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Thread: Major change in HDB resale procedure

  1. #1
    Senior Member UncleFai's Avatar
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    Default Major change in HDB resale procedure

    FYI if you are in the market to buy or sell a HDB flat...

    "buyers and sellers will now have to agree upon a price first before getting an official valuation"

    http://www.straitstimes.com/breaking...-resale-deals-

  2. #2

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    Huh? How does this even work at all?

  3. #3
    Senior Member UncleFai's Avatar
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    Default Re: Major change in HDB resale procedure

    Quote Originally Posted by Zig Ziggler View Post
    Huh? How does this even work at all?
    Must wait for our housing agent friends to advise.

  4. #4

    Default Re: Major change in HDB resale procedure

    most ridiculous thing ever. other than reducing information of the market, what if buyer can't get loan, or stump up enough cash up front because low valuation hence low loan quantum... bust sale
    宁愿遇见丢失幼崽的母熊,也不愿碰上做蠢事的愚人

  5. #5

    Default Re: Major change in HDB resale procedure

    Quote Originally Posted by Shizuma View Post
    most ridiculous thing ever. other than reducing information of the market, what if buyer can't get loan, or stump up enough cash up front because low valuation hence low loan quantum... bust sale
    Apparently from the news yesterday, if you cannot get the loan, your deposit is forfeited. That is why the minister advise people to see how much loan they can get first before agreeing.

    However, unlike previously where the transactions are posted 2 weeks later, the transactions needs to be updated on a daily basis so that all the buyers and seller get the latest information on the last transacted prices to make a decision.

    Anyway, I am hoping to read and find out more. I only hope it works best for the buyers (for me).
    Last edited by justme77; 11th March 2014 at 10:32 AM.
    [This space is available for rent]

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    Senior Member UncleFai's Avatar
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    Default Re: Major change in HDB resale procedure

    Quote Originally Posted by justme77 View Post
    Apparently from the news yesterday, if you cannot get the loan, your deposit is forfeited. That is why the minister advise people to see how much loan they can get first before agreeing.

    However, unlike previously where the transactions are posted 2 weeks later, the transactions needs to be updated on a daily basis so that all the buyers and seller get the latest information on the last transacted prices to make a decision.

    Anyway, I am hoping to read and find out more. I only hope it works best for the buyers (for me).
    I think like private properties, the banks will do a "in principle" approval after price is agreed on and before your sign the OTP. There is still risk that they will say "no" later but it is reduced.

  7. #7
    Senior Member Kit's Avatar
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    Default Re: Major change in HDB resale procedure

    They are trying to plug a hole they created years ago.....

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    Member Bukitimah's Avatar
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    In the first place, why are HDB 'trading' in the open market like private homes??? You buy from authority at fixed prices and sell them back at fixed prices. Since there are suppose to be more demand than supply, these HDB will be taken in no time. Even if nobody buy, authority can rent them out. Over supply, don't build. Only problem, they cannot be a developer and earn big bucks.

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    Quote Originally Posted by Bukitimah View Post
    In the first place, why are HDB 'trading' in the open market like private homes??? You buy from authority at fixed prices and sell them back at fixed prices. Since there are suppose to be more demand than supply, these HDB will be taken in no time. Even if nobody buy, authority can rent them out. Over supply, don't build. Only problem, they cannot be a developer and earn big bucks.
    An auntie who was hoping to retire using savings garnered from downgrading actually wrote to Khaw voicing her concern about the matter :P

  10. #10
    Senior Member UncleFai's Avatar
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    Default Re: Major change in HDB resale procedure

    Quote Originally Posted by NazgulKing View Post
    An auntie who was hoping to retire using savings garnered from downgrading actually wrote to Khaw voicing her concern about the matter :P
    Herein lies the dilemma: our public housing is made affordable because one can use one's CPF to get a HDB flat. However, since the CPF is one's life savings, and the money is taken by the HDB (a government agency), it is the responsibility of the government to ensure that one's life saving taken this way will not depreciate over the long period of time - hence the need to make sure HDB prices keep going up.

  11. #11

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    Quote Originally Posted by UncleFai View Post

    Herein lies the dilemma: our public housing is made affordable because one can use one's CPF to get a HDB flat. However, since the CPF is one's life savings, and the money is taken by the HDB (a government agency), it is the responsibility of the government to ensure that one's life saving taken this way will not depreciate over the long period of time - hence the need to make sure HDB prices keep going up.
    Technically, it's an incorrect presumption to expect prices to always rise. Rather it speaks volumes about her poor financial planning.

