Penrose Launch Property Review

Project Review – Penrose

Have you heard about the recent new launch in district 14, Singapore? Yes, it is Penrose. This has been a hot topic discussed by many buyers looking for new launches and also, real estate professionals in Singapore.

There are various reasons as to why this development is drawing so much attention. From the location to accessibility, design, layout, pricing, and more.

Do allow me to share with you, some of the key benefits of this development. Before I get into more details of the project, one of the key important things to take note of is;

This development is done by not one, but two established developers in Singapore. The City Development Limited ( CDL ) and Hong Leong Group.

Let me now dive into the details of the project. Why everyone is talking about it, why this development is worth looking at, and why you should consider this development whether you are an investor or buying for your own stay.

For those of you who have been reading my blog on project reviews, you might have realized, I will hit onto the key points, mainly consisting of the layout of the unit, the location, and lastly, the future development of the project—sharing with you a few tips, saving you, a reader of my blog, time and effort in reading it.

For Penrose and subsequent future posts, I will incorporate another section, which is the price and future potential growth.

Layout

Penrose, having a total of 566 units in the development, would be considered as a middle sized development. Although the size of the development is mid, it has Single bedroom units for the investors and individuals to four-bedroom units that are ideal for families.

With the current Covid-19 situation, that has no visible end point, and what happens POST Covid-19, buyers might be considering buying a slightly bigger unit that allows for keeping one of the rooms as a study room.

Unit TypeNo. of Units
1 Bedroom57
1 Bedroom plus study2
2 Bedroom137
2 Bedroom plus study34
3 Bedroom228
3 Bedroom plus study54
4 Bedroom54

2 Bedrooms With Study

The 2 bedrooms (with study) is one of the good units for newly married couples or investors. Why?

The 2 bedrooms (with Study) being 74 square meter in size, has a regular layout design, whereby there are no corners and shape edges, leading to wasted space.

For both working couples, one study room may not be enough, as each will require their own privacy during work. Bedroom two, in this case, can be used as the other work area.

Alternatively, the bedroom two can also be used as a game room, where most of Generation Y and after, will appreciate the Internet gaming.

Lastly, bedroom two can also be used, like a baby room should there be a new member coming to the family.

For investors, upon buying a unit, you will most likely want to rent it out and start collecting rent. Many landlords will like to have tenants that are professionals. Due to the nature of their work, these groups of tenants will most likely want to have a work area, that is not mixed with the rest area, like the bedroom.

This will give you a higher opportunity to fulfill the tenant needs and have your unit rented out sooner than the rest.

3 Bedrooms Premium

In Penrose, there are 3 broad types of three bedrooms. They are the basic three bedrooms, three-bedroom with study, and three bedrooms premium.

What I am recommending will be three bedrooms premium, in particular, type (3Y) d. Now you might ask me, why this particular type.

Firstly, this unit has a size of 99 square meters. By looking at the size, the first thing that crosses your mind would probably be, why only 99 square meters? Putting aside the numbers to the size of the unit, when you step into the show flat, which is a similar unit, which is also Type (3Y) but is e model. Both the units are comparable but the size is even smaller, which is 98 square meters.

After you have gotten a feel of the space, you will not have the feeling of being confined in the unit. The reason being that the unit is very regular. There is no sharp corners and irregular bends inside the unit. The second, which is the key, is that the unit ceiling height is 2.8 meters. With such a right ceiling height, that gives you the benefit of air circulation and also, the feeling of freedom

Lastly, the unit is on stack 34. The development is built with the North-South facing and the next block, which is the HDB, is across the street. Due to the distance between both the blocks, it does not affect the breeze from flowing into the units during a windy day. Best of all, their units will be facing the angle of the morning sun, that gives you the brightness and not the heat.

4 Bedrooms

The 4 bedrooms in Penrose is like a 1 bedroom unit. It is rare, as less than 10% of the units are 4 bedrooms. This amounts to only 54 units, across the whole 566 units available.

Personally, for the 4 bedrooms unit, I preferred the type (4) b, per the attached picture. This unit sits at the corner of the block, having the facilities right in front of the balcony.

The development has only 17 floors, and for this unit, I will recommend having anything above 14 floors. the higher floor will have a better view and better breeze.

Another benefit for the 4 bedrooms in Penrose is, all rooms come with an attached bathroom. As you might be aware, the morning rush for many families can be challenging. The units come with 3 bathrooms, both the master and bedroom 4 is solely attached and bedroom 2 and 3 are shared with a bathroom.

Location

Penrose is located along Sims Drive. The plot of land was previously a cluster of the old HDB flat. The physical location of the project will be at 20 to 30 Sims Drive.

Accessing to routine marketing is just across the street. There is a sizable wet market and hawker center within 5 mins of walk.

MRT

The nearest MRT station from the development will be Aljunied MRT Station, which is about 400 meters away, which would take you less than 7 mins to reach by foot. Aljunied MRT, which is the East-West line of our MRT transport system, and it is the first MRT line that is operational in Singapore.

From Aljunied MRT station, you are only 5 stations away to Raffles Place, which the financial hub and business district of Singapore. Bringing you the shopping area in Bugis, where there are 2 big shopping malls, is only 3 stations away. Going towards East, it is only 1 station to Paya Lebar, a newly developed shopping and office area.

For working professionals, the MRT will also bring you to most of the business hubs in Singapore, such as Raffles Place, Marina Bay Financial Center, Suntec City, Paya Lebar Quarter

Schools

Primary school is always a key consideration for many parents. Penrose, other than having the accessibility to the key business hub in Singapore. It also has popular schools within reach.

Within one KM, we have Geylang Methodist School and within two KM, we have Kong Hwa School and Cedar Primary School.

Development in District 14

Penrose is currently the only value for money development in district 14. Other than Penrose, there are currently no other developments of that size. I am confident that there will be more developments of this size in the future, however, whether it is in the near future or far future, i do not know.

I am so confident in the additional development as I feel that there are still many unwind developments in district 14. Looking at the current development of Penrose, there is still another plot of land nearby, that is not developed, or even sold yet.

Knowing there are still so many options, why should you be getting the unit now? I do agree that you can wait. However, currently, with the Covid-19 situation, developers are softer in their pricing. Once that is over, there is a very high chance that the developer will review and revamp the price structure.

Also, what happens to the price in 2 years time? As we know, property pricing is always on the up. 10 years ago, the property you were looking at property at was asking for less than one thousand per square feet. Now, in many areas, the asking price is above 1,600 per square feet.


Buying New Launches

Let’s not wait any longer. Contact me now. Click here to send me a WhatsApp.

To know more on the project, click here

Remember, There is no medication for regret. What is missed, is gone

Market Outlook Financial

Market Outlook – Q2 2020

We have passed the mid-year of 2020. Within the first 6 months, there has been a few key economical situations, which have directly and/or indirectly impacted the property market.

Some key situations are
1. Coronavirus Pandemic Since Jan 2020
2. Singapore Declared Technical Recession on 14th July 2020
3. The unemployment rate increased to 2.9% in June 2020

The above 3 situations have placed many Singaporean in a very uncertain economical situation, especially so those in the workforce, where job security is his/her major concern.

Market outlook

HDB – Resales

Looking back – Q1 2020

Since Q2 of 2019, the number of HDB transactions, regardless of flat type, has been fluctuating in the range of 6,000. This has been going on till Q4 of 2019.

Historically, the transaction did dip when it came to the beginning of the calendar year, which was sometime in January and February. Therefore, the moving down of the transaction in Q1 of 2020 is somehow expected.

The drop is the transaction for Q1 2020, from the statistic representation, is much healthier than Q1 2019, which hit a low of 4,500

Data Source : data.gov.sg

Looking from the price point perspective, all flat types are going very much constant, except for multi-generation. I will not take this flat type into consideration, as the requirement for this flat type is unique to a particular group of the buyers. This is also not to be used for benchmarking as the supply is limited to some of the HDB towns

Looking into – Q2 2020

From the transaction perspective, there has been a sharp drop in numbers from the earlier quarter of 5,500 units to Q2 of 3238 units. There are various factors leading to this dip.

The key factor was due to the enforcement of the Circuit Breaker in Singapore. The prelude of the Circuit Breaker started on 27th March 2020 where some of the entertainment venues were to close.

It further tightened on 7th April 2020, where non-essential services were not allowed. Real estate activity was, back then, classified as a non-essential service, and all viewing of the property was not possible.

Data Source : data.gov.sg

There was not much of an impact on the pricing of the HDB flat, during the Circuit Breaker period. Looking from the chart, except for the bigger unit, which is the Executive flat type (ie, Executive Apartment and Executive Maisonette) that has dipped by 2.9%. the rest of the flat types are still going very much stable.

