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schiz0id

What Is A Reasonable Cov?

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There are a few jumbos in that 'area'. 1 near to KTPH and the others nearer to Khatib MRT. 2 weeks back, a top floor renovated jumbo went for $80k cov with 2 other interested parties standing at the door waiting to tear cheque. Unit was sold in 1 day.

If the unit you are talking about is near an 'entertainment centre', it is in original condition and factor in the fact that you will need to spend $$$ even for simple reno. I think owners are not keen to dispose of the unit (perhaps no real urgency) if they are asking for unreasonable cov + buyer pays all comm! If you can wait, there will be more jumbo units popping up.

PS: Recent cov for a 4A renovated unit in that area was $65k. Went in 2 days!

Hi there,

Am posting for the first time. Hope I got the right channel.

So happy to find this forum filled with people who love floor plans and looking at photos of reno works - just like me. :D

Anyway, need help deciding.. Went to look at a few jumbo flats lately (been looking around at EAs the past month or so) and my family and I love the size and the potential to do major demolition and reno works :P

Saw a unit today, it was relatively low floor and in original condition. We offered $30k above valuation on the spot. Agent called me less than an hour later to say owner rejected our $30k and is looking for $80k.

My question - for a jumbo in original condition is it worth $80k COV? Is this the norm? Perhaps for high floor but low floor?

We like the unit a lot but disappointed the asking is so high.. Sigh......

Would appreciate any comments. Thanks :)

 

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There are a few jumbos in that 'area'. 1 near to KTPH and the others nearer to Khatib MRT. 2 weeks back, a top floor renovated jumbo went for $80k cov with 2 other interested parties standing at the door waiting to tear cheque. Unit was sold in 1 day.

If the unit you are talking about is near an 'entertainment centre', it is in original condition and factor in the fact that you will need to spend $$$ even for simple reno. I think owners are not keen to dispose of the unit (perhaps no real urgency) if they are asking for unreasonable cov + buyer pays all comm! If you can wait, there will be more jumbo units popping up.

PS: Recent cov for a 4A renovated unit in that area was $65k. Went in 2 days!

Hi naim,

Thanks for the info.

I hope you're right. Eagerly anticipating for more jumbos in the area. ;) We are not in a hurry to buy, we need only to vacate our current place end of this year.

Waiting for the right one to come along sure does take lotsa patience... :D

 

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COV reasonable or not really depends on how much you perceive the value of the Flat.

For e.g. the flat that I've purchased last year is a 5RM Maisonette.

Flat Valuation is lower than other EM/5room around that area cos of several reasons:

1. -1 toilet at 2nd floor

2. Low floor (Mine is the 3rd and 4th floor, which is the highest in the block, but still considered low compared to other flats)

3. No recent transaction (No benchmark for valuation)

Based on these, i assumed that the flat is under valued (Val: 425K) and offered the requested COV of 55K to the owner. (Total: 480K)

Few months later after i've moved in, i found out from HDB website that another buyer bought a unit below my unit at 580K!, in the same period when i've signed the OTP.

Currently, the valuation of units around my area is 480K (Breakeven), most recent sale sold at 530K.

 

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Hi schiz0id,

I see you need 4 bedrooms. You can consider some EMs as well. Some of them have a study at the lower floor which could be converted into a bedroom (still quite spacious). However, most would be corridor units and this lower floor bedroom will be next to the corridor. 1 way around it is to get a corner unit which already has the recess area or you can buy over to build an entry gate.

If location is not an issue, you have LOTS of choices.

Hi naim,

Thanks for the info.

I hope you're right. Eagerly anticipating for more jumbos in the area. ;) We are not in a hurry to buy, we need only to vacate our current place end of this year.

Waiting for the right one to come along sure does take lotsa patience... :D

 

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Hi schiz0id,

I see you need 4 bedrooms. You can consider some EMs as well. Some of them have a study at the lower floor which could be converted into a bedroom (still quite spacious). However, most would be corridor units and this lower floor bedroom will be next to the corridor. 1 way around it is to get a corner unit which already has the recess area or you can buy over to build an entry gate.

If location is not an issue, you have LOTS of choices.

Hi naim,

Thanks for the advice. Not considering EM cos we are quite tired of climbing stairs, that's why limiting ourselves to only EAs and Jumbo this time. I have been tasked to find a unit that fits many 'conditions', but still not succumbing to look for an agent to help us. I will press on! :) Haha!

Thanks to everyone for your two cents' :good:

 

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c) Rimblock : i've to disagree with you that PR / Citizen own only ONE residence in singapore. In financial concepts, property is a investment class too. It is up to INDIVIDUALS to decide their own financial plans. Eg i can only buy silver, but cannot buy gold ? Or i can buy stocks A, cannot buy stock B ? Therefore anyone can buy any number of properties and manage their risks.

HDB shld never be a investment. It's affordable housing for residents of Singapore, PR & Citizen. Ppl working for the progress of the country. HDB shld not be rented out for profit as an investment at all.

Edited by HappyHouse88
 

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We have been house hunting since March in areas like Pasir Ris and Hougang and I notice that the COV has been going up since then. Even before today's article came out about COV, i notice that ST has been reporting wrong figures of average COVs being $20k since March. None of the units we have viewed asked for anything less than 50k. None. Maybe cos we only look at EAs but even when i look at propguru 4-room flats, some COVs are more than 20k. I wonder where does ST get their figures from. *scratches head*

Just to share with you, there are a good number of EA units in Pasir Ris (especially those on high-floor, and it gets worse if there's even a sliver of "seaview") that are asking for 100k and more. And the thing that gets me is that people do actually pay for such high cov. *shrugz*

While i agree that COV is subjective to the unit's condition and "feeling", i wonder when the prices will stop spiralling out of control.

