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incubator

Pay >$100K Cov Or Rent & Wait Out?

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Hi everyone,

Just a little intro abt myself: I am an educator turned housewife to spend more time with my 2 young children. For practical reasons like educational funds for the little ones, we decided to sell our current 2 bedder apt to buy a bigger flat with the hope of me teaching from home. Since Dec'09, Dh & I have been looking for suitable EM/EA/5A (in that order with EM being our top choice) in an area near in-laws/ kids' future school. The ones we looked at ranged from 20-28 year-old flats but most were asking for high COV ($80K-$120K!).

I hope to gather some genuine advises on whether I should rent a flat for a while to wait out for a suitable unit (with a suitable COV). Some say the rental incurred is more than enough to cover the high COV but I am not sure, to be honest, those we saw with sky high COV were not exactly "The One" if you understand what I am saying.

Thanks in advance! :yamseng:

 

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Hi everyone,

Just a little intro abt myself: I am an educator turned housewife to spend more time with my 2 young children. For practical reasons like educational funds for the little ones, we decided to sell our current 2 bedder apt to buy a bigger flat with the hope of me teaching from home. Since Dec'09, Dh & I have been looking for suitable EM/EA/5A (in that order with EM being our top choice) in an area near in-laws/ kids' future school. The ones we looked at ranged from 20-28 year-old flats but most were asking for high COV ($80K-$120K!).

I hope to gather some genuine advises on whether I should rent a flat for a while to wait out for a suitable unit (with a suitable COV). Some say the rental incurred is more than enough to cover the high COV but I am not sure, to be honest, those we saw with sky high COV were not exactly "The One" if you understand what I am saying.

Thanks in advance! :yamseng:

Which area are you looking at?

In 2009 the COV should have been lower?

 

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Hi everyone,

Just a little intro abt myself: I am an educator turned housewife to spend more time with my 2 young children. For practical reasons like educational funds for the little ones, we decided to sell our current 2 bedder apt to buy a bigger flat with the hope of me teaching from home. Since Dec'09, Dh & I have been looking for suitable EM/EA/5A (in that order with EM being our top choice) in an area near in-laws/ kids' future school. The ones we looked at ranged from 20-28 year-old flats but most were asking for high COV ($80K-$120K!).

I hope to gather some genuine advises on whether I should rent a flat for a while to wait out for a suitable unit (with a suitable COV). Some say the rental incurred is more than enough to cover the high COV but I am not sure, to be honest, those we saw with sky high COV were not exactly "The One" if you understand what I am saying.

Thanks in advance! :yamseng:

Hi Incubator,

Welcome to RT. Not sure if I am reading your content correctly, but it seems that you have been looking for a new place since 2009 but yet to sell the current one yet?

If staying with your in-laws (or parents) is out of the question, then renting a unit is a good idea if your finances permit:-

1) Privacy

2) Take your time to find your dream home

I don't think you should make yr head explode thinking about the costs of waiting out the COV vs rentals.

Why don't think of it this way: that you will have ample time to look for 'The One'?

 

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Which area are you looking at?

In 2009 the COV should have been lower?

Hi Plastic3,

We are looking at Hougang (Lor Ah Soo)/Serangoon area. Will likely to redo everything so very original (or "lok") condition is ideal. The only requirement is that it has to be mid-high floor. So far the cheapest one asked for $50K COV but before you could even discuss and think about it, it was gone.

My concern is when we manage to sell this apt off and still unable to find a suitable EM, should we rent a flat (hoping that COV will drop in the next quarter) or by paying ridiculously high COV.

I heard there will be cooling measures for the COVs but looks like they are going up instead of coming down.

 

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Hi Incubator,

Welcome to RT. Not sure if I am reading your content correctly, but it seems that you have been looking for a new place since 2009 but yet to sell the current one yet?

If staying with your in-laws (or parents) is out of the question, then renting a unit is a good idea if your finances permit:-

1) Privacy

2) Take your time to find your dream home

I don't think you should make yr head explode thinking about the costs of waiting out the COV vs rentals.

Why don't think of it this way: that you will have ample time to look for 'The One'?

