13 Yr Old 99 Yr Leasehold Inter-terrace - Need Advice On Future Valuation And Loan

[pantieileen 2]

The house chooses the owner, not vice versa

[bepgof 20]

Does the Plot Ratio Utilisation affect the chances of resale and perhaps, enbloc for that whole site? Anyone knows where I can dig up info on Plot Ratio Utilisation for the specific site?

That goes without saying. Land title too.

Landed property best come with FH title. 99 yr lease may be can tahan 2 generations only.

Ppls staying in singapore are smart, both sellers & buyers, ask yourself as seller, if you buy that house: WHO will buy this landed house with remaining xx yr?? For sure, I will not buy this house purely due to 99yr leasehold.(taste difference)

http://www.ura.gov.sg/mp08/map.jsf?goToRegion=SIN

Edited January 5, 2011 by bepgof

[kardtoon 0]

That goes without saying. Land title too.

Landed property best come with FH title. 99 yr lease may be can tahan 2 generations only.

Ppls staying in singapore are smart, both sellers & buyers, ask yourself as seller, if you buy that house: WHO will buy this landed house with remaining xx yr?? For sure, I will not buy this house purely due to 99yr leasehold.(taste difference)

http://www.ura.gov.sg/mp08/map.jsf?goToRegion=SIN

While true in most cases, for enbloc often developers will buy over and top up lease for redevelopment. Hence my earlier post on good location.

[bepgof 20]

2. If I take on a bank loan based on prevailing valuation, and should property prices drop, say in 2-5 years time, and the valuation reduces significantly, will the bank require me to top up the different? Or can I carry on paying the mortgage based on the original loan terms?

Would like to elaborate on this.

Once the valuation done, loan amount decided and contract signed, "ball" starts rolling till contract expiration, then you decide to continue with same bank or with another bank with the OUTSTANDING LOAN AMOUNT. Only at this point of time, both banks will evaluate your financial strength vs this outstanding amount and MAY only willing to lend you an amount lesser than the outstanding, ie you need to top up the difference to secure the mortgage loan.

Edited January 6, 2011 by bepgof

[nokomis 0]

We recently bought 99-year property in D16. Before we bought, I ran the numbers using all property transactions in Singapore for the past 15 years. I used psf prices. When I charted freehold against 99-year property, I found that 99-year property trades at a fairly steady discount. The only caveat was that during stronger parts of the cycle, the discount narrowed, while it widened during weakness. This has already been mentioned. The amount of that the discount widened or narrowed was dwarfed by differences between the sales prices of different properties.

I further checked this by looking at older 99-year properties. I found the same thing for those now entering 30-40 years. This far exceeds my likely holding period.

I also considered that any stigma over 99-year property is eroding as an older generation stops buying landed properties. I feel that the younger generations will probably take a far more pragmatic view of property ownership than the previous generation. I felt that this is especially likely as property prices rise, which will erode affordability.

If that wasn't enough, we clearly saw that we could put the excess funds to better use. By generating return with any funds that we did not spend a downpayment or mortgage payments, we further reduce the overall cost of the house.

[initialB 0]

We recently bought 99-year property in D16. Before we bought, I ran the numbers using all property transactions in Singapore for the past 15 years. I used psf prices. When I charted freehold against 99-year property, I found that 99-year property trades at a fairly steady discount. The only caveat was that during stronger parts of the cycle, the discount narrowed, while it widened during weakness. This has already been mentioned. The amount of that the discount widened or narrowed was dwarfed by differences between the sales prices of different properties.

I further checked this by looking at older 99-year properties. I found the same thing for those now entering 30-40 years. This far exceeds my likely holding period.

I also considered that any stigma over 99-year property is eroding as an older generation stops buying landed properties. I feel that the younger generations will probably take a far more pragmatic view of property ownership than the previous generation. I felt that this is especially likely as property prices rise, which will erode affordability.

If that wasn't enough, we clearly saw that we could put the excess funds to better use. By generating return with any funds that we did not spend a downpayment or mortgage payments, we further reduce the overall cost of the house.

Thx so much for all your sharing