Industry experts discourage COV practice

[Watchman]

Industry experts discourage COV practice

http://www.h88.com.sg/article/Industry+experts+discourage+COV+practice/

The president of the Singapore Institute of Surveyors and Valuers (SISV), Lim Lan Yuan,
issued a statement supporting Minister for National Development Khaw Boon Wan’s
decision to stop releasing Cash-Over-Valuation (COV) data for public homes across the
nation. The reason, Lim says, is that COV will cause home prices to rise rapidly. They also
said that since the COV does not come to play in all public unit transaction, there is no need
to recognize this practice. What buyers and sellers can do instead, is to take a look at recent
transactions of units in the area or actual market valuation in order to determine the transaction price.

For those of you who aren’t familiar with COV practices, what happens usually is that sellers
will look at the median COV data as a cash premium. The SISV wants to discourage this
common practice. Instead they advocate the payment of COV only when the buyer is
kan cheong about buying that particular unit and are willing to fork out the COV as a premium.

They also said that if the COV is consistently paid then prices will be pushed up further, as
valuations already take into account market conditions. And of course, COVs make it less affordable
to buyers as more upfront cash is required to secure the unit.

So what do you guys think? COV or no COV?

 

[clinton666]

The COV is akin to the COE. You need the COE to buy a car, so you need the COV to buy a house too! Simple and elegant logic once again from a genius like myself!

 

[po2wq]

The COV is akin to the COE. You need the COE to buy a car, so you need the COV to buy a house too! Simple and elegant logic once again from a genius like myself!

but now, dat wan burger n sisv oso dun like ur simple n eregant logic woh! ...

 

[HedgeTrader]

The COV is akin to the COE. You need the COE to buy a car, so you need the COV to buy a house too! Simple and elegant logic once again from a genius like myself!

That so-called expert is a spastic retard. He should be sacked and sent to work with Banglas sweeping floors. What the fuck is he talking about? This is free market. Valuation is based on one seller one buyer at that point of time. Of course there's COV if there's more demand. It's not COV that cause price rise. It's demand that cause COV.

 

[middaydog]

The COV is akin to the COE. You need the COE to buy a car, so you need the COV to buy a house too! Simple and elegant logic once again from a genius like myself!

Fuck! rich man like you also know about COV ?

 

[clinton666]

That so-called expert is a spastic retard. He should be sacked and sent to work with Banglas sweeping floors. What the fuck is he talking about? This is free market. Valuation is based on one seller one buyer at that point of time. Of course there's COV if there's more demand. It's not (COE) COV that cause price rise. It's demand that cause COV.

You retarded gay dog :oIo:

Your sucking of Bangla cocks have not increase your IQ score of 50 by one iota. Replace COV with COE and the logic stays the same! It was demand that cause the introduction of COE!:oIo:

 

[clinton666]

Fuck! rich man like you also know about COV ?

You spastic baldie:oIo:

I am not only very rich, I am also very smart and well versed in MMA! I am everything you wish to be but never will be

 

[middaydog]

You spastic baldie:oIo:

I am not only very rich, I am also very smart and well versed in MMA! I am everything you wish to be but never will be

 

[Confuseous]

In the good old days, it was known as coffee money. The COV is a con job encouraged by all the parties in housing transaction, to their own respective advantages, except the bugger holding the ball when the music stops aka House Buyer. This is how it works:

BANKS - the COV enables them to have a safety buffer if market drops, as loan is based on 'valuation'.
HDB - enabled Mr Mah to keep insisting that HDB flats were affordable, as sale price does not include COV
PROPERTY AGENTS - enabled these hustlers to manouvre and manipulate the prices with clients, both buyers or sellers

 

[Yoshitei]

So what do you guys think? COV or no COV?

If the government is really interested to help, then they should introduce a law whereby COV is illegal. If anyone gets caught practicing COV, the agent will loose their license, the seller will loose their home, the buyer will be banned from buying a HDB for 5 years.

Or revert back to the good old days where HDB apartments can only be sold either a) back to the government or b) to a Singaporean.

 

[LeMans2011]

It all boils down to irrational consumer. If buyers remain logical, COV phenomenon will not persist. Singaporeans have been a logical lot... until the millions of Indians and Chinese flood the country with their millions causing the market to defy all logic.

The solution to housing problem is slow down the intake of FT... simple as that... unfortunately we have a government who is more interested to pursue any means that will stop you from withdrawing the CPF. As long as they remained their selfish ways, things will not improve.

 

[Ramseth]

In the good old days, it was known as coffee money. The COV is a con job encouraged by all the parties in housing transaction, to their own respective advantages, except the bugger holding the ball when the music stops aka House Buyer. This is how it works:

BANKS - the COV enables them to have a safety buffer if market drops, as loan is based on 'valuation'.
HDB - enabled Mr Mah to keep insisting that HDB flats were affordable, as sale price does not include COV
PROPERTY AGENTS - enabled these hustlers to manouvre and manipulate the prices with clients, both buyers or sellers

You're confused. COV reflects free market bidding. Valuation reflects a fair starting bid. Banks have nothing to do with COV. They lend on valuation basis only. The property agents do benefit though, COV is included in commission. In any case, there's no possibility of COV if there's less than one bidder for the property. In fact sometimes, it can become BV (below valuation) when the seller has to concede discount for the buyer to buy.

 

[Mdm Tang]

You're confused. COV reflects free market bidding. Valuation reflects a fair starting bid. Banks have nothing to do with COV. They lend on valuation basis only. The property agents do benefit though, COV is included in commission. In any case, there's no possibility of COV if there's less than one bidder for the property. In fact sometimes, it can become BV (below valuation) when the seller has to concede discount for the buyer to buy.

bro, this is where the govt is afraid of ( in bad times )


hdb flat selling below valuation. under table money

is commom during the last down turn.

 

[Mdm Tang]

You're confused. COV reflects free market bidding. Valuation reflects a fair starting bid. Banks have nothing to do with COV. They lend on valuation basis only. The property agents do benefit though, COV is included in commission. In any case, there's no possibility of COV if there's less than one bidder for the property. In fact sometimes, it can become BV (below valuation) when the seller has to concede discount for the buyer to buy.

Agreed . "Cash Below Valuation" , CBV ,is most deadly


CBV affect the banks' books .




http://www.wikinvest.com/concept/Subprime_lending