Jan 20, 2011

REGENT COURT

Regent Court put up for sale

Regent Court, a freehold residential property at 1091 Serangoon Road, has been put up for sale by tender.
The property has a combined land area of 38,857 square feet and is zoned for high rise residential development of up to 36 storeys.
It has a plot ratio of 2.8, which allows a maximum gross floor area of 108,800 square feet.
No development charge is payable.
According to its marketing agent Cushman & Wakefield, the land can allow the new developer to build some 200 apartment units with average sizes of 500 square feet.
The property is worth in access of S$83 million, translating to a minimum price of S$763 per square foot per plot ratio.
The minimum break even project cost works out to be about S$1,200 psf, said Cushman & Wakefield.
Donald Han, vice chairman of Cushman & Wakefiled said “the Serangoon area has been recognised as a strategic suburban residential area”.
This is due to its proximity to the city centre, as well as HDB upgraders’ interest to own and occupy condominiums.
The area also has potential to become a choice residential cluster, due to its relatively central location and its closeness to the new Nex shopping mall.
Cushman & Wakefield said the connectivity of the Serangoon area will be improved with the completion of the circle line and the Upper Serangoon PIE viaduct.
The tender exercise for Regent Court is expected to close on February 28, 2011.

Source : Channel NewsAsia – 20 Jan 2011

Jan 14, 2011

SELLERS STAMP DUTY CHANGE

14 Jan 2011

CHANGES TO SELLERS STAMP DUTY

1 The Government announced today the following measures to maintain a stable and sustainable property market:
  • a. Increase the holding period for imposition of Seller’s Stamp Duty (SSD) from the current three years to four years
  • b. Raise the SSD rates to 16%, 12%, 8% and 4% of consideration for residential properties which are bought on or after 14 January 2011, and are sold in the first, second, third and fourth year of purchase respectively;
  • c. Lower the Loan-To-Value (LTV) limit to 50% on housing loans granted by financial institutions regulated by MAS for property purchasers who are not individuals1; and
  • d. Lower the LTV limit on housing loans granted by financial institutions regulated by MAS from 70% to 60% for property purchasers who are individuals with one or more outstanding housing loans2 at the time of the new housing purchase;The measures will take effect on 14 January 2011.
2 The Government’s objective is to ensure a stable and sustainable property market where prices move in line with economic fundamentals. Previous Government measures have to some extent moderated the market, but sentiments remain buoyant. Low interest rates plus excessive liquidity in the financial system, both in Singapore and globally, could cause prices to rise beyond sustainable levels based on economic fundamentals. Moreover, when interest rates eventually rise, it could strain purchasers who have overextended themselves financially. Therefore, the Government has decided to introduce additional targeted measures to cool the property market and encourage greater financial prudence among property purchasers.

Extending the Holding Period for Imposition of Seller’s Stamp Duty (SSD) on Residential Properties from 3 Years to 4 Years & Raising the SSD Rates

3 Currently, for residential properties bought on or after 30 August 2010, SSD3 is imposed on the sale of such properties within three years of purchase. This followed the introduction of SSD for residential properties bought on or after 20 February 2010.

4 The SSD rates will be increased sharply from 14 January 2011, so as to provide a strong disincentive for investors looking to make short term gains. The holding period for imposition of SSD will also be extended from the current three years to four years. The impact of the SSD is especially significant as it is payable regardless whether the property is eventually sold at a gain or loss.

5 Specifically, for residential properties bought on or after 14 January 2011, the SSD rates to be levied on the full consideration will be increased5 to as follows:
  • a. SSD at 16% (higher than up to 3% currently), if the property is sold in the first year of purchase, i.e. the property is held for 1 year or less from its purchase date.
  • b. SSD at 12% (higher than up to 2% currently), if the property is sold in the second year of purchase, i.e. the property is held for more than 1 year and up to 2 years.
  • c. SSD at 8% (higher than up to 1% currently), if the property is sold in the third year of purchase, i.e. the property is held for more than 2 years and up to 3 years.
  • d. SSD at 4% (no SSD currently), if the property is sold in the fourth year of purchase, i.e. the property is held for more than 3 years and up to 4 years.Please see Annex for examples of how the SSD will be computed.
6 The extended SSD will not affect HDB lessees as the required Minimum Occupation Period for HDB flats is 5 years.