Data Source : data.gov.sg

Future Sharing

With the relaxing of the Circuit Breaker on 2nd May 2020, real estate activities have recovered. The seller begins to allow the potential buyer to view their property and the buyers have started to source for their expected units.

HDB, being the public housing for all Singaporean, is always the first choice for those that are getting married. I foresee that the transaction will recover sooner than expected and it should be reaching the stable trend.

Private Property – Resales

Looking back – Q1 2020

Transaction for resale private property has come down since Q2 of 2018. The drop between Q2 and Q3 has come to almost 50% drop. In numbers, it drops from 3,975 to 2,172 transactions within that quarter.

After the drop, the number of transactions have been moving between the range of 1,600 to below 2,000. These numbers have been constant for the past 7 quarters.

Data Source : URA website

Although the number of the transactions have come down in Q2 2018 and remaining constant with a difference of 500 units between a quarter to quarter. The price of the transaction has been on an up.

During the initial drop from Q2 to Q3 2018, the price has come up from Q2 average per square feet of $1,357 to Q3 average per square feet of $ 1,375. The prices have been moving up since Q3 to the last quarter of 2019. Closing the year with $1,421 per square feet.

For Q1 of 2020, mainly due to the outbreak of Coronavirus, although not widely spread, has made many buyers aware, resulting them in holding back in offering any shortlisted property.

Data Source : URA website

Looking into – Q2 2020

With the implementation of the Circuit Breaker in Singapore which started in April 2020, which is the beginning of Q2. The number of the transactions have dropped from 3,773 in Q1 to 2,398 in Q2. A total drop of 1,375 units. Leading to, in percentage, 36.5%.

Data Source : URA website

The circuit breaker has created a very unique pricing situation for resale private property. The price during the Covid-19 circuit breaker period has come up. from $1,375 per square feet to $1,394 per square feet. An increase of 1.5%.

Data Source : URA website

Future Sharing

As we are aware, Covid-19 is not going to end anytime soon. Many agents have capitalized on the use of technology to conduct showing of resales to the potential buyer. This approach has given more opportunities for the buyer to feel comfortable and safer when they wanted to view the unit.

I will think that this is going to be the next wave of trend in the property shortlisting process. It also saves the time and effort of the potential buyer. With this convenience, I foresee property transactions will be back on track soon, living together with Covid-19.

Private Property – New Launch

Looking Back – Q1 2020

Transaction on new launches has been like a roller coaster since Jan 2018. It went up for 2 quarters, after which it came down, maintaining below 2,000 units transacted for another 2 quarters.

It swings up at a peak of over 3,000 during Q3 of 2019. The drop begins after Q3 and it went continuously down for 2 quarters, which the downtrend of Q1 of 2020 potentially caused by the outbreak of Coronavirus, leading to some uncertainty.

Prices for new launches do not get closely align with the number of transactions. Looking at Q3 of 2018, the number of transactions is on the up but prices have come down.

This trend goes the same for Q3 of 2019. Prices tapped down, although the number of units sold went up.

What has drawn my attention was the Q1 of 2020. With the outbreak of Coronavirus, the number of units sold came down, but the price per square feet went up, hitting past the average of $1,850 per square feet.

Looking into – Q2 2020

The numbers of units sold start to decrease since Q3 of 2019. This downward trend got worsen in Q2 of 2020 when Singapore went into the Circuit Breaker stage. Non-essential services were not made available leading to viewing at those new launched show flats not happening.

Unlike the resale private property, new launches prices have come down in Q2 2020. This largely was caused by the circuit breaker. The other possible reason is, the developer is reviewing their pricing to encourage the buyer to commit to those units that they are interested in.

Future Sharing

We have started to accept the fact that, Covid-19 is not going to be gone anytime soon. Therefore, property buyers and investors are now positioning themselves, to purchase the right units when the price and opportunity are right.

Also, developers and agents are now capitalized on the use of technology, such as video calls to meet with potential buyers, creating virtual show-flat for the potential buyers to view the units.

The developer has also invested in technology, to create a virtual show-flat tour for potential buyers. Accepting more electronic funds for payment of option and exercise fees and more…

Summary

Looking at the transaction numbers, the pricing of the properties in various segments of Singapore, athough the economic situation is not that positive, the real estate is still moving and transacting in a very healthy way

With the support of the chart and historical data, to date, the Covid-19 did not crash the real estate market. With the adjustment of the bank interest rate, there is more benefit to capitalize on these benefits and invest in the market for now.

I will not be able to speculate what is going to happen in Q3, and Q4 of 2020, but I am positive that it is moving in a healthy direction. Currently, while I am touching onto the market. New launches that are still coming on, and it is transacting well. Some good potential project has sold over 95% of their units and there are more, that has sold over 75%.

HDB owners are also taking this opportunity to upgrade. Be it to new launches or from the resales market. The demand for private property will still be stable.


Lewis Tee

“I am sharing these, based on my past experiences earned while participating in the market also, the data collected over the years. Hope this is of help to you, in deciding what you plan in the property market.”


If my sharing is helpful to you, and you will like to have a more in-depth discussion, I am most happy to have a session with you, at your best convenient time. Do drop me a WhatsApp to kick-start a discussion. Don’t wait till everyone has dived into the market, as it might be too late.

Kopar Newton buy sell Property Review

Project Review – Kopar

Covid-19 has been going on for some time, and nobody knows when it will end, or a vaccine will be ready. However, we can’t wait for this pandemic to end totally before deciding to either upgrade from my existing property, relocate nearer to my child’s school, or invest in a new property, as it requires a few years to build and by the time it is ready, we can capitalize on our investment.

Therefore, if you have a plan to upgrade, relocate, or invest, or if you are a foreigner, looking to buy a property in Singapore, I would like to recommend, Kopar@Newton. You might ask me, why Kopar@Newton? Why Newton? How can I afford it? What if I can’t rent it out? There are too many why’s, how’s, what’s, and more. Let me share with you the benefits of Kopar@Newtown. After this, if you still have standing concerns, we can discuss on how to overcome those.

Kopar@Newton

Kapar at Newton (纽顿铜源) is a 99-years leasehold development with a land size of 125,327 square feet having a plot ratio of 2.8. The developer of this project is CEL Development Pte Ltd. The project is located along Kampong Java Road. The development comprises of a total of 378 units.

CEL Development Pte Ltd is a subsidiary of Chip Eng Seng Group. Chip Eng Seng Group is a listed homegrown company that has won the bid of that plot of land at $418.8m. This homegrown company has portfolios that includes constructing The Pinnacle@Duxton, Privé @ Punggol Field, Park Colonial, High Park Residences, and more.

The legal completion of the whole development is planned to be on 31st December 2026. In all developments in Singapore, the targeted completion is normally earlier, in this case, is 31st Dec 2023.

Layout

First, let me share with you the layout of Kopar@Newton. I will not be sharing every single layout but will be sharing with you what I feel is worth considering.

Unit TypeNo. of Units
1 Bedroom66
2 Bedroom Classic42
2 Bedroom Deluxe86
3 Bedroom Classic44
3 Bedroom Deluxe66
3 Bedroom Penthouse4
4 Bedroom Deluxe45
4 Bedroom Penthouse1
5 Bedroom Delux21
Premier Penthouse3

2 Bedroom (Type 2D)

The 2 Bedroom Premium, at the size of 689 square feet (64 square meter), is one of the perfect unit for both investors, singles and couples.

The layout of the unit is very regular, and the size of both the master and common rooms are able to fit in King and Queen size beds respectively. Because of its regular layout, the arrangement of furniture will be easy as there aren’t any sharp corners.

3 Bedroom (Type 3C)

For new couples or couples with 2 kids, the 3 Bedroom would be a better option. The unit size of 1,055 square feet might sound a bit small for some of you, but when you take a look at the actual unit, it is not that small. The regular layout of the whole unit allows you to have maximized space utilization, with no wasted space between furnitures.

The master room, not taking into consideration the walk-in wardrobe and attached bathroom, allows a king-size bed to fit into the room and still provide a good walking space within the room. A small dressing table to go along inside the room is still possible.

If you have 2 children and want to give them their respective privacy, this unit allows you to do so. Both the rooms allow for a queen size bed to sit right in the center. You are still able to have a good walking area around the bed.

Should you not require both the rooms reserved for your children, one of them can be used as a study cum guest room, with a study table, beside a super single bed.

The size of the hall, allows you to have both the living and dining area separately. The design placed the see-through kitchen right beside the dining hall, which provides the meal to be placed with lesser movement.

