I Residence @ Irrawaddy Road

Location: Irrawaddy Road (Novena)Tenure : FreeholdExpected Completion: End 2011Total Units: 70 in one block of 28-storeys
Unit Types:2 Bedrooms ~ 980sqft & 1066sqft (40 units)3 Bedrooms ~ 1313sqft & 1346sqft (27 units)3+1 & 4 Bedrooms Penthouses (3 units)
Payment Scheme:~ Normal Progressive with Interests Absorption (finance by OCBC)~ 5% Booking Fee (Cash) + Stamp Duty + 15% in 8 weeks (CPF/Cash)~ Interest Absorbed till TOP + No Installment required till TOP

Las Vegas Sands secures US$2b capital funding, remains committed to S’pore project

Las Vegas Sands secures US$2b capital funding, remains committed to S’pore project

SINGAPORE: Las Vegas Sands said Tuesday it has secured over US$2 billion in capital funding commitments to avoid violating loan agreements.

President and Chief Operating Officer William Weidner said in a conference call that Sands expects to close the transaction by the end of the week.

He continued to say that however, there will be some changes to Sands’ overseas resort developments.

It will stop construction work at two sites in Macau’s Cotai Strip pending project financing arrangements.

Mr Weidner said Sands hopes to have an agreement with a major Chinese bank within the next three to six months.

Sands will also suspend the building of its St Regis Residence luxury-condominium project in Las Vegas indefinitely.

The operator said it expects to save US$1.8 billion by delaying and curbing plans for those projects.

But Sands said it remains committed to its Marina Bay Sands project in Singapore, and expects to open the resort by late 2009 according to plan.

Sands said it expects a significant return on capital from the Marina Bay Sands resort project.

It assured that the current capital market conditions will not significantly impact the integrated resort development in Singapore.

Sands also released its third quarter financial results overnight.

It narrowed its net loss to US$32.2 million, compared with US$48.5 million a year ago.

Sands said this is due to increases in operating income and an income tax gain.

Revenue increased by two-thirds to US$1.1 billion.

Source: Channel NewsAsia

Demand for and prices of public housing flats expected to stay resilient

The demand for and prices of public housing flats are expected to remain fairly resilient despite the economic downturn.

And market watchers have said this applies to both resale and new units.

Close to 9,000 people have visited the Natura Loft showflat since it was launched for sale on October 31.

Its developer Qingjian Realty has already received 500 applications, mostly for four-room units there.

But only 480 units are being offered, and these are going for between S$450 and S$570 per square foot.

Sales will close on November 15 and Qingjian expects demand for the new flats to be robust.

Natura Loft is the Housing and Development Board’s fourth condo-style public housing project.

Similarly, interest for public resale flats has not slowed.

Property agents said the number of viewings for resale units jumped by 15 per cent in the last six weeks.

Eric Cheng, executive director, HSR Property Consultants, said: “I did an interview with one of the consumers, they were sharing with me that ‘in today’s market, I don’t know how long my job will last, so to safeguard, I would rather go for subsidised (a) house, that is HDB, because how low could HDB go, HDB houses always will have a valuation to support the base value of the units’.”

Market watchers expect prices of resale flats to grow by about 4 per cent in the fourth quarter, slightly slower than the third quarter - which saw a 4.2 per cent growth.

ERA real estate agency projects price growth in the HDB resale flats segment to be at between 15 and 17 per cent for the whole of 2008.

And it also said it is going to be a buyer’s market for now, due to the challenging economic conditions.

Eugene Lim, associate director, ERA Asia Pacific, said: “Most of the buyers will start their negotiations at below valuation…by and large, most of the deals are pretty realistic nowadays, and cash over valuation very rarely will be more than S$40,000 to S$50,000, most of them will be around the S$30,000 to S$10,000 range.

“The bulk of the deals today are about 80 to 90 per cent close or above cash over valuation, but the days of S$100,000 or S$120,000 cash over valuation…are over.”

Market players said the outlook for Singapore’s property sector may be hazy in the short term, but the prospects still look bright beyond 2010.

They said that is because Singapore has plans in place that will help to create jobs and boost the economy.

