many transport means and options to choose from, getting to work and/or travelling to other parts of the island will no doubt be quick, affordable and hassle-free for future residents.

Nearby Amenities

There are innumerable amenities found in the immediate vicinity of Park colonial including schools, shopping centers, restaurants and more. Some of the prestigious schools located in the precinct of the development include Cedar Primary and Secondary Schools, Stamford American School, the Maris Stella High, CHIJ Katong Convent and more.

In terms of shopping, residents will have convenient access to the NEX Mall and the Venue Shoppes, which are 1 MRT stop away each. NEX Mall comprises 2 food courts, 2 supermarkets, public library, cinema and a set of more than 350 shops. The Venue Shoppes, on the other hand, consists of 28 retails units with a total of 23 Food & Beverages outlets as well as 5 shops.

Park Colonial squarely sits in an upscale location and there are many country clubs within the neighborhood where residents can meet friends, partners and clients for networking and/or building contacts. Some of the prestigious clubs residents can have easy access to include Raffles Town Club, Singapore Islands Country Club, The Tanglin Club and the Serangoon Gardens Country Club.

Get a Home Loan More quickly and effortlessly with iCompareLoan Mortgage Broker

Wondering how to get enough finances to purchase a unit or two at the prestigious Park Colonial condo? Don’t worry because iCompareLoan Mortgage broker has got your back. Our brokerage firm provides an ideal platform where clients can search, filter and compare mortgage loan Singapore from different top lenders in the country in order to identify the best packages.

Whether the project in question is under construction or completed, you can always find a suitable loan package to work with. Sifting through the various loan options and getting in touch with favorable lenders though our platform is quick and seamless and you don’t have to part with a single cent in the process.

For advice on a new home loan.

For refinancing advice.

Download this article here.

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Margaret Ville: Picture-Perfect Living in a Royal Suburb

Click on Margaret Ville: Picture-Perfect Living in a Royal Suburb
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Author: iCompareLoan Editorial Team

Image Credits: Margaret Ville, MCL Land Ltd

Margaret Ville is a newly launched luxury condominium property that elegantly sits along the Margaret Drive in the prime District 3. The masterpiece, which is developed by MCL Land, a renowned property developer in Singapore, will feature a collection of 309 premium units, each fitted with high-end furnishings. Margaret’s luxurious finishing, with close resemblance to a luxurious boutique hotel, is one of its selling points, which makes it attractive to both investors and homeowners.

The 40-storey condo building is surrounded by lush greenery and from its upper floors; residents can enjoy unblocked views of the graceful Bukit Timah Hill as well as the nearby city skyline. Its serene outdoors offer undisturbed tranquility and that seamlessly melds with the area’s urban living dynamism to make life truly rewarding for residents.

About Margaret Ville’s Location

Margaret Ville squarely sits on the city-fringe location of Queenstown, just minutes away from the action yet not so crowded, something that promises residents the best of both worlds. Lying on the south-western part of Singapore’s Central Region, Queenstown is considered one of the best places to live in, in the larger Rest of Central Region (RCR). It is just 10-minute drive from the Central Business District (CBD) and about 6 minutes or so drive away from One-North, which is a boon for those working in these areas.

Unit Mix

The development will consist of smaller investible units ranging from 1 to 4 bedroom configuration. All the units within the condo will feature a uniform quality of materials used for such areas as flooring, bathroom, kitchen & bedroom cabinetry systems as well as brand appliances. Smart home systems and overhead storage systems will also apply across the unit types.

Here is a breakdown of the condo’s units as per the developer:

Nearby Amenities

Future residents of Margaret Ville will have the privilege of accessing a lot of amenities that sit close-by including transport amenities, schools, shopping outlets and social amenities. Here is a breakdown of the major amenities available nearby:

Transport

The Commonwealth MRT Station, which serves the East-West Line, is a mere stone’s throw away from the residence. It only takes a few stops to reach the Central Business District (CBD) and the Orchard Shopping belt, making it convenient for those commuting to and from or going to shop in these areas.

The Commonwealth Avenue West arterial road is perfectly linked to the Ayer Rajah Expressway, providing a quick exit to and entrance from other parts of Singapore. To access the Singapore CBD, residents can conveniently use the Holland Road.