Lastly, the unit, albeit only 1,055 square feet, is able to have a Household shelter. Many times, this will be used as a form of a storeroom. Should you visit other projects that provide a 1.055 square feet unit, there hardly is any storeroom. Therefore, depending on your needs, a 3 bedroom in Kopar @ Newton does give you the value for money investment.

5 Bedroom (Type 5C2)

The 5 bedroom unit in Kopar provided a size of 1,819 square feet comes with a direct access from a private lift. This unit is ideal for family of 3 generation.

For the parent, they have a choice of either putting up in Bedroom 5, which is on one side of the hall, and comes with an attached bathroom and it has the full privacy of their own. Alternatively, they can comfortably stay in the Junior Suite, which has a longer walkway into the room. Personally, I will prefer to have them staying in the junior suite as the aged parents don’t feel left out.

The master bedroom comes with an attached walk-in wardrobe and most importantly, the bathroom comes with 2 basins. some couples might know that having 1 basin can be challenging in the morning.

Personally, with the size available in the hall, it is able to allocate a good space for family bonding, where the family can sit together after a meal to chat and bond. The lifestyle in Singapore is so stressful that many people have unknowingly neglected their family members.

Location

Kopar@Newton is located at the junction of Kampong Java Road and Newton Circle. The physical address of the two-block of the building is along 6 and 8 Makeway Avenue, Singapore 228606 and 228607 respectively. Across the development is Newton Hawker Center, a very popular hawker center which is visited by many tourists as well.

MRT Station

The nearest MRT station from the development will be Newton MRT Station, which is about 400 meters away, which would take you less than 6 mins to reach by foot. Newton MRT station is the interchange station for both the North South Line and Downtown Line, which brings you to most of the shopping areas in Singapore such as Orchard Road, City Hall, Bugis and Chinatown.

For working professionals, the MRT will also bring you to most of the business hubs in Singapore, such as Raffles Place, Marina Bay Financial Center, Suntec City, Tampines Hub.

Shopping and Dining

Very localised eating areas such as Newton Hawker Centre, Tekka Market and Food Centre, Whampoa Makan Place and Market, and more are within 2KM of reached.

Should you want to enjoy more comfortable and international cuisines, they are available in various shopping malls that are also within 2 KM reach. Malls such as United Square, Ngee Ann City, The Centrepoint, and lots more. These malls not only provide dining but also is a good place to shop.

Novena MRT station, which is just a station away from Network is a place you must not miss. The 2 biggest supermarket operators, Cold Storage and NTUC Fairprice are both located near to Novena MRT Station.

Schools

Schools are a key consideration for many young parents. Besides the convenience of getting from place to place, Kopar@Newton also has some of the most popular schools around.

Anglo Chinese Junior School, Saint Joseph’s Institution Junior School, Anglo Chinese Primary School are all within 1KM and schools such as Saint Margaret’s Primary School, Singapore Chinese Girls Primary School are within 2KM.

If you are an expatriate, currently working in Singapore, you might want to consider sending you children to international schools such as ISS International School, Chatsworth International School, Dimensions International College which are within 2KM.

Accessing to Highway

The developer has not neglected the drivers. Accessing to CTE, which is one of the highways that cut across many towns of Singapore is just 5 mins away.

Another highway that brings you between east and west of Singapore, will be the PIE. It takes you 10 mins to hit the PIE from Kopar@newton.

Rental Return

As the project is located just outside the crowded Orchard Road, the rental demand is still going strong. Basically, the rental asking, as compared to those in the Orchard area can be 25% lower. Due to the current economical situation, that 25% saving, with just 5 mins train rides will be of great consideration for potential tenants.

As for the investment, Kopar@Newton is about 30% lower as compared to those in the center of the Orchard area. Looking at the percentage, you, being an investor will be profiting from both sides, the investment, which is 30% lower and rental, which is only 25% lower.

Conclusion

Personally, Kopar@Newton would be my key consideration if I am an investor or if I have children going into primary school.

Firstly – Rental Return

Kopar@Newton is not in the main shopping streets of Singapore, but it is just an MRT station away. In term of rental, it will be lower than those in Orchard. Question asked will be, why pay 25% higher for a 5 mins train ride.

If I am a tenant, I will consider paying the lower rental for the 5 mins train ride.

Secondly – Transport

The MRT station is only 400 Meters away. For those that work in the Business District, the MRT line will be of great help. Additional investment in cars may not be required.

If driving is a must for you, the 2 main highways of Singapore is less than a 10 mins drive away. Hitting onto the highway brings you to most of the estates in Singapore.

Buying New Launches

Do pass the link to your friends and relatives if you feel the sharing benefits you.


Buy Sell Renting of your property

Lewis became part of the family of Orange Tee and Tie in 2020. He has been in real estate since 2005. Together with him, he brought along a long history of experience in both HDB and Private property.

His personal belief is, to share the truth and facts with everyone. With that, he has good credibility with his client. His strong belief in a partnership and not the client made him successful in this career also.

Should you have any queries, relating to Kopar@Newton, or other properties that are of your interest. Drop me a WhatsApp HERE. I will respond to you soonest possible.

Jadescape at ShunFu Property Review

Project Review – Jadescape

Being a professional Property Wealth Planner (PWP), many people turn to me, asking me a magic question.
“Which property should I invest? So I can make money”.
Jokingly, I will reply,
“If I am so accurate, I will be sitting at home collecting profit”
That can be a joking reply but it is the truth. I don’t have a crystal ball telling me which property is sure to make money. However, I have an established systematic way of assessing a property, to invest with manageable risk.

“How about me, wanting to buy for my own stay”? The same goes, “you may not be staying there forever, so what would be your projected profit when you sell?”

Now, let me share with you one of the projects that would be worth the time taken to read through my article and consider contacting me for a discussion. – Jadescape

Jadescape buy sell rent

Jadescape – 顺福轩

JadeScape (顺福轩) is a 99-year leasehold condominium developed by Qingjian Realty (Marymount) Pte Ltd. It is located along Shunfu Road. The development comprises of 7 blocks of the residential block, amounting to a total of 1,206 residential and 6 shop units. These units sit over a land size of 396,114 square feet, which is a very sizable land.

There is a very good spread of unit type as the 7 blocks comprises of 1 to 5 bedrooms units, with sizes ranging from 527 square feet for a Single bedroom unit to 2,099 square feet for 5 bedrooms unit. This distribution of size is perfect for both investors and homeowners.

For those who have heard about Jadescape, you might have also heard, about the FengShui (風水) of Jadescape. The reason is that the developer, QingJian Realty, has consulted Master Joey Yap, a famous FengShui Master during the design of the development. Therefore, the landscaping and the architectural design of the development reference the FengShui concept provided by Master Joey Yap, to bring health and prosperity to Jadescape.

Layout

Jadescape, with 1206 units in the project. The breakdown of unit are as follows:-

Unit TypeNo. of Units
1 Bedroom236
2 Bedroom90
2 Bedroom Deluxe269
2 Bedroom Premium44
3 Bedroom86
3 Bedroom Deluxe137
3 Bedroom Premium42
4 Bedroom114
4 Bedroom Deluxe67
4 Bedroom Suite80
5 Bedroom Suite39
Penthouse2

2 Bedrooms

Jadescape 2 bedroom unit.  buy sell rent

The 2 bedroom premium unit is the perfect unit for your own stay or investment. It has a size of 775 square feet, which many projects currently do not have for 2 bedrooms.

The unit layout is regular and both the master and common room are able to fit in King and Queen size beds respectively.

Due to the regular layout, the arrangement within the unit is perfect and there are no sharp corners, which is ideal for FengShui.

4 Bedrooms

Jadescape buy sell rent

The 4 bedroom Deluxe unit is a good unit for your own stay, with 4 to 5 family members. It has a size of 1,421 square feet. The size might sound average to you, but you will feel the difference when you are at the showroom.

The benefit of Jadescape development is, all the units are of regular size. This provides us with more options as to how we would like our internal layout to be.

5 Bedrooms

The 5 bedroom suite provides a size of 2,099 square feet. If you have family of 3 generations, you must not miss this unit.

Jadescape buy sell rent

It has a junior master bedroom that comes with an attached bathroom on one side. This is perfect for parents, who would prefer more privacy. The other wing comes with regular master bedroom, which has a walk-in closet with an attached bathroom.

The 3 rooms are equally distributed between the master bedroom and hall, all of which have a good size and privacy.