Source : Channel NewsAsia - 10 Nov

Iras told to relook property tax rules

Court ruling on sinking funds could affect strata-titled property
A DISPUTE over one man’s property tax which went all the way to the Court of Appeal has resulted in the tax authorities being asked to relook the rules - a move which could affect thousands of strata-titled private properties such as condominiums and malls.
The Court has ruled that sinking fund contributions should form part of the calculation of how much tax is due on a property - but only if the fund has been used that year for repairs or maintenance on the estate.
For now, sinking fund contributions have been factored every year into the overall value of a property.
Mr Tan Hee Liang, who owns a shop in City Plaza in Tanjong Katong, had challenged the Inland Revenue Authority of Singapore (Iras) on why that should be so.
His lawyer Tan Hee Joek, from Drew & Napier, asked why sinking funds meant for maintenance and repair were included in the tax assessment, while contributions to the management fund, which can be tapped for the same purposes, were not.
The Court of Appeal, Singapore’s highest court, has now dealt with the discrepancy.
It decided that monies in the sinking fund need not be included in the tax calculation if they were not used in the year of assessment.
But if they were tapped for maintenance and repairs which would have a positive impact on the property’s overall value, then they should be included in the calculation.
The three-judge court also held that, unlike most other types of tax declarations, the onus on showing that the sinking funds were used for maintenance and repair should lie with the taxman.
The court sent Mr Tan’s case back to Iras’ Chief Assessor to recalculate the tax owed, following its decision.
It also asked Iras to come up with clear guidelines on the exclusions.
But it remains to be seen if the judgment would have more impact on strata-title holders like building or unit owners in their contributions to the management fund, often several times larger than the sinking fund.
The current practice is to exclude contributions to the management fund when assessing property tax, as the fund is meant for general purposes not necessarily related to improvements.
But the three-judge Court of Appeal termed the taxman’s blanket exclusions as ‘curious’.
Judge of Appeal Andrew Phang said they were due to a ‘mistaken belief’ that management funds have nothing to do with maintenance and repair works. Taxpayers have benefited from the taxman’s ‘erroneous practice to date’, he noted.
In Mr Tan’s case, his unit had an annual rental value of $48,000.
He was allowed to deduct his management fund payment of $2,400 from that amount, but not his sinking fund contribution of about $600. The final annual value of the unit, with the deduction, was $45,600.
But management funds are also used for maintenance and repair works which enhance the value of the property and, therefore, should be included in the tax assessment of the property’s annual value, reasoned Justice Phang.
This exclusion so far, the judge went on to say, could be a form of concession to taxpayers, which the Chief Assessor is entitled to grant.
Iras told The Straits Times it would follow up on the court’s recommendation to draw up guidelines after it receives feedback from industry players.
The change, if and when implemented, could affect unit-owners under the 3,000-odd management corporations that run strata-titled properties, including condominiums.
But any changes would not affect previous property tax payments, Iras’ lawyer Julia Mohamed told the court.
Professional valuer Chua Beng Ee said the bulk of management funds is typically used to provide services like security and to upkeep facilities and utilities such as swimming pools, air-conditioning and lighting for common areas. Iras was thus right to exclude the management fund under current practice, he said.
‘Monies used for maintenance and repair from the management funds are incidental in any case and expected to be small,’ said Mr Chua.
‘For practical reasons, the Iras should probably just extend the concession they have always had for management funds to the sinking fund, instead of having to laboriously study the accounts of each MCST (management corporation) to find out exactly which portions are meant for maintenance and repair.’
Source : Straits Times - 8 Nov 2008

Home Financing Bank Loan and Mortgages in Singapore

Home Financing Bank Loan and Mortgages in Singapore

Do I quailfy for a Singapore dollar housing loan if I am a foreigner?
Unless you are a Permanent Resident, you are entitled to one Singapore dollar housing loan.

What are the ways for me to finance a property purchase?
There are several ways for you to finance your purchases. Basically, you can either use your CPF and/or loan from commercial banks/finance companies. Often, a combination of different types of loans and savings from your CPF is used. From 19 July 2005, the maximum housing loan for private properties and HDB flats should not exceed 90% of the purchase price or valuation of the property, whichever is lower.

What are the key factors that will affect my housing loan application?
Since the main concern for banks would be whether the borrower would have money coming in the future date to repay a loan, your bank will usually examine the current market value of the property (if any); your income; your employment history; your assets and liabilities; the total equity which you are committing to the property, and your age.

