Option to purchase is different from Offer to purchase. An Offer to purchase is given from a Property Buyer to the Seller, most likely via Property agents to the property owner.

An Option to purchase is granted when both the owner and the property buyer agrees to a purchase price. The option to purchase is granted based on a deposit of usually 1% of the agreed purchase price for a period of generally 14 days to the property buyer. During this time, the seller is obliged to sell the property to the buyer as he/she has received a 1% deposit, while the buyer has the right, but is not bounded to purchase the property within the stipulated period, failing which, the property buyer forfeits the 1% deposit.

We normally prefer a more direct approach where a 1% is agreed and given to seller in exchange for the Option to purchase which the seller signs and passed onto the Buyer.

In any property transaction, three scenarios are likely to occur: -

Scenario 1: Property Buyer negotiates directly with Property Owner

Scenario 2: Property Buyer negotiates directly with Seller Property Agent (Most Likely scenario)

Scenario 3: Property Buyer, through buyer agents negotiates directly with Seller Property agent

The best scenario is the first scenario, because it is more likely amateur versus amateur in property transactions.

The Second scenario is not so ideal, it is amateur (usually) versus seasoned expert. Most property buyers are at a disadvantaged dealing with seasoned seller property agent. (Many have opted to use our services to guide them in dealing with Seller Agent)

The third scenario is quite common. The seller agent co-broke non exclusively with Buyer agent. The buyer agents gets their commission from taking a share from the seller agent. However this is also the most problematic.

Why does a simple transaction need so many parties involved? It escalates transactional costs and create a drag on the economy. (We are against escalating property transactional costs) Based on the current market practice, the property buyers do not pay the buyer agents.

Most Seller agent will by-pass the buyer agents and sometimes undercut or delay submitting an offer to the property owner and try to find his/her own walk-in buyer so as to earn the full agreed commission.

Hence, the life of a Buyer agent is really quite tough. CEA really needs to help this group of Buyer agents that are struggling to make a living. CEA has managed to exclude many from the businesses, but did they manage to catch the regular culprits?

Based on this fact, the buyer agents (out of no choice) will tend to rush you through the buying process.

Both in Scenario 1 and 2, The buyer agents and the Seller agents, some of them will cut corners, such as making you make an OFFER TO PURCHASE while not showing you the Option to purchase that corresponds to the offer.

As we all know, the Option to purchase comes in a variety, therefore if the Property Buyer rejects the terms in the Option to purchase after making an offer to purchase, his/her 1% deposit is likely not protected.

There is still a lot of uncertainty in the property business and murkiness, there is still much work to do. Therefore property buyers, you have to proceed with caution.

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Contact Property Buyer Mortgage Consultants to analyze properties and financing options call telephone +65-9782-8606 or

Enquire about home loan mortgage in Singapore

loans@propertybuyer.com.sg

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Property Buyer, a Singapore based property portal is pleased to announce a Mortgage Franchise Program for entrepreneurs.

www.PropertyBuyer.com.sg/Mortgage/franchise

Over the years, Property Buyer has established strong relationship with banks which enable us to obtain better terms from the banks.

We have also developed a comprehensive Mortgage Brokering business framework which includes: -

Process flow and control
Proprietary in-house cloud based home loan reporting tools (probably the 1st in Singapore) www.icompareloan.com/consultant
Lead generation and pre-qualification
On-going training
IT support, maintenance and web presence
Our proven comprehensive framework allows any would be entrepreneur to earn a revenue stream at a low start-up cost without the hassle of trial and error. Hence, concentrate on generating sales.

The Managing Director of Property Buyer says, “We have been there, and figured all the difficult parts of running a mortgage business and have fine tuned it as we go along. We are at the stage where we feel we can positively contribute to many would be entrepreneurs to join us and be successful in operating a mortgage broking business.”

