Competitive prices, high-end lifestyle! Contact us at +65 9782-8606 (SMS) or email us at loans@propertyBuyer.com.sg for your Financing Needs.

a. lap pool
b. jacuzzi
c. steam bath
d. gym
e. BBQ pits
f. fitness station
g. multipurpose hall
h. playground
i. clubhouse
j. tennis court

The Parvis condo is a joint project of the MCL Land and the Ho Bee. The units could be sold at $1,500 to $1,600 per square feet. Prices range between $1.62 million for a 2 bedroom unit at approximately 990 sqm area. The location covers 3 blocks of the Holland Hill Mansion site.

If you want a place near to the MRT Stations and schools that is also offering high-end facilities, then go to the Parvis Condominium. Contact us at +65 9782-8606 (SMS) or email us at loans@propertyBuyer.com.sg for your Financing Needs.

Most banks in Singapore lend based on criteria such as debt to servicing ratio. The usual debt servicing ratio is capped at 50% to 60%.

(Note: This is different from the financial planning guideline of setting the debt at 35% of monthly income.)

Singapore banks who lend money based on asset based lending will assess your property valuation and lend you money based on your assets.

However many banks do not engage in asset based lending as they deemed it risky. For those few banks that do asset based lending, they want to make sure that you can service the loan by asking for proof of cash or assets under management of 24 months.

Traditional Asset Based Lending

Someone with a fully paid up property valued at $3.2m. He goes to the bank to borrow 50% of $3.2m. He gets $1.6m in cash for an equity term loan (Cash out). The bank will usually want to see proof of liquid assets of 24 months of the installment amount.

Illustration: -

Age of owner = 50 years old
Property valuation = $3,200,000
Loan to value = 50%
Loan tenor = 20 years
Interest rate = 1.5%

Loan amount = $1,600,000
Monthly Installment = $7,720

In this scenario, the owner would most likely be asked to show proof of 24 months of monthly repayment in liquid assets of $185,280.

Alternative Traditional Asset Based Lending

Another form of asset based lending lends out to 70% to 75% of the property asset valuation.

This is applicable for refinancing or new purchase of completed properties. This loan is also very effective for Singaporeans buying a second property.

Scenario: Rich foreigner 50 years old who has a paid up properties and no outstanding loan. The rich foreigner earns an income of only $25,000 a month in his home country.

Property valuation = $6,000,000

Status = Fully Paid up

Loan to value = Can to up to 70% (up to 75% subject to approval)

Loan tenor = up to 25 years

Loan amount = $4,200,000

He will be eligible to borrow up to $4,216,000 based on his asset and some proof of income instead of $2,529,000.

Under normal lending criteria, this Rich Foreigner will only be able to refinance with cash out (Term loan) of only $2,529,000 and NOT $4,216,000. In this way, cash is freed up for other needs.

Eligibility of Asset based lending: -

Age = up to 75 years old

Tenor = up to 40 years

Min Income = $8,000 per month

Documents required for Asset based lending

NRIC = front and back copy. (For foreigners who are NON-PR, copy of passport)

Income = Proof of income via Company letter only

(NO need to go to Notary public in their respective country)

OR

3 Months salary slip

OR

2 years of Notice of Assessment (NOA) – from IRAS.

Outstanding home loan

= 6 months to 12 months bank statement showing outstanding loan amount. (if fully paid, copy of title deed)

Option to purchase = Required for a purchase of a completed property. (Not needed if
refinancing)

Contact :
loans@propertybuyer.com.sg
Mobile (sms) : +65 9782 8606
Get Asset Based Lending housing loan
Get Asset Based Lending Refinance Home Loan

If you are a Mortgage Broker, do contact us, we will avail this to you and your clients. (Only for Mortgage Broker and Consultants)

a. swimming pool
b. wading pool
c. tennis court
d. playground
e. clubhouse
f. car park
g. 24 hours security

MRT stations near the place are

a. Commonwealth MRT Station
b. Buona Vista MRT Station
c. Queenstown MRT Station

The unit sizes for this condo are 2 bedrooms, 3 bedrooms, and 4 bedrooms. If you want to know more about this freehold development, contact us at +65 9782-8606 (SMS) or email us at loans@propertyBuyer.com.sg for your Financing Needs.

