i am very sensitive to what developer promise
if promise not fulfil same as cheating right

so i draw this to help ppl estimate

400ft ~ 500ft wide
1000ft ~ 1200ft long



This post has been edited by AbangCorp: Dec 27 2009, 08:43 PM

To me it doesnt matter a condo is LH of FH because if i can live longer than 99 yrs, i dare not live in a 99 yrs condo.

Anyone is taking SC loan?

I noticed that the repayment term is actually upon full drawdown or 24 months from the date of disbursement.

This post has been edited by estherlo: Dec 28 2009, 11:54 AM

mind sharing the term details

still waiting my sc to be approved
also pbb, uob and ocbc

It is BLR-1.85%. Bonding period is 5 yrs from letter of offer. Non-flexi loan

That made a lot of sense to me. I'll make a note of that, next time i'll pull this trump card in the leasehold vs. freehold argument. Thanks.

I agree with FH vs LH too. I dont understand why people worry about FH vs LS. If any building more than 90 years old. Maybe the government might even consider gazette it is heritage building. LOL

don't worry about those
and let ppl out there worry

lh or fh is up to pejabat tanah at that specific place decision
i like the lh fh sensitivity because it cause lh property to priced better

For LH ...u will not get higher value after 10 - 20 year .. value like this => ' ^ '
For FH .. if the condo well maintain ...the value will keep increase.. value like this = >' / '

---

Added on December 29, 2009, 9:30 amafter lease expired :
u need to pay something like this =>

(1/4 x (value of land *)/ 99) X lease tenure * = YOU NEED TO PAY

*(you just imagine the value of land in Klang Valley after 99 year)
* mostly is 99

This post has been edited by Raub: Dec 29 2009, 09:30 AM

anyone taking OCBC loan?

Soon or later all property will become LH including those FH now. Maybe I don't have chance to experience it.

Base on the calculation, if for 300k land value. The 99 years renewal will be 75k. If the building condition still ok, 75k is nothing after 99 years.

OCBC never get back to me also..Call them n ask also nvr give feedback..

hey, how many work day does these bank reply to you

sc
pbb
uob
ocbc

cimb again not in the list

Buying a home: freehold vs leaseholdPosted on November 25th, 2009 by Mindy Yong.
Categories: Singapore Real Estate News.
Buying a home: freehold vs leasehold

NICHOLAS MAK examines how both tenures perform in rising and falling markets as well as in collective sales

THE question of whether to own freehold or leasehold property seems a perennial one, with pros and cons shifting with market cycles and new trends. Here, we examine the issue from the perspective of both a home owner and investor, and see how both tenures perform in rising and falling markets as well as in collective sales.

Pros and cons: If the upswing in the property market is bottom-up, leasehold condominiums could outperform freehold ones. Conversely, if the boom is top down, freehold condominiums would deliver superior results
The chief attraction of 99-year leasehold property is that it is typically priced lower than a comparable freehold property. As a result, they are popular with HDB upgraders as entry-level private properties. Most mass-market homes are 99-year leasehold condominiums, with prices ranging from $500 per sq ft to $900 per sq ft. A typical family-size apartment could cost anything from $600,000 to $1.2 million.

For investors, leasehold properties usually offer a higher rental yield because of their lower capital cost. However, the higher yield merely compensates the owner for the decaying lease.

One of the more apparent disadvantages of owning a 99-year leasehold property is that the length of the lease is contracting daily. All else being equal, this would result in falling property value. However, certain external factors could slow the decline in value, such as if the property is sought after by tenants or buyers. This could be due to a prime location, improving infrastructure (such as a proposed MRT station nearby), or good amenities or popular schools in the vicinity.

When it comes to collective sales, there are usually fewer opportunities for them with 99-year homes. One reason is that many of them are still relatively new and in good condition. Thus, the owners do not feel any urgency to sell their homes collectively.

A more pertinent reason is that the premium payable to the government to top up a 99-year lease is quite high, based on the existing formula. And since developers factor the premium as part of the total land cost, the higher the premium the less the owner of the ageing leasehold would get in any collective sale.

As such, collective sales are not attractive to many owners of 99-year leasehold apartments unless the expense of maintaining their ageing properties are so high that a collective sale becomes the cheaper alternative.

A key benefit of owning freehold real estate is that the land value does not generally depreciate in the long term. Although all properties are subject to market fluctuations, the price of freehold land tends to be more stable than that of leasehold land over time. However, the value of a freehold property could still decrease over time due to the depreciating value of the ageing building. Over the long term, while the value of freehold land may increase or remain little changed, the value of the building would decline.

One factor that supports the value of freehold land in Singapore is its scarcity. Since all the land sold by the government is leasehold, the amount of freehold land would not increase. In fact, it might shrink over time if the government makes acquisitions of such land.

Another advantage of owning a freehold property is the potential of a windfall from a collective sale. If the value of the freehold land increases while the value of the ageing building declines, it could reach a stage where the redevelopment value of the property is worth more than the utility value of the existing building. As a result, the property owners may find a collective sale of their property to a developer to be highly profitable.

Some developers looking to acquire residential land for development may also prefer freehold land to ageing 99-year leasehold property because freehold land would not require the payment of a hefty premium for extending the lease.

For all these reasons, freehold residential properties are generally priced higher than 99-year leaseholds. The price range of freehold non-landed properties is also wider than that of comparable leasehold properties. Depending on the location, freehold property prices could vary from $600 psf to $4,000 psf or more. The majority of high-end residential properties are freehold.

