Just received the CSA today and saw the RP for the first time. I am shocked at how low it is! Does the SC realise that this RP will have to hold it's value for 2 to 3 years until the completion of sale? Do they really believe that this figure will look good in 3 year's time when it comes to replacing our units? Never mind the waffle about 'raising' it later, if you set your sights so low at the beginning, nothing is going to materialise. You won't reach 40% with that RP.Under 2 Apportionment method for proceeds of sale, it does not actually say what method they used. But looking at the figures it can be deduced that it's the 50/50 method (Share value/Strata area). This is the same method that was used in Rd I and Rd II. The proceeds difference between the biggest and smallest units is only $30k.
Under 3 SC conducts and controls the collective sale
The phrase 'one or more supplementary contracts' needs clarification.
Under 4 Authorised representatives
'To take any action' is too sweeping. There must be some limits on the SC powers, they cannot be given a blank cheque. We know from experience this can be costly indeed. Our puny sales proceeds would be punier still.
Under 6.3.1 'The completion date of sale' will be no earlier than 3 months after the ...etc
So it is later than 3 months... in other words 'whenever'.
Under 6.4.3 'may also have to pay rent' . I think we can push the SC to negotiate for a nominal rent only. In Rd I the rent was $1.00.
Under 12.1 'Amendment of CSA' . The phrase 'a non-substantial nature' is highly subjective and open-ended. Better to agree to any amendment at the EOGM and stick to that.
The good things about this CSA- it is mercifully free of the worst kind of legal jargon and without the menacing clauses prevalent in previous CSAs. Pity they didn't include the marketing agent's workings on the residual land valuation (if any).
I think the proposed RP will not get even 40%. In enbloc2, they got only 34% with much higher RP. The first MA compared TC with property market in Pasir Ris which I think is out of place.
ReplyDeleteWith this RP, the only option is to downgrade to HDB if you need some cash for saving or retirement. The old condo in Bedok like Clearwater, Waterfront are at 800-900 psf. The new condo at Tampines are at 1000-1300 psf or more.
The SC should not waste their time with this RP.
In 2006, Waterfront View was 'enbloc' for about $660K while individual unit was selling at about $400k+. The property market picked up in 2008/09 period and some Waterfront owners bought the new Waterfront condo at $1m+. (There were news report on this case)
ReplyDeleteNow is 2016, ten years later and our situation looks like similar to Waterfront in 2006. The SC and MA should project the RP to prepare for price increase in 2-3 years time.
Based on 10 years property cycle, there may be a property boom in 2018/19 period, I believe HDB Exec apartments resale price likely to increase to more than $800K in 2018/19. If enbloc3 succeed in 2018/19 with the current proposed RP, we may be in a situation worst than Waterfront in 2006.