Really appreciate your reply, Bluesummerayz! I was thinking of that too but everyone else around me seem to disagree, quoting about the rental $ (which could go into paying for COV) and how the little ones will need to move and move again. But I think I typed wrongly, I meant to say I've been viewing resales since Dec'10 not '09 :P but seriously, the COVs are so high that I felt that I was just wasting my time especially when these days, 5-6 co-broke agents would arrange groups of buyers to view the flats altogether. Felt like I was at the market buying fish.

 

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Really appreciate your reply, Bluesummerayz! I was thinking of that too but everyone else around me seem to disagree, quoting about the rental $ (which could go into paying for COV) and how the little ones will need to move and move again. But I think I typed wrongly, I meant to say I've been viewing resales since Dec'10 not '09 :P but seriously, the COVs are so high that I felt that I was just wasting my time especially when these days, 5-6 co-broke agents would arrange groups of buyers to view the flats altogether. Felt like I was at the market buying fish.

I must not tell you that everyone else around you is not normal.. i must not.. :rolleyes:

hahas fish market .. except buying very expensive ikan... a very big decision ...

The disruptions are inevitable even if you decide not to rent a place... still got to uproot yrselves, pack, move, unpack.. argghhh just that u got to do 1 more time if u rent a place. But I think in the long run, still better for you if you are not in a hurry to get a new place. And since you are a home maker (sorta) now, you can afford to take your time getting ready the new place (i.e. after you have successful bought your fish lah)

Although I didn't face your exact dilemna about waiting out the COV vs rental. I did have to rent a place because both buyer and seller played me out. The buyer left no room to allow me to stay longer (even though I wanted to pay rent), and the seller could not let me early renovate as promised before and a delay in my renovations. So I had to split 3ways: humans to rented apt, majority of the barangs to storage, pets (they are like my children so imagine separating from them arggghh) to boarding.

Moving everything back took some coordination work, friend's help, movers costs but every puzzle is now back together again :D

 

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I must not tell you that everyone else around you is not normal.. i must not.. :rolleyes:

hahas fish market .. except buying very expensive ikan... a very big decision ...

The disruptions are inevitable even if you decide not to rent a place... still got to uproot yrselves, pack, move, unpack.. argghhh just that u got to do 1 more time if u rent a place. But I think in the long run, still better for you if you are not in a hurry to get a new place. And since you are a home maker (sorta) now, you can afford to take your time getting ready the new place (i.e. after you have successful bought your fish lah)

Although I didn't face your exact dilemna about waiting out the COV vs rental. I did have to rent a place because both buyer and seller played me out. The buyer left no room to allow me to stay longer (even though I wanted to pay rent), and the seller could not let me early renovate as promised before and a delay in my renovations. So I had to split 3ways: humans to rented apt, majority of the barangs to storage, pets (they are like my children so imagine separating from them arggghh) to boarding.

Moving everything back took some coordination work, friend's help, movers costs but every puzzle is now back together again :D

Wow, you are amazing and still kept cool among all that! Ok ok, I must practice drawing on sand to attain zen.........*Oomph*

 

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20yr ago, everyone wished to be a Millionaire.

Now, everybody wish to be a Billionaire.

In 5 year time, all want to be Trillionaire.

Value of money keeps going down.....

Great parents move home for children. Time waits for nobody. Don't miss the boat schedule.

In good time(singapore) and with low interest environments, don't expect pty price to drop. With recent rules changed make HDB resale mkt supply even smaller. Land supply increase can pause or delay the rate of price increase but can't stop the trend.

Big news: By 2 Aug 2011, US gov has to decide to increase debt ceiling. Now already ready hit USD14.294 Trillions. No increase means defaulting.....http://en.wikipedia.org/wiki/United_States_public_debt

May be by the time when all mkts shake, you can get cheaper flat?

To be cont'.

Hi everyone,

Just a little intro abt myself: I am an educator turned housewife to spend more time with my 2 young children. For practical reasons like educational funds for the little ones, we decided to sell our current 2 bedder apt to buy a bigger flat with the hope of me teaching from home. Since Dec'09, Dh & I have been looking for suitable EM/EA/5A (in that order with EM being our top choice) in an area near in-laws/ kids' future school. The ones we looked at ranged from 20-28 year-old flats but most were asking for high COV ($80K-$120K!).

I hope to gather some genuine advises on whether I should rent a flat for a while to wait out for a suitable unit (with a suitable COV). Some say the rental incurred is more than enough to cover the high COV but I am not sure, to be honest, those we saw with sky high COV were not exactly "The One" if you understand what I am saying.