This unit comes with a private lift lobby, that allows your shoes to be out of your house and it does not affect the internal elegance of the unit

Location

Jadescape buy sell rent

The plot of land that Jadescape sits on, was previously a HUDC development. It was right across the street of ShunFu hawker center, a popular hawker center that many people in the ShunFu and Thomson area patronize. Jadescape also enjoys the benefit of 3 most established estate in Singapore, Thomson, Bishan and Ang Mo Kio

MRT Station

The nearest MRT station to Jadescape is Marymount MRT Station. This is a station along the Circle Line. Bringing you to the business district required a change of MRT line at Bishan, which is 1 station away.

Thomson-East Coast Line is currently under construction. Upon completion of that, going to the north of Singapore is much accessible with a shorter time.

Jadescape At ShunFu.  Buy sell or rent

Shopping and dining

The nearest for dining in Jadescape will be the ShunFu hawker center which is just across the stress. However, if you are seeking for dinner dining, ShunFu hawker center will not be available, as it only operates in the day.

The next nearest place to head down for dining, would be Thomson area. There are rows of eateries along Thomson, and Thomson Plaza would be a shopping mall that you are able to dine, shop and obtain all necessary groceries

If short traveling is fine with you, 1 station away on an MRT ride to Bishan, brings you to Junction 8 and 1 station after the changing the train at Bishan MRT brings you to Ang Mo Kio Hub. These two shopping malls have all that you require for your everyday needs

Schools

Schools are a key consideration for many young parents. Jadescape, besides the convenience of getting from place to place has popular schools within reach. Ai Tong, which is within 2KM, is one of the most popular schools.

Another school that is closer to Jadescape, which is Catholic High School, which is within 1KM.

School Jadescape buy sell rent

Direct Access to Highway

The North-South Corridor (NSC), will be the 11th highway built in Singapore after completion. The highway is a total distance of 21KM, and aims to serve the Northern part of Singapore residences. The initial target completion is in the year 2023. However, it was significantly delayed due to the construction, the revised deadline will now be in the year 2026.

Jadescape developer realized the importance and convenience of this highway, has built an exit in the project, to join onto the highway when is the highway is completed. This gives the residences in Jadescape the benefit of accessibility.

Future development

As shared earlier, the North-South Corridor (NSC) will be up operation in year 2026, which is 6 years from now. This means, traveling from Thomson area to both Northern and central part of Singapore will be shorter.

Along with the development of Thomson East Coast MRT Line, that will also value add to the accessibility to Thomson area.

New launches in D20

Since 2013, there have been a limited number of new launches. To date, there are 7 new launches and all units in these 7 new launches are sold. Jadescape has sold close to 75% of the units. During Covid-19 period, Jadescape is still transacting.

Due to the limited land available, the developer can only move towards En-bloc of an existing old project to obtain land for development, but this is not going to happen so soon. For an En-bloc will take place, it would take around 18 to 24 months, and after which, the developer requires another 36 months to develop. All-in, it would take around 5 years for the En-bloc and new development to be completed.

Looking at D20, there isn’t much land available for new development. This maintains, if not uplifts the value of property in D20.

Rental yield

In Master Plan 2019, Thomson area was being crafted into the sub-regional center. The potential requirement for the rental will be on the rise. With the TOP of Jadescape happening in the year 2022, aligning with the development from Master Plan 2019. The timing is perfect, demand should start shortly after TOP.

Conclusion

Personally, Jadescape will be a project that I would strongly consider.

Firstly – due to the project landscaping.
The total of 7 blocks, amounting to 1206 units has given a good size, and the land size of above 396,000 square feet provide a good space between blocks. With the full facilities, that add to the completeness of the development.

Secondly – The Potential Growth
Having to look at the Master Plan 2019, the new launches around Thomson are much lower. This gives me a higher holding power, should I decide to sell the units within the next 5 years. By 2027, which is 5 years after TOP. I do not require to pay for Seller Stamp Duty at, same time, the value potentially appreciated due to the completion of master plan development.

Lastly – Transport network
With the development of MRT and The North-South Corridor (NSC). This has shortened my traveling time to various parts of Singapore. For those that work in Business District, the North-South MRT line will be of great help. Additional investment in cars may not be required.

Jadescape New Launches

Lastly, as of now, there is more than 75 percent of units sold and it is still moving during the COVID-19 period. Do click on the link below to sent me a WhatsApp message and I will get in touch with you soonest possible. If you like the project, appreciate if you can share the link to your friends and relatives.


Buy Sell Renting of your property

Lewis became part of the family of Orange Tee and Tie in 2020. He has been in real estate since 2005. Together with him, he brought along a long history of experience in both HDB and Private property.

His personal belief is, to share the truth and facts with everyone. With that, he has good credibility with his client. His strong belief in a partnership and not the client made him successful in this career also.

Should you have any queries, relating to Jadescape, or other properties that are of your interest. Drop me a WhatsApp HERE. I will respond to you soonest possible.

Singapore Citizen or Singapore Permanent Resident Property

Must My Spouse A Singapore Citizen or Singapore Permanent…

With many companies undergoing globalization, many Singapore citizens are traveling out of Singapore. Likewise, many foreign talents have also travelled into Singapore to work due to the skill set requirements.

With the movement of people between countries along with the improvement of technology, communication is no longer limited to IDD calls and emails. We now have better tools such as WhatsApp, WeChat, Telegram, LINE, and more, hence bringing people from different parts of the world together, and potentially becoming a couple.

As a couple going into the next stage of life, they would have to settle down in one of the 2 countries. Should they decide to settle down in Singapore, several options that they would have to consider in terms of housing would be; to rent a flat, buy a HDB flat, or buy a private property.

What options are present to the couple

Renting

Renting an apartment is the fastest option. They just have to find a place that is suitable, spell out their requirements to the landlord and they are able to move in and stay for the next 2 years. Approaching the end of a 2-year lease, they can decide to continue staying by negotiating with the landlord on the terms or move to another rented unit and continue for another 2 years.

The risk for the above is that should the landlord decide to sell the flat, a relationship with the new landlord needs to be re-established, and should they private property that they have rented, undergone an Enbloc process, they would be forced to move out. There is too much uncertainty.

Most importantly, the couple is helping to service the mortgage of the landlord property, which they are entitled to purchase a HDB flat.

Buying from HDB Resales Market

Since your spouse is neither a Singapore Citizen nor a Singapore Permanent Resident, you are entitled to purchase a HDB flat from the open market as you have never taken any grant or purchased a BTO flat from HDB. You may exercise your citizen entitlement, to obtain a grant from CPF.

Buying Private Condominium

You will be entitled to purchase from both the open market or the new launch of a private condominium. With this, there is no grant from CPF and/or HDB although you are a Singapore Citizen. You will be purchasing the market price on those units sold.

Buying Landed Property

You will be entitled to purchase landed property in Singapore. As the landed property is classified as private property, there isn’t any grant made available for the purchase.

What Options the Couple DOES NOT HAVE

Buying BTO

As the HDB Flat is purchase under the Non-Citizen Spouse Scheme, this scheme does not allow the non-citizen to purchase a BTO flat directly from HDB.

Buying Brand New Executive Condominium

The couple is not entitled to purchase a brand new Executive Condominium. However, they are allowed to purchase from the open market, an existing Executive Condominium that is over 10 years of age. The Executive Condominium, at this age, will be treated as private property.

What Benefits Do I get

For the purchase of HDB from the resales market, you will be entitled to the grant for the purchase. The following are the type of grants made available to the non-citizen spouse scheme:

Enhance Housing Grant

Depending on your monthly household income. The Enhance Housing Grant (EHG) is between $2,500 to $40,000. This amount was determined through an average of the past 12 months period.

Enhance Housing Grant

First Timer Grant

Being a first-timer buying a HDB flat, you are entitled to have your first-timer grant amounting to S$ 25,000 if you are purchasing a 2 to 4 room HDB Flat. However, in the event that you purchase a HDB flat from the open market that is 5-room and above, your total first timer grant is only $20,000.

Buying Selling HDB Flat

Proximity Grant

Should you decide to stay near your parents, there will be an additional proximity housing grant awarded to you. As your spouse is yet to be a Singapore Citizen, your entitlement will amount up to $10,000. But should you decide to stay with your parent, there will be an additional $5,000, leading the total grant amount to be $15,000

In addition, the distance between the flat you are buying and your parent flat has increased from earlier 2KM to 4KM. This gives you a wider range when it comes to selection in buying resales HDB Flat.

Another key requirement to obtain the grant is that the remaining lease of the purchased flat has to be 20 years or more.