Schools

Reputable educational institutions abound within the Margaret Ville neighborhood. So enrolling children or applying for a course will be a hassle-free thing. Some of the prestigious schools found in the immediate vicinity include New Town Primary, Queensway Secondary, Singapore Polytechnic and Anglo-Chinese School, among others.

Shopping Centers

Residents of Margaret Ville who love shopping can go to the nearby Queensway Shopping Centre, Alexandra Central and IKEA Alexandra. When it comes to foodstuffs, residents can pick local food and fresh produce form the Alexandra Village Food Center, Tanglin Halt Food Center and ABC Brickwork Food Center, which also good cafes around that serve delicious meals.

Recreational Amenities

Residents hoping to enjoy some nature-inspired outdoor fun can visit West Coast Park, Kent Ridge Park and Hort Park, which are just within a walking distance. Queenstown Stadium and Tangling Golf Course are also a short drive away from the residence, providing great convenience for those who would want to enjoy relaxing or adrenaline-pumping sporting action.

Take Advantage Of iCompareLoan Mortgage Broker Services

If you find the process of hunting for a home or housing loan in Singapore to be a daunting and costly affair, iCompareLoan Mortgage broker can make you breathe a sigh of relief. For the many years we’ve been in the industry we have helped thousands of home seekers compare home loan Singapore and choose suitable packages for their property investment needs. And we believe you can get a suitable loan in a fast, reliable manner for the condo unit(s) you’re eyeing.

Our work is simple. We lay out to you the many loan packages from the country’s top lenders and leave you to browse and choose the most favorable one. Whether you’re searching for a home loan for the first time or are in for a refinance, there are plenty of loans available that can match your needs.

For advice on a new home loan.

For refinancing advice.

Download this article here.

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Refinancing needs can be complex as no two homeowners are in exact same situation

Click on Refinancing needs can be complex as no two homeowners are in exact same situation
for the source.
Author: Ravi Philemon

Finding a mortgage provider and loan that meets your refinancing needs can be a complicated process and customers always have several questions.

By: Hitesh Khan/

The most common reason for refinancing is to save money. Saving money through refinancing can be achieved in two ways:

  1. By obtaining a lower interest rate that causes one’s monthly mortgage payment to be reduced.
  2. By reducing the term of the loan, thus saving money over the life of the loan. For example, refinancing from a 30-year loan to a 15- year loan might result in higher monthly payments, but the total of the payments made during the life of the loan can be reduced significantly.
refinancing needs

Image credit: iCompareLoan

People with refinancing needs also seek to convert their adjustable loan to a fixed loan.

The main reason behind this type of refinance is to obtain the stability and the security of a fixed loan. Fixed loans are very popular when interest rates are low, whereas adjustable loans tend to be more popular when rates are higher. When rates are low, homeowners refinance to lock in low rates. When rates are high, homeowners prefer adjustable loans to obtain lower payments.

A third reason why homeowners refinance is to consolidate debts and replace high-interest loans with a low-rate mortgage. The loans being consolidated may include second mortgages, credit lines, student loans, credit cards, etc.

In many cases, people with refinancing needs believe that debt consolidation will result in savings.

The answer to the question “Should I refinance?” is a complex one, since every situation is different and no two homeowners are in the exact same situation. Even the conventional wisdom of refinancing only when you can save 2% on your mortgage is not really true. If you are refinancing to save money on your monthly payments, the following calculation is more appropriate than the rule of 2%:

  1. Calculate the total cost of the refinance – example: $2,000,
  2. Calculate the monthly savings – example: $100/month,
  3. Divide the result in 1 by the result in 2 – in this case 2000/100 = 20 months. This shows the break-even time.

If you plan to live in the house for longer than this period of time, it makes sense to refinance.

Can a new refinancing loan offer you savings? Typically, a home loan package offers attractive rates for the first three years, following which the interest rates are adjusted upwards, which usually coincides with the end of the lock in period, offering borrowers a good opportunity to relook at their loan.

Let’s take a look at how refinancing can lead to potential savings over a 3-year period.