Thanks in advance! :yamseng:

 

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20yr ago, everyone wished to be a Millionaire.

Now, everybody wish to be a Billionaire.

In 5 year time, all want to be Trillionaire.

Value of money keeps going down.....

Great parents move home for children. Time waits for nobody. Don't miss the boat schedule.

In good time(singapore) and with low interest environments, don't expect pty price to drop. With recent rules changed make HDB resale mkt supply even smaller. Land supply increase can pause or delay the rate of price increase but can't stop the trend.

Big news: By 2 Aug 2011, US gov has to decide to increase debt ceiling. Now already ready hit USD14.294 Trillions. No increase means defaulting.....http://en.wikipedia.org/wiki/United_States_public_debt

May be by the time when all mkts shake, you can get cheaper flat?

To be cont'.

US ppl drama one la... big hoo ha, very very very likely to just grant the increase.

Afterall, if they dun grant, US would just default and we have the biggest crash of the century.

After deciding not to rescue lehman, i think now no one dares to not rescue anyone anymore...

 

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20yr ago, everyone wished to be a Millionaire.

Now, everybody wish to be a Billionaire.

In 5 year time, all want to be Trillionaire.

Value of money keeps going down.....

Great parents move home for children. Time waits for nobody. Plan & aim, don't miss the boat schedule.

In good time(singapore) and with low interest environments, don't expect pty price to drop. With recent rules changed make HDB resale mkt supply even smaller. Land supply increase can pause or delay the rate of price increase but can't stop the trend.

Big news: By 2 Aug 2011, US gov has to decide to increase debt ceiling. Now already ready hit USD14.294 Trillions. No increase means defaulting.....http://en.wikipedia.org/wiki/United_States_public_debt

May be by the time when all mkts shake, you can get cheaper flat?

To be cont'.

Here I come again.

>$100KCOV Vs Rent Vs Wait

1. Renting is like "throwing" hard cold cash into drain, piece by piece, simply at end of the day, you have less cash yet possess nothing tangible, beside "convenience". Convenience always comes with costs. Want convenience or save cash first? Must ask yourself, to rent for WHAT, for HOW LONG? at HOW MUCH?

2. Pty transaction is abt 4 wks "faster/quicker" than HDB resale transaction (at mercy of seller, I would say). If cash not enough for the "turn-around", can always consider bridging loan (abt effective interest rate of 14% per month for 6 months, monthly interest abt (borrow amount*0.14)/6). Stay at PIL's place for a month or 2? But those barang barang?

3. Hurry to move? Google the web abt the difference of purchasing property for "own stay" and "investment". Will help to raise your horizon.

Notes:

-The People's Bank of China has increase, the 3rd time within this year, its lending rate to 6.0%, one-year deposit 3%. PBOC has raise 6th time within this year its RRR(Required Reserve Ratio) to 21%, as monetary policy.Intention is to "keep/absorbe" cash from market to banks. Why? beside fighting inflation. The pty price for the 18 cities has finally fell 23%. In short, developers want to collect back money quick by cutting price. When will this happen to Singapore? Singapore's RRR has been maintained at 10%, won't be surprise if MAS announce sudden increase to 12%, then....

-USA 'll have presidential election in Sept this yr. He can't print money anymore, debt ceiling is at the corner, he has to "paint" a nice picture before being elected.....

- PIIGS, problematic one by one.

Strongly recommending considering pt 3 till 2013 - 2014.

Edited by bepgof
 

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Thanks Bepgof :)

Your reply is definitely food for thought. Honestly, I have not decided yet. Apt not sold yet and we are hoping to find a flat first. If the apt is sold (hopefully soon as there were many viewers but no takers. Everyone is playing safe I guess) before we found a suitable flat then no choice but to rent short term (max 6 mths) as renovation will take a while plus already too crowded over at in-laws.

 

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Thanks Bepgof :)

Your reply is definitely food for thought. Honestly, I have not decided yet. Apt not sold yet and we are hoping to find a flat first. If the apt is sold (hopefully soon as there were many viewers but no takers. Everyone is playing safe I guess) before we found a suitable flat then no choice but to rent short term (max 6 mths) as renovation will take a while plus already too crowded over at in-laws.