What happens if my spouse is not Singapore Citizen or Singapore Permanent Resident

Items to be Cautious

Payment of Resales Levy

All Singapore Citizen are entitled to 2 subsidized flats. In the event that you exercise your right to purchase the second subsidized flat, you will have to pay a resales levy for the earlier flat upon selling.

The positive side of this is that since you are getting only half the grant as a single Singapore Citizen marrying a non-citizen spouse, your resales levy will be half of the total levy.

Offset of down payment

Although you are entitled to the grant, the grant amount cannot be used to offset the down payment for the purchase of a flat. Should you require to have a down payment of 25%, this amount will still need to be paid, through CPF OA account or CASH.

Case Study

Recently, I assisted a newly wed couple in purchasing a resales HDB flat. Mr. Wong, which is the husband has married Ms. Zhang, a Chinese nationality early this year. They have been viewing many units of flat but was not able to commit on any due to their budget constraint.

Mr. and Mrs. Wong, age 30 and 32 respectively with a combined household income of $1,750 per month, was unable to purchase anything that is bigger than 3 room flat. Understanding his constraint, I worked with a banker, to ensure he got his loan approved.

At the same time, I suggested for them to purchase a 3S flat near his parent house. The purchase price of the unit was not higher than $250,000. This has given them limited options to select from, but it is not impossible. Through weeks of sourcing, they have managed to shortlist a unit near their parent in Circuit Road at a price of $250,000.

With the purchase price of $ 250,000 and his monthly income of $1,750 per month. He has obtained the grant with the following:-
First Timer Grant : $ 25,000
Enhance Housing Grant: $30,000
Proximity Grant : $10,000
The total grant obtained after the purchase was: $65,000. With his OA amount of $35,000 and cash $ 20,000
His total loan required will be $ 130,000 over 30 years of the repayment term. A monthly repayment amount that is affordable.

Conclusion

Although the marriage between yourself and the non-citizen spouse does form a family nucleus due to the fact that the spouse is yet to be a Singapore Citizen, the grant entitled amount will be at half the actual. Nonetheless, the spouse can request to top up when their Singapore citizenship is obtained. This will allow the top-up of the grant. The reverse is true, when it comes to payment of resales levy, the full amount will be payable in this case.

I will suggest that since you have obtained the half single grant and if it is financially affordable, to do an upgrade to private after the MOP period. This allows you to have more choices when deciding what to do after the upgrade.

If you are unclear. Do contact me at +65 90107188 or via WhatsApp here. I am most honored to share with you any concern you have and how can you move forward with a lower impact on the accrued interest.

Buy Sell Renting of your property

Lewis became part of the family of Orange Tee and Tie in 2020. He has been in real estate since 2005. Together with him, he brought along a long history of experience in both HDB and Private property.

His personal belief is, to share the truth and facts with everyone. With that, he has good credibility with his client. His strong belief in a partnership and not the client made him successful in this career also.

Should you have any queries, relating to HDB. Be it Buying, Selling or consider to rent your HDB after staying for over 5 years. , or other properties that are of your interest to upgrade or invest. Drop me a WhatsApp HERE. I will respond to you soonest possible.

投资新加坡房地产 Financial

在危机中投资 - 新型冠状病毒

很多时候, 我们都会听到人家在说。 危机就是商机, 有了商机就有利润。 可是, 我们怎么就没有遇见好的商机呢。 原因很简单。 我们习惯了稳扎稳打。 可是, 投资回报可不是稳扎稳打的。 危机跟回报是相对的。 危险性高, 回报利润就高。以一个投资者,我们能够做的就是风险维持在我们可以控制范围里面

投资选项

危机中投资

股市

在市场上, 比较普片的投资就属股票, 黄金和房地产了。以我个人分析, 在三个投资选择里, 股票投资通常被称为“高风险”。 投资股票的主要风险是可能导致资本损失。 股票的走向, 也是您无法控制的。 比方, 突发事件或公司内部的不利发展, 很可能会严重影响股价和您的投资组合的价值。

黄金

对于黄金投资, 尽管黄金与股市有反比关系,但股票市场也与黄金有着深远的联系。 在股市严重下滑的情况下,投资者通常将黄金视为避风港。 据推测,当我们遇到全球市场下跌时,股票和货币就会下跌。 一些投资变得不那么理想,投资者认为黄金会给他们提供喘息的空间。 但是,这并非总是如此,投资者可能会被烧死。

房地产

投资在房地产, 在三个选项里面, 我觉得它的风险是相对比较低的。 由于它是有形资产,因此有可能影响您的回报因素, 可能就是, 市场走动, 自然灾害,火灾,租户破坏,抢劫或故意破坏。

为何要在新加坡投资

土地有限

新加坡总面积就721.5平方公里。 2019 年的总人口为五百七十万。 其中, 有一百六十八万人口是非公民。 也就是说, 有三成的人口是租客。
预计在2030, 人口会达到六百九十万。以三成为基础, 等非公民 人数会到达两百零七万。 那么,对租屋的要求, 也会顺着提高。

政治稳定

新加坡具有拥有一个民主制度的稳定政治结构,它也拥有了一个完善司法体系以及良好的治理实践。土地虽然不大, 可是它有一个强大国家的内部机构。 这使新加坡的商业环境,在全球投资者眼里有着很大吸引力。

经济稳定

尽管新加坡国内市场狭小且缺乏自然资源,新加坡还是成功度过了1997年和2008年的金融危机。如今,新加坡是世界上最稳定的经济国之一。 它没有外债,政府收入高, 始终如一的正盈余。

新加坡经济主要受到电金融服务,旅游业以及全球最繁忙的货运港口出口的推动。

危机中的新加坡

经过六个月的辛苦战斗, 疫情在新加坡已经开始“接近尾声“了。 大家都开始活动起来。 生意也渐渐开始营业。 虽然,欧洲一些国国, 还有美国还在努力抗争。 这次的新型冠状病毒,对很多资产来说,是最好的考验。当疫情过去以后,那些更具有投资价值的资产,会更发光发亮。 这个, 不止限制在新加坡。 哪一个国家都会一样。

由于新冠病毒肆虐全球,各国的房地产市场也会随着疫情, 为之波动!随着恐慌心态的加剧,每个国家的楼市都会出现不同程度的停滞甚至倒退。

值得一提的是,疫情当下,你会发现新加坡房价与人气并没有因为疫情而受到影响。 相反的, 虽然有点波动, 不过还是依然屹立不倒。 市场是有一些波动, 不过整个房产市场还蛮稳定的。

投资

根据新加坡市区重建局最新发布数据,2020年第一季总售出新私宅单位有两千零六十一,环比上升57.3%,是自2017年以来最高的2月销售数字。

以现在私宅市场的销售数据显示。新加坡的房地产是禁得起考验。 这场新型冠状病毒疫情虽然严重,却挡不住投资者以及买主的热情。

到底是什么因素, 能够导致新加坡房地产能够维持着那么凌厉走势呢?

潜在需求强劲

正如我之前分享的那样,由于土地面积有限,新加坡对房地产的需求很高。 为了达到到2030年将新加坡人口增加到700万的目标,当地投资者正在积极利用这种市场疲软的机会进行投资。

投资 低利率

低利率

新加坡房屋贷款利息, 一直维持在低过2%。 这个低利率, 确保房子买主和投资者能够应付贷款的偿还数额。

低失业率

自新型冠状病毒疫情开始以来,新加坡政府已提出大量国家储备,以支持新加坡公民和在新加坡运营的公司。 这是为了确保裁员率保持较低。

新加坡房地产具有很强的韧性。自2010年以来,新加坡政府经过多次房地产的降温措施,以舒缓房地产泡沫破灭。 这些措施也同时舒缓金融危机对经济的冲刺。 为买主和投资者创造出一个良好发展的新加坡房地产方向。

Covid-19 coronavirus Financial

Why should I Invest During Covid-19 Crisis

Crisis

For most of us, investment is usually the lowest priority when we are experiencing an extraordinary global crisis, as we are unsure of the current situation.

The most common concern is, if I invest now, would it drop further? This mindset is not wrong, however, if this is what you are thinking, you should not consider yourself to be an investor, as an investor is someone who is willing to step in with a manageable and predicted risk planned.

Before the crisis became certain, it was a very good idea to plan ahead and decide what your investment strategy is. Now that we are approaching the last part of the Circuit Breaker period, I am seeing that we are starting to work on having our economy recovered as soon as possible.

There are also news saying that we are going into recession, or maybe that we are currently already in recession. Recession is something out of our control, so why are we not taking this opportunity to invest on something that we could potentially appreciate after the recession?