What are the charges in taking a bank loan?
Each Bank has its own set of charges, but generally the following applies:
Processing fee: for processing a loan application
Pre-payment fee: for repaying part of or the full loan ahead of schedule
Third-part charges: for the valuation fee, legal fee (including the fee for the lawyer to act behalf of the bank), stamp duty, and insurance
Others: Some banks also charge for making changes to the original loan application or for canceling a loan offer after you have accepted it.

Is there any other loan that will help me to pay for the down payment of a property?
Yes, you may use a bridging loan, which is a short-term loan designed to tide the borrower over a period when he needs cash. However, because bridging loans are usually available for those taking up a housing loan from the same bank. Some people also use this type of loan while waiting for the release of his CPF funds.

What are the documents I need to produce a housing loan?
Most financial institutions require the following items:
Latest CPF statement for CPF withdrawn under the Residential Property Scheme (for refinancing loans)
Tenancy agreement (if any)
Latest 6 months to 2 years housing loan statements from current financier (for refinancing loans)
Latest income tax Notice of Assessment/ last 3 moths pay slips or the Notice of Tax Assessment for those self-employed
Latest CPF statement of account
Option to purchase (if any)

When should I repay the full bridging loan?
You have to do so upon completing the transaction of purchasing the property (usually 3 months), subject to a maximum of 6 months.

How is the bridging loan interest calculated?
It is calculated on a day to day basis and is payable every month.

Is there any type of loan available for me to rebuild my bungalow?
You can apply for a reconstruction loan.

Can I use an overdraft to rebuild my bungalow?
You can use an overdraft to rebuild your property, but a reconstruction loan has a lower interest rate, and you only need to pay for the interest rates on the amount you have used.

Should I refinance my property with another bank with much lower interest rates?
It all depends. This is because you must take into account the pre-payment penalties involved in redeeming your mortgage earlier than the maturity date. Therefore, you have to compare the monthly installments offered by each bank and include the penalties for terminating the original loan. Also, it would be not be sensible to refinance at the end of a loan period since the interest gain in the new bank would be minimal.

Can I redeem my mortgage?
It may be redeemed any time, however, but you may have to pay a fee for early redemption. The fee is known as the pre-payment penalty, and is based on the mortgage loan amount or outstanding amount.

How can I redeem my mortgage?
You may do so by giving a notice of redemption to your Bank. Your lawyer will prepare a "total discharge of mortgage". He will then arrange with the Bank's lawyer to execute the Total Discharge of Mortgage, and register it at the Registry of Land Titles. You then pay off the mortgage loan in exchange for the signed "total discharge of mortgage" or "deed of reassignment".

What happens if I default on my mortgage loan?
The following are the actions the Bank can take:
Sell your property to recover the money lent to you;
Appoint a receiver, that is to appoint a person to take charge of the property if the bank wishes to obtain rents from your property;
Insure your property against fire and other fortuitous accidents, and
Refuse to allow you to redeem the mortgage of another property if you have mortgaged more than one property.

Can I sue the Bank if my property which I defaulted on the mortgage loan is sold at a very low price?
Unless you can prove that the Bank has acted carelessly or recklessly in selling your property at a much lower price that what the market is willing to pay, the Court will not interfere.

After the Bank sells my house, will I be entitled to any money?
Yes, provided that there is any left after the Bank recovers the money lent to you, including all other expenses in selling your house.

If the bank's lawyers delayed their preparation of a mortgage which consequently required me to pay interest to the Seller, what should I do?
Unfortunately you will not have any course of action against the bank since the bank does not bind itself to you to provide the loan before the completion date. The bank's lawyers also do not represent you, therefore you will also have no recourse against them.

While awaiting for my Permanent Resident pass, I am buying a house with my sister who is a Singaporean. Will we be able to obtain a Singapore dollar loan from banks?
Each bank has its own loan criteria. Generally, banks are able to grant you a loan for Singapore citizens, if your immediate family members meet their required age and income.

If I am a Permanent Resident getting a home loan, how can I obtain a home loan?
To obtain a Singapore dollar loan, you have to provide:
a written undertaking that you do not have outstanding housing loans from any other financial institutions in Singapore
you are buying the property for owner-occupation

Home Insurance policies in Singapore

Home Insurance policies in Singapore

Is home insurance policy compulsory?
If you are taking out a mortgage with a bank, then you must have the fire insurance policy for your home. Some banks are offering this policy free for the first year if you take out a mortgage with them.