Current loan:

Outstanding loan amount: $400,000

Interest rate: 2.5% fixed for 3 years
Tenure: 30 years

Using our mortgage payment calculator, the monthly payment is S$1,580.48

Year Monthly Installment Monthly Principal Paid Monthly Interest Paid Annual Principal Paid Annual Interest Paid Balance
1 1,580.48 747.15 833.33 8,965.76 10,000 391,034.24
2 1,580.48 765.83 814.65 9,189.90 9,775.86 381,844.34
3 1,580.48 784.97 795.51 9,419.65 9,546.11 372,424.68

 

Total interest paid over 3 years is $29,322

New loan:

If you are able to refinance your loan to a lower rate, for example:

FHR-18 + 0.9% (Assume that FHR-18 = 0.6%) = 1.5%
Using our mortgage payment calculator, the monthly payment is S$1,380.48

Year Monthly Installment Monthly Principal Paid Monthly Interest Paid Annual Principal Paid Annual Interest Paid Balance
1 1,380.48 547.15 833.33 6,565.76 6,000.00 393,434.24
2 1,380.48 888.69 491.79 10,664.25 5,901.51 382,769.99
3 1,380.48 902.02 478.46 10,824.21 5,741.55 371,945.78

Total interest paid over 3 years is $17,643.

The difference in interest payment over 3 years ($29,322 – $17,643) is $11,679.

Refinancing a home loan would mean reassessing your credit standing. You have to consider questions such as:

  • Has your salary increased/decreased since the last assessment?
  • Have you taken up more loans?
  • Have you been paying your bills on time?

These factors will affect your credit score and willingness of the bank to refinance your loan.

10 things to consider before Refinancing your Home Loan

Sometimes, you do not have a choice – you are forced to refinance. This happens when you have a loan with a balloon provision, but with no conversion option. In this case it is best to refinance a few months before the balloon comes due.

Banks can come up with customised solutions to meet your needs whether it is to change the loan tenure or lower your monthly payments. Find the bank that offers you the best solutions. However, do note that generally if you stretch your loan tenure over a longer period, the interest payable at end of loan is higher.

Whatever you choose to do for your refinancing needs, consulting with a seasoned mortgage professional can often save you time and money. Make a few phone calls, check out a few web sites, crunch on a few calculators and spend some time to understand the options available to you.

Mortgage Broker Singapore – Should I use one?

How to Secure a Home Loan Quickly

Are you seeking new mortgage loans for your refinancing needs? Don’t worry because iCompareLoan mortgage brokers can set you up on a path that can get you a home loan in a quick and seamless manner.

Alternatively you can read more about the Best Home Loans in Singapore before deciding.  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 refinance, our 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.

Talk to us if you need refinancing advice.

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

To speak to our Panel of Property agents.

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Freehold commercial building near Farrer Park MRT for sale

Click on Freehold commercial building near Farrer Park MRT for sale
for the source.
Author: Ravi Philemon

JLL, as the exclusive marketing agent, announced the sale of 291 Serangoon Road, a freehold six-storey commercial building located within a short walking distance to Farrer Park MRT station.

291 Serangoon Road291 Serangoon Road is located on a corner plot and commands a 35-metre wide dual frontage onto Serangoon Road and Burmah Road.

The property occupies a land area of 5,455 sf and spans an estimated area of 19,913 sf. Based on the Master Plan 2014, the site is zoned “Commercial” with a Gross Plot Ratio of 3.0.

291 Serangoon Road houses a food and beverage (F&B) tenant on the ground floor, a night club on the second and third floor, as well as offices on the upper floors. Subject to approval from relevant authorities, potential uses include retail, showroom, fitness centre, medical suites, entertainment and serviced apartments, amongst others. The incoming owner has potential naming and signage rights for the property.

The building has a highly accessible location that is 200 metres from Farrer Park MRT Station and a short 10-minute drive to the Central Business District (CBD). Major expressways are located in close proximity, including Pan Island Expressway (PIE), Central Expressway (CTE) and East Coast Parkway (ECP).

With its excellent city fringe location and strong transport infrastructure, the Farrer Park area has evolved into a bustling commercial and medical hub, well-served by a myriad of trendy F&B and lifestyle offerings.

The area is undergoing further rejuvenation with the development of several new developments including Centrium Square, a 19-storey commercial development comprising of retail, medical suites and office space; Uptown @ Farrer, a mixed-use development by Low Kheng Huat, which will consist of retail, residential; and a 240-unit serviced residence operated by lyf Farrer Park Singapore.

Mortgage Broker Singapore – Should I use one?

Mr Clemence Lee, Senior Director, JLL, says: “The property was first launched for sale in September 2018 with a guide price of $52 million. Upon the close of the EOI, we received a few offers which fell short of the owner’s expectation. The property was subsequently withdrawn from the market.

