Yesterday I was watching a 
between Hull City and Manchester United. As usual 
was crap. He gave a penalty which in my opinion was totally bollocks. Luckily we won, like we always do. But I’m still 
with some of Manchester United players. For example, the forever clueless 
. He was totally 
!!! In fact after Hull city manage to equalise, Sir Alex was 
. I guess after that, the players started to buck up as they were 
of the 
treatment.
But 
and we still managed to get a win!
Now after questioning the affordability of the queenstown houses, next we go onto the good or bad points of applying. This we assume that the people whom are applying will be able to afford.
I’m not discussing on 3 room flats, because 3 room have been traditionally difficult to rent and sell. And really, if you wanna pay 300k for a 3 room flat, then really its insane.
So far stats have been rather amazing, out of 1102 4 room flats – 3549 people have applied (30% chance in the lottery). And out of 176 5 room flats – 1217 people have applied (14% chance). For those whom have rather lousy math, it really just means that the chances are, you won’t be getting a good number.
Now, for everyone whom buys a flat and says that they are not thinking of making a profit out of it, I say B-U-L-L-S-H-I-T. No one wants to make a lousy investment. But a lousy investment in property in Singapore?! Not a very nice title to be tag with.
In short, maybe people applying for a home does not want to sell it once there is a profit to be made. But the rule of the thumb is that the property’s value should go upwards rather than pointing south.
So what’s the investment quality of these flats in queenstown? Recently if you had read the news, a lady bought a 4room flat for $650k in queenstown. No there is no error here, you read it right, $650k. So it’s really rather simple, if you are aiming for a 4 room flat in queenstown and you are paying 500k and below, you WILL be making money. And i am not talking cock, the 650k flat was sold in the same street as the bto in queenstown. I am sure you can make a cool 100k once you get the keys. Whether or not interest and prices of other flats is going to eat into your profits, that is another analysis altogether. What we know here is that, your flat will be worth more than you have paid for. And that, I am 100% sure.
Some people might be saying, ”damn expensive, get condo in outskirt more worth it.” At first i agreed, but upon deeper thoughts, i can’t really agree. Condo in the outskirts of Singapore are known to fluctuate greatly. In more cases, than not, they lose money. In fact, condos that actually make money are those which are high-end condos (really, the property boom involves only the rich, not the wannabes). Buy expensive, sell more expensive. Even if the condos in the outskirts are highly price, they are difficult to sell – low liquidity. Back to our queenstown, in queenstown, what we can assure is there is a base value. What is a base value? It is a minimum selling price. You will not be worried that it will fall lower than this price. Because really, the Government will never allow it to happen. Queenstown is 1) A mature estate (mature estates have a standard price) 2) It is in a central location. The above 2 is good enough to prove that this place will be worth AT LEAST it’s initial selling price. Not adding that, there is a market place, hawker centre etc (it’s a mature estate).
Next, to counter the point of, very expensive. As said above, I do not think it will fall below the selling price, thus this is 1 point to note. The next thing is, historically, HDB prices will always go up. It doesnt matter if it is sub prime, currency crisis, or the Koreans letting their missiles go for a swim. If you realise, hdb does not have a standard release date of their houses. They release when they want to. So they use the easiest tactic that even a non-scholar can think of, release hdb flats in good times, hold back the flats in bad times. So prices will never be low. It will always be same or more.
Yes, you may say it is expensive, but I can assure you, in 4-5-6 years time, it will be more expensive or the same (my bet is still that it will be more expensive). The longer you wait, the longer you will get to embrace the government’s only lottery price. Because building takes time, and after getting the flat, you got to wait for 5 years before you can sell it. So the earlier you get your flat, the faster you can make money from the ”first flat”. Not convince? Inflation says that the money you have now is able to buy more things now then later, if you hold onto to your cash, you are actually losing money every second.
There’s more to it, but i’m tired of writing. If you want to know more, it’s the usuals, give me a call.
Greed is good – Michael Douglas as Gordan Gekko
It’s friday friday friday!! But I have papers tonight!
Just letting off some steam.
Previously on ”Man In The Arena”, I blog about the shocking amount of people who can afford the HDB in queenstown. And most of my post seems to suggest that I am against buying the houses there. No, I was merely more curious on how people can afford it.
Stay tune to my next post, I will talk more about the pros and cons of it.
The hdb have launch a couple of new housing estates. 1 of the few talking points is the ones at Queenstown. For the very simple reason that they are in a central area. Our MM Lee recently said that HDB prices will go up up up, and within a few days the super expensive Queenstown is released.
From the news, you will realise that there is a crazy rush to get these flats. I am really surprise, because it have only been release for a day or 2 but already people have submitted their interest. Singaporeans are so smart that they are able to research in a matter of 2 – 3 days.
Don’t be taken aback by this post, it is by no means a slamming post. Rather this arsenic writer, is just really curious.
All these flats are build to order flats, so most people applying will be in the 25-35 years old range. Because only in this age group are the newly weds. Cause if i am not wrong, those who have applied before, cannot apply for a newly build flat. Maybe they can if they pay more, but then it will only make the flat more expensive.
From what I can deduce, the more likely people who will buy will be from the 30-35 age group, because they have a higher salary. But is their salary seriously enough to service the loan of a 500k HDB flat. And bloody hell, its a hdb, wait till i get to that. Let’s do some calculation here.
Cost of flat: 500k
Down payments of 10% : 50k
Interest rate: Conservative 2.5%
Loan period: 25 years
Payment a year: (450k/25) + 2.5% = 18450
Payment a month: 18450/12 = 1537
About 20% of our salary goes into ordinary account, thus to be able not to fork out a single cent, 20% of our salary must be 1537. Which means our salary must be $7685. Assuming it is a dual income family, thus 1 person must earn about $3800 to be able to afford the house without forking a single cent out.