For investors, one disadvantage of freehold property is the lower rental yield, a function of the higher cost of the property.

Also, while freehold properties have a higher likelihood of a collective sale than their leasehold counterparts, that can prove to be a double-edged sword. The property boom of 2005 to 2008 whipped up a collective sale frenzy. But some property owners who sold for a windfall found they could not get a replacement home in the same location from their proceeds. As the collective sale boom was powered by surging property prices, by the time en-bloc property sellers received their proceeds, the prices of comparable replacement homes would have moved out of reach.

Now, we look at the price performance of freehold and leasehold properties. Although freehold properties are usually priced higher than their leasehold counterparts, their rate of appreciation does not always outperform.

There were two property cycles between end-1998 and mid-2009. The first market boom, which started at end-1998 and ended in mid-2000, was a bottom-up price recovery. Demand started in the mass-market sector and moved up to the mid-tier and finally the high-end segment.

During this 18-month period, the average price of 99-year condominiums rose faster than that of freehold homes. The average price of freehold condominiums grew by 38.2 per cent, while the average price of 99-year leasehold condominiums surged by 46.2 per cent.

But on the way down, leasehold home prices also fell more steeply. On the downcycle between mid-2000 and the first half of 2004, the average price of leasehold condominiums fell 26.1 per cent, steeper than the freehold price decline of 17.6 per cent.

The most recent boom that lasted four years from mid-2004 to mid-2008 started with high-end property and gradually filtered down to the mass market.

Even when the mass-market sector started to pick up in 2007, the momentum in the high-end segment did not let up. As a result, freehold condominium prices jumped by an impressive 64.7 per cent on average, while the average leasehold property price rose some 50 per cent.

When the property market here started to contract in mid-2008 due to the global financial crisis, freehold condominium prices fell 26.5 per cent year on year, just slightly more than 99-year leaseholds, which dropped by 23.8 per cent.

What this study shows is that if the upswing in the property market is bottom-up, leasehold condominiums could outperform freehold ones. Conversely, if the boom is top down, freehold condominiums would deliver superior results. However, this study also illustrates that the faster the rise, the harder the fall. So in a top-down property boom, owners of freehold condominiums who had enjoyed a sharper price appreciation should be nimble enough to lock in their gains before the downtrend sets in.

In comparing freehold and leasehold residential properties, there is no conclusive evidence to show that one is better than the other. Ultimately, the decision boils down to budget and preference.

The writer is a real estate lecturer at Ngee Ann Polytechnic

Source : Business Times - 25 November 2009

Buy Sell Rent invest In Singapore Property Real Estate

MINDY YONG

( +65 ) 91002985

mindy@mindyyong.com



------very good info.

I applied for SC and UOB same day last Tuesday.

SC really fast. Last Thursday call me to tell me my loan is approved. Today e-mailed me the Loan Agreement for me to look. Impressed with their speed.

When I applied UOB, the lady told me very fast. Can let me know by last Thursday. Called her yesterday, she told me today. Called her just now she says tomorrow or Thursday. She apologise for so slow because many staffs on leave. Anyway, she told me I don't have to worry because I sure can get the loan because I am first time buyer and no other commitment except car loan.


SC terms give to me are:-

Interest rate: Year 1 = 0, Subsequent year = BLR - 1.85%
Interest: Monthly rest basis and capitalization monthly
Prepayment: Not allowed prior to full drawdown. Upon full drawdown, prepayment/redemption is allowed in multiples of RM1,000

I am not too happy with:-
1)Interest on Monthly Rest Basis
2) Prepayment condition. I have not withdrawn my EPF and was planning to withdraw in 5 years time but with the prepayment condition, does that mean I can only pay RM1,000 monthly?

Hope any sifu's here can clarify whether this is a good deal?

This post has been edited by oucheev: Dec 29 2009, 09:56 PM

Agreed. SC is damn fast. Took few days only. UOB and OCBC took more than 2 weeks liao. They told me no problem of getting it. Still waiting. But seem like taikor here taking UOB. Not sure whether can get advice on UOB and OCBC.

ocbc takes 1 day only. rate is blr - 1.85 . flexi & daily rest . allows financing of loan legal fee. downside....lock in period starts from 1st disbursement.

mind to advise UOB is better or OCBC is better?

i dont have a choice, had to chose ocbc cos i already have mortgage loans with the rest of the panel banks. they are more unwilling to lend if you already have existing loan with them. thus i didnt really pay attention to what they are offering. anyway i believed all banks offered almost the same package. just choose the most efficient banks... take into consideration the officer's service, banks location or simply the fastest approval.

OCBC deserve my commendation. they offered me blr - 1.85% even though i'd earlier signed the Letter of offer @ blr - 1.8. this gesture won me over.... oops i forgot i didn't have much choice. hehe

regards to the uob loan, i dont quite understand how does the pre payment works?

it says you can make prepayment anytime without notice but the amount doesnt fully reduce the principal but divided between principal and interest.

1) say, im offered 40 years loan - total interest is based on 40 years.
i make prepayment, its reduces interest based on 40 years.
Am i right?

2) doesnt prepayment reduce principal and recalculate remaining loan then interest base on remaining year?

sifu out there, please advise?

This post has been edited by kornflake: Dec 30 2009, 01:00 AM