With the improving office market in Singapore, we are seeing more investors shift their focus back to the commercial sector. We feel that it is timely to put the property into the market again to offer buyers another chance to reconsider this exceptional opportunity. With the pricing lowered to between $46 to $49 million, we expect strong interest from both investors and owner occupiers who are looking to acquire a centrally-located freehold commercial building in a bustling area undergoing rejuvenation and gentrification.”

The latest transaction in the vicinity is Wanderlust Hotel, which transacted at $37 million or around $2,466 psf on GFA in April 2018. Located opposite 291 Serangoon Road, the entire two-storey commercial podium at Centrium Square transacted at $135 million or around $4,967 psf on strata area in July 2016.

The indicative guide price for 291 Serangoon Road is in the region of $46 to $49 million, which reflects around $2,300 to $2,450 psf on the total area.

As the property sits on land zoned for commercial use, foreigners are eligible to purchase the building. There is also no Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD) imposed on the purchase of the property.

The property is being marketed through an Expression of Interest exercise, which will close on Thursday, 21 February 2019 at 3pm.

Singapore residential market will see volume and price weaknesses in 2019, DBS Research

Mr Paul Ho, Chief Mortgage Consultant at iCompareLoan, said that despite the property curbs introduced by the Government last year, Singapore is still an attractive residential market for investors.

Although the property market exuberance has been curbed to some extent with the property cooling measures introduced last year, Singapore as a property market investment destination still remains among the top – shoulder to shoulder with other cities in the world like London, New York, Shanghai and Sydney.

“We have to be mindful that there is a lot of excess capital fluidity here and at 1.9 – 2 percent, Singapore has one of the lowest interest rates for home loans in the region,” he added.

The mixed landed development site in the Braddell Heights residential enclave will be especially attractive to investors because of its freehold tenure with redevelopment potential, which is becoming increasingly scarce.

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.

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

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

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Gloomy property market outlook for Singapore in the next 2 years

Click on Gloomy property market outlook for Singapore in the next 2 years
for the source.
Author: Ravi Philemon

With lower growth in 2019 than in 2020, Colliers International predicted a gloomy property market outlook for Singapore in the near future. Andrew Haskins, Colliers’ Executive Director of Research in Asia, outlined the key market trends and sector forecasts based on macroeconomic data and geopolitical factors for its Annual Report titled ‘Asia Market Outlook 2019’.

The report in quoting Colliers’ US chief economist Andrew Nelson noted that “despite years of talk in financial markets of “decoupling”, prospects for the world’s largest economy, the United States, are still the key determinant of macro-economic prospects for Asia. And all is not well in the US. While the US has enjoyed 110 consecutive months of positive growth since emerging from the Global Financial Crisis of 2008–2009, below the surface there are signs that a slowdown is starting to take hold.”

Singapore’s gloomy property market outlook may be affected by the declining macro-economic prospects of the US.

With the not-so-positive outlook for the US economy, Singapore’s property market is set to be affected said Colliers’ report.

First-time home buyers can avoid common and costly mistakes

Despite the gloomy property market outlook here, Singapore remains Asia’s firmest office market said the same report.

“In 2018, average prime grade office rent in Singapore rose 15% to SGD9.43 (USD7.0) per sq foot per month as vacancy tightened to below 6%. Demand drivers were broad-based, with flexible workspace operators, technology and professional services firms continuing to expand their footprint.
In 2019, with a lower but benign real GDP growth forecast of 2.5%, we think demand will stay firm; and the government’s push to promote technology, innovation and R&D will help feed growth in the market. We expect reduced new CBD Grade A office supply over 2019–2021, with annual expansion averaging 2% of stock, and the continued tightening of vacancy should support rental growth.
In addition, average prime rent is still competitive versus other major centres, being only about one-half of the level of Hong Kong and 60–65% of the level of Tokyo. However, with a higher base for comparison and new office space outside the CBD, we expect rent growth in 2019 to slow to 8%.
Our “Top Locations” research highlighted Singapore as Asia’s #3 location for Finance occupiers, and #2 location for both Tech occupiers and Law tenants. Singapore benefits from its strong reputation as a source of talent, from political stability and strong regulation, from pro-business government policies, and from high scores on human factors. With rental affordability still good, we expect Singapore’s high popularity to persist.”
gloomy property market

Image credit: Pixabay

The report further added that despite the gloomy property market here, Singapore logistics market is starting to stabilise as it absorbs the supply influx of 2017 and the first half of 2018. Taking a hard look at the retail sector here, the report said that rents on Orchard Road should rise 1–2% in 2019.