Recession does not mean to stop all investment. It means, we are to be more careful in investing. In the market, 2 common investments that many talk about are, investing in Shares and investing in property.

A simple guideline to see which to invest can be, investing in share, most likely a short term and investing in property is very much a longer term.

Of course, being a realtor, I will still be recommending investing in property. Some of the reasons being,

  • You will still be having income, to support your mortgage repayment. Worst case situation, it may not be all, but there will still be support
  • You will get back your investment, if you sell your property at the right time . Especially in Singapore, with the limited land size. the chances of Singapore property prices to be on the up is higher.

Key Impact on Asia Property Market During Crisis

SARS

SARS happened between 2002 and 2004. During this period, many of us were more concerned with the infection rather than the investment, but the market never stopped because of that.

Let us do some analysis on the price index during the SARS period. Based on the chart, the price index moves down, in the year 2000.

That is 3 years before the SARS infection. The reason for the year 2000 dip in the price was the bubbling of dot-com.

You might be aware, dot-com, which is the Internet, was booming in late 1990. It has caused rapid growth in the U.S. technology stock. Many venture capitalist(VC) came in and supported them.

In the year 2000, the dot-com bubble burst and it affected the market globally. Singapore was also affected and during that period, many of the dot-com company was forced to cease their operations

Global financial crisis

15th September 2008 was an unforgettable date for many people, especially for those in the investment and financial sector.

On that day, the Lehman Brothers filed for bankruptcy, with a debt of 613 billion. It was the largest bankruptcy filing in U.S. history during that time of filing.

Looking at the private property price index during the Global Financial Crisis, the market came down after the announcement of the Lehman Brothers bankruptcy.

The market has made a return within 2 years. The chart indicates that, in the year 2010, the market has come up and it went on continually for a few years.

For those that have been in the property market, or been following closely on the market price index, The price went on an uptrend till 2013. The coming down of the price post-2013 was due to other reasons, as there were 2 financial crisis in the year 2013 and 2015, but it did not affect the market much.

Covid-19

The Covid-19, also known as the Coronavirus was first identified in Wuhan, China. This virus snowballed wordwide, and it was declared as a public health emergency of International concern by WHO (World Health Organization).

On 11th March 2020, it was being announced as a pandemic. As of 18th June 2020, more than 8.4 million cases across the world with over 450,000 deaths.

Looking back into the Singapore property market situation. After Q1 of 2019, the number of transactions has been on the rise. As of last quarter, which is Q1 of 2020, despite the Covid-19 situation, the transactions have not gone below what happened a year back. As in Q1 2019, there isn’t any crisis.

Data Source : URA Web Site

As for the price index. The average price index across all 3 region, which is,
CCR – Core Central Region
OCR – Outside Central Region
RCR – Rest of Central Region
areas are as follow

Data Source : URA website

Since 2016, the price has been moving between the price index of 139 to 142. After Q4 of 2017, the market has picked up. Since then, The price index has never dropped below 150.

In Q1 2020, which is the period of Covid-19, the index has come down in comparison to Q4 of 2019, but it has not past the price index of 150.

Analysis

With the analysis of the price index, personally, this is still a good time to invest in property in Singapore with the following considerations:

Economical Stability of Singapore

Singapore has grown to be a first world country in a short time of 30 years. We have proven our economical stability. Since the year 2001, we have been achieving positive GDP growth.

Data Source : Macrotrends

During the above mention crisis period, which is SARS between 2003 to 2004, Lehman Brothers in the year 2008, Singapore is still going strong in growth.

Limited Land Size

With the total land size of 792 square meters. Singapore makes sure that the property process is gradually being appreciated. The government controls the release of land accordingly to the needs, hence, this will not create sudden supplies of land leading to price crashes.

The alternative land supplies will be through the en-bloc process and developers who wanted to en-bloc any of the existing projects will need to consider, the market situation and the cost Vs the land released by the government.

Capital Gains and Property Inheritance Tax

Singapore property transaction does not exercise capital gain tax. Which means the profits that are made though the investment in properties are not liable for taxation.

This gives the investor, like yourself, the freehand to decide how much profit you wish to make from the property, basing on the market situation.

Property Inheritance Tax, which is also known as estate duty, is the tax charged on the total asset value of the deceased. This tax was being waived for the person that passes on after 14 February 2008. Since you are reading my article, you are not liable for this tax.

Conclusion

Singapore, due to the land size, the stability of both economical and political and development growth, has created a very unique situation for investor.

Be it good or bad time, investor are always keen in considering investing in Singapore. Taking the current Covid-19 situation, I strongly believe Singapore will be able to maintain, if not better the property market situation.

We might be seeing some headwinds for now. This potentially is a good opportunity for investors like yourself to enter the market while the prices are still soft.

Once we have moved out of the current crisis, as we have already gone into phase II of opening from Circuit Breaker. The price might have gone upwards, leading to higher investment amount for the same property.

Buying Selling Renting HDB Property

Should You Buy HDB That Is Over 40 Years…

Since 1960, HDB was formed to provide public housing. Over the years, it has played a huge part in providing majority of the Singapore citizens with a roof over their heads.

Buying Selling HDB Property

To date, there are about 70,000 HDB flats that have passed the mid-age of the property. These households will be facing the expiry of the lease in about 50 years’ time. Once these properties have reached 99 years of lease, it will be returned to HDB. This has yet to happen, and many would say that 50 years is still a long way to go.

However, given that the current flat that they are living in has already passed 40 years, 50 years is not too far from today.

Should I be buying these HDB Flats?

In many situations, there is no fixed and hard rules to that. There are always 2 side of coin and let’s discuss it.

Is the older HDB flat cheaper?

Buying Selling HDB Property
Source Data : HDB Website

Generally, the older flat, especially those that are over 40 years of age are worth lesser. This is because the amount of “effective age” of the property is lesser.

Taking a 4 Room flat in Bukit Merah for example. In June 2019, the flat with a remaining of 58 years (Lease commence in 1978) was sold at $451,000. During the same time, the flat with a remaining of 85 years (lease commence in 2005) was sold at $750,000.

Although the value of older HDB flat is lower, this also makes the older flat more affordable. This would allow buyers with a limitation in budget to more easily own a flat.

Loan Availability

CPF has revised the ruling in May 2019, with the revision being, as long as the remaining lease of the flat is able to cover the youngest buyer up to the age of 95, they would be eligible to obtain a loan from HDB, capping at 90% of the Loan-To-Value(LTV). This has overwritten the flat of fewer than 60 years of lease left.

The retirement age of Singapore citizens is 65 now, there is a gap of 30 years to the loan duration. The ability to service the loan past 65 years of age, can be challenging for some.

Although the age for retirement is stated at 65, there are organisations who would not renew employment of staff once they have passed 62 years of age. This extends the 30 years by 10%, making it 33 years.

Is Older HDB Flat Bigger?

The HDB Flat that was built in the 90s were of 100 to 110 sq meters in size, compared to the newly built BTO flats today that ranges between 90 sq meters to 100 sq meters in size.

Unless you are comparing flats that were built in the 70s or 80s, if not, the size of the flat is comparable in the past 20 years. 4 Room flats, for example, ranging around 100 sq meters with 10% torrent.

Buying Selling Renting your property

HDB Looks OLD

As the name mentions, it is over 40 years of age. The design of the HDB flat would be old. However, in the aspect of design, there are two different perspectives that we can view it from; Internal and external.

Internal refers to as the design within the flat. The old look may not apply too much here, as the design inside the flat can be determined by you and it can be done up during a renovation process.

As for external, I do agree that the design for older HDB flat is the best during the time of built. Now, looking back, the design is not as modern as it is.

Buying Selling HDB Property

Higher Maintenance Overhead

Anything that has aged, it will require a have a higher maintenance overhead. Regardless of whether it is property, cars or machinery, etc…

Yes, the old property does require more maintenance efforts, and in many cases, the cost of maintenance is high.

For external maintenance issues. it would be resolved by the Town Council and the cost is from the Service & Conservancy Charges (S&CC). This amount is paid monthly by the HDB owner.

Internal maintenance would usually be fully covered by the owner. However, there are exceptions where I have personally encountered when my client seek my advice.

Case Study

My client has shifted into the purchase property 2 years ago. the age of the flat has past 34 years old. For those flat, that was built during the 80s. The rubbish chute is still accessible from inside the flat.

during the regular washing of the chute, which is done by the town council. Water starts to seep into the flat. I have assisted them to report the case to Town Council and they responded quickly with some professional.

Within a week, the vendor awarded by Town Council came by the flat and got it repaired. It was a massive work, whereby they will drill holes on the wall and insert some chemical into the wall to fill the gap.

