tag:blogger.com,1999:blog-4405345292513335071.post4175655073949466404..comments2024-03-19T18:44:15.041+08:00Comments on Little Stories: The Risk of Having a Roof Over Your HeadGilbert Koh aka Mr Wanghttp://www.blogger.com/profile/01027678080233274309noreply@blogger.comBlogger32125tag:blogger.com,1999:blog-4405345292513335071.post-67492379132317437392008-12-22T18:32:00.000+08:002008-12-22T18:32:00.000+08:00Dunno. I was told about the maximum loan that I co...Dunno. I was told about the maximum loan that I could get, based on my current monthly salary. It works outs to a DSR of about 60%.<BR/><BR/>I think that the banks are more generous with their ratios, when it's a new property launch, and the bank has tied up with the property developer for that new launch.<BR/><BR/>Makes sense to me that the bank would be even more generous with its ratios, if it is financing the developer for the purchase of the land, and the construction firm for the construction of the property (This was the case for the property I'm looking at). Reason is that the bank has a vested interest in making the whole thing work.Gilbert Koh aka Mr Wanghttps://www.blogger.com/profile/01027678080233274309noreply@blogger.comtag:blogger.com,1999:blog-4405345292513335071.post-12334523632326257132008-12-22T18:31:00.001+08:002008-12-22T18:31:00.001+08:00Dunno. I was told about the maximum loan that I co...Dunno. I was told about the maximum loan that I could get, based on my current monthly salary. It works outs to a DSR of about 60%.<BR/><BR/>I think that the banks are more generous with their ratios, when it's a new property launch, and the bank has tied up with the property developer for that new launch.<BR/><BR/>Makes sense to me that the bank would be even more generous with its ratios, if it is financing the developer for the purchase of the land, and the construction firm for the construction of the property (This was the case for the property I'm looking at). Reason is that the bank has a vested interest in making the whole thing work.Gilbert Koh aka Mr Wanghttps://www.blogger.com/profile/01027678080233274309noreply@blogger.comtag:blogger.com,1999:blog-4405345292513335071.post-91696477319240463212008-12-22T18:31:00.000+08:002008-12-22T18:31:00.000+08:00Dunno. I was told about the maximum loan that I co...Dunno. I was told about the maximum loan that I could get, based on my current monthly salary. It works outs to a DSR of about 60%.<BR/><BR/>I think that the banks are more generous with their ratios, when it's a new property launch, and the bank has tied up with the property developer for that new launch.<BR/><BR/>Makes sense to me that the bank would be even more generous with its ratios, if it is financing the developer for the purchase of the land, and the construction firm for the construction of the property (This was the case for the property I'm looking at). Reason is that the bank has a vested interest in making the whole thing work.Gilbert Koh aka Mr Wanghttps://www.blogger.com/profile/01027678080233274309noreply@blogger.comtag:blogger.com,1999:blog-4405345292513335071.post-45562297969453108912008-12-22T15:09:00.000+08:002008-12-22T15:09:00.000+08:00Dear Mr Wang:I am presently working in a bank and ...Dear Mr Wang:<BR/><BR/>I am presently working in a bank and with the recent credit crunch, it is really VERY HARD to get a loan if one's DSR (Debt Servicing Ratio) is close to 60%. <BR/><BR/>In fact, the credit officers' eyebrows start to twitch a little when the DSR reaches 40%. (But there are instances where customers get amazingle high DSR. Not just because they earn a lot but also because they have been my bank's long "serving" customer)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4405345292513335071.post-73541128692460615392008-12-20T11:52:00.000+08:002008-12-20T11:52:00.000+08:00More data:Size of the DPS Behemoth - from Business...More data:<BR/><BR/><A HREF="http://www.sghousing.com/2008/12/20/size-of-the-dps-behemoth/" REL="nofollow">Size