“Over the first nine months of 2018, Singapore retail rents edged down 2.2%. We expect the overall retail property market to continue finding its footing in 2019 with landlords seeking the optimum trade mix and digitalisation of their malls.
Besides the continued challenge from e-commerce, we expect noticeable new retail space supply in 2019 (equivalent to 3.0% of current stock), spread out over the central region (excluding Orchard Road), city fringe and suburban areas. Supply should taper off significantly from 2020.
In 2019, we expect ground floor retail rents in prime shopping centres along Orchard Road to rise by 1–2% YOY, due to the lack of new stock in Orchard Road, while prime floor rents in suburban Regional Centres should stabilise.”

HDB dwellers percentage continues gradual downward trend, shows latest Annual Return

The report however cautioned that conditions in retail property remain uncertain with existential threat to traditional retailing from continuous growth in e-commerce. Predicting ample new supply of retail space in several cities, the report said rent growth will be either mildly positive or mildly negative in Singapore. The report added that landlords and tenants however, face the long-run challenge of putting experience, entertainment and digital connection at the heart of their retail offering.

Despite the gloomy property market outlook in Singapore, attractive opportunities remain here, especially where occupier demand is strong said the Annual Report. It noted that demand from institutional investors for Singapore property assets still looks firm, and that shortage of high quality buildings available for sale is probably a greater constraint on investment volumes than any concern about macro-economic outlook or valuation.

Colliers still sees attractive opportunities in investment property markets in Singapore and especially highlighted the investment attractions of office assets in here. Besides the office markets, it also pointed to the potential of logistics assets, and of business and industrial park assets.

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 Gloomy property market outlook for Singapore in the next 2 years appeared first on iCompareLoan Resources.

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Home based business financing can be challenging but not impossible

Click on Home based business financing can be challenging but not impossible
for the source.
Author: Ravi Philemon

Home based business financing may be challenging but not impossible

By: Hitesh Khan/

Running a home-based business can be a profitable and enjoyable way to make a living. But before you consider applying for home based business financing to expand your business, it is important to have an ironclad idea, some form of collateral, investors (in some cases) and a long-term plan for success.

1. Pull a copy of your credit report. A lender will not grant a small business loan to any potential borrower with poor credit.

Credit scores are major considerations on personal loan applications. The higher your score, the better your approval chances.

home based business financing

Image credit: PxHere

A credit score is a number that the lenders consider for home based business financing.

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

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

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

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

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

2. Collect all of your documents and do a self-analysis. Put yourself in the lender’s shoes – decide how strong a credit risk you are. Positive attributes of a successful business loan borrower include strong assets (house, investments), existing investors (either angel investors or venture capitalists), strong cash-flow from an existing business or other career and a unique business idea with a clearly defined customer market.

3. Research lenders. If you do not have the time to do research, seek the services of a loan specialist for your home based business financing. The loan specialist is not a direct lender but instead contracts with private lenders to provide small business loans to consumers. A prospective lender is looking for a profitable loan and will scrutinize your application quite carefully.

Be sure to provide the loan specialist your present personal bank statements, business bank statements and a clear one-page report on the thrust of your home-based business, its prospective customers and your ideas for long-term sustainability and growth.

Mortgage Broker Singapore – Should I use one?

4. Make sure your documentation is all in place. Although it varies slightly from lender to lender, a small business loan package usually comprises several documents, including a loan agreement, a promissory note and some form of guarantee and surety agreement.

The loan agreement will contain what are commonly known as “representations and warranties” of the borrower. These provisions serve as your promise to the bank that you’ve complied with certain conditions. The bank will ask you to affirm, that you’re authorised to bind your business to the loan terms. You may also be asked to deliver your business’s financial reports for review, either annually or quarterly, for a term specified in the loan agreement.

Generally, it’s a good idea to get the loan documents ahead of time so you have a chance to review them for a couple of days before you sign them. Most lenders won’t have a problem sending advance copies of the documents, but they will generally only do so if they’re specifically asked.

The documents can be somewhat complex – which is why you may need an independent loan specialist to help you understand what the fine print means.