The repair cost was pick-up by Town Council, the reason being that. The chute is common property and it is part of the S&CC cost.

SERS program

Buying Selling Renting your property

Selective En Bloc Redevelopment Scheme(SERS) is an Enbloc program for HDB flats.

When blocks of HDBs reach a certain age, the government will selectively repurchase these flats from the current flat owners. The owners will, therefore, be given an opportunity to select and shift to a new HDB flat with a fresh 99 years lease.

As shared, the block that is undergoing the SERS program is selective. NOT all HDB flats that have reached a certain age will automatically be entitled to the Enbloc.

Better Amenities

Being an old flat means the estate is more established and amenities are more convenient with better accessibility.

There are established MRT and Bus networks, with malls built nearby that are normally quite vibrant, with schools nearby.

Sometimes, if those above do not happen. Gentrification will be done in these estates to replace older amenities with a more modern style. In most of the older estates, the covered walkways are built to be more handicapped friendly as older estates tend to have a higher aged population and this ensures that their daily lifestyles are being well taken care of.

Buying Selling Renting your property

Alternative Plan Required

Should you decide to stay for long in the flat that past 40 years of age. You might need to have plan B. Reason being that the 99 years of the lease may not last you till the end.

Assuming you bought the 42-year-old HDB flat, leaving behind 58 years of stay technically to reach the end of the lease of 99 years. But, the preparation of the end of the lease for the land will happen at maybe 5 to 10 years before the 99 years.

This leaves you with only 50 years to stay in that flat. If you bought the flat when you are 28 and at the age of 78. You would be stressing over having a roof over your head.

Should the situation worsen, you would be at the age of retirement, where you could potentially have insufficient funds to purchase a new HDB flat.

As I have shared earlier, the price of the old HDB flats reduces as time goes by. Selling your old HDB flat, which is already 90 years of age, is not going to happen. I don’t think anyone will be keen on buying a flat that left with only 10 years of the lease, if not shorter.

Assuming you are lucky to have sold the unit, the amount of money returning back to CPF would not be able to cover the withdrawal amount, including the accrued interest.

Should you buy a flat that past 40 years of age

They are a list of pros in getting an old HDB flat. Such as the size of flat, amenities, lower price, near to parent, and more. But in the long run, the value of the flat is not on the upswing and it might pose as a bigger challenge should you decide to upgrade.

The list of cons is equally long. Some of the cons include the resales value of the flat, the affordability when it comes to upgrading, old age shifting of flat.

In the end, it goes down to the affordability. If you are a first-time buyer and financially sound, do consider purchasing a newer HDB flat. Those that are of 15 years and lesser, and potentially upgrading to private property after fulfilling the MOP of the property, this being that the property is of some value after your MOP and that path supports your upgrade. A CPF housing grant is also made available for you should you be a first-time buyer of an HDB.

If you still concern about the purchase of older HDB flat or any other queries you might have in relation to an HDB flat,
Do contact me at +65 90107188 or via WhatsApp here. I am most honored to share with you any concerns you might have and how you could move forward with a lower impact on the accrued interest.


Buy, Sell and rent. Property wealth planning

Lewis became part of the family of Orange Tee and Tie in 2020. He has been in real estate since 2005. Together with him, he brought along a long history of experience in both HDB and Private property.

His personal belief is, to share the truth and facts with everyone. With that, he has good credibility with his client. His strong belief in a partnership and not the client made him successful in this career.

Buying Selling Property Financial

What Have CPF Accrued Interest Affected You Sales Proceed

Mr and Mrs. Tom is happily browsing the Internet, flipping on newspaper classified section, surfing on HDB website looking for the date of BTO, sourcing for new launch condo, etc.. … …

Having to stay in your current property for 10 years. The family has decided to sell the current property and upgrade to a bigger and better location. They did a quick calculation, basing on the buying price and the current average market value. They have made 100,000.

I was contacted by Mr. Tom since he bought his current property through me. He shared with me, his intention is to upgrade from the current HDB in Sengkang to a private condominium in Serangoon.

The very next evening, I met up with both Mr. and Mrs, Tom. We sit and discuss in more detail the intension and how they can move ahead seamlessly.

After the financial calculation with them. They did not make the expected $100,000 after selling. This came in shocking and the question is WHY?

In all mortgage loan repayment using Central Provident Fund (CPF). There are 2 interest that you paid. One is the interest for the mortgage, which reference SIBOR rate. Another part is the interest from the Central Provident Fund for using your CPF Ordinary Account (OA) to repay. when returning your fund to CPF. This amount can be obtained after you logon to the CPF website, under the accrued interest.

What is CPF

The Central Provident Fund (CPF) is a comprehensive social security system that enables working Singapore Citizens and Permanent Residents to set aside funds for retirement. It also addresses healthcare, homeownership, family protection, and asset enhancement.

Before your retirement, CPF has allocated 3 buckets of account. Mainly the Ordinary Account ( OA ), Special Account (SA) and, MediSave Account(MA)

Source: CPF Web Site

What Benefit did I get from CPF?

Additional Wages

Unknowingly, you are having an additional income every month. The amount comes to 17% of your monthly salary. This is from the employer’s CPF contribution to you during your employment status.

For example, your monthly wages are $5,000. You are supposed to contribute CPF, which is 20% of your monthly wages. Your take-home pay will end up being $4,000.

Going into your CPF is you $1,000 from your wages and employer will have to pay $850 into your CPF. That makes your total contribution to you CPF is $ 1,850

The amount of $1,850 contribution to your CPF. This amount will be distributed into 3 accounts. The OA, SA, and MA. Depending on the age, the able below share with you the distribution on the 37%

Age during employmentOrdinary AccountSpecial AccountMediSave Account
Between 36 to 4521%7%9%
Between 46 to 5019%8%10%
Between 51 to 5515%11.5%10.5%
Source from : Website AreYouReady by CPF

Higher Interest Rate

Buying Selling your property.  CPF calculation

Banks are offering an interest rate of not more than 1.5% for a Fix Deposit account. As for CPF, your interest rate earn is 2.5% for the Ordinary Account (OA) and 4% for Special and MediSave Account (SMA).

Using it as a source for investment

CPF fund can be used to do investment. This investment include the buying of property. But, for whatever amount that was withdrawal from CPF. There is an interest payable upon returning it back to CPF. Assuming you took $100,000 to do you property loan repayment. The return amount as shown on the following tables, including the interest incurred.

CPF buying selling property

What is the disadvantages of using CPF

Interest Payable

If you are using CPF to service your mortgage loan. There will be interest incurred when you sell your property.. This accrued interest can impact the sales proceed.

Interest buying selling property

Should I continue to use CPF to pay for my mortgage?

This depends strongly on your trade and your financial status. If you are a trade like me, a real estate professional, financial advisor, owning your own business. Cash repayment will be a good option to consider. As long as you are being employed. Your fixed salary received every month, with CPF contribution to your CPF OA account. It is worth considering using CPF to repay.

Interest buying selling property

CPF Accrued Interest

Although there is an accrued interest upon you selling your property. The amount will still return to your CPF OA account and the amount is not “missing”. At the age of 55. This amount will be part of the amount, transferring to your RA account.

You will feel the impact if you required this amount to purchase the next property. If you are facing the situation. Do share this with the real estate profession. They might be able to advise you on how it can be done. Everyone required a roof over your head at the end of the day.

Fund Management

Assuming you are in the workforce, where you have to continue CPF contribution. This amount into your CPF can only be yours after you age 55 (as of the year 2020).

Your monthly salary credited into your bank account, which is totally in your control. You will manage and use it for your daily expenses. If the mortgage loan repayment is going to be from the same pool of funds. It might add an additional burden in managing your cash on hand.

Without having to repay from cash. You can have peace of mind in the mortgage loan repayment.

Since the amount in CPF OA account is unable to use it for your daily spending, even, if you are jobless. Let’s use CPF OA to service the mortgage. In the event, your income was affected. The remaining amount in CPF OA is still able to support the mortgage.

CPF buying selling property

Buying a Home for Life without affecting the Retirement Adequacy

There is an update to the rules on both the use of CPF and HDB housing loans. The update provides more flexibility in buying a home for Singapore citizens at the same time, safeguard retirement adequacy.

The main focus of the new rules focuses on the remaining lease of the property. As long the remaining lease of the property can cover the youngest purchaser until at lease of age 95.

This rules has already taken effect as you read on this article.

In more detail sharing the new rules. As long as the remaining lease of the property is over 20 years. Also, it can cover the youngest buyer until at least 95 years of age. The repayment of the property can be through the use of CPF up to the valuation limit.

