Keep Calm and Buy a Home – A Gentle Reminder

KEEP Calm and buy a home a gentle reminder

Four months ago, I wrote a post to encourage first timer home buyers and upgraders to keep calm and buy a home right after a statement mentioned by Minister Lawrence Wong in Parliament.

Today, we have yet another statement from managing director Mr Ravi Menon of Monetary Authority of Singapore (MAS) who says “It is too early for the Government to consider lifting the property cooling measures“.

If you have not taken action in the last four months, you could have already missed some good opportunities. From March to today, there were 8,284 private non-landed transactions and 8,404 HDB transactions.

Just by looking at the volume since march, many have already accepted that fact of cooling measures is going to stay for awhile longer and strategized their portfolio accordingly.

Total hdb transaction in 2016 0727

Total private non landed transaction in 2016 0727
Source: Squarefoot Research

If you are still hopeful for cooling measures to be lifted assuming that it is the only way for market to recover, you may be wrong. The market can still recover without lifting cooling measures.

 

Hence, a gentle reminder for first timer home buyers and upgraders, wait no further. And for current home owners who are hesitant to pay additional taxes for your second or third properties, do be informed that there are some entry prices in certain districts still looking attractive even after paying the taxes. If you are thinking of prime district, you have to check out Gramercy park.

Finally, there are many things in life we can delay or wait; wait for promotion, wait to win lottery, wait to go on holiday, wait for Mr or Ms Right, but there is one thing you cannot wait.

Your age.

How many more years can you wait before you realise you are not eligible to get the maximum loan tenure anymore?

 

 

 

 

Ultimate West Sun Guide – is there still west sun for unblocked NS facing properties?

ultimate west sun guide unblocked NS facing
The Ultimate West Sun Guide

This is one criteria and most commonly asked question among the home buyers – “is the facing of this unit affected by the heat from the afternoon sun?” Here is a crash course on how to determine if your dream home really has no west sun.

Sunset Angle

Due to the Earth’s tilt (a.k.a. Obliquity or axial tilt) of 23.5 degree (see diagram below), the sun does not set at the same position all year round. This is the reason why we say that the sun is up for half a year and disappear for the next half at the north and south poles of Earth. Furthermore, this obliquity is a very important reason that makes Earth the Earth you always know. Without it, there will be no four seasons on Earth. Before I go in deeper into the technical details, we just have to remember this magic angle of 23.5 degree.

AxialTiltObliquity.png
Obliquity, source: Slate.com
Obliquity.gif
Source: Wikia

Sunset Position/ View

I have met many home buyers who are delighted to tell me that they have just bought a perfectly north south-facing home with unblocked view that has no west sun as well. That is not entirely true as his family only get to enjoy half a year without the heat of west sun.

Referring to the diagrams below, due to the axial tilt, the sunset position moves between 246.5 to 293.5 degree throughout the year where it reaches the both extreme ends in mid June and mid December. The truth is – the sun only sets exactly at 270 degree West on 2 days of a year.

west sun street view .jpg
Street View of Sunset in Singapore
sun position over time.jpg
Sun rise and sun set position in Singapore, source: Tau`olunga

Recommendation

If you want to avoid the west sun heat totally, you will have to identify building features that can possibly block and cast a shadow on your unit during sunset. You can identify this by first checking if your block has exterior features that can block out the west sun such as staircase stack or shades design. Subsequently, you can look at your block / estate layout relative to the other adjacent buildings referencing to the west position to identify possible buildings that will cast a shadow at your property.

Otherwise, even the so-called best facing property has to endure the heat from the afternoon sun half of the time.

Finally, when your are viewing for your dream home, do remember to check your compass for the entire west sun range from 246.5 to 293.5 degree, or 23.5 to the left and right of the exact west direction.

west sun top view
West sun for perfectly unblocked north south facing property in Singapore

 

 

Find a Good Investment Property in 10 Minutes

Find a good investment property in 10 minutes

Whether you are going for high capital appreciation or rental yield, a salient factor will always be location. Straits Times has recently launched an interactive graphic map to show all properties (fully sold and unsold) that are completing in 2016 and 2017. Using this tool will enable you to find out where are the so-called key locations for a good investment property. Here are some simple steps to go about doing so.

