Last edited by ninelives; 6th July 2010 at 11:52 PM.
viewed a 5 rm resale flat at ghim moh recently... valuation 660k + 70k COV......
he told me current market COV 60-80k is normal. If i have low cash, i cannot particular about the fengshui and the house condition.
There was one unit, a divorce case, the unit lay out have sharp corners. My fren uncle said its not good.. in chinese "Jiao Tou Dou Kuo Jia Dou".
Another unit, Kitchen pipe ceiling have a big hole, all walls have to plaster cover due to too original condition, I brought my contractor friend to view. he advised just to plaster all the walls and ceiling will cost me a few k already. Somemore the kitchen ceiling condition will worst after a few yrs..
i paid 50k COV for my 4room(val is 450K) but location is gd. my wife and i gave up the idea of owning a car to cash in on the house.... nobody really knows how the market move....you need then LL got to buy..we delay and went to try ballot and it was hell cause that time all the rules never change and we can't get...in the end the same area that we buy now raise almost 50k++
Can't imaging COV has now risen to such a crazy level. I guess it's also due to the supply and demand curve. Recently I also receive a lot of pamphlets from agents in my mail box on the sale of my unit. Can fetch 50-60K COV blar blar blar...A lot of willing buyers from China, Hong Kong, etc. I guess our good government has allowed many to become PRs and thus pushing the prices of public housing that high. This newly 'crowned' PRs may have worked for many years, having quite a substantial amount of savings, and willing to pay that amount to purchase HDB units.
To add to this, the agents grab this opportunity to push the selling price and COV as high as possible. Anyway, they only stand to gain. Can you imagine if one agent can be both the buyer and seller's agent? Commission on both sides?
I just got the keys to my resale flat last week in Serangoon North
It is an EM
I paid $35k COV - the valuation was $445k.
Prior to this, we had been looking for a flat (balloted for Duxton Pinnacles in the leftover exercise but mostly in resale) for the last 9 months. That was around the time that the economy was coming out of the financial meltdown. The media didn't help when they kept reporting stuff like 100k COV paid for Bishan flat, so on and so forth. Whipped the market into a frenzy. As you can imagine, COVs kept moving away from me - we couldn't earn enough to keep pace with it!
It bordered on ridiculous, some of the prices. One EM that I saw in Lorong Ah Soo was in original 24 year old condition including stained and soiled floor tiles, the owner wanted no less than 40k COV. I looked the agent in the eye and asked, what do I get for 40k? It wasn't near anything except a bus stop in front of the block.
The point is this: sellers can ask for whatever COV they like - it is up to the buyers to decide whether it is worth it or not. View enough flats, gain enough experience to know a good unit when you see it, make an on the spot offer to close the deal and don't regret after that. Don't forget to budget for renovation as well. Its easy to get carried away when you're bidding to buy a unit against another buyer.
The unit that I bought, I made an offer without knowing the valuation (the seller's agent claimed the valuation report wasn't out yet). Hence the COV would be variable depending on the valuation. But I had already priced the worth of the unit myself, done the homework to know the past resale transactions history for the area to know what to offer.
But take heart, the fever is over, my feeling is that the COV are stabilizing, sellers are realizing that people aren't paying ridiculous COV anymore, and lowering their expectations. You just need to be patient and find the right unit.
If you are the owner.... it would be 'Reasonable Price'....
TS... sadly its a matter of can you wait or not. Try for BTO units at off central areas if you can wait.... and for godsake there isn't 'Ulu' areas in Singapore because we are so bl**dly small and sooner or later the area will be built up.
We cannot have everything we wish for.... be it price, location, floor (high), size... etc.
Best of luck on your hunt.
Scuba & Father... For Life
feel like its another 97 bubble waiting to happen. im happy if it does cos time to cash in on it. when people are crazy, its time to be scared ...