of the DPS Behemoth</A> - from Business Times 20 Dec 2008<BR/><BR/><A HREF="http://www.sghousing.com/2008/12/20/10450-deferred-payment-homes-weigh-on-prices/" REL="nofollow">10,450 deferred payment homes weighon prices </A> - ST 20 Dec 2008.Gilbert Koh aka Mr Wanghttps://www.blogger.com/profile/01027678080233274309noreply@blogger.comtag:blogger.com,1999:blog-4405345292513335071.post-85262413238155266082008-12-20T09:44:00.000+08:002008-12-20T09:44:00.000+08:00My analysis hereMy analysis <A HREF="http://arthurboon.blogspot.com/2008/12/property-contra-play-unwinding-next.html" REL="nofollow">here</A>ArtBoonhttps://www.blogger.com/profile/11861908245832796219noreply@blogger.comtag:blogger.com,1999:blog-4405345292513335071.post-15457311230966656012008-12-20T01:42:00.000+08:002008-12-20T01:42:00.000+08:00Property lelong coming soon. Lai ah, don't miss ou...Property lelong coming soon. Lai ah, don't miss out!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4405345292513335071.post-44125097299497325642008-12-19T21:20:00.000+08:002008-12-19T21:20:00.000+08:00Singapore says 10,000 homes bought via deferred pa...Singapore says 10,000 homes bought via deferred payment <BR/>Reuters - Friday, December 19 SINGAPORE, Dec 19 - <BR/><BR/><BR/>Singapore said on Friday there were 10,450 uncompleted private homes <BR/>purchased under the country's deferred payment scheme, revealing for the <BR/>first time the potential number of homes that may be returned to developers. <BR/><BR/><BR/>About 4,560 of these homes are scheduled for completion next year while <BR/>another 2,540 will be ready in 2010, the Urban Redevelopment Authority said <BR/>in a statement. <BR/><BR/><BR/>Singapore introduced the deferred payment scheme in 1997 in a bid to boost <BR/>the then-moribond property market. The scheme, which was withdrawn in 2007, <BR/>allowed buyers to buy property under construction without lining up bank <BR/>financing in advance so long as they made a downpayment of 10-20 percent. <BR/><BR/><BR/>The recent fall in Singapore home prices, coupled with the financial crisis <BR/>that has made banks reluctant to lend, has led to concerns about a jump in <BR/>the supply of unsold homes due to the failure of buyers to get loans. <BR/><BR/><BR/>"The data is provided to enable the public to make a better informed <BR/>assessment of the private housing market," URA said.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4405345292513335071.post-40157299264293037192008-12-19T15:42:00.000+08:002008-12-19T15:42:00.000+08:00Mr Wang, my mistake, non-recourse will only ensure...Mr Wang, my mistake, non-recourse will only ensure that banks will be more dilligent in making sure that the collateral is more than sufficient to cover the loan.<BR/><BR/>I am thinking if we combine non-recourse feature with credit-worthiness checks, would the system be better?<BR/><BR/>Non-recourse feature by itself did not cause the sub-prime problems. Sub-prime problem is because of banks' ability to sell 100% of risk.Chew Ernhttps://www.blogger.com/profile/15644875238397834237noreply@blogger.comtag:blogger.com,1999:blog-4405345292513335071.post-24809345440531607162008-12-19T10:17:00.000+08:002008-12-19T10:17:00.000+08:00Ghost:I don't think that the flippers are asking t...Ghost:<BR/><BR/>I don't think that the flippers are asking the government for help. I haven't heard anything to that effect, anyway.<BR/><BR/>In fact, the main concern now seems to be the unknown number of flippers who are currently stuck ... and what will happen to the general market when the flippers' properties collectively starting TOP'ing in mid-2009.Gilbert Koh aka Mr Wanghttps://www.blogger.com/profile/01027678080233274309noreply@blogger.comtag:blogger.com,1999:blog-4405345292513335071.post-51232066560734547312008-12-19T10:00:00.000+08:002008-12-19T10:00:00.000+08:00I think you're quite mistaken, Chew Ern. It's prec...I think you're quite mistaken, Chew Ern. It's precisely in the situation of "no-recourse" mortgages that the bank doesn't bother to check affordability. We saw that in the US, didn't we? It was one of the causes of the subprime crisis.