Step 1 : Understand the Table Legend

There are 2 shapes on the map, a black square and blue circles of different sizes.

  • A black square indicates a project that is already fully sold.
  • A blue circle indicates a project that has unsold units available, the bigger the circle, the more units available.

Step 2: Zoom into those Fully Sold Projects

Generally, fully sold projects are snatched up quickly either have a good price or a good location. Without starting from scratch to research and find where are the good locations, an easy yet pretty accurate approach is to follow where are investors buying now.

Step 3: Evaluate Remaining Unsold Properties Around the Fully Sold

Do some research and evaluate the remaining projects to see if there are negative reasons not to buy them even when they are in a good location. Here are two examples of unsold properties around the fully sold ones.

Hillview Unsold Properties Around the Full Sold
Hillview Unsold Around Fully Sold
Puggol Unsold Properties Around the Full Sold
Puggol Unsold Around Fully Sold

Step 4: Don’t Neglect Good Locations With No Fully Sold Projects

There are certainly good locations with zero fully sold project (yet), that does not mean that their potential is less than those locations with fully sold projects. Here are some areas where projects are almost getting the title of ‘fully sold’, it is still not too late to look into them.

Potong Pasir Soon-to-be Full Sold
Potong Pasir Soon-to-be Fully Sold
Sengkang Soon-to-be Full Sold
Sengkang Soon-to-be Fully Sold

Step 5: Shortlist a Few Properties and Start Hunting

Now you should have found some good unsold properties in good locations. Happy hunting for your next home upgrade or investment property!

Get Your Free Property Report!

city-skyline from mnd blog

I will send you a personalized property report in 24 hours. Click here to sign up!

Here are some sections you will see in this report:

  1. General estate information
  2. X-Value of your property from SRX
  3. Price trend of similar properties in your estate
  4. General price trend for the same property type as yours
  5. Recent transacted price of the same property type in your estate
  6. Current asking price of other sellers in the neighbourhood
  7. General rental trend for the same property type as yours
  8. Rental X-Value of your property from SRX
  9. Rental trend of similar properties in your estate
  10. Recent transacted rental of the same property type in your estate
  11. Annualized capital gains of your property (for private condo only)

*Note this promotion may be ceased without advance notice.

Be the first to move out. Just MOP!

Be the first to move out. Just MOP!
Be the First to Move Out. Just MOP

If you fit the following descriptions, congratulation! You are ready to move to the next phase of your real estate adventure.

  1. Staying in Queenstown / Bishan / Bukit Merah / Toa Payoh / Kallang / Whampoa
  2. Just fulfilled Minimum Occupation Period (MOP)
  3. You have not taken up big debt in the last 5 years such as car loan
  4. You have not spend all your hard-earned bonuses

Here’s the good news, you will have a cash proceed of at least $50,000 if you sell your flat now.

est profit from just mop flats.png
Source: The Edge Property

Together with your funds in Central Provident Fund (CPF), you will be able to upgrade and reorganize your real estate portfolio for your next 5 year plan. You must be thinking now why can’t I wait a while longer? Here are 2 reasons:

  1. Being the ‘just MOP’ flat owner, you have the command of price as your estate is having limited supply at this moment. As the typical duration for HDB to publish a caveat is about 3 months after submission of any transaction, any time within this period, not many people will have the information on the actual sale price. After the first transaction price is published in HDB website, more of your neighbors would come to a realization that the estimated sale price is actually an understatement and decided join the selling spree, however it is a little too late; the supply is no longer scarce.
  2. No one really knows when will the property market recover and march to a new high again. Rather than speculating, let’s just take it that several ministers have repeatedly mentioned that it is still too early to lift the cooling measures. When there is a target set for the property market index, it has to be achieved, one way or another.

So, what are you still waiting for?

Quickly give a call to your trusted agents for a comprehensive reorganization plan. Otherwise, you may contact me at 8781-5516 or schedule a free consultation with me.

Last but not least, if you still decide to wait out, you may sign up this free property tracker by SRX on my account. It will provide you the latest updates if your neighbors have sold his/her flat.