Friday, December 09, 2011

Caught by the new property ruling

My friend had been caught by the new property ruling. He was in the process of selling sell his private apartment (to downgrade to a HDB flat) when the ruling came suddenly into effect. He said:

You are correct the new ruling should not affect my HDB flat purchase. In fact, I might even enjoy a lightly lower price. However, with the unexpected negative sentiments towards private property, it is likely my targetted selling price will suffer a big drop.
Last month, a buyer brought his family and relatives for second viewing. They really liked my apartment, and agreed on the price. However, he wanted to show the S&P contract to his lawyer before paying the 1%. Unfortunately, he subsequently had problem getting a loan for this property.

Recently, my agent re-contacted another local buyer. I have been confident he would pay my target price, but today, I think it might go well below it.

2 comments:

ron said...

There is this attraction to own everything new.

New home, new car, new phone, new clothes, new TV, even a new insurance policy!

New clothes, shoes may be alright and neccessary, but a new car, new home is the largest expense that anyone has to bear.

What is wrong with the "old" home? falling apart? crime rates have gone up in the area? Too big for an old couple? Too small?

A home is to be lived in and to feel safe and comfortable. It has to be chosen carefully.
There is nothing wrong in living at the same address for 45 years.
But people think it is shameful or not keeping up with times.

Is it a want or is it a need to move?

If it is a need, then a reasonable price will suffice..why be bothered with trying to sell at the peak?

If the value of the home needs to be realised to fund retirement, then a reverse mortage can be used.
Why sell, and suffer the change in location?

A home is never an investment.
It is a home. Not a gold mine.

A second home is an investment.
and it can be a gold mine.

A third home is luxury and nothing more than pure greed.. it is a liability.

A fourth home is distastefull and I do not wish to get aquainted with you.. its just show off.

MR FROWN said...

Not true, I'm selling my flat now, my offers are still climbing towards my target. A mature buyer will not be affected just by a newspaper headline. Look at the Lehman Brothers saga, Did we felt the "cold" from the states and the rest of the world. We didn't even sneeze. At that tiemI missed my chance to buy a lower priced flat and a lower COE. I waited and see what happened? My agent just made 1 advert. I had 15 potential buyers two days ago. Foreigner only 1, the rest S'poreans. 3 highly interested buyers, Only a whisker away from my expectation and I'll let it go. My flat is just a 26yrs old ordinary mid floor flat without any fantastic views. Wanna wait and see because of some "drama" headline from the media....it's like gambling.

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