Don't mention. All are welcome, some more "food" for you - an extract from an email:

Buyers buy properties essentially for two main reasons. The first is for their own stay as a primary residence while the second is as an investment, meant to be rented out. There are different criterias used for selecting a property that is suitable for one's own stay and one that is meant to be an investment property. Many buyers and investors often confuse and mix up the criterias they use when deciding what to buy. I will not be covering the differences in this post.

What are you looking for?

The first point to consider is understanding the kind of properties that you will be interested to buy for your own stay. What is the supply like for this type of properties? Are such properties readily available? At any one time, there will always be properties in the market for sale. However, when it comes to something that you are happy to call your home, such a property may not always be on the market. It would be different if you are buying an investment property - you have a lot more options as long as you are not insistent on buying only units in that one or two projects or locations.

Property Market Cycle

There is no guarantee that in a market downturn, the type of properties that you like will definitely be on sale. And even if it is on sale, it does not necessarily mean you will be able to get it cheap.

Happy Owners

There are a lot of owners who are very happy with their primary residence. They have no intention to move and are often oblivious to how much their homes can fetch or how much their neighbours just sold sold their homes for. It does not bother or matter to them which part of the property market cycle they are in. Neither does it bother them if the price of their residence has not gone up since the time they bought.

Are you someone who is on the lookout to buy a primary residence and will very happily stay in that place for many years to come?

My Recommendation(not mine, it's the one who wrote to me)

If you are someone who will happily stay put once you find something suitable and you have specific requirements for a home, I would encourage you to ignore the market cycle and go ahead to buy if you see something suitable and this property is within what you are willing to put in. The added advantage to this is the opportunity to lock in the current low interest rate for the next couple of years and (to clear the 4 years seller's stamp duty earlier) for pty.

To buyers who are looking for properties to buy at the moment, do your homework, enjoy the process and I hope you find something really suitable for your needs.

Edited by bepgof
 

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Don't mention. All are welcome, some more "food" for you - an extract from an email:

Buyers buy properties essentially for two main reasons. The first is for their own stay as a primary residence while the second is as an investment, meant to be rented out. There are different criterias used for selecting a property that is suitable for one's own stay and one that is meant to be an investment property. Many buyers and investors often confuse and mix up the criterias they use when deciding what to buy. I will not be covering the differences in this post.

What are you looking for?

The first point to consider is understanding the kind of properties that you will be interested to buy for your own stay. What is the supply like for this type of properties? Are such properties readily available? At any one time, there will always be properties in the market for sale. However, when it comes to something that you are happy to call your home, such a property may not always be on the market. It would be different if you are buying an investment property - you have a lot more options as long as you are not insistent on buying only units in that one or two projects or locations.

Property Market Cycle

There is no guarantee that in a market downturn, the type of properties that you like will definitely be on sale. And even if it is on sale, it does not necessarily mean you will be able to get it cheap.

Happy Owners

There are a lot of owners who are very happy with their primary residence. They have no intention to move and are often oblivious to how much their homes can fetch or how much their neighbours just sold sold their homes for. It does not bother or matter to them which part of the property market cycle they are in. Neither does it bother them if the price of their residence has not gone up since the time they bought.

Are you someone who is on the lookout to buy a primary residence and will very happily stay in that place for many years to come?

My Recommendation(not mine, it's the one who wrote to me)

If you are someone who will happily stay put once you find something suitable and you have specific requirements for a home, I would encourage you to ignore the market cycle and go ahead to buy if you see something suitable and this property is within what you are willing to put in. The added advantage to this is the opportunity to lock in the current low interest rate for the next couple of years and (to clear the 4 years seller's stamp duty earlier) for pty.

To buyers who are looking for properties to buy at the moment, do your homework, enjoy the process and I hope you find something really suitable for your needs.

actually, generally, if you can afford the mortgage, and happy/satisfy with the unit/house, anytime is a good timing to buy a house. maybe just don't pay record price!

 

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actually, generally, if you can afford the mortgage, and happy/satisfy with the unit/house, anytime is a good timing to buy a house. maybe just don't pay record price!

That goes without saying.

Further,

One who could "afford" mortgage, won't mind record pice. Simply look at those " ah saows" who break record price - are those with cash par par.

 

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