 

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i wonder when the prices will stop spiralling out of control.

- Domestic interest rates up up up.

- Retrenchment here & there, j o b l e s s.

- NWC announces wage freeze/cut.

- Signage boards at hawker centre keep change change change

- Coffee shops keep exchange hand

- Stock market down down down

- Entertainment trade close one by one

- COE down down down

.....

 

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We have been house hunting since March in areas like Pasir Ris and Hougang and I notice that the COV has been going up since then. Even before today's article came out about COV, i notice that ST has been reporting wrong figures of average COVs being $20k since March. None of the units we have viewed asked for anything less than 50k. None. Maybe cos we only look at EAs but even when i look at propguru 4-room flats, some COVs are more than 20k. I wonder where does ST get their figures from. *scratches head*

Just to share with you, there are a good number of EA units in Pasir Ris (especially those on high-floor, and it gets worse if there's even a sliver of "seaview") that are asking for 100k and more. And the thing that gets me is that people do actually pay for such high cov. *shrugz*

While i agree that COV is subjective to the unit's condition and "feeling", i wonder when the prices will stop spiralling out of control.

if the unit is in "move-in" condition, it would be reflected in the valuation. thus, i don't think the COV should be that high.

really sians see ppl asking for such high COV.

 

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We have been house hunting since March in areas like Pasir Ris and Hougang and I notice that the COV has been going up since then. Even before today's article came out about COV, i notice that ST has been reporting wrong figures of average COVs being $20k since March. None of the units we have viewed asked for anything less than 50k. None. Maybe cos we only look at EAs but even when i look at propguru 4-room flats, some COVs are more than 20k. I wonder where does ST get their figures from. *scratches head*

Just to share with you, there are a good number of EA units in Pasir Ris (especially those on high-floor, and it gets worse if there's even a sliver of "seaview") that are asking for 100k and more. And the thing that gets me is that people do actually pay for such high cov. *shrugz*

While i agree that COV is subjective to the unit's condition and "feeling", i wonder when the prices will stop spiralling out of control.

That is HDB record which I believe is record after 1st appoint or may be 2nd appointment. Confirm sale.

While those under ERA and other property company, their record is record down once OTP exercise.

There is a gap of 3-5 mth

 

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but pasir ris asking 100k is crazy, and it takes a crazier buyer to actually match the asking

:D

let me count ... pasir ris is 15 mrt stops or >30 minutes to shenton CBD?

Hey nimm,

Yup, I think it's rather far from town. But I guess that's wat makes people like it, away from the hustle and bustle and near the sea? Not sure, but we just like the serenity in the area. And lately i've had the good fortune from my fsm and a fellow forumer to know why it's so quiet...

But anyway, i think 100k is too steep too. That's why we usually walk away from units asking 6 figures for cov alone.

if the unit is in "move-in" condition, it would be reflected in the valuation. thus, i don't think the COV should be that high.

really sians see ppl asking for such high COV.

Hi snaem,

Does "move-in" condition play a big part in valuation?

I remember long time ago, my friend whose dad was a valuer told me that the number of toilets, location, amenities, low/high floor will play a big part. Interior design don't count for much even if you spend 100k on sprucing up your place. Not sure if that's changed now. :dunno:

Anyway, yup I also very sian of people "spoiling market"... Especially those just "testing water" and not serious sellers. :furious:

That is HDB record which I believe is record after 1st appoint or may be 2nd appointment. Confirm sale.

While those under ERA and other property company, their record is record down once OTP exercise.

There is a gap of 3-5 mth

Interesting! Thanks therat.

Good to know. But it sure feels like their information may have an even greater gap. Just feel that the general public has been misinformed for so long. Then again, what's new... :P

 

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That is HDB record which I believe is record after 1st appoint or may be 2nd appointment. Confirm sale.

While those under ERA and other property company, their record is record down once OTP exercise.

There is a gap of 3-5 mth

Hi all,

Just thought I'd share something and probably also to add on to therat's earlier post.

When we exercised our OTP with the seller a few weeks ago, their valuation report was about to expire and so we had to request for a new one upon submission of our resale application.

Our new valuation report just came out and it's 20k higher than their previous valuation. Which makes our COV now 20k less than what it was at OTP. So if HDB takes the price at 1st appointment or confirmation like therat said, then I suppose that's why reported figures are so low compared to what people are asking when you go for viewing?

 

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That is HDB record which I believe is record after 1st appoint or may be 2nd appointment. Confirm sale.

While those under ERA and other property company, their record is record down once OTP exercise.

There is a gap of 3-5 mth

The resale price which includes COV in HDB website should be after the second appointment when the deal is done. Second appointment is usually within 12 weeks from date of submission of OTP.

 

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The resale price which includes COV in HDB website should be after the second appointment when the deal is done. Second appointment is usually within 12 weeks from date of submission of OTP.

That page actually reflects all resale prices (including COV) for approved resale transactions after their 1st appointment.

My resale transaction appeared on the page after 1 week after my 1st appointment.

 

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