7 IRAS will be releasing an updated e-tax guide on the circumstances under which SSD will apply and the procedures for paying SSD6. The e-tax guide will be available at www.iras.gov.sg. Taxpayers with enquiries may call IRAS at 6351 3697 or 6351 3698.

Lower the Loan-To-Value (LTV) Limit to 50% on housing loans granted by financial institutions regulated by MAS for residential property purchasers who are not individuals

8 With effect from 14 January 20117, an LTV limit of 50% will apply to all residential property purchasers who are not individuals. This includes corporations, trusts and collective investment schemes, among others. The 50% LTV limit for housing loans will also apply to joint property purchases by an individual and a purchaser who is not an individual.

Lower the LTV limit on housing loans granted by financial institutions regulated by MAS from the current 70% to 60% for residential property purchasers who are individuals with one or more outstanding housing loans at the time of the new housing purchase

9 The LTV limit is lowered from 70% to 60% with effect from 14 January 20118 for borrowers who are individuals and have one or more outstanding housing loans (whether from HDB or a financial institution regulated by MAS) at the time of applying for a housing loan for the new property purchase.

10 However, borrowers who can show evidence that they have sold their existing properties will not be subject to the lower LTV limit when they buy a new property. Where the existing property is a private property, he can show a signed Sale & Purchase (S&P) agreement with the IRAS certificate showing that stamp duty has been paid on it. Where the existing property is a HDB flat, he can show HDB’s approval letter to sell the flat, that HDB will issue within 2 weeks of the First Appointment. These borrowers will still be able to borrow at an 80% LTV from financial institutions.

11 Borrowers without any outstanding housing loans continue to have a LTV cap of 80%.

12 These rules apply to housing loans granted by financial institutions for private residential properties, Executive Condominiums, HUDC flats and HDB flats (including DBSS flats).

13 Loans granted by HDB for HDB flats (including DBSS flats) will still have a LTV cap of 90%. HDB loans are offered to eligible Singapore citizens buying their first homes or right-sizing their flats  to meet their housing needs. HDB loan applicants are required to utilise all the balance in their CPF Ordinary Account before HDB loans will be granted. 
Furthermore, those taking a second concessionary HDB loan must use the CPF refund and 50% of the cash proceeds from the sale of their previous flat before they are granted an HDB loan. This is to ensure that eligible buyers, especially first-time buyers, purchase public housing in a financially prudent manner.

Adequate Supply in the Pipeline

14 There is an ample supply of private residential units and buyers need not rush to buy now. The Government will continue to ensure an adequate supply of housing to meet demand.

15 The annual average take-up9 of private residential units between 2007 and 2010 is about 12,700 units. Thus far, the sites awarded under the Government Land Sales (GLS) Programme in 2010 will already yield about 13,300 units. In the GLS Programme for the first half of 2011, we will make available sites that can yield about 14,300 private housing units, of which about 8,100 units will be from sites on the Confirmed List.

16 As at 3Q2010, there were about 64,400 uncompleted units of private housing from projects in the pipeline10. Of these, about 33,800 units were still unsold. This is equivalent to about 3 years of supply based on the average annual take-up over the last 4 years. The 33,800 unsold units in the pipeline comprised 3,300 units that had been launched for sale by developers and 11,400 units which had the pre-requisite conditions for sale11 and could be launched for sale immediately. The remaining 19,100 units with planning approvals did not have the pre-requisite conditions for sale but these could be obtained quickly from the Government12. The Government will also make available more supply in future GLS programmes. Buyers should bear in mind this supply in the pipeline when deciding whether to buy now.

17 The Government will continue to monitor the property market closely and take further steps to promote a stable and sustainable property market if necessary.

