About Me

My photo
I am a Practitioner of 'The 7e Way of Leaders' where a Leader will Envision, Enable (ASK for TOP D), Empower, Execute, Energize, and Evolve grounded on ETHICS!

Monday, February 8, 2016

Daily Lessons from Life 08 February 2016 - Boon Keng DBSS flat owners reap big profits

"Boon Keng DBSS flat owners reap big profits - The Straits Times 8 Feb 2016

Premium public housing project City View @ Boon Keng may have entered the resale market only this year, but at least 14 flats there have already changed hands.

And their owners have been making handsome profits despite the bleak property market.

The three- to five-room flats sold so far went for between $560,000 and $900,000, according to data from SRX Property and the Housing Board.

These values far exceed the project's launch prices as well as HDB prices in the vicinity.
When the project was launched in 2008, prices ranged from $349,000 to $727,000.
 
For homes within 1km of City View, median resale prices in the past three months have been $340,000 for three-room flats and $779,844 for five-roomers, according to SRX Property."

Well, 'huat aah' to the smart sellers of these flats. They are truly winners as they have hard cash in their hands unless they have 'upgraded' to private properties and taking up BIGGER loan to pay for the 'new' properties.

Lessons for me are:

1. S$560k/349k and 900k/727k between 2008 and 2015 are appreciation of: 1.6x and 1.24x, not bad if one do not count the mortgage interest the owners had to pay. In terms of absolute S$, the gross profit is: S$219k and S$173k over 8 years (2015 - 2008 inclusive). Alas, lower original price flat is making MORE money!! Also, upon closer examination, the gross profit are NOT that attractive on a per year basis!! This compare to those sellers who bought their 'normal ordinary' HDB flats at S$60k or even S$150k in the '70s and '80s selling for more than S$900k-1,000k!!;

2. interesting that the Property Company is releasing this data in a 'gloomy' market. Is it trying to 'stimulate' or 'excite' the subdued market and the buyers that: 'hey, you can REAP BIG PROFITS', which as shown in item 1 above, are NOT really that fantastic!!

So, always be careful when data from the 'interested' property agencies or companies are released! HDB's name was mentioned but it is just releasing whatever had been transacted. Is it true that the SELLERS are reaping BIG PROFIT? Potential buyers who are 'dreaming of similar BIGGER profit' when selling their FLATs BOUGHT at THESE PRICES, must be the ultimate optimists or 'the bigger fools that came to the party late'?;

3. let me reiterate my position on HDB market: the original HDB flats MUST be for young couples to start their 3-kid family at prices that are affordable, designs and builds that are functional, and allow them to fund their mortgage WHILE also footing billings for childcare, maids and maids levies, care for elderly parents &/or parents-in-law, and be able to 'teach/guide' their kids growing up!

For the private property market, it is 'at whatever prices that the market can bear'. If people can afford an investment property, fine and well. The nation MUST never be held ransom to 'property prices CANNOT fall as it would endanger the banking system with loads of non-performing loans due to falling market prices as people over-stretched their finances'!!

Again, 'huat aah' to the Boon Keen DBSS flat owners who had, or IF you indeed had, reaped BIG PROFITS as headlined!!

3 comments:

Dr Purva Pius said...

Hello Everybody,
My name is Mrs Sharon Sim. I live in Singapore and i am a happy woman today? and i told my self that any lender that rescue my family from our poor situation, i will refer any person that is looking for loan to him, he gave me happiness to me and my family, i was in need of a loan of S$250,000.00 to start my life all over as i am a single mother with 3 kids I met this honest and GOD fearing man loan lender that help me with a loan of S$250,000.00 SG. Dollar, he is a GOD fearing man, if you are in need of loan and you will pay back the loan please contact him tell him that is Mrs Sharon, that refer you to him. contact Dr Purva Pius,via email:(urgentloan22@gmail.com) Thank you.

BORROWERS APPLICATION DETAILS


1. Name Of Applicant in Full:……..
2. Telephone Numbers:……….
3. Address and Location:…….
4. Amount in request………..
5. Repayment Period:………..
6. Purpose Of Loan………….
7. country…………………
8. phone…………………..
9. occupation………………
10.age/sex…………………
11.Monthly Income…………..
12.Email……………..

Regards.
Managements
Email Kindly Contact: urgentloan22@gmail.com

Dr Purva Pius said...

My name is.Mrs.Anna Daniel. I live in Ukraine i am a happy woman today? i need to use this time to tell all people how i got my loan from this honest and God fearing man loan lender that help me with a loan of $84,000 please contact him. if you also need a loan without any problem he name is Dr Purva Pius email {PurvaPius22@gmail.com} tell him that is Mrs.Anna Daniel that refer you to he contact Email {PurvaPius22@gmail.com}

Dr Purva Pius said...

My name is.Mrs.Anna Daniel. I live in Ukraine i am a happy woman today? i need to use this time to tell all people how i got my loan from this honest and God fearing man loan lender that help me with a loan of $84,000 please contact him. if you also need a loan without any problem he name is Dr Purva Pius email {PurvaPius22@gmail.com} tell him that is Mrs.Anna Daniel that refer you to he contact Email {PurvaPius22@gmail.com}