Need some time out? Go to the Chip Bee Gardens and browse on the antique shops and restaurants from the Jalan Merah Saga to the Dempsey Road. Contact us at +65 9782-8606 (SMS) or email us at loans@propertyBuyer.com.sg for your Financing Needs.

For the shoppers’ convenience, all shops and fancy restaurants accept credit, debit, or charge cards. Over the years, it has been called as the bohemian enclave of Singapore. If you want an environment that suits with both local and expats taste. Contact us at +65 9782-8606 (SMS) or email us at loans@propertyBuyer.com.sg for your Financing Needs.

What is the main issue of the confusion?

The HDB Shophouses were constructed with residential quarters. People are not sure if they can borrow under the commercial category or under the residential category. Some consider it as under the HDB flat while others consider it as under the partial HDB flats. The partial HDB flats refer to the portion of the total size of the unit.

Buying an HDB Shophouse could be tricky. What if you are already an existing private property owner? Can you still buy a HDB Shophouse?

The HDB shophouse commercial unit also happens to have a residential dwelling. What is the right treatment for this kind of housing unit in terms of loans and interest rates? Apparent, if we go by the HDB rules that applies on HDB flats, then you cannot buy a HDB shophouse if you already own a Private property.

Say for example the HDB shophouse is 1600 sq feet made up of 2 floors.
— 800 Sq feet on 1st floor and
— 800 sq feet of residential unit on the second floor.

If you have NO outstanding housing loan, then the bank will consider to lend you 80% of the valuation for the property. However, if you have any existing home loan, some banks are considering: -

— Lending you 80% on the commercial portion of the HDB shophouse of 800 sq feet
— Lending you 60% on the residential portion of the HDB shophouse of 800 sq feet

The banks do not know how to classify this type of loan, yet, they decide to compute the lending rates according to the portion of commercial or residential category. Furthermore, the confusion was rooted to the different regulations attached to each category, commercial or residential, in one housing unit. Do they need to follow the commercial housing unit or the residential housing unit category?

This issue may put the lender and the borrower at risk in terms of treatment and classification of interest and mortgage computation. So we decided to check with HDB on how they Classify HDB shophouses. Below is the inquiry about the purchase of commercial properties

—————————- Original Message —————————-
Subject: ENQUIRY ON PURCHASE OF COMMERCIAL PROPERTIES
From: ”Yit Hah LEE” >xxxxx@hdb.gov.sg>
Date: Fri, October 21, 2011 6:40 pm
To: Property Buyer Mortgage Consultant
————————————————————————–

HOUSING DEVELOPMENT BOARD

Your Ref :
Our Ref :
Date : 21 Oct 2011
TEL : 1800-8663073
FAX : 63972477/8
EMAIL : pldmail@hdb.gov.sg

xxxxxx
(Email: admin@propertybuyer.com.sg)

Dear xxxxx,

ENQUIRY ON PURCHASE OF COMMERCIAL PROPERTIES

We refer to your email of 19 Oct 2011.

2 Please be informed that although some HDB commercial
properties have living quarters attached to them, these properties are
sold or tenanted out as a commercial property under a single title and
deemed as non-residential. The prevailing policy that persons who buy
non-subsidized flats are not allowed to concurrently own an HDB flat and
private property within the minimum occupation period is applicable only
to private residential property.

3 We have also no restriction for foreigner/ Singapore
Permanent Resident to purchase HDB commercial shops (i.e. shop with living
quarters at 2nd storey or shop without living quarters) provided the
individual(s) are above 21 years of age and is not an undischarged
bankrupt

4 You may visit our website at http://www.hdb.gov.sg>
Commercial Tenants & Lessees > Managing your sold premises. There is
more general information on the procedure; policies for Resale/
Transfer of Shop. Alternatively, you can call our toll-free enquiry
hotline at 1800-8663073

Yours faithfully

LEE YIT HAH (Miss)
SENIOR ADMIN EXECUTIVE
for HEAD, TENANCY; LEASE MANAGEMENT UNIT
PROPERTIES; LAND DEPARTMENT

CLARIFICATION FROM HDB REGARDING HDB SHOPHOUSE

We are thankful to Ms. Lee of HDB for her fast response to clarify the issue of HDB shophouses.

