Buying Flat That Has Been Announced As En-block (sers)

[greentea 0]

If you are a first-time flat buyer, do remember that by buying the SERS flat, you will automatically need to take up two loans; one for the SERS flat, one for the replacement flat. All of us will only have two chances to take HDB loan, so think twice if you use up both chances for this?

My advice is to take a bank loan for the SERS flat and then HDB loan for the replacement flat, so you will still have another chance to take HDB loan after which. Never mind the higher interest for bank loan - it is only four years at max, moreover nowadays they are offering like low rates for the first 1 or 2 years, so you can leverage on that.

is that possible? i check with hdb hub and they told me i canot switch after i get my replacement.

thats why i plainning to get hdb loan for my sers and when i got the replacement it will be automatically converted. is that right??

FYI. i already use 1 hdb loan for my first purchase. that means, if i go for sers hdb loan then i canot get hdb loan for my replacement is that true??

pls advise..

Edited July 9, 2007 by greentea

[zirhk3355 1]

is that possible? i check with hdb hub and they told me i canot switch after i get my replacement.

thats why i plainning to get hdb loan for my sers and when i got the replacement it will be automatically converted. is that right??

FYI. i already use 1 hdb loan for my first purchase. that means, if i go for sers hdb loan then i canot get hdb loan for my replacement is that true??

pls advise..

Who was the officer who advised you??

See this:

http://www.hdb.gov.sg/fi10/fi10220p.nsf/WP...t)?OpenDocument

Accordingly, if you choose a replacement flat bigger than your existing flat and SERS flat, you are eligible for HDB loan for both SERS flat and replacement flat. You will not be eligible if you choose a replacement flat that is the same size or smaller.

There is no such thing as "automatically converted" - buying of SERS flat and buying of replacement flat are considered two separate transactions; you need to be eligible for the concessionary interest rates respectively.

The officer who advised you probably do not know about the special privileges of SERS; s/he was advising you based on normal circumstances, whereby once taken a bank loan for one flat, they will not be able to take up HDB loan anymore.

Anyway, just to be sure, you can simply write in to ask about it - when in black and white, they will check properly and not just rattle off an irresponsible reply to you like that...

Edited July 9, 2007 by zirhk3355

[greentea 0]

Who was the officer who advised you??

See this:

http://www.hdb.gov.sg/fi10/fi10220p.nsf/WP...t)?OpenDocument

Accordingly, if you choose a replacement flat bigger than your existing flat and SERS flat, you are eligible for HDB loan for both SERS flat and replacement flat. You will not be eligible if you choose a replacement flat that is the same size or smaller.

There is no such thing as "automatically converted" - buying of SERS flat and buying of replacement flat are considered two separate transactions; you need to be eligible for the concessionary interest rates respectively.

The officer who advised you probably do not know about the special privileges of SERS; s/he was advising you based on normal circumstances, whereby once taken a bank loan for one flat, they will not be able to take up HDB loan anymore.

Anyway, just to be sure, you can simply write in to ask about it - when in black and white, they will check properly and not just rattle off an irresponsible reply to you like that... !!

thanks alot for the info. i will check with them again

[moth8 0]

Hi Zirhk, from your experience, wld like to check when we do normally receive the difference between the SERS compensation and the HDB valuation price? Upon collection of keys?

[zirhk3355 1]

Hi Zirhk, from your experience, wld like to check when we do normally receive the difference between the SERS compensation and the HDB valuation price? Upon collection of keys?

Not sure for now, but last time there wasn't any valuation after the flat is announced as SERS. To be precise, the flat got no value anymore because its slated to be demolished mah, so the only 'value' is the compensation amount and other benefits you inherit from the original owner.

[richman 0]

Did I do that much?? Hehe...no lah, just furnishing what I have in my mind only. Yeah, you seemed like a very friendly person too, hopefully one day can be neighbours lor! I am at Blk 89, #34 floor...hehe...

Housewarming not so soon, I will be collecting my keys on 28th Mar'07 now. After that got to consult FS master and reno - sure once its done if you are still keen then you can come!

Not sure if can really see bt timah clearly lah, but just that I am facing that direction. If can see the greens then it will really be good, esp for my future children...

wow...34th floor...is it very hot and scary bro?

[oonik grl 0]

wow...34th floor...is it very hot and scary bro?

WOW ! 34th floor ! View must be nice... and scary too. heheh !

[dreamgirl 0]

Hi Zirhk, from your experience, wld like to check when we do normally receive the difference between the SERS compensation and the HDB valuation price? Upon collection of keys?

We got our notice of SERS compensation around 8 months after the announcement of SERS site. Way before collection of keys and even choosing new replacement flat.

[jeddie 0]

Have been reading this forum for years but this will be my first post.

I am now considering getting a SERS flat in clementi ave 1. Have seen 2 units.

First unit is on 5th floor, move in condition. asking 60k COV. Valued at 185k, asking for 245k.

Second unit is on 11th floor, bad condition, will need to touch up quite a lot (ceilings, painting, cabinets all not in good condition, windows also 30 yrs liao), this unit asking also abt 60k. Value not done.

The point is, the hdb compensation package is not out yet. Should be out in early 2008, but dunno which month. deadline to submit resale application is 30 Jun.

I have done all my homework...hdb policies etc and i still find that it is worthwhile to buy a sers flat in order to get a BN 40 storey 5 room flat in clementi 3 yrs down the road after paying a premium and a resale levy of 40k. In all, that BN flat would have cost me abt 450k or lesser, still cheaper than a 30 yr old 5 rm flat in that area now which i cannot afford.

Which unit is a better buy? High floor = better valuation? or lower floor but renovated will get a better valuation?