The average person in Singapore earns about $3300 (some stats i remember reading). So if we are able to buy this house, it means we are above average. Not forgetting I have not factor in, renovation cost, household appliances, and I also took the house and assume it is 500k only. I also assume initially cpf have about 50k inside thus the above calculations is really base on 450k.
So how can this be affordable? And assuming you are 30, to be able to service this 25 years loan, you got to work till you are 55 years old. Have the thousands of people who have submitted their application thought about it?
The standard argument in Singapore is that, buy property will not die. Actually a part of me think otherwise. HDB is expensive. What’s the catalyst of a raise in price? Demand. Where the frigging hell is the demand when the birth rate is on a decline. You argue, expats, you argue about the scholars from China, India, which increases demand. But do they buy HDB? Or do they go for condo, or the poorer ones rents HDB rather than buying them.
Land is scarce, agreed. Population of Singaporeans are also getting little right? Another thing is that, I doubt the Government will let us have our homes till 99 years. I suspect after about 50 years, they will request to buy these houses back and then build new ones again. So what do we have again, more supply! In the next 10-20 years, a lot of estate are going to have houses which are 40 – 50 years old, interesting times indeed.
Back to the topic I was earlier taking about, how do these people afford? My friend, Mr Zheng, have given me some points which I have seek his approval to publish (Comments have not be change to retain its originality):-
1) don care buy then say
2) parents rich
3) pay initially not enough lao pei come in to pay
Point number 3 did made me laugh a little.
I also wanted to discuss more on the investment aspect of the houses in Queenstown. But I guess this post is long enough.
I am not discouraging people to buy these houses, in fact, if you have the dough, I will encourage you to go ahead, because the houses have a good location and seems really really nice. I am also absolutely not slamming the Government, they have already done their part, and you really cannot expect them to spoon feed us.
It is just a post for reference.
But really, nice house indeed, nice house…
Randolf: ” Doesn’t matter where is the house, what’s important is who is in the HOME.”
1) Work work and more work.
2) Wedding dinner tonight……….. AGAIN!
3) People whom live off their parents _|_ !
4) Oh, too bad you didn’t got retain. Good riddance!
5) Laughing at Liverpool isn’t funny anymore, it happens too often.
6) Direct translation – Same same human, different lives.
7) My car is still dusty.
8 ) I can, I must, I will.
1) Feels good and high class schools should not be having better sports halls or drive thru when some other kids in normal schools do not even have enough to eat.
2) Saw someone’s wish list on the company’s Christmas tree with the following – 1) Wii 2) PSP 3) mp3 player – nearly puke.
3) Thinks being indecisive while hurting or hindering another party is a no-no.
4) My car is damn dusty.
5) Overused brain.
First I got to reply to my fans. Due to the celebration of Randy’s Birthday, which normally lasts a week or so, I have not been able to blog or reply to your greetings. So thanks to everyone who I did not manage to reply yah!
All right, Saturday the brothers with the answers + the missus celebrated my birthday with me. I think its one of the happiest times of the year. Whenever I am happy when my friends or family make me happy, then I feel everything is worth it. Everything that you, I, we need to go through is worth it. I hope I did make you guys laugh, I mean, I thought I was hilarious. HAHAHA. The plastic bag pic, takes the pie. Ok, like a oscar winner, here goes the thank you speech:-
” I have enjoyed myself greatly on the 5th of December 2009. From the cooking of the missus to the chicken from Jurong west. Everyone of us have our own set of problems, but it was set aside on this particular day. From people like ah boon, who seldom drinks now but let himself loose on that day, to Yj whom I guess do not have much mood to go out, but still did. It was a wonderful day. I appreciate the effort and time that goes into a birthday celebration like this, which makes me feel happy and love. Therefore I will like to thank everyone, and God bless you (this is what they always say at the Oscar’s).”
Anyway jokes aside, it was really an enjoyable day. Hopefully we have much much more of this.
A quick 1 before I go for my presentation. Read this from somewhere:-
When you wake up in the morning, you have 2 choices. One is to go back to sleep and dream, the other is to wake up and chase your dreams. Your choice.
No more snoozing eh 
In the 12 month calendar, my favourite have always been December. Because it is my birthday and there are also many holidays in December.
This years birthday should be great fun, because we will be having dinner at my place cooked by the missus and then to KTV. More of than not, during my birthdays I don’t really know what is happening. And its not because i became senile suddenly. Rather it’s because I am half drunk. According to Mr Cai, I was let off the hook last year, so this year I should be punish. All right lads, its been months since I drank, so please try to pardon me a little here. I highly suspect I will get drunk within a few glasses. But its all in good fun, as long as everyone is happy, I am game enough to be drunk then. BUT BUT BUT, you guys must also dont be gu niang lah, must also drink too. It’s really like seldom we get together to have fun, so yah, must let loose a little. Hopefully we get to see some new dance move by Mr Boon.
Sometimes thinking back, we really seldom have a chance to really let loose and have fun. Its always work, study, no money that holds us back. Hopefully everyone forgets their troubles for a day or a night. Relax, sit back, and enjoy.
A very short post, very busy busy busy! Take care everyone.
Sometimes while working, we get scolded for no bloody fault of ours. But then again, in some ways, we are paid to get ”abused”. The way the world works is that, the richer man bullies the poorer man. The only place we can find comfort is at home, where people who loves you is.
At least in my life, it have always been a siege mentality. It is us against the world.
Whatever it is, must work harder.
If you ever feel ashamed, my love will get you home.
When there’s only you to blame, my love will get you home.
If you ever find yourself, lost and all alone,
get back on your feet and think of me, my love will get you home,
girl, my love will get you home.
