Monthly Archives: September 2011

IRAS threatens foreclosure on pre-war house if owners don’t pay S$7,000

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Sep 9, 2011 – PropertyGuru.com.sg

A pre-war terrace house on Devonshire Road in Somerset faces foreclosure after the home owners failed to pay property tax for two years, amounting to around S$7,000.

The Inland Revenue Authority of Singapore (IRAS) served the owners with a notice of sale in August 2011.

If the home owners fail to pay the amount within three months from the publication of the government gazette, the 1,717 sq ft property will be sold at a public auction in November.

According to Nicholas Mak, Head of Research at SLP International, the freehold property is valued between S$2.2 million and S$2.3 million, based on comparable properties within the vicinity.

Part-time chef Chen Zhen Nan, 53, one of the owners of the freehold property, said that he cannot pay the property tax due to financial problems.

Chen said he had wanted to sell the property earlier to solve his financial problems, but he couldn’t reach an agreement with his siblings.

“We need help to pay our debts,” he said.

IRAS wanted to foreclose on the property but Chen’s eldest brother helped to pay the tax then, preventing it from being sold.

His brother, however, passed away this year.

A property auction was the last option, after all attempts to recover outstanding property taxes failed.

A spokesperson from IRAS said, “Before we auction a property, we would have issued reminders, notices to pay, made phone calls and appointed banks as agents to try to recover the taxes due.”

“We have also communicated with the occupant of the property, one of the children of the deceased owner, about the outstanding property tax.”

“No one has come forward to pay the outstanding property tax.”

Thus, the property will be sold by IRAS (subjected to a reserve price), taking the outstanding amount, less the expenses incurred in selling the property, such as the commission of the property agent.

The remaining amount will be returned to the owners of the property.

To contact the journalist, you may send your message to editor@propertyguru.com.sg

US mortgage demand falls for third straight week

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Sep 8, 2011 – PropertyGuru.com.sg

Despite mortgage rates falling to record lows, the demand for home loans in the US continued to fall for the third consecutive week, according to the latest data from the Mortgage Bankers Association (MBA).

The MBA’s seasonally adjusted mortgage applications index, comprising both home purchase and refinancing demand, fell 4.9 percent in the week ending 2 September 2011.

In addition, MBA’s seasonally adjusted refinancing application index also dropped 6.3 percent, while its estimate of loan requests for home acquisitions surged 0.2 percent.

The rates for a 30-year fixed mortgage averaged 4.23 percent, a decrease from 4.32 percent a week ago. It was also the second lowest rate since MBA started its survey almost 22 years ago.

The group also noted that 15-year loan rates averaged 3.41 percent, a decrease from 3.49 percent in the prior week.

“Despite these rates, refinance application volume fell for the third straight week and is more than 35 percent below levels at this time last year,” said Mike Fratantoni, Vice President of Research and Economics at MBA.

“Purchase application volume remains relatively flat at extremely low levels, close to lows last seen in 1996,” he added.

To contact the journalist, you may send your message to editor@propertyguru.com.sg

Housing in high demand, prices stable

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Sep 5, 2011 – PropertyGuru.com.sg

Singapore property prices will remain stable in the medium term, with key home-buying factors like upgrading and investment still expected to drive up demand, said a My Paper report.

This comes amid the expected slowdown in Singapore’s economic growth, led by the debt crisis in western countries.

As home buyers are likely to be more cautious, prices will not increase or decline by over five percent by end-2012, said property experts. They added that rental yields are also expected to rise by between two and three percent in 2012, in line with historical averages.

“The Asia-Pacific region, including Singapore, remains on track for continued growth and can weather a global slowdown,” said Ong Kah Seng, Senior Manager at Cushman & Wakefield for Asia-Pacific.

He noted that Singapore, like Hong Kong, is in the “high-risk range” when it comes to its vulnerability to the economic crisis in the West.

Ong pointed out that home buyers will likely see a 10 to 15 percent capital appreciation on their properties over the next five years.

“If you are looking at the nearer term, property prices here will generally remain fairly flat in the next year, with the potential for some downward adjustment,” he said.

“But there is always underlying demand stemming from individuals looking at upgrading or for investment, and opportunistic buyers may be quick to react to the lower housing prices, thereby pushing the market up again.”

Meanwhile, Mark Teo, Senior Group-Division Director at ERA Realty Network, said that while external factors affecting Singapore’s economy are important, what affects the property market most are the government’s policies and measures.

He cited how government investment in the development of the Marina South area has led to prices of several properties in the area skyrocketing.

“The development became a global product that commands international pricing,” he said. “Government policy in Singapore is very, very powerful, so make sure to track this especially if you are looking at properties for investment purposes.”

For young couples seeking to acquire properties for the first time, Teo recommended Build-To-Order (BTO) flats, as they are usually cheaper and have “higher capital appreciation value”.

Catherine Tan, Senior Executive Estates Officer with the HDB, also said that buyers need to “refer to transacted resale prices of comparable flats and not on cash-over- valuation in your negotiation so that they will not overpay.”

“The transacted flat prices can be found on the HDB info-web,” she added.

To contact the journalist, you may send your message to editor@propertyguru.com.sg