About Property Buyer Mortgage Consultants

Property Buyer Mortgage Consultants is a research-focused mortgage advisory that helps property buyers look through hundreds of loan packages to find the best package that fits their financial circumstances, not simply some cheap loan packages. Property Buyer Mortgage Consultants (CoreConcept Systems Pte Ltd) is a registered mortgage broker in Singapore. www.PropertyBuyer.com.sg/mortgage and www.SingaporeHomeLoan.net (Business registration 200618162C) with it’s office at No. 8 Liang Seah Street, #02-01 Liang Seah Court, Singapore 189029. Property buyer is also probably the only mortgage consultant in Singapore that produces research, not simply FAQs.

To know more about the Mortgage Franchise Program, please see this Mortgage Franchise Property Buyer video
Contact for more details Email Property Buyer Mortgage Consultants or Telephone +65-9782-8606

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If you want to learn more about the place for personal or commercial investment, please

Contact Property Buyer Mortgage Consultants to analyze properties and financing options.

Telephone +65-9782-8606

Enquire about home loan mortgage in Singapore

loans@propertybuyer.com.sg

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Contact Property Buyer Mortgage Consultants to analyze properties and financing options.

Telephone +65-9782-8606

Enquire about home loan mortgage in Singapore

loans@propertybuyer.com.sg

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Home Loan singapore promotion rates 5 days only*

posted 08 March 2012 (promo will last till funds fully taken up)

This promotion is quite unprecedented, the funds will likely be used up in 5 days. Sorry, first come first serve.

Home Loan Singapore offers ends in 5 days, latest submission 13th March 2012

Please hurry, order queue is building up now.

Promotion package one

Min 500k (for completed property)

2 Yrs lock in

yrs 1 3m Sibor or Sor + 0.55%

T/after 3M Sibor or Sor + 0.65%

Promotion package two

min 500k (for BUC building under construction)

2 Yrs lock in

yrs 1 3m sibor or Sor + 0.55%

T/after 3m Sibor or Sor 0.65%

If loan size below 500k need to open FD a/c deposit 10% of the loan amount

for 1 Year

Promotion Package three

1 yrs lock in (for completed and Buc)

min 600k loan size

yrs 1 3m Sibor or Sor + 0.75%

T/after 3m Sibro or Sor + 0.65%

Please call (best SMS) at 9782 8606 to find out.

or loans@propertybuyer.com.sg

Home Loan Documents required for submission

Here are the documents required. We are sorry we will have to reject incomplete submissions as there is no time to waste. (But we will help guide you if you are not sure.)

***Private and HDB new loan **

Documents required (both sets if joint applicants)

1.) Option to purchase (or sales and purchase agreement) (if have)

2.) Both Side of NRIC (for Citzens and PR) and Passport for foreigners

3.) CPF Latest statement

a) 15 month contribution history

b) Property withdrawal statement

c) Ordinany account balance

d) My HDB Page finance info (Log in with sing pass

http://www.hdb.gov.sg/MyHDBPage.)

4.) Notice of Assessment (Latest 2 years)

5.) Salary Slip (Latest 6 months)

6.) Rental Contract Stamped Certificate (from IRAS) – (if property is

rented out)(if have)

*** FOR Refinance Private and HDB ***

Documents required (both sets if joint applicants)

1.) Both Side of NRIC (for Citzens and PR) and Passport for foreigners

2.) CPF Latest statement

a) 15 month contribution history

b) Property withdrawal statement

c) Ordinany account balance

d) My HDB Page finance info (Log in with sing pass

http://www.hdb.gov.sg/MyHDBPage.)

3.) Notice of Assessment (Latest 2 years)

4.) Salary Slip (Latest 6 months)

5.) Rental Contract Stamped Certificate (from IRAS) – (if property is

rented out (if have)

6.) Current Bank loan statement (Latest 6 month) (HDB loan latest 12 month)

Enquire about home loan mortgage in Singapore

loans@propertybuyer.com.sg

or SMS 9782 8606

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The Singapore Government announced on the 7th Dec 2011 an additional Buyer’s stamp duty (ABSD) to be imposed on certain categories of residential property purchases.

