Singapore property agents speculate at Genuine buyer's expense

Singapore property agents speculate at Genuine buyer’s expense

 

Do you really think you can get a good deal from property agents?

 

Do you really think you can outsmart the property developer?

 

Read on.

 

Do you remember some months ago that we warned that property agents are out hunting again. Their  tools are catch words such as “it will sell out soon”, “En-bloc”, “sea view”, “Expats are buying”, “MRT”, “population growth”.

 

 

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We are a Research-focused Singapore Mortgage Consultant which helps you compare Singapore Home loans either for new home loans or refinance home loans, we balance risks versus rewards for each home loan to match your risk profile and financing needs.

Buying property is a serious affair, we do NOT advocate a Greed or fear based buying approach, we emphasize that you need to check your property home loan affordability. Check out the mortgage calculators.

Not Simply Cheap, but what Fits.                                    We Research, You Save! 

Tel:    6100 – 0608

SMS:  9782 – 8606

Email: loans@propertyBUYER.com.sg

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To us, these are simply qualitative aspects of an economy or a property or a development. It has no research value and very little bearing on the true value of a property.

 

Sometimes simply the word “MRT” will make you part with more than you realize and then after a while, you felt that you had overpaid.

 

During June to September 2009, there are many developer’s condominium launches. Developers have a field day clearing inventory while Singapore property agents pounce on genuine property buyers.

 

Is it possible to get a good deal from developer launches?

 

Developers always find ways to enhance value of their properties through features and uniqueness. Many of these uniqueness are building related, some of these are location related and others perhaps are landscape related.

 

Many building related unique features will only last while the building is in good condition. Over time, the building deteriorates and the unique feature and it’s value is consumed and disappear.

 

So can you outsmart the property developer?

 

Condominium launches are timed to extract maximum benefit for the developer. You will only get a good deal when the developers are starved of cash and wants to let go of their properties cheaply and quickly.

 

Generally it is hard to get a good deal at property launches. This is because the property developers have: -

 

·      They have inside news and development plans

·      They have an in-house economic team

·      They have political connection and relationships

·      They have holding power

·      They can constrict supply

·      They can time the market

·      They can influence the media, advertise and create PR

·      The whip up the consumer sentiment.

 

In other words, the launches are timed to perfection exacting the maximum damage on your wallet.

 

Although all property cycles follow the economic fundamentals, but property cycles can also defy fundamentals for a period of time when sentiments are especially bullish, the prices only fall back down once the sentiment fades and tracks again the economic fundamentals.

 

There is another element of surprise. Recently our contacts have been telling us that the agents are themselves the speculators and they are fleecing the buyers.

 

Singapore property agents speculators add to your problems

A property developer will likely appoint 1 or 2 property agencies as marketing agents. These agencies will inform their agents to stand-by to sell the properties. 

 

Developers normally do not launch the condominiums directly with the exception of Far east organization. Therefore the property agents are then able to get market information of the launches and then gauge the market response.

 

They will jump in and buy first if they sensed a possible killing. They have no plans to stay in the condos.

 

So Singapore property agents buy the properties and flip immediately at a huge profit. This profit is of course at the expense of genuine property buyers.

So do consumers get a choice to the best units and the best prices?

 

Usually not. This is because Singapore property agents dominate access to these information. And will they share these information with you?

 

Mostly not! Many agents with their “potong jalan” grab all mentality will not think of long term. They will leave the best for themselves and give you the scraps.

 

If they call you and tell you it’s a good deal, that’s because they don’t find it good enough, else they or their families will have already bought it.

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 Convince property buyers that valuation can be matched

 

Property agents convince property buyers that bank’s home loan is obtainable as valuation can be matched when in fact there is no such thing.

After paying the 1% deposit for an option to purchase, the property buyer is stuck.

 

So how much did the Singapore property agents make from you?

 

Purchase price = $850,000 

             (Only a few banks can match as it is too high valuation)

 

Speculator buys at $850,000 and puts it up again at $920,000       

            (within days).

 

Property agents – Speculator and what is their cost?

$850,000 + $20,100 (Stamp duty) – $8,500 (1% commission for selling property) = $861,600.

 

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  Property buyer mortgage consultants at SMS 9782 8606 to do an Approval in Principle for their potential purchase.

 

The cash you have to pay because of Speculator property agents

$58,400 (extra) + $42,500 (5% cash) + $22,200 (Stamp duty) =

$123,100

Suddenly you are out of budget by $80,600.

 

Usually you can pay your stamp duty using the 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.

Should I buy a Sub-sale unit? 

It depends on how desperate you are to buy that property. There are more than 280,000 condominiums in Singapore. If you are patient you can always find another one as good, if not better.

 

You can say NO to being held ransom by property agent-speculators.

 

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About Property Buyer                                          Contact Property Buyer

www.PropertyBUYER.com.sg 

We are a Research-focused Singapore Mortgage Consultant which helps you compare Singapore Home loans either for new home loans or refinance home loans, we balance risks versus rewards for each home loan to match your risk profile and financing needs.

Buying property is a serious affair, we do NOT advocate a Greed or fear based buying approach, we emphasize that you need to check your property home loan affordability. Check out the mortgage calculators.

Not Simply Cheap, but what Fits.                                    We Research, You Save! 

Tel:    6100 – 0608

SMS:  9782 – 8606

Email: loans@propertyBUYER.com.sg

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You can let us know your experience dealing with property agents at loans@propertybuyer.com.sg

 

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About Property BuyerContact Property Buyer
www.PropertyBuyer.com.sg
We are a Research-focused Singapore Mortgage Consultant which helps you compare Singapore Home loans either for new home loans or Singapore Mortgage refinance home loans, we balance risks versus rewards for each home loan to match your risk profile and financing needs.
Not Simply Cheap, but what Fits. We Research, You Save!
TEL:   +65 - 6100-0608
SMS:  +65 - 9782-8606
Email: Loans@propertyBUYER.com.sg
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