Need Some Advice Abt Purchasing Resale

[aidygirl 0]

Hi all,

Need some advice. We are among the sandwiched middle class. We have been hse hunting for abt 9mths, viewed ard 30+ hses & finally settled on one that meets our expectations, though it's not the best. We felt disadvantaged as we are not entitled to any CPF grant due to our income ceiling, even stay near parents. We have written twice to HDB but our appeal was rejected.

Recently govt announced they will review income ceiling and they warn of crash in private property Price in 2015. This made us very worried and we are thinking of withdrawing our purchase. Had called hdb & confirmed that we can still withdraw before first appt. However she advises us to discuss with owner as they have the legal right to take legal action against us for any losses suffered.

Hence, we are not sure if we shld go ahead with our purchase.

[Bluesummerayz 2]

Hi aidygirl

Have you paid the $5,000 option fee already? or just $1,000 "deposit"?

[bepgof 20]

Aidygirl, look like u've paid $5k and now awaiting for 1st apt for the resale unit.

HDB is correct, you are allowed to make "U-turn" now. After 1st apt, no "U-turn" is allowed even if seller passes away.

Now "wish" to make U-turn and "wish" can get the $40K grant if income ceiling rule change.

Purchasing a big ticket item like property is no play play you know. Unlike driving car, can anyhow make legal & illegal u-turns as long as not get caught. After viewing 30+ house, the mind still "like that"....

Think this way: if grant approved and one day you sell the house, u need to return this grant.

If now you void the otp, can you est the costs?, it depends very much on the seller's appetise. You are at losing end for sure.

[neubie 2]

If I am the seller, I will take legal actions if kena play out. Willing buyer willing seller proposition. Buyer is always at a disadvantage position no matter how u look at it. A OTP is legally binding.

You buy a property when u need to stay in it. So why bother about timing the market forces n sentiments n hope u can buy at the best discount. So even if u can lugi the 5k without additional legal implications, and wait out, how long u have to wait for policies to be dished out to your favour?what if it doesn't n prices gets higher?

Edited June 15, 2011 by neubie

[aidygirl 0]

Thanks all for your advice.

We have paid the 5k deposit, now waiting for HDB 1st appt. We have conveyed our intentions to agent but don't think the agent is on our side/ will inform seller. He just advise us to proceed cos seller can take legal action against us.

Will seriously consider as this is a major purchase which we have to stick to for the next 5yrs. We are a first timer young couple buying a house (30+yrs) at a peak price, still need to fork out $ with renovation cos the house is in original condition. Just worried that if we spend all hard earned $ and then the price crash, all our yrs of savings down the drain.

Sigh.. Have read through some threads abt seller backing out and there's nothing much buyer can do to them but when buyer back out, they are at the worst losing end.

[therat 18]

Did you thought about the penalty for the bank loan?

Since you had exercise the OTP, mean you had sign LO

Your lost will not just that $5k, you need to think abt the bank loan penalty and lawyer fee and other crawl back.

Oops! I forget abt the property agent fee too. U need to pay that too if you had sign the commission letter.

Buy property especially for own stay. There are no correct, nice , mei mei period.

further more, you had seen more than 30 house and found one that meet your requirement.

Are you sure you will get back this if you decide to U-turn?

My action will be same as neubie.

[bepgof 20]

Recently govt announced they will review income ceiling and they warn of crash in private property Price in 2015.

If Khaw were to actualises this rule, meaning more 1st timer couples will "chiong" for BTO, giving up EC, DBSS, HDB/pty resale and pty new. This causes grapevine chain effects, no play play. BTO is already sort of short-supplied in present time (early 2013 will be a new chapter). Is a matter of time this salary ceiling rule will be revised and could be completely discarded.

True that HDB resale is on high side now, however, for own stay, why worry? Keep this, save money and buy pty for investment/part time stay lah.

[Bluesummerayz 2]

Sigh.. Have read through some threads abt seller backing out and there's nothing much buyer can do to them but when buyer back out, they are at the worst losing end.

I want to share a real case with you guys. My friend (buyer) was in 'battle' with his seller earlier. He paid $1k deposit to the buyer of a resale who later backed out on his word citing that he got misled by the agent, and that 'now the market was booming, my flat should be sold at a higher price'. He wanted more COV than previously agreed. My friend told the seller to return back to 1k if he wish to cancel the deal. But the seller refused :S Apparently, they found out that this seller, an old man, owed $ to loan shark and the loan shark forced him to sell his flat. So obviously the old man wanted to get as much $ out of the deal as possible. The best part was that he already used up the 1k paid to him and unable to pay back my friend. The old man went to find legal aid to help fight his case, but even the lawyer from legal aid gave up on him based on the facts of the case. What he was trying to do was really dispicable, swallowed the money and wanted to move on to find another buyer who will pay him even more $$ for the flat.