    But Singaporeans bought the government's asset inflation hook and slicker and now they are all stuck in a rut. By inflating housing prices, we also inflated living costs.
    Last edited by NazgulKing; 11th March 2014 at 08:46 PM.

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    Member Bukitimah's Avatar
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    Default

    Quote Originally Posted by NazgulKing View Post
    An auntie who was hoping to retire using savings garnered from downgrading actually wrote to Khaw voicing her concern about the matter :P
    And who created this?

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    Senior Member melvin's Avatar
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    Default Re: Major change in HDB resale procedure

    The new changes is all because of COV mah ...

    Valuation is used as a GUIDE of fair value to price the house (not how much one's house is worth which most sellers believe so) ... more importantly it is to ASSISTS buyers obtaining their loans ... if the buyer is buying with full cash i.e. no loan and non-involvement of CPF funds there is NO NEED for the buyer to have valuations report.

    With the new changes which i would welcome as it helps remove COV.

    The valuer will try to match the selling price thats why OTP must be granted.
    Our good friend Mr Khaw already mention HDB resale will work like private residential most buyers will need not have to worry about COV anymore. Everything will be settled by bank provided your income qualified after TDSR.

    Further more as of HDB will publish daily prices of resale transactions as soon as they are registered (instead of fortnightly after the resale transactions are approved). This will allow flat buyers and sellers to negotiate based on recent transaction prices and reduce the focus on cash-over-valuation (COV) in negotiation.

    This is to encourage buyers and sellers to focus on the sum total of flat price, HDB will only accept valuation requests from resale flat buyers (or their appointed salesperson), after the buyers have been granted an Option to Purchase (OTP) by flat sellers.

    To know more contact your friendly neighbourhood agents ... they will solved the rest of your question!
    Last edited by melvin; 12th March 2014 at 10:17 PM.

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    Default Re: Major change in HDB resale procedure

    Does this mean in the old days, "frying" boosted the baseline residential ppty, resulting in extreme prices for condominiums & landed properties. Rich people having many of such - or developers selling such, will make a big profit.
    Last edited by ricohflex; 13th March 2014 at 12:37 AM.

  16. #16

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    Quote Originally Posted by UncleFai View Post

    Herein lies the dilemma: our public housing is made affordable because one can use one's CPF to get a HDB flat. However, since the CPF is one's life savings, and the money is taken by the HDB (a government agency), it is the responsibility of the government to ensure that one's life saving taken this way will not depreciate over the long period of time - hence the need to make sure HDB prices keep going up.
    Where in the world, any government can guarantee your home price?

    So what if we use CPF? it doesn't matter where the money come from. The only place that guarantees your home price is north korea. U can consider migrating there.

    We just love to blame government for everything......

  17. #17

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    Quote Originally Posted by NazgulKing View Post

    An auntie who was hoping to retire using savings garnered from downgrading actually wrote to Khaw voicing her concern about the matter :P
    Singaporeans really have some serious problem of understanding of this new rule.

    The new rule doesn't mean your flat will have deflated price. It doesn't mean from tomorrow, your flat is only worth $1.

    What it only does is giving a fair platform for buyer and seller. It actually put hdb flats the same as private market practice.

    COV thingy gives a fake market price of the flat. The new rule brings the flat to the real market price.

    If ppl are just relying on fake flat prices to retire, then they themselves have some serious problem.

  18. #18
    Senior Member UncleFai's Avatar
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    Quote Originally Posted by donut88 View Post
    Where in the world, any government can guarantee your home price? So what if we use CPF? it doesn't matter where the money come from. The only place that guarantees your home price is north korea. U can consider migrating there. We just love to blame government for everything......
    Where in the world, any government ban chewing gum?

    The official ideology of this is known as "Asset Enhancement". It has been in our national ideology ever since ex PM Goh brought it up.

    https://www.reach.gov.sg/YourSay/Dis...%5B12568%5D%5D

  19. #19

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    Quote Originally Posted by UncleFai View Post

    Where in the world, any government ban chewing gum?

    The official ideology of this is known as "Asset Enhancement". It has been in our national ideology ever since ex PM Goh brought it up.

    https://www.reach.gov.sg/YourSay/Dis...%5B12568%5D%5D
    Yeah, the asset enhancement idealogy was mooted and brain washed us during that GE year. And u still believe in it??

    What's the original objectives of HDB?

  20. #20
    Senior Member UncleFai's Avatar
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    Quote Originally Posted by donut88 View Post
    Yeah, the asset enhancement idealogy was mooted and brain washed us during that GE year. And u still believe in it?? What's the original objectives of HDB?
    Whether I believe it or not, not important. Important thing is whether we can use it to our advantage to get a good deal from the government

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