Revised resale levy on 2nd subsidised flat

The recent revision in resale levy on 2nd subsidised flat gives something to cheer for in the resale market when the levy is set at a fixed amount.

For example, a flat owner selling his executive flat in Mei Ling St would fetch the price ranging from $480,000 - $510,000. If he book his 2nd subsidised flat from HDB, he would have to pay (before revision) 25% resale levy (based on resale price or 90% of the market valuation, whichever is higher) which works out to $120,000-$127,500. Now he has only to pay $50,000. A hefty saving.

With this much of savings in resale levy, it would prompt more home owners to sell off their current flat to get a 2nd subsidised flat. But I don't think it will cause much franzy since the location of new HDB units are, in my opinion, far away.

However, on the other end of the spectrum, a 2-room flat owner may not welcome this change. The average selling price of a 2-room flat is about $100,000-$110,000. The resale levy is 10% which works out to be $10,000-$11,000. But after the revision, he has to pay $15,000 fixed amount. Obviously, these flat owners will be discouraged to get a 2nd subsidised flat.

Mobile: 9185-0641

Office rental is climbing up

With the positive growth in out economy for the past 2 quarters, the property market had also responded in the similar positive manner. The private residential sector is the first to react and the prices will soar even further.

Office space rental is now feeling the ripples effect of the upswing, hence prime locations office units are expected to increase their rental as well. Prime units charging $4psf are expected to increase by double to $8psf (according to the report by Savills Research, ST 16 Feb 06), which is still lower then $12psf in 1996.

With this positive signal, it's good news for me as I am into office rental. Looking forward tio more good Business!

Mobile: 9185-0641

$3000 Gross pay

I was serving a buyer last Sunday. He is single and wants to buy a flat around central / town area. So I arranged for him to view 4 HDB units - 3-rm and 4-rm types. One of the units (a 4'S' type) we saw was fabulous and he immediately fall in love with it. He decided to make an offer but was told to wait by the seller. My buyer agreed.

Meanwhile, being a diligent agent, I was calculating his finance requirement for his installment. Then it hit me that his gross pay exceeds $3000 and hence he has to apply for bank loan. Unfortunately, as I found out then, he could not afford the 5% cash that is required of him for the bank loan, let alone the cash above valuation. Dead end.

My views... 5-rms & Exec flats

Year of the Dog is round the corner. Many chinese families are busy getting ready for the Lunar New Year. Hence, a slowdown in real estate marketing activities during this period of the year is expected.

But comes Feb, all marketing activities will resume and serious buyers will be out in full force after all the 're-charging' during the festive period. I'd reckon there are more transactions for 5-rm and Executive flats.

HDB resale transactions for the last quater indicated an increase in number of tranactions for such flats. These boost the resale prices to go up slightly but only for units at good locations - near MRT, schools, amenities, etc. Well renovated units are also good value for money.

Recently, I have felt more buyers want are buying to stay with their parents together, and with the change in application for grant, I can see 5-rms and Exec flats to have more transactions. Previously, buyers in a family nucleus with combined income of more than $8000 are not eligible to apply for grant but this mark has been raised to $12000. Hence it has created a new group of buyers for big units.

For 5-rm and Exec sellers, the good news is you can expect to see more viewers to your unit after Lunar New Year. But don't forget, units at good location will attract more buyers.

*ps: Pls call 91850641 to have further discussion with me.

New Year New Vision

I have new vision for my blog and there will be more input on regular basis. I am more "fired" up to have a blog that documents my progress - in real estate, darts and my team performance.

So what makes me "fired up"? ----- I have a coach. In fact, he is Asia's Sales Coach, Mr Tony Latimer. (read his blog here)

He works with me and cover areas (in sales and marketing) that I think I need to improve. In fact, I have just completed a session with him today via internet and I am putting my "to-do" into action. And my top most "to-do" is to post, on a regular basis, my comments and opinions on the current real estate market trend.

Where did i get this idea? It started with Tony asking me what my plans are for 2006. One of things I want to do is to keep in contact with my existing clients. Unlike insurance agents, real estate agents going back to their clients will usually end up with "Do you have any referrals for me?" So Tony says there is no benefit for my clients when I make the calls.

So he asked me what else can I do to benefit them with my call, and that started my brain churning and I came up with this idea of creating my commentry and analysts of the market trend in real estate, put it in this blog and share with everyone. So from a wish-list of "want to keep in contact with existing client", I have expended the idea to having anyone to read my commentry / analysts of the real estate market trend. What an inspiration!