Should there be a more detailed understanding required, you can visit the site which gives you a more detailed explanation.

Will I be Debt Free after 30 years

Many homeowners I have spoken to. Their mindset is, I will buy the current property. Finished servicing the loan within the 30 years and I am debt-free.

This is correct in relation to the mortgage loan. What will happen to the value of the property? For HDB, the lease decay will have a direct impact on your property.

There is a very high chance the value of your HDB property will drop after it passed 35 years of age. The returns value of the HDB will not able to fetch as attractive price as current. This will lead to a lesser profit.

One of the recommendations, to safeguard the CPF, is to upgrade from your HDB to private. The upgrading is very much dependent on your financial capability.

Conclusion

We must give the credit to the CPF system. Without having to have that, many Singapore citizens may not able to afford a roof over their heads.

The consideration is, being a buyer, how can we fully utilized the system to achieve a positive return. It should not impact the retirement fund and at the same time for a better life living.

Singapore having a limited land size. The prices of Singapore property is very likely to be on the up as times goes by. We look at most of the countries. The property price is always on the uptrend as long as there is no financial crisis, be it within the country, the region, or across the world.

Therefore, even with the accrued interest compounded. You might not be losing any of your profits. Having said that, timing is the key to making the decision of selling or buying.

Lastly, with the financial and political stability of Singapore. Fund in CPF and the value of the property will be safe. Investors are also keen to bring their funds into Singapore to invest in property.

If you are unclear. Especially when it comes to, how the interest affects you and your CPF. How can you maximize the return so as to have more funds during retirement?
Do contact me at +65 90107188 or via WhatsApp here. I am most honored to share with you any concern you have and how can you move forward with a lower impact on the accrued interest.


Lewis Tee

Lewis became part of the family of Orange Tee and Tie in 2020. He has been in real estate since 2005. Together with him, he brought along a long history of experience in both HDB and Private property.

His personal belief is, to share the truth and facts with everyone. With that, he has good credibility with his client. His strong belief in a partnership and not the client made him successful in this career also.

Buying Selling Property Financial

Who Should Do Mortgage Refinancing?

Who Should Do Mortgage Refinancing?

For many Singaporeans, the flat we purchase usually does not belong to us for several years, the reason behind that being that we put our purchased flat on a mortgage, where we then do our monthly repayment to the mortgage.

The situation worsens if you are repaying through your Central Provident Fund(CPF), which many of us are doing. Why is it worst off? Without realizing, you are paying double the interest rate, as one interest goes to the mortgagee, and at the same time, you are also paying interest to CPF for withdrawal amount. If you check on your CPF account, you would realize after years of repayment that you will have an “accrued interest”.

Should I refinance My Mortgage?

For the refinancing to happen, your mortgage loan has to be from banks. Any loan from HDB does not entitle you to any refinancing. As long as you have fulfilled the criteria above, the answer to the refinancing is YES.

Refinancing With Lower Interest Rate

As the loan interest rate for Singapore property mortgage in packed onto the SIBOR rate, it is a good opportunity to look at the rate and decide when to do your refinancing of a mortgage.

Mortgage Refinancing?
Data Source from : https://sibor.sg/history

Historically, the rate is on the downtrend, which means that with the same loan amount, you are paying lower interest.

Lower Repayment Amount

There are a few factors that would have a direct impact on the monthly repayment amount of your loan.

Firstly, the interest rate. Since the SIBOR rate has decreased based on the chart above, the computation of your loan repayment amount will be based on the revised rate. The total payable amount will be lower than earlier over the same repayment duration.

Secondly, your loan principal has also decreased the past few years as you have started repaying your loan. With that lower principal loan amount, the computation to the repayment would also be lower.

Shorten Total Repayment Term

Normally, when we first start any mortgage loan, we would look for the longest repayment term possible. This ensures that we are paying within our comfortable ability.

Never have we realized that these “slow and steady” repayments lead to a higher interest rate paid. With the refinancing of your outstanding loan and a lower loan amount and interest rate, we can consider repaying with the same repayment amount in a shorter duration.

Unlock Equity Financing

Equity financing, is a way where you used your property as a form of collateral for a sum of cash. The cash amount is relative to the value of the property

For equity financing to happen, all financial institutions need to ensure the following criterias are met.

Loan-To-Value(LTV)

For equity financing to happen, the LTV for the homeowners must be kept at 75% of the property value. This includes the outstanding loan secure on the same private residential property

Tenure Capping on Loan

For the equity withdrawal, your tenure is limited to a maximum of 35 years

Total Debt Servicing Ratio(TSDR)

Total Debt Servicing Ratio(TSDR), is a framework from the Monetary Authority of Singapore(MAS). It serves to safeguard the borrower from being over-borrowing which may lead to repayment difficulty.

TDSR is calculated using the formula : (Borrower’s monthly debt obligations / Borrower’s monthly gross income) x 100%. This drives to a percentage of his entitlement to TDSR.

In this formula, there is an element, which is the monthly debts obligations. This includes all debt obligation such as the following, but not limited to:

  • Property-related loans, including the current loan being applied for.
  • Car loans.
  • Student loans.
  • Renovation loans.
  • Credit card loans.
  • Any other secured or unsecured loans, including revolving loans.

Consolidation of Debt

Other than the mortgage loan, many of the homeowners do have other repayments every month. In some cases, there are a handful of homeowners who are having high-interest rate debts, such as credit cards (In many cases, is at 24%) or other debts.

Consolidation of debt, in this case, enables these homeowners to use the refinancing opportunity. Using the home as collateral to cash out funds in repayment to those credit card debts. The rate through the use of equity financing is of a lower rate as compared to some of those other debts the owner may have.

If the purpose of refinancing is to do consolidation of debts. There may not be any savings, should you look at total debts in totality. The consolidation of debts is to help them to overcome the struggling monthly repayment.

In addition, the consolidation of debts can also allow them to better manage the process of repayment of their monthly bills. Without the consolidation, these homeowners may be very much overwhelmed by their numbers of bills to be managed. The amount to be paid every month.

Even if the number of outstanding bills are not worrying, it takes time and effort to do the payment for all bills. With that, some homeowners might want to take the simpler way of doing the repayment.

Refinancing gives me all the benefit?

However, as in all situations, there is a flip side. Although there are the above benefits, there are also cons in doing refinancing of your property.

Property being collateral

Being a homeowner, when you put your property on collateral during the refinancing. If you, being the mortgagor, are unable, or refuse to repay the monthly loan, the mortgagee, in this case, the financial institution, essentially owns the mortgagor’s property

Therefore, if equity financing is your consideration, I will strongly suggest you work on the affordability. The comfortable level of repayment duration and amount before execution. Should you have any unclear concerns, do consult a professional.

Temptation

When you do equity financing to your property, you are like striking a 4D at that point in time. The main difference is, striking 4D does not require you to repay back but the refinancing requires you to do so.

Therefore, the mortgagee must be very sure of his/her purpose and intent of doing the equity refinancing. Some questions that may be asked are; What is the right amount you require? What is the repayment schedule and amount? Where is your source of funds to do the repayment?

Additional fee

The refinancing process is not just moving of blocks, and there will be parties involved in getting that done. To do so, there will be some fee payable.

Some of the required fees include legal fees. On average, it would cost around $3,000 just to complete the refinancing process. What you are paying is not limited to only the legal fees, and there are other fees payable by you such as property valuation fees, where a valuer is required to assess the value of your property to ensure that the worth of your property is of market value.

Although the interest rate is lower, there is a monthly saving, but do take note that there is a one-off payment required. These are some fees payable that you should take into consideration.

Before any decision, please speak to a mortgage broker. This would allow you to have a more detailed understanding, and would also give you a good understanding of how to crunch out all figures for you. If you are speaking to the financial institution broker, they can also help you with all the necessary paperwork if you are doing the refinancing through their financial institution.

Conclusion

Refinancing your mortgage required you to do some research beforehand. If you are not looking into doing equity financing during the refinancing of your mortgage, it will be very direct. As long the interest rate is low and the difference is able to recover your legal fee, it should be fine.

Should you want to do equity refinancing, there is more consideration on the Cons of the process. However, you may overcome these risks as the main risk to refinancing is the human factor. As long as you have the right aim and are well aware of the repayment amount and schedule, the risks are low and manageable.

There are many refinancing of mortgage available. Before talking to the mortgage broker, you may contact me for a discussion. I am neutral in the financing of your property. I am able to share with you an honest opinion.

At no obligations, I can be contacted at +65 90107188 or via WhatsApp here