Currently the stamp duty for purchasing a residential property is:

• 1% of the selling price for the first $180,000

• 2% of the selling price for the next $180,000

• 3% of the selling price for the from $360,000 onwards.

Will Luxury Condominiums targeted at foreigners to be hit by new regulation?

Additional stamp duty is being imposed to cool the RESIDENTIAL property market.

The Additional Property Buyer stamp duty (ABSD) from 08 Dec 2011 is:

Foreigners and Corporate entities buying Residential private property have to pay an additional buyer stamp duty of

10 percent

Permanent Residents (PRs) owning one and buying the second and subsequent residential property will pay an ABSD of

• 3 percent

Singapore citizens owning 2 and buying the third and subsequent residential property will pay an additional buyer stamp duty

• 3%

Permanent Residents (PRs) owning one and buying the second and subsequent residential property will pay an ABSD of

• 3%

Singapore citizens owning 2 and buying the 3^rd and more residential property will pay an additional buyer stamp duty of

• 3%

According to URA, Foreigners account for 19% of all Private residential property purchase in 2^nd half of 2011, up from 7% in 1^st Half 2009.

In the case of a joint purchase, as long as any party is a PR or Foreigner, the higher additional property buyer stamp duty will apply.

However For HDB property buyers| HDB Property Buyers not affected| URA clarified that HDB property buyers are not affected

The purchase of HDB properties will not be affected by this measure. Only Singaporeans and Permanent Residents are eligible to be HDB flat lessees (i.e. own a flat). Existing residential property owners who buy an HDB flat or a new unit under the Design, Build and Sell Scheme (DBSS) or the Executive Condominium (EC) Housing Scheme will not be subject to the ABSD, since the existing flat/property will have to be disposed of as part of the conditions for the purchase of the HDB/DBSS flat or EC unit.

Buying property in singapore is becoming a complicated affair.

Likely Effects of Singapore’s Additional Buyer Stamp Duty|What is the effect of the Additional Buyer Stamp Duty (ABSD)?

URA’s cooling measures makes sense for cooling inflation and may be pre-emptive against inflation in view of the large supply of M2 and M3 money in the world. However the timing is questionable given the debt crisis in Europe.

What this means is, if these money is to be put to use to buy up assets, 10% of additional buyer stamp duty won’t entirely stop them from buying into Singapore properties, but only slow them down.

Can it reduce inflation?

Inflation is influenced by the following equation.

[MV = PQ] = (by Irving Fisher, 1911)

<br>

Where

• M is the total dollars in a Nation’s money supply (generally the M3 or M2)

• V is the number of times per year each dollar is spent (Velocity of money)

• P is the avg. price of all the goods and services sold during the year.

• Q is the quantity of Assets, goods and services sold during the year.

When M2 or M3 rises and where Velocity and Quantity stays the same, this will lead to price increases. The rate of increase of Price is inflation.

Right now, we are seeing M2 or M3 increasing faster than GDP in many nations, while prices are fairly stable at ~5.4% (in 2011) in Singapore and production (Quantity) is rather stable, this means that V, the velocity of money has yet to pick up. In other words, people are not yet spending.

Once Velocity of money V picks up, in order to control price rise, Quantity will have to pick up dramatically as well. Not all quantity can be ramped up quickly enough.

[M2 or M3 increase] x [V] = [P] x [Q]

So by taking out Foreign M2, M3 as well as M2 in Singapore attributed to foreign ownership by imposing a 10% Additional buyer stamp duty, Singapore has effectively reduced the M2, M3 money supply from the property market.

This policy can reduce inflation for residential housing in the private sector. However it does nothing much for HDB, DBSS and EC housing as well as commercial properties.

Singapore Recession worries

Now, with the European debt crisis looming, we wonder whether this is the right time to impose such a regulatory measure. After all the property market has already cooled dramatically. Moreover, this policy hurts the mid tier private property markets and entry level luxury more.

Should the policy target run away prices in HDB instead?

In view of the massive under-supply of HDB’s physical stock given the massive mass increase in population, it will still take several years to balance the supply and demand. Currently demand far outstrip supply.