What are the types of home insurance policies available for private properties?
There are two main types of policies: a standard fire policy that covers losses caused by fire, lightning and explosion; and a home insurance policy that covers destruction to a building, home contents and any renovations carried out.

Which policy should I buy?
The decision to buy an insurance policy for your home is similar to buying a life insurance policy. You have to consider your budget, and your exposure to risks in your daily activities. If your estate is prone to vandalism, burglary then you should include these items as contents to insure against.

What are covered under the home insurance policy?
In addition to the damages caused by fire, explosions and lightening, the home insurance policy also covers against fire, flood, burglary, vandalism and damage by vehicles, aircraft and other aerial devices.

What are covered under the fire insurance policies?
They cover damages caused by fire, explosions and lightning.

What should I look for in the policies?
Items covered : Does the policy cover personal accident and liability, loss or damage to valuables outside the home premises, in addition to the building, renovation and home contents.
First loss or average clause : Does the policy cover the full or only a percentage of the loss if you have under-insured your property? First Loss Policies are policies that owners don't have to fully declare the total value of the contents and building but they would be paid for risks such as fire, theft, busting of pipes etc. Average Clause is a Clause that states that owners have to fully declare the total value of the home contents and building to be paid the full loss in the event of a claim. If not, only a percentage of the loss would be paid.
Definition of terms : How are the risks defined in the policy? This is because different insurance companies define risks differently would pay different amounts in the event of a claim.
Excess clause : There is a minimum amount you must bear for yourself for every loss except in the event of fire. As the amount can be from $50 to $200 for each item, it would be advisable for you clarify with your insurance agent.

How do I make a claim for my insurance?
To make a claim, you have to provide the following documents:
as a police report in the event of a break-in;
receipts if items of a certain value are lost or damaged, and
invoices of renovations done on the property

Should I over-insure or under-insure?
Generally, it would be better to over-insure than under-insure. This is because some insurance companies penalize owners for under-insuring. Moreover, it makes sense to over-insure by about 5-20% of the potential costs reconstruction as one tends to add new the contents to a home.

How much should I spend on insuring my home?
You should use the potential cost of reconstructing your home as a guideline. The cost of reconstruction should include the cost for renovations and the home contents. However, do bear in mind that the less you insure, the less you can claim if a mishap occurs.

Do I need to review my policies annually?
Yes. You should try to review the policies annually to accommodate any changes to the contents in your home, or renovations to the property.

Option to purchase

The Option To Purchase contract - Purchasing of private property in Singapore

What is Option to Purchase?
It is an irrevocable offer made by the seller to the buyer which prevents the seller from offering another buyer of the same property within the agreed time period (usually 14 days). To ensure that a contract is enforceable the buyer pays the Option Money to the seller.

When an Option to Purchase is presented, what should I do?
You should not rush to pay the Option money until you agree with all the terms on the contract. You should:
Consult a solicitor before taking any action
If you want any amendments to be made to the Option, you should ensure that the Seller does so before you pay for the Option
Make sure that any amendment is made with the Seller's consent, because the Seller is not legally obligated to make any amendments.

Who prepares the Option to Purchase?
It is usually prepared by the Seller's solicitor. Some real estate agencies also provide their clients with the agency's Option to Purchase documents.

What is "exercising" the Option to Purchase?
It means that the Buyer is complying with all the terms in of the Option made by the Seller for selling his/her property. A binding contract is created, and the Buyer will also pay for the next 4% of the purchase price of the property.

How much Option money should I provide?
1% is the usual practice for the purchase of private properties. The standard option money for HDB flats is up to S$5,000.

What happens if I did not exercise the Option which I had paid before/on the agreed due date?
If you do not exercise the Option within the validity period stated, the Option would expire and your seller is entitled to forfeit the option money and sell the property to another buyer.

What are the main terms to look out for to make the Option valid?
The key items are:
the description of the property and the price
the validity period within which the Buyer must exercise the option in order to purchase the property.
the names of the parties involved in the transaction

Will I be able to get my deposit back, if the Seller did not complete the contract?
Yes.

The completion of the property that I am purchasing is due before my return to Singapore? What should I do?All you need to do is to appoint somebody to sign these documents on your behalf and/or do all the things that are necessary to complete your purchase. You have to do this by signing a legal document called a 'Power of Attorney'.