<BR/><BR/>If I were a bank, why would I bother to check your credit worthiness, if I were giving you a non-recourse mortgage? Whether you earn $4,000 a month, or $4,000,000 a month, it still doesn't help me in any way. All I would look at is the value of the property you plan to buy.Gilbert Koh aka Mr Wanghttps://www.blogger.com/profile/01027678080233274309noreply@blogger.comtag:blogger.com,1999:blog-4405345292513335071.post-76179165347747749792008-12-19T00:25:00.000+08:002008-12-19T00:25:00.000+08:00I don't quite agree that Sg banks will thoroughly ...I don't quite agree that Sg banks will thoroughly vet through a property loan application. If I am not mistaken, sg banks can still pursue the mortgagee for further losses AFTER forced selling a property.<BR/><BR/>I think only in no-recourse mortgage loans will we see the gold standard in banks's assessment of affordability.Chew Ernhttps://www.blogger.com/profile/15644875238397834237noreply@blogger.comtag:blogger.com,1999:blog-4405345292513335071.post-45916001818498694452008-12-18T23:59:00.000+08:002008-12-18T23:59:00.000+08:00You are right in that flippers are like speculator...You are right in that flippers are like speculators in the stock market, Mr.Wang. There's nothing wrong in that. I too contra on the stock market at times, but the difference is that I (and most contra players) don't go round looking for the government to help us when our bets turn bad. And that is why I don't understand why anyone expect the government to help the flippers. You make a bad bet, you take the loss.Ghosthttps://www.blogger.com/profile/05160118520611754510noreply@blogger.comtag:blogger.com,1999:blog-4405345292513335071.post-48160749648857941492008-12-18T23:31:00.000+08:002008-12-18T23:31:00.000+08:00Another reason may be that the bank is looking at ...Another reason may be that the bank is looking at the value of the collateral (the property). The developer may be selling significantly below the valuation price, but the bank is still extending loans on the basis of the valuation.Gilbert Koh aka Mr Wanghttps://www.blogger.com/profile/01027678080233274309noreply@blogger.comtag:blogger.com,1999:blog-4405345292513335071.post-83136092818157361402008-12-18T23:25:00.000+08:002008-12-18T23:25:00.000+08:00Hmmm. 60% could be for the customers regarded as v...Hmmm. 60% could be for the customers regarded as very high earners.<BR/><BR/>The other possibility is that the bank is more lax with its ratio when it is also financing the developer for the construction and is the bank which the developer is recommending to its customers. Something's a little dubious about that.Gilbert Koh aka Mr Wanghttps://www.blogger.com/profile/01027678080233274309noreply@blogger.comtag:blogger.com,1999:blog-4405345292513335071.post-80932098260886724222008-12-18T21:56:00.000+08:002008-12-18T21:56:00.000+08:00based on my experience working as temp staff in mo...based on my experience working as temp staff in mortgage loan dept, DSR around 50% were scrutinized very closely. Mostly declined. And this was at the height of the property boom last yr.darthhttps://www.blogger.com/profile/03489422578575667993noreply@blogger.comtag:blogger.com,1999:blog-4405345292513335071.post-53205672279105776362008-12-18T20:50:00.000+08:002008-12-18T20:50:00.000+08:0060% of your salary to finance your home? Over in E...60% of your salary to finance your home? Over in Europe it is more like 30%.<BR/><BR/>I am astounded that detailed credit checks are not yet performed in Singapore, sure or not?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4405345292513335071.post-13821946773787656042008-12-18T17:32:00.000+08:002008-12-18T17:32:00.000+08:00Haha Mr Wang, wait till you want to sell your hous...Haha Mr Wang, wait till you want to sell your house and it is worth pittance than you know. Or if you need a home to set up family and the prices are ridiculous, then go shake hands with flippers.