The finance minister expect the landlord to help their tenants by waiving rental for 2 to 4 months. The government will only compensate the landlord for half of the cost. The landlord has to bear the other half.
This directive is wrong. It assumed that the landlords have been enjoying a good yield on their property and can afford to bear part of the loss. It is a wrong assumption.
Read my view here:
https://tklcloud.com/Feedback/feedback2.aspx?id=3210
I know that this is not a big amount of money on private residential compared to malls.
ReplyDeleteWhen we bought our private property for investment, a foreign bank insisted that we have the
affordability to pledge a minimum 20% funds to their bank as a fixed deposit in the event
that due to unforeseen circumstances, they could use the fixed deposit as a temporary payment
till finances were to straighten out. Other than the 20% upfront payment for the property,
we maxed the loan to 80%, so as to have emergency money for other expenses and loan
repayment of up to a year for non-tenancy rent collection. There is a difference between
foreign banks who want your businesses, but also to protect themselves. As long as they
have a little security they are more a less not as particular in your application, citing
cash-rich, asset poor. There was no such thing as ABSD, LTV or TDSR or TDRS. Thinking out
of the box, they claimed that one's income is not permanent. Besides on tenure, one can
live up to 60 and be sickly, another can work up to 75 due to good health. There is a
difference between "smart" or just "book-smart. Of course, this was years ago. A lot has since
change since 4G took over. Today, we are retired and living on the rental, with the loan
fully paid.
Talking about malls, it has to be their duty to cut rentals when times are bad When business was good, there
was a clause in some contracts, that they are entitled to the tenant's profits of 30%. The
tenants have to forfeit their deposits (2 months plus one advance) or pay in full all
rentals if the tenancy is not fulfilled to their terms of the agreement.
We don't vote for brash candidates. If one is not able to accept questions from their opponents, how are they able to deals with the laymen population, who just like to whine? Big question mark hanging!
ReplyDeletePrime Minister Lee only realises that his men worked hard. Pity we less hear of them worked smart. We now have most part of the young population that is educated, well-travelled and tech-savvy. Gone are the days of brain-washing.
ReplyDeletePeople hate the truth. The truth don't hate the people.
ReplyDeleteHighest of 10 candidates will lose their deposits.
ReplyDeleteLowest of 5 candidates will lose their deposits.
Sorry.
Besides paying high rentals, mall tenants pay monthly maintenance fees and sinking funds plus GST for their payments.
ReplyDeleteSome sinking funds plus the maintenance fees range from $500 to $4000 a month.
ReplyDeleteAlso, the tenants pay their individual PUB bills.
ReplyDelete