Between June to September 2009, dishonest Singapore property agents have a field day.
Developer launches: Can you get good deal?
Sometimes you can get a good deal. Many times you don’t. This is because the launches are timed to perfection with positive media spin, advertising campaigns, timing to launch in favourable economic cycle and rampant sentiments and feel good factor is strong.
What could be worst? Speculators!
Developers normally do not launch the condominiums directly with the exception of Far east organization. Most developers usually appoint one or several property agency as marketing agents.
These agents are taught what to say and what not to say in order to sell the condominiums fast. This included pressure tactics as well as making people queue up to constrict the showroom space to create tension and urgency to buy.
So do consumers get a choice to the best units and the best prices?
Most good deals are immediately snatched by agents.
For good property deals, Singapore property agents will buy it themselves. They may even ask their relatives to book the condo units and corner the development. These property agents then put up these property for sale again.
Genuine property buyers will have to pay more
Of course you as genuine property buyer, if you like the development, not only you have to pay the developer’s already high asking prices, you will also have to suffer paying easily 5 to 15% more because of these Singapore property speculators if you really like the condo.
Property agents have no interest to make sure that you do not lose your 1% deposit.
Because developers have recently launched at very high prices already, coupled by an additional margin by Singapore property agent speculators, the asking prices cannot be matched. This means that genuine property buyers have to top up cash.
How much do they earn at your expense?
Developerprice = $850,000 (property loan valuation stretched to match $850,000)
Speculator buys at $850,000 and puts it up again at $920,000 (within days).
Property agent Speculator cost
$850,000 + $20,100 (Stamp duty) – $8,500 (1% commission for selling property) = $861,600.
Speculator flips it and puts up at $920,000. (Bank cannot match $920,000 valuation)
Property agent speculator profit within a few days
Property agent flipper makes = $920,000 – $861,600 = $58,400.
This is the extra money you have to pay because of these property agents cornering the market and because banks refuse to raise valuations any higher. Many people will fail to get a Singapore home loan and lose their 1% deposit. Luckily for some, they have come to us at www dot propertybuyer dot com dot sg Property buyer Singapore Mortgage consultants at SMS 9782 8606 to do an Approval in Principle for their potential purchase.
How much cash do you have to pay for the Condo?
$58,400 (extra) + $42,500 (5% cash) + $22,200 (Stamp duty) = $123,100
Suddenly the cash required to buy your dream home more than doubled. Normally you can pay your stamp duty through Central provident fund (CPF), but because for sub-sale, there may not be enough time to complete the transaction and insufficient time for your lawyers to work with the CPF lawyers to disburse the funds. Instead of using your central provident fund (CPF) to pay for your stamp duty, you will have to first pay it through cash.
Do we have a choice when buying new launches?
There are no lack of good properties. You only have to look carefully at more places and do your homework.
It is caveat emptor. If you don’t want the speculators to come, then you can make a choice to avoid Sub-sale properties of you can check with property buyer home loan consultants SMS (text) +65-9782-8606 to help you conduct some valuation checks to make sure.
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