In the final months of 2010, lots of new property measures are out!
HOW will the measures on buying, selling and owning new properties affect you?
A summary of the 31st August 2010 measures will be provided below:
HDB
Measure A :
Allow households with income of between $ 8, 000 to $10, 000 to buy new DBSS flats with $30, 000 CPF Housing Grant.
Impact A:
This will meet the improves the affordability of the middle class (or sandwiched class). This is a short to medium term measure to meet the demand for DBSS flats.
Measure B:
Increase supply of new flats such as DBSS and ECs
Impact B:
Ensure land price stability in the mid to long term but no immediate effect on prices
Measure C:
Shorten completion of BTO flats
Impact C:
No likely impact on prices no reduce flat applications until shorter delivery timeline is physically felt.
Measure D:
Increase Minimum Occupation Period (MOP) for non-subsidised flats to 5 years.
Disallowed concurrent ownership of both HDB flats and private residential properties within the MOP
Impact D:
Short term Reduction in housing demand. Particularly on those multiple ownership and property speculators.
URA
Measure E:
Increase holding period for imposition of Seller’s Stamp Duty from 1 to 3 years
Impact E:
Increase costs for short term speculators making speculation of properties alot less profitable
However it has limited or no impact on genuine long term investor
Measure F:
For buyers with existing housing loan
-increase minimum cash payment from 5% to 10% of valuation limit
-Decrease Loan-to-Value (LTV) from 80% to 70%
Impact F:
This effectively reduces the affordability for buyers with outstanding loans.
No impact on first time home buyers (especially young couples!!!) and buyers with high liquidity (Strong cashflow).
Desmond Long
email: desmond.teampower@gmail.com
m0bile no: (+65) 9114 0571
Website: http://teampower.sg
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