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

5. Make sure that all approved loan offers meet your original needs. Obtain copies of all approved small business loans and compare the final terms to your original idea.

Make sure the capital sufficient home based business financing to fund your start-up.

Make sure you can make the monthly payments and make sure the business idea is still viable. For example, if another business owner has entered the market you had hoped to penetrate with a similar idea, you’d be wise to revisit your business plan before accepting any loan funds. If it seems as though your customer market is still there, proceed with the loan. However, if your plan is in jeopardy due to the new business, it’s best to refuse any loan and go back to the drawing board.

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 Home based business financing can be challenging but not impossible appeared first on iCompareLoan Resources.

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Century Warehouse sold collectively for $48.5 million

Click on Century Warehouse sold collectively for $48.5 million
for the source.
Author: Ravi Philemon

Knight Frank announced on Jan 14 that Century Warehouse, an exclusive freehold industrial “B1” development along Pasir Panjang Road, has been sold collectively for S$48.5 million to a private investment company. The sale is S$8.5 million less than the initial asking price of S$57 million when the property was first put up for sale in October last year.

Century Warehouse is an 8-storey freehold industrial warehouse with basement carpark, comprising 35 strata units with a total strata area of 56,539 sq ft. The development sits on a site with an area of 2,824.4 sqm (approx. 30,402 sq ft) and is regular with a frontage of approximately 35 metres onto Pasir Panjang Road, and average depth of 82 metres.

According to the 2014 Master Plan, Century Warehouse is zoned “Industrial (B1)”, with an allowable Gross Plot Ratio of 2.5.

Century Warehouse is nestled within an exclusive industrial enclave, surrounded by industrial developments such as Interlocal Centre and OC @ Pasir Panjang, as well as multi-concepts stores such as tech-enabled grocery and dining destination habitat by honestbee and homegrown craft spirits distillery, Brass Lion Distillery.

The property is within walking distance to both the Pasir Panjang and Labrador MRT stations and enjoys easy access to major arterial roads and expressways such as the West Coast Highway and Ayer Rajah Expressway.

century warehouse

Image credit: Knight Frank Singapore

The sale price of S$48.5 million for Century Warehouse translates to a unit rate of S$858 psf on the existing strata area, or land rate of S$638 psf ppr.

Tuan Sing Holdings’ wholly-owned subsidiary, Asiaview Properties, owns 31 out of the 35 strata units at Century Warehouse, and close to 90% of the strata area. It therefore stands to receive S$42.4 million in proceeds from the sale. The rest of the 4 strata units are owned by third parties. All the owners (100%) gave their consensus to sell the property.

Mr Tan Boon Leong, Executive Director and Head of Industrial, Knight Frank Singapore, said:“We received encouraging response during the marketing of the property. Prospects recognised that with the recent opening of habitat by honestbee and Brass Lion Distillery in the immediate vicinity, this is not your conventional industrial enclave.”

Mr Ian Loh, Executive Director and Head of Investment and Capital Markets, added: “Knight Frank is pleased to have represented the owners of Century Warehouse for this transaction. We received a broad range of enquiries for the property – from owner-occupiers, boutique developers and investment funds. Looking ahead, we expect continued demand for both commercial and industrial investment opportunities in 2019.”

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

With the winding down of the success of residential en bloc sales, commercial properties are now trying to join in the bandwagon. Many commercial en bloc sale attempts fail because the asking prices are often too high. Two critical factors affecting the success of commercial sites going en bloc are pricing and location. Older commercial buildings especially, may see a need to catch the current wave as an exit strategy as their rental yields come under pressure due to competition from newer commercial buildings.

The biggest gainers following the new 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.

Mortgage Broker Singapore – Should I use one?

Commercial properties such as Century Warehouse 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.

To buy a commercial or 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 director is usually required to become personal guarantors of the loan the company undertakes. Hence this may affect the director’s other purchases, such as for buying a residential property, due to the loading from the TDSR for guaranteeing a loan.

Some banks even advertise 100 to 120% loan. This is due to a combination of working capital as well as commercial/industrial property loan, but this only applies to company with strong cash flow position. Commercial property is different from residential property and the considerations are more complex and varied, though the payoff may be worthwhile for discerning investors.

How to Secure a Commercial Loan Quickly

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

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

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

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

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

If you need refinancing advice.