*****
1 “Purchasers who are not individuals” refer to purchasers who are not natural persons.  These include but are not limited to corporations, trusts and collective investment schemes.
2 Financial institutions are required to conduct checks with HDB and with one or more credit bureaus on whether the purchaser has an outstanding housing loan at the time of applying for a housing loan for the property purchase. For joint purchasers, if either purchaser has an outstanding housing loan, the joint purchasers will be considered as having an outstanding housing loan.
3 The SSD will apply to the transfer or disposal of interest (including sale and gifts) of residential lands and residential units (whether completed or uncompleted).
4 The date of purchase for computation of the holding period for SSD shall be the date when a buyer (i.e. Buyer A) exercises the option to purchase the property, or signs the sale and purchase agreement, whichever is earlier. The date of sale of the property shall be the date when the subsequent buyer (i.e. Buyer B) exercises the option to purchase the property from Buyer A, or signs the sale and purchase agreement, whichever is earlier.
5 Currently, the SSD rates are levied at the same rate as buyer’s stamp duty, i.e. 1% for the first $180,000, 2% for the next $180,000 and 3% on the balance. The SSD rates are tiered according to the duration of the holding period, i.e. the seller pays the full SSD rate if the residential property is sold in the first year of purchase; 2/3 the full SSD rate if the sale is in the second year; 1/3 the full SSD rate if in the third year.
6 SSD is to be paid within 14 days of the execution of the Agreement (i.e. exercise of Option or signing of Agreement). If the Agreement is executed overseas, upon receipt of the Agreement in Singapore, the SSD must be paid within 30 days.
7 The 50% LTV limit will apply to transactions where the date on which the option to purchase (OTP) was granted falls on or after 14 January 2011; or if there is no OTP, where the date of the Sale & Purchase agreement falls on or after 14 January 2011.
8 The 60% LTV limit will apply to transactions where the date on which the option to purchase (OTP) was granted falls on or after 14 January 2011; or if there is no OTP, where the date of the Sale & Purchase agreement falls on or after 14 January 2011.
9 Take-up refers to the number of private residential units, including Executive Condominium (EC) units, sold by developers.
10 These refer to new development and redevelopment projects with planning approvals, i.e. either a Provisional Permission (PP) or Written Permission (WP).
11 These refer to private residential developments with Housing Developer Licence and Building Plan Approval. Under the Housing Developer (Control and Licensing) Act, a sale licence must be obtained for a project with more than 4 units, if the developer intends to sell uncompleted residential units in the development. However, the sale of the residential units can only commence with the approval of the building plans of the development.
12 These refer to uncompleted private residential developments without pre-requisites for sale but with WP or PP granted. The sale licences could be obtained within 5 working days and building plan  approvals could be obtained within 7 working days from the date of application for cases where clearances from various technical agencies are obtained and relevant documents are in order during formal submissions.

Issued by: Ministry of National Development, Ministry of Finance and Monetary Authority of Singapore
Date: 13 January 2011

According to the FOURTH SCHEDULE the deductions allowable for the determination of financial loss are:

1. Stamp duty paid on the purchase of the lot or flat. 
2. Legal fees paid in relation to the purchase of the lot or flat. 
3. Costs related to the privatisation of any designated land as defined in section 126A.
4. Costs incurred pursuant to the collective sale which are to be shared by all subsidiary proprietors or proprietors as provided under the collective sale agreement.

Do you need to pay sellers stamp duty?
See FAQ from the IRAS website:  here

5.  How do I know if the seller is liable to pay SSD?
If the seller has bought the residential property on or after 20 February 2010 and sold it within a short duration of up to 4 years from the date of purchase, there is a chance that he may have to pay SSD.  In the process of conveyancing, your lawyer may check with the seller's lawyer or make a search on the property to ascertain the date of purchase by the seller.  Whether the seller is liable for SSD and the amount of SSD payable would depend on the date of purchase and the date of sale. 

Jan 13, 2011

EOGM No.1 2011

We have all received the NOTICE for the EOGM to be held at the Primary School opposite at 2pm on 29th January 2011 for purpose of a collective sale of Tampines Court.
It appears an important chink of the Second Schedule has not been reproduced  in the Notice.

In the Second Schedule proper  - but missing in the 'Explanatory notes to Notice of Extra-ordinary general meeting' - under Notice of general meetings, it states:-

(3) No motion shall be submitted at a general meeting unless -
(a) notice of the motion has been given in accordance with this paragraph; or
(b) the motion is a motion to amend a motion of which notice has been so given.

This right given to owners to stand up at meetings and propose 'a motion to amend a motion' cannot be denied! It is not a widely known power amongst owners and not including it in the explanatory notes is reprehensible. If you think the motions are rubbish - stand up and amend them!

In the Second Schedule it also states:-
(4) A motion for the constitution of a collective sale committee and its powers, duties or functions shall be decided by ordinary resolution passed at a general meeting.

Yet, in the AGENDA for the meeting there is only one resolution:

2.1 To consider and if approved, to resolve by way of ordinary resolution that a collective sale be considered for MCST 2644 - Tampines Court; and if so to appoint a collective sales committee.