Or should I wait to see if there are more sellers after CNY? Or should I get my agent to knock on doors or issue phamplets to see if anyone else wants to sell?

How much COV is reasonable for both units? i actually know the owner of the 11th floor unit coz my mum stays in the same blk. but of course we still have to go through the agents.

Would really appreciate if I can get some experienced forumers here to advise me...Thanks in advance.

[hdbfan 0]

Have been reading this forum for years but this will be my first post.

I am now considering getting a SERS flat in clementi ave 1. Have seen 2 units.

First unit is on 5th floor, move in condition. asking 60k COV. Valued at 185k, asking for 245k.

Second unit is on 11th floor, bad condition, will need to touch up quite a lot (ceilings, painting, cabinets all not in good condition, windows also 30 yrs liao), this unit asking also abt 60k. Value not done.

The point is, the hdb compensation package is not out yet. Should be out in early 2008, but dunno which month. deadline to submit resale application is 30 Jun.

I have done all my homework...hdb policies etc and i still find that it is worthwhile to buy a sers flat in order to get a BN 40 storey 5 room flat in clementi 3 yrs down the road after paying a premium and a resale levy of 40k. In all, that BN flat would have cost me abt 450k or lesser, still cheaper than a 30 yr old 5 rm flat in that area now which i cannot afford.

Which unit is a better buy? High floor = better valuation? or lower floor but renovated will get a better valuation?

Or should I wait to see if there are more sellers after CNY? Or should I get my agent to knock on doors or issue phamplets to see if anyone else wants to sell?

How much COV is reasonable for both units? i actually know the owner of the 11th floor unit coz my mum stays in the same blk. but of course we still have to go through the agents.

Would really appreciate if I can get some experienced forumers here to advise me...Thanks in advance.

[hdbfan 0]

Hi jeddie,

Fm what i read in yr comments, looks like you've done yr homework. Good. Now that the mkt has picked up especially for HDB flats, owners are asking for the world.(recently i heard fm my agent that a 3rm flat owner in blk 326 is asking for $300K. valuation only $225K. last offer $272K was rejected!) It will be worse for SERS case if owner has $30K discount they will surely ask that plus additional.

If you have enough cash, buy the higher floor and spend money to renovate nicely, it can fetch higher for the compensation.

If you get the lower floor, need not spend money to reno but think compensation might be lower. When i purchased my SERS, i heard alot fm my agents that lower floor flats in good condition can never fetch as high as those in higher floor with reasonable condition.

Since last Feb 2007, the govt pays compensation at market rate so i think you can expect a fair deal for the higher floor.

Good luck

[jeddie 0]

hi hdbfan

finally there is a reply...hehe..

BTW, the HDB appointed valuers have already taken pictures of the flat, thus, no point to renovate it too nicely, may just need to renovate so it is liveable...

so ur point of view is that higher floors command higher compensation....which i tot so too...

coz i enquired abt a unit on 3rd floor, original condition, value was 180k as compared to the 5th floor renovated, value only 185k (5k diff). So i would presume the unit on the 11th floor will fetch a higher compensation...

Any idea how much i need to do up a 3 rm flat?

would 10k be enough? coz i need to factor in this amt when negotiating with the seller...

need to do up 2 toilets, plaster the ceiling, maybe get rid of kitchen cabinets and buy off the shelves one...and perhaps laminate the bedroom floors.

Hi jeddie,

Fm what i read in yr comments, looks like you've done yr homework. Good. Now that the mkt has picked up especially for HDB flats, owners are asking for the world.(recently i heard fm my agent that a 3rm flat owner in blk 326 is asking for $300K. valuation only $225K. last offer $272K was rejected!) It will be worse for SERS case if owner has $30K discount they will surely ask that plus additional.

If you have enough cash, buy the higher floor and spend money to renovate nicely, it can fetch higher for the compensation.

If you get the lower floor, need not spend money to reno but think compensation might be lower. When i purchased my SERS, i heard alot fm my agents that lower floor flats in good condition can never fetch as high as those in higher floor with reasonable condition.

Since last Feb 2007, the govt pays compensation at market rate so i think you can expect a fair deal for the higher floor.

Good luck

[hdbfan 0]

hi hdbfan

finally there is a reply...hehe..

BTW, the HDB appointed valuers have already taken pictures of the flat, thus, no point to renovate it too nicely, may just need to renovate so it is liveable...

so ur point of view is that higher floors command higher compensation....which i tot so too...

coz i enquired abt a unit on 3rd floor, original condition, value was 180k as compared to the 5th floor renovated, value only 185k (5k diff). So i would presume the unit on the 11th floor will fetch a higher compensation...

Any idea how much i need to do up a 3 rm flat?

would 10k be enough? coz i need to factor in this amt when negotiating with the seller...

need to do up 2 toilets, plaster the ceiling, maybe get rid of kitchen cabinets and buy off the shelves one...and perhaps laminate the bedroom floors.

Jeddie,

think $10K is enuf to reno those that u mentioned above. Good luck

Edited January 28, 2008 by hdbfan

[jeddie 0]

sad to say, met the owner over the weekend in the lift. She has decided not to sell her flat. hardly got pple selling with eligibility for 5 rooms replacement flat now...

will keep a lookout further...if not, will settle for a resale 5 room instead..bo bian...

[zirhk3355 1]

sad to say, met the owner over the weekend in the lift. She has decided not to sell her flat. hardly got pple selling with eligibility for 5 rooms replacement flat now...

will keep a lookout further...if not, will settle for a resale 5 room instead..bo bian...

Wow is the market really so bad now? During my time I had more than 10 units to choose from, all of them are eligible for 5-rm flat.

Maybe instead of relying on your agent, you should start to flip the classified and see if anymore enbloc flats are selling. Good luck!