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Newton Lodge launches en bloc sale with $44 million price tag

Click on Newton Lodge launches en bloc sale with $44 million price tag
for the source.
Author: Ravi Philemon

Newton Lodge, a 16-unit collective sale site at Newton Road, has been launched for sale by sole marketing agent, JLL.

Newton Lodge is conveniently located some 400 meters from the Novena MRT station and the Novena commercial cluster. Major developments around the Novena area have been underway, as the government targets to transform the area into Singapore’s largest healthcare hub by 2030. When completed, Health City Novena, spanning across 17 hectares, is said form an entire ecosystem revolving around health services, medical research and education, integrated with commercial, leisure and public community spaces.

The freehold 21,409 sqft site is zoned ‘Residential’ in the 2014 Master Plan with an allowable gross plot ratio (“GPR”) of 1.4. The property may be redeveloped into a low-rise apartment project comprising of up to 27 units with an average size of 100 sqm per unit. Subject to approval from the authorities, Newton Lodge may also be suitable as serviced residences or a custom-built co-living development. If approved for serviced apartments, Newton Lodge could potentially house around 50 to 60 rooms which could be rented for a minimum seven-day stay.

“Co-living, a contemporary form of shared housing, is more commonly found in cities such as Hong Kong, China, India and the US, catering to young and mobile occupants. It provides an affordable, high-density living solution with shared and modern spaces that bring together like-minded individuals. Co-living spaces appeal to single, young professionals who are looking for freedom, flexibility and a community,” said Mr Karamjit Singh, Senior Consultant at JLL.

“The concept of sharing private and HDB apartments with unrelated tenants is common in Singapore, which is informally a form of co-living. However, professionally-run and organized co-living concepts to the levels of the co-working phenomenon is still in its infancy stage in Singapore, and is expected to grow especially with high stamp duties payable for home purchases by foreigners in Singapore,” added Mr Singh.

“Purchasers who wish to develop an entire building for co-living spaces or short-term accommodation should find Newton Lodge’s central location, project size and price quantum attractive. Not only would a boutique-sized project be more manageable, a smaller community of like-minded residents may also result in more meaningful social engagements,” adds Mr Singh.

The vendors are expecting a minimum of $44 million for Newton Lodge, which reflects a land rate of $1,468 psf ppr at GPR 1.4.

Should the purchaser factor an additional 8 per cent bonus gross floor area for balconies and communal areas, the reserve price translates to a lower rate of approx. $1,359 psf ppr. Development charges are not payable for the redevelopment.

The tender for Newton Lodge closes on 26 February 2019 (Tuesday) at 2.30 p.m.

Mr Paul Ho, chief mortgage consultant of icompareloan.com, said the sale should be concluded with minimal delay and maximum benefit to the owners.

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

Collective sale process takes 20 to 30 months to complete and during this time, the owners typically do not have sufficient funds for down-payment and their CPF OA funds are tied up in the property, hence they cannot buy a new condominium early.

By the time the transaction is completed in 20 to 30 months later, the property prices would have already moved  up 10 to 20 per cent. This is already evidenced by sellers of older estate asking higher prices. Hence if the process takes 20 months to 30 months, owners may need to consider the cost of a replacement unit by that time, else they may want to hold up a higher selling price.

newton lodge

Mr Ho pointed out that the rules are quite onerous and stringent and is governed by the Land Titles (Strata) Act – section 84A. Over the years, additions and amendments by the Ministry of Law to the en bloc law have made the collective sale rules even tighter.

Good property agents – qualities to look for

He said that many of the home owners who refinanced their home loans to fixed rate home loans or those with 2 years locked-in or 3 years locked-in period will incur full home loan redemption penalty. This penalty is usually 1.5% of the loan amount. This tends to affect those who have bought their properties in recent years as their loan size tends to be bigger and their corresponding home loan redemption penalty higher.

Mr Ho suggested that if one’s home is at risk of en bloc, the owner could consider a home loan where there is no locked-in penalty, but instead entails a higher housing interest rate cost. The next best option is to look for packages with a waiver of locked-in penalty due to sale of property. Such owners may contact a mortgage broker to assist them to find such packages with waiver of locked-in penalty.

How to Secure a Home Loan Quickly

Are you planning to invest in properties in the Newton area 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 Newton Lodge launches en bloc sale with $44 million price tag appeared first on iCompareLoan Resources.