What about the equally important powers, duties or functions? When will they be decided?
Why is there only half a statutory motion??

The recent amendments to the LTSA 2010, the speeches made in Parliament by our Minister of Law Mr Shanmugam, and the Supreme Court itself have all made it very clear that owners had the power to conduct the sale in the manner they see fit.
Resolutions 3,4,5 on the requisition form are absent from the Agenda.  Is the requisition still valid?

REQUISITION FORM
Dated 29 November 2010 - lists out 5 hopeful resolutions - none of which actually made it onto the Agenda.
The list of requisitionists is very interesting. I have found that a full 41 out of the 117 owners are new owners. In other words 35% of the requisitionists have all bought their units in 2009 and 2010 (bar 1 in 2008, straight after the failed en bloc). One bought 2 units and requisitioned twice. Most of the old sale committee and their backers  are there - but not the ex-chairman. I note one ex- 'conditional signer' who signed for more than the RP in round 1 but was subsequently dropped after the sale. There are 6 ex-minority owners including one ex-minority objector on the list. There are plenty of irregularities in the list  in the Notice - I expect the MC to step in and exercise due diligence in the matter and put right any mistake the MA may have made.

UPDATE 25 Jan 2011

A NEW Notice has been sent out to all owners. The MC ( i.e moi) conducted due diligence and found the original Notice full of errors. They sent in a bunch of useless requisitions, and the managing agent did a very poor job at weeding out the duds.

All I can say is, if this is the standard at which the pro-enblocers will perform to, then TC had better watch out.

Jan 11, 2011

Transcription please

 TRANSPARENCY IS ABOUT ACTION NOT LIP-SERVICE!

If any owner would like to see things done properly this time round, please feel free to copy and send in the request below with your name and unit number.

Address it to the Secretary of the MCST 2644 (Tampines Court)
or
ATTENTION: ALL MANAGEMENT COUNCIL MEMBERS of the MCST2644.

Hand it in to the MCST office Blk 120 to Wilson




THE COST OF A TRANSCRIPTION >>>APPROX $2000

Let not there be claims of "he said, she said" and let everyone's voice be noted.

Jan 4, 2011

Let The Games Begin

TAMPINES COURT EOGM
FOR THE PURPOSE OF A COLLECTIVE SALE
29TH JANUARY 2011

I think the pro-enblocers should have had the courtesy to write to all owners about their plans and not hope to spring a surprise on the estate.  If the estate wished to go for a collective sale then we will be presented with a bunch of strangers (and some not so strange) to vote onto a committee. 
  • Being 'interested' is not enough.
  • Claims of 'experience' can be exaggerated.
  • A stranger's integrity at an EOGM cannot be gauged.
  • Personal motives cannot be plumbed.
  • Professional connections  can be hidden until after election when their revelation to the SC Chairman will not preclude them from serving on the SC.
  • Intelligence can be estimated (sir, are you an systems engineer or a glorified waiter?)
  • Personality weakness' can be sensed.
And leaving everything to chance on the day itself is like plucking a number out of a hat - maybe it's a winner, but the chances are it will be a dud. A dangerous dud.

What a god-awful system! Does the Government grab nobodies off the street  with nothing more than a perfunctory pat down and allow them to handle Government Land Sales  just because they put their hand up as volunteers? They do not! You can be sure the men and women are all highly qualified and knowledgeable in that area. No 'interested volunteers' in those multi-million dollar deals! But the Gov. doesn't mind letting loose this second rate model on private owners - any mess it creates and the blame can be pinned elsewhere.

You would need to be either psychic or nuts to allow a mere neighbour who is a total stranger with no credentials, no experience no professional insurance  with Uunknown personal motives  to handle the sale of your most valuable asset  ........ especially after our recent experience with one such group of 'interested volunteer owners' from round 1!

A comment below about how the "sale committee will be supported by the marketing agent and lawyer."

'Supported' sounds comforting and safe; the inference here is that the MA and lawyer must have the owners' best interests at heart, they are professionals after all and in the employ of the owners.

But they are not in the employ of the owners - they are free-lancing and riding on the coat-tails of a possible lucrative deal until they secure the sale  and collect their commission (and probably a nice bonus from the developer, too.)  . They want the sale to happen MORE fervently than anyone else.  The MA  takes the road of least resistance to it's reward. Vested interest rules his world.

The Sale Committee is not so much 'guided' by the marketing agent as 'led by the nose'.