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pepamint_L

Screwed By Seller's Agent

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I have a question about the 5K, what happen if i buy a flat that is selling at valuation? do i still need to pay the 5K to exercise OTP?

And the HDB loan that i take will be valuation price minus 5k?

thanks!

 

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yes to ur both question.

Actually, there are no rules say must need 5k to exercise the OTP.

5k is max amount, set by HDB.

If the seller ok..

u can even exercise using $500

 

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i thought must have Letter Of offer[from bank] or HLE[from hdb] than can ex. option. use cash than u can ex. on the spot.

so we have a lot of very smart ppls around to give professional advise.

alot of experienced people here, thankfully...I've started searching online for available resale flats again, but see see look look only, coz HLE expiring..unfortunately, read in yesterday's papers that the valuation of resale flats has risen :(

apparently, COV will drop meaning less cash upfront, but with higher valuation, i'll be saddled with a larger debt in the long run...there are also less resale flats for sale now, due to all the property measures....really very demoralised....

Edited by pepamint_L
 

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Pte resale is a bit complicated as the "valuation" part is usually done by buyer, not seller.

Valuation cost, without taking bank's mortgage loan, is costly, can be as high as $600 for an ORC condo unit, not to mention the landed..So sellers, usually have no valuation report to show buyers while house viewing. The buyer has to always know his financial strength. Buyer has to exercise the option then arrange for bank loan, at same time, bank does valuation and decide the maximum amount to lend to the buyer. Buyer has to be extra careful in pte resale, make sure the location is "resalable" and buyer himself is "financially viable" that bank would lend the required amount.

I've mentioned earlier, LO is needed when both seller & buyer jointly submtting the HDB resale application to HDB. Buyer can exercise OTP ANYTIME before it is expired (14 days)as long as he is confident in securing a loan of the amount to his like.

HDB will reject all resale applications without proper required documents being submitted. Another thing to note under clause 11 of the OTP, seller's agent will "secretly" put "90days" as being the "grace period" between after OPT exercise date and resale application submission date, so to enable seller taking his own sweet time to look for his next home.

Sorry, I'm not so updated as to the 7-days rules and those rules set by the new CEA. Any changes to above I mentioned?

Correct me if im wrong

For private property, we no need LO can exercise first

For HDB, need LO before exercise. If we exercise before LO is approved, HDB will reject the case.

 

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Just get what you can afford, no point chasing the impossible dream?

true, what i can afford seems to be getting smaller and smaller, more and more ulu...

If you read the article on first page of mypaper today <Home prices hit record highs, but at slower pace>, somehow it seems like they are trying really hard to convince us that the property measures are working....

I quote:

"Both private and public housing prices in Singapore rose in the fourth quarter but at a slower pace than previously, indicating that government measures to cool the market were working."

"But policy measures to cool the market introduced in August last year seem to be working. The resale volume declined by about 21 per cent in Q4."

Edited by pepamint_L
 

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Its cold comfort, isn't it?

I started looking at HDB resale flats in late 2008, and only OTP-ed my current flat in January 2010.

Keep in mind that 2008 was the time of credit crunch, and in the one-odd year that I'd been looking, the market had been strongly and steadily recovering. Even in 2008, though COVs came down, HDB valuations remained pretty solid, without crashing like private property did.

I started out looking in Queenstown, and steadily moved to cheaper areas as prices of HDB flats started spiking. So now I'm living in Serangoon North...... after a while you just have to settle on something.

 

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Its cold comfort, isn't it?

I started looking at HDB resale flats in late 2008, and only OTP-ed my current flat in January 2010.

Keep in mind that 2008 was the time of credit crunch, and in the one-odd year that I'd been looking, the market had been strongly and steadily recovering. Even in 2008, though COVs came down, HDB valuations remained pretty solid, without crashing like private property did.

I started out looking in Queenstown, and steadily moved to cheaper areas as prices of HDB flats started spiking. So now I'm living in Serangoon North...... after a while you just have to settle on something.

wah u still wait so long... in the midst of credit crunch, when HDB price did not fall but increase by a little, i fast fast OTP le...

if price dun fall during crisis...then its not likely to fall anytime soon as a crisis is typically followed by a strong rebound.

but even in crisis, clementi area near mrt still asking for 30k to 35k cov, Holland V even better, minimum 30k, no matter how jialat the flat is. so no choice la....i also have to go more ulu places. :)

 

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wah u still wait so long... in the midst of credit crunch, when HDB price did not fall but increase by a little, i fast fast OTP le...

if price dun fall during crisis...then its not likely to fall anytime soon as a crisis is typically followed by a strong rebound.

but even in crisis, clementi area near mrt still asking for 30k to 35k cov, Holland V even better, minimum 30k, no matter how jialat the flat is. so no choice la....i also have to go more ulu places. :)

me too, moved from Holland, Clementi, finally Jurong ;)

each MRT station down is price reduction....

 

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Cleong, Gimz, Mashmallow,

My case is sama sama like you. My hubby and I started looking at Jurong area in late 2008, although the six units we viewed were far away from MRT and in very run-down condition, they still asked for 20-30K COV. Then we decided to rent a room and wait for the crisis to adjust the HDB price a bit. But HDB price didn't drop much, and started to increase since May 2009!

Bobian, we looked at more ulu and cheaper Sembawang area, and OTP one unit in late 2009.

I still think we are fortunate to own a nest. I have seen many couples staying with inlaws and renting room/unit.

Edited by forgotten
 

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wah u still wait so long... in the midst of credit crunch, when HDB price did not fall but increase by a little, i fast fast OTP le...

if price dun fall during crisis...then its not likely to fall anytime soon as a crisis is typically followed by a strong rebound.

but even in crisis, clementi area near mrt still asking for 30k to 35k cov, Holland V even better, minimum 30k, no matter how jialat the flat is. so no choice la....i also have to go more ulu places. :)

Wait so long, because I was also getting ready to get married. We now know that HDB valuations are very resilient, but in those dark days of 2008 no one was really sure how bad it would get. Hindsight's always crystal clear!

I feel we've "lucked" into buying an EM in a not-so-ulu location for below 500k, because since then prices for my area have risen 30-50k. But then I probably contributed to the upward spiraling prices also.

 

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me too, moved from Holland, Clementi, finally Jurong ;)

each MRT station down is price reduction....

hey, whr r u in Jurong East?

my journey is so similar to urs. i moved frm Commonwealth to Jurong East, skipped ur Clementi....lol. Been staying here for 1 mth nw. Can't say tt i miss my previous place. It's so convenient here. Only thing I miss would be the multi-storey carpark. I only hv open-air carpark here, and it's wet when it rains, and it's super hot when it's sunny. Both make me wet. One when I get out, and the other when i get in....hahaha. Of cos, the heat also kills my car's interior.

 

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Wait so long, because I was also getting ready to get married. We now know that HDB valuations are very resilient, but in those dark days of 2008 no one was really sure how bad it would get. Hindsight's always crystal clear!

I feel we've "lucked" into buying an EM in a not-so-ulu location for below 500k, because since then prices for my area have risen 30-50k. But then I probably contributed to the upward spiraling prices also.

it wasn't really on hindsight. Just a gut feel that with "the world is crashing" story splashed all over, hdb prices still held firm. So i reckon no point in waiting for it to get cheaper. :) So went and bought something within budget...

EM at below 500k at not so ulu place...? uhh possible?

 

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