<BR/><BR/>But I really do not wish that for you :DAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4405345292513335071.post-68928577124901087982008-12-18T16:44:00.000+08:002008-12-18T16:44:00.000+08:00However, for the customer, the more relevant quest...<I>However, for the customer, the more relevant questions remain unanswered. Should you commit yourself to spending 60% of your monthly salary on your mortgage repayments? Is that financially advisable for yourself? That's what the bank won't tell you. You'll have to figure it out for yourself.</I><BR/><BR/>What? Expecting Singaporean to think for themselves?<BR/><BR/>Wow that's new!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4405345292513335071.post-2487928143314837832008-12-18T15:29:00.000+08:002008-12-18T15:29:00.000+08:00can someone explain what is flipper? thankscan someone explain what is flipper? thanksAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4405345292513335071.post-35115760548310639162008-12-18T15:02:00.000+08:002008-12-18T15:02:00.000+08:00Hey, I benefit from flippers ... I'm a genuine buy...Hey, I benefit from flippers ... I'm a genuine buyer in a sinking market. <BR/><BR/>In my desired district, I shall be most happy to discuss with desperate flippers holding a property that they can't afford to hold ... if the property is suitable for my needs, of course.Gilbert Koh aka Mr Wanghttps://www.blogger.com/profile/01027678080233274309noreply@blogger.comtag:blogger.com,1999:blog-4405345292513335071.post-76291817838954851902008-12-18T14:48:00.000+08:002008-12-18T14:48:00.000+08:00Whether flippers are important or not depends on w...Whether flippers are important or not depends on what kind of market we want and who actually benefit from the liquidity. <BR/><BR/>Flippers create artificial demand/supply and invoke extremes in the market. Who suffers from their presence? Important as they may be, they are not desirable in certain categories of investments. <BR/><BR/>Neither should we allow our country's scarce resources be subject to manipulation by opportunists, especially foreign ones.<BR/><BR/>In the end, the people suffer.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4405345292513335071.post-26176291935287725072008-12-18T13:33:00.000+08:002008-12-18T13:33:00.000+08:00Flippers play a necessary role in the overall sche...Flippers play a necessary role in the overall scheme of things. They're like speculators in the stock market. Without them around, liquidity dries up.<BR/><BR/>You can think of them as parasites and flies in the ecosystem. They may look icky, but their existence is as important as anybody else's.Gilbert Koh aka Mr Wanghttps://www.blogger.com/profile/01027678080233274309noreply@blogger.comtag:blogger.com,1999:blog-4405345292513335071.post-68009003953762671612008-12-18T13:27:00.000+08:002008-12-18T13:27:00.000+08:00Sorry but I feel no sorrow for the flippers. They ...Sorry but I feel no sorrow for the flippers. They were making an investment looking to resell the property once the prices went higher. You can't say they don't know the prices can go down as well as up. If Singapore want to set-up a fact-finding process for potential home buyers, it should only help actual home-buyers like the first-time owners. <BR/>Hell, I don't even feel that sorry for the home upgraders either. They all thought things were good and can only get better; they were wrong, but that doesn't mean they were cheated. Crying about it now doesn't change thatGhosthttps://www.blogger.com/profile/05160118520611754510noreply@blogger.comtag:blogger.com,1999:blog-4405345292513335071.post-65763092979290961512008-12-18T10:47:00.000+08:002008-12-18T10:47:00.000+08:00Buy whatever that I can afford. Only I know what I...Buy whatever that I can afford. Only I know what I can afford and no one else can tell me...ArtBoonhttps://www.blogger.com/profile/11861908245832796219noreply@blogger.com