HDB price index is likely to continue rising into 2012 and maybe even into 2013 as long as European crisis is contained.

DBSS flats are also adding to the supply. Rather than rejoice, we should be cautious, as it adds a huge cost to the masses. DBSS developers buy expensive land the Singapore government and hence pass on the cost to Singaporeans and Singapore Permanent Residents via higher selling prices, acting involuntarily as the “Revenue collector” for the Singapore government.

Spill over may soon be seen in Executive Condominium (EC) with some ECs approaching prices of Mass Market condominium prices. This supports the prices of mass market condominium to be launched in large volumes.

This latest additional Buyer stamp duty policy does not apply to HDB, DBSS and ECs. What this will do is crimp demand artificially for the private market while it still does nothing much for HDB affordability with the prime culprit being DBSS, leading the price increases.

Severe Demographic effects – Singapore’s Resident Population to dramatically increase?

Could more PR become Singaporeans so as to buy more private property (a third or more)?.

Will this policy encourage more expatriates in Singapore to become Permanent residents so as to qualify for buying a HDB resale flat?

Expatriates faced with additional Buyer stamp duty on buying private residential property and is not well off enough to buy a private property will likely want to become Permanent resident (PR) so as to buy a HDB. This scenario is quite unfavourable for Singapore as we may be attracting the lower level and lower skilled expatriates competing with native Singaporeans.

Our Proposal for the regulatory changes:

If we cannot keep regulations simple, then perhaps this regulations could be considered.

To impose the following regulations on: – Proposal to Impose regulations on:

Housing Development Board Flats

• HDB flat owners who own a private property must stay in their HDB regardless of whether they meet the minimum occupation period (MOP), within 2 years of this announcement. Else these HDB home owners must sell their HDBs in the resale market.

o This stops existing HDB home owner from owning a HDB and staying elsewhere and making money by renting out their HDB flats.

o No force to be applied to them to sell their HDB flats, but they cannot make money via renting out their HDB flats while owning other Private residential properties and staying in private residential properties.

• To prevent new Permanent Residents from competing in the HDB market, all Permanent Residents (PR) must wait 5 years upon attaining PR before qualifying to buy a HDB flat. (This is to prevent lower tier foreign talents from speculating in the public HDB Singapore property market).

o PRs not meeting the 5 year wait, will pay an Additional Buyer Stamp Duty of 10% on their HDB resale flats.

Proposed regulation on Singapore Private Properties

• Corporate entities who buy residential properties will pay an additional buyer stamp duty of 10% (NO change)

o

• All New PRs must wait 5 years before being eligible to buy a landed property.

o PRs not meeting the 5 year waiting period shall be rejected by the Land Dealings Approval Unit (LDAU), else a 15% additional buyer’s stamp duty of 15% is applied.

For Foreigner purchase of private property

o NO additional buyer stamp duty, but

o Loan to value from Singapore banks to be reduced to 50%.

Regulation for Commercial Properties

• All foreign person or entities who buy residential properties to pay an additional buyer stamp duty of 10%.

Summary of URA policy changes

The general direction of the URA policy is commendable as it recognizes the dangers of M2 money supply growth worldwide and can act as a pre-emptive strike against possible future hyper inflation. It also did the right thing in restricting Corporate entities and foreigners buying residential properties by imposing a 10% duty. However money velocity is very slow, and European debt crisis is still unfolding, the timing of this policy may not be right.

This policy seems like another political knee jerk reaction, while it hides dangerous and possible side effects of massively increasing the Singapore Citizen population and PR population through lower tier foreigners.

This additional buyer stamp duty should stop speculation in HDB instead and leave the private residential property market alone.

If the intended thinking behind this policy is to make HDBs more affordable, then our proposed policy changes will likely be more effective.

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Competitive prices, high-end lifestyle! Contact us at +65 9782-8606 (SMS) or

Enquire about home loan mortgage in Singapore

loans@propertybuyer.com.sg

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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

Enquire about home loan mortgage in Singapore

loans@propertybuyer.com.sg

.

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