For more information about Queen Astrid Park, Holland, Bukit Timah and other Singapore property listings, please contact Property Listings Asia.

People interested in buying Sale of Balance Flats exercise but did not receive any invitation from the government may consider pursuing their housing plans through the BTO system. The highest supply of flats was focused on the BTO. The government decided that the best way to meet the low supply of Balance Flat units was to offer the HDB BTO units. This would mean meeting the shortage using the BTO flats that have been experiencing delay in status of completion. The shortage may exist for sometime until the completion of the project. If the estimated completion time for one BTO project may last for an average of 2 years, then the expected time to complete all the units would be about 2 to 4 years.

Supply of BTO

Looking at BTO units existing supply against the number of potential marriages per year, there would still exist shortage of HDB flats. The 22,000 to 25,000 marriages per year will likely increase the demand for the BTO units. Based on this number, there will only be about 5,500 units available. The BTO launched about 5,420 flats in the following places

• 260 units at the Ang Mo Kio
• 520 units at the Jurong East
• 190 units at the Jurong West
• 2,000 units at the Punggol area
• 2,450 units at the Sengkang area

This article may not cover all angles regarding the housing programs provided by the BTO and HDB. The author met some difficulty in searching and collecting appropriate data for the supply and demand topic. Anyway, we can still provide you the confirmed list of DBSS developments that were making or will be making their sales launches soon.

Bedok PH1 at Bedok Reservoir Crescent

Awarded 04 Nov 2010

Won by CEL Development Pte Ltd

Hougang PH2 at Upper Serangoon Road

Awarded 02 Dec 2010

Won by Kwan Hwee Investment Pte Ltd

Yuan Ching Road

Awarded 10 Jan 2011

Won by Hoi Hup Realty Pte Ltd

Clementi Avenue 4

Awarded 10 Mar 2011

Won by EL Development Pte Ltd

Pasir Ris Central / Pasir Ris Drive 1

Awarded 3 Jun 2011

Won by Singxpress Land (Pasir Ris) Pte Ltd and Kay Lim Holdings Pte Ltd

Based on the 400 to 500 units per project, the estimated outcome would at least be 2,000 to 3,000 additional units for the HDB supply. This supply for sure would not meet the increasing needs of the population. I can see that there might be another price increase to keep the balance between the supply and the consumers. People were already voicing complaints about the inflated $880,000 prices of the new HDB DBSS flats. Even though if the prices were reduced to $780,000 in a few days.

The Prime Minister of Singapore, Lee Hsien Loong declared during the National Day Rally Speech that the income ceiling prices for the BTO flats or Build to Order HDB flats would be raised from $8,000 to $10,000. This decision will also affect the executive condominium prices. The executive condominium prices would be raised from $12,000 to $10,000. This gives us the implication that any couple’s total income per month should fall below $8,000 per month. This is almost 30% lower the resale flats in Singapore.

The plan of the Prime Minister would be to increase the income ceiling for the following

• 4 or 5 room studio apartments for $10,000;
• 3 room mature town estates for $10,000;
• 3 room nonmature town estates for $5,000 and;

• 2 room HDB flats to $2,000

Supply and demand housing preview in Singapore for HDB flats category

HDB means Housing and Development Board. This agency in Singapore monitors the needs, demands, and supply for housing. HDB was created in 1960 and was provided to complete projects for low housing programs with lowest housing prices in the market.

In 2010, the increase in the income ceiling was implemented by the HDB. The program was meant to cover the low income population in Singapore. There has been larger demand of HDB flats but definitely lower supply. Based on the local statistics from HDB, the needs of the local population had been increasing as this included the Permanent Residents, foreigners, and other migrant workers.

The estimates gave at least shortage of HDB housing units supply for 100,000 units. The estimates were based on the potential 22,000 to 25,000 marriages each year that would increase the supply to 22,000 or 25,000 a year too. This means that the increase in the income ceiling does not affect the need for housing among the local population.