It took my friend time, $, effort, energy to liaise between numerous parties to finally get some justice. He even spoke to the loan shark to discuss the sale matter(btw, these days loan sharks are really 'professional', they even have their own lawyers). He got the flat eventually. And also need not pay for the legal fees (deduct from the old man's sale).

Later while he was having his flat renovated, the neighbours informed him that there were some people outside his flat saying that they are the tenants of his unit.. The old man had taken rental deposits from at least 3 different groups of people, each given a set of house keys (of coz my friend had changed the locks)! Can you believe this...?? My friend zapped a copy of the OTP and pass to the neighbour so that he could help show to any victims who come knocking on his door (in this case, tried opening the door with the useless keys given)

[therat 18]

Later while he was having his flat renovated, the neighbours informed him that there were some people outside his flat saying that they are the tenants of his unit.. The old man had taken rental deposits from at least 3 different groups of people, each given a set of house keys (of coz my friend had changed the locks)! Can you believe this...?? My friend zapped a copy of the OTP and pass to the neighbour so that he could help show to any victims who come knocking on his door (in this case, tried opening the door with the useless keys given)

Did your friend report to police?

This uncle really too much.

[arowana 2]

all kuans of people in the world seriously. Have to watch out. Trust one's gut feel. Talk to neighbours if possible. Look for signs of loanshark harrassment

[angelbutterfly 0]

Sellers and buyers must write in officially to HDB to cancel the OTP.

Yes, sellers can take legal action against you. Pls do not listen to others that no one will go through the trouble to sue. Not true that buyers cannot sue also. For your case, you can approach the sellers directly and discuss things over calmly. Pls do not juz skipped and not attend 1st appt. If u are paying your agent's commission, you have the right to request him to help you solve this matter.

I am curious on your purchase. Y did your agent failed to inform you that you cannot commit if you had not achieved successful in the income ceiling appeal of the grant? Moreover, this is one of the most basic criteria stated in HDB ruling.

Feel free to pm me if you need help. I am no expert but I try my best...understand what u r going through...hugs!

[angelbutterfly 0]

Loan shark problem is very difficult to settle. Try to keep pestering HDB n police to assist.

Police will install free CCTV to nab the culprit if loan shark issues occurred more than 3x. This is based on how strong your complain is too..

Dear all, pls pardon me if you do not agree to my personal opinions here... I just wanna stay here to b a fun and helpful renotalk member...

Tks ya!

Edited June 23, 2011 by angelbutterfly

[zaiyo1419 0]

I want to share a real case with you guys. My friend (buyer) was in 'battle' with his seller earlier. He paid $1k deposit to the buyer of a resale who later backed out on his word citing that he got misled by the agent, and that 'now the market was booming, my flat should be sold at a higher price'. He wanted more COV than previously agreed. My friend told the seller to return back to 1k if he wish to cancel the deal. But the seller refused :S Apparently, they found out that this seller, an old man, owed $ to loan shark and the loan shark forced him to sell his flat. So obviously the old man wanted to get as much $ out of the deal as possible. The best part was that he already used up the 1k paid to him and unable to pay back my friend. The old man went to find legal aid to help fight his case, but even the lawyer from legal aid gave up on him based on the facts of the case. What he was trying to do was really dispicable, swallowed the money and wanted to move on to find another buyer who will pay him even more $$ for the flat.

It took my friend time, $, effort, energy to liaise between numerous parties to finally get some justice. He even spoke to the loan shark to discuss the sale matter(btw, these days loan sharks are really 'professional', they even have their own lawyers). He got the flat eventually. And also need not pay for the legal fees (deduct from the old man's sale).

Later while he was having his flat renovated, the neighbours informed him that there were some people outside his flat saying that they are the tenants of his unit.. The old man had taken rental deposits from at least 3 different groups of people, each given a set of house keys (of coz my friend had changed the locks)! Can you believe this...?? My friend zapped a copy of the OTP and pass to the neighbour so that he could help show to any victims who come knocking on his door (in this case, tried opening the door with the useless keys given)

I sincerely empathized with your friend.

If i were him/her, i just count on my bad luck and LL let the 1k go rather than buying an Ah Long house.

Cant imagine the hassle and costs that need to be shoulder.....((((( Definetely more than 1k

[Bluesummerayz 2]

I sincerely empathized with your friend.

If i were him/her, i just count on my bad luck and LL let the 1k go rather than buying an Ah Long house.

Cant imagine the hassle and costs that need to be shoulder.....((((( Definetely more than 1k

Well it all turned out well in the end, so still ok la.. think he didn't know the ah pek was debt ridden..