Property agents feeling the pinch as market cools

[Runifyouhaveto]

With peaks here and there in sinkieland, anyone wants to buy in aussieland instead?

I heard Aust property market is hot in the past 12 months. Many local agents changed focus and made more selling ANZ, UK, Philippines, Malaysia and Thailand properties and gets appx 2% commission because the quantum for overseas properties are usually lower.

The taxes are high in australia so many people take a token 30-50% financing to use interest expense offset their tax burden.

 

[krafty]

actually, a bit late in going into aussie property now, all very expensive. if you have kids and intend to send them over for furthering studies, can look to buy one small unit, near to RMIT and city centre for instance will cost you about AUD500k...

With peaks here and there in sinkieland, anyone wants to buy in aussieland instead?

 

[SgGoneWrong]

actually, a bit late in going into aussie property now, all very expensive. if you have kids and intend to send them over for furthering studies, can look to buy one small unit, near to RMIT and city centre for instance will cost you about AUD500k...

My char bor doesn't want to wait for sinkieland property, she said don't know have to wait how long. She going for auction this weekend.

Apartments here have good rental 6-7% but also body corporate rates. Houses unless on strata title has no body corp rates. However, don't expect to flip for Aussie props. U can own a piece of land though.

 

[Runifyouhaveto]

Now the agents are dropping like flies due to decreasing transactions.

The good ones switched to marketing overseas properties eg UK, ANZ, Thailand, Malaysia, Philippines. Singapore don't allow foreign agents to sell overseas properties in Singapore. Currently, the fastest growing sector is the resale market for iskandar properties now, not developers' sales. Many realized that iskandar developers takes their bloody own sweet time to complete but claims 80% of money from bank loan and can change designs as they wish. So new wave of iskandar buyers only want to consider completed units.

The latest news i heard:
- class-action from iskandar KSL buyers in KL because the designs anyhow changed and swimming pools reduced.
- country garden piling company slowed down works because $$$ not paid in time.

 

[SgGoneWrong]

I heard Aust property market is hot in the past 12 months. Many local agents changed focus and made more selling ANZ, UK, Philippines, Malaysia and Thailand properties and gets appx 2% commission because the quantum for overseas properties are usually lower.

The taxes are high in australia so many people take a token 30-50% financing to use interest expense offset their tax burden.

Yeah, got benefits for negative gearing here.

 

[Runifyouhaveto]

My char bor doesn't want to wait for sinkieland property, she said don't know have to wait how long. She going for auction this weekend.

Apartments here have good rental 6-7% but also body corporate rates. Houses unless on strata title has no body corp rates. However, don't expect to flip for Aussie props. U can own a piece of land though.

If own stay, a little 10-15% more expensive is ok. Hard to time a property purchase if it is own-stay.
If your zarbo is singaporean, both of you try to get PR also. At least, university schooling is really cheap for your kids in future.

 

[krafty]

i think most apts there are catered for rental to students. i stayed near victoria market when i was there couple of times, all other tenants are students. thai, malaysian and there is even one thai ah kua...:o btw, it was an old house with many rooms, and the current value is 1mil AUD.

Foreword: i am here to learn about property and not here to talk big, my opinions are what i gathered from my intelligence sources:o

My char bor doesn't want to wait for sinkieland property, she said don't know have to wait how long. She going for auction this weekend.

Apartments here have good rental 6-7% but also body corporate rates. Houses unless on strata title has no body corp rates. However, don't expect to flip for Aussie props. U can own a piece of land though.

 

[xebay11]

I have heard the above statement aplenty times from agents. Let me give this example:
During hot hot property market days, speculators pay for the purchase option (not sales agreement) and put "TAN AH KOW AND/OR beneficiary" so that they can freely transfer the unit within the next 2 weeks = flip property for maybe just a 1% downpayment.

Appointing an exclusive agent is like giving others a chance to flip your property for FREE. You don't even get a 1% downpayment. It is like you granted them a "free option to purchase on your house" for 2-3 months but they don't promise any compensation, for failure to do so. Being exclusive, they will still take commission in the agreed period (2-3 months) even if a transaction is closed without any effort or contribution from them.

This is why exclusive agents are not in the best of your interests. Of course, if you sell if yourself, I still encourage you to reimburse agents who can bring you prospective buyers 0.5 - 1% commission.





here's an earlier take on exclusive agents:
I assure you that you will never get the best price for your unit when you appoint an exclusive agent. Exclusive agents can promise you the sun and the moon but once you appointed them as your exclusive agent, the game is half-won for them. In short, they have no incentive to protect your interests going forward. Always declare the sale of your unit, free-for-all / open for all agents. In this way, all the agents will have equal incentive to convince the buyers to offer a higher price, as much as they want you to lower selling price. In addition, you will get maximum exposure because you can get more agents to promote you unit online or in classified ads which will translate to greater buying interests.

Yes I have ever sold properties on open listings, yes I did get the best price, as I simply waited till an agent who waved the cheque with correct price in my face, but timing wise was not the best, but this was an industrial property which I had an ongoing business in, so the incentive to close fast was not there.

As for my residential investment units where time is of the essence, I find exclusive agents work better and I always use incentive targets, hit that and they get more. No point saving a little commission and miss the boat by a slow sale on a good deal which you can make much more.

Anyway there are many ways agents also undercut each other, even exclusives, I have agents who simply present a cheque in front on my face on offers which I cannot refuse, so I just terminate my exclusive agent too and accept, so I get the best of both world's with exclusive agent and exposure of open listing market. So nothing to lose by getting an exclusive agent, it's a success fee basis service.

 

[sense]

Yes it does....real estate agents are cunts....end of debate...now fuck off.

That's a bit too harsh.

While there are rouge agents around, am sure there are also other honest agents that are out there to earn a fair living - hope that the ratio is tilt towards the honest side - it definitely helps that there is CEA here to ensure that rouge agents get the boot.

Wonder if there is any effective way to identify good and honest agents around, other than word of mouth?

 

[Runifyouhaveto]

That's a bit too harsh.

While there are rouge agents around, am sure there are also other honest agents that are out there to earn a fair living - hope that the ratio is tilt towards the honest side - it definitely helps that there is CEA here to ensure that rouge agents get the boot.

Wonder if there is any effective way to identify good and honest agents around, other than word of mouth?

I came across more good agents in rental market. A lot of successful rental agents relied on repeat customers, so it encourages them to be more ethical.

 

[xebay11]

I came across more good agents in rental market. A lot of successful rental agents relied on repeat customers, so it encourages them to be more ethical.

Definitely, these days with CEA and Licensing, rouge agents are not the norm.

 

[SgGoneWrong]

If own stay, a little 10-15% more expensive is ok. Hard to time a property purchase if it is own-stay.
If your zarbo is singaporean, both of you try to get PR also. At least, university schooling is really cheap for your kids in future.

I'm pr since I landed here. I wanna buy in sg, at least hdb.
One thing good about not being in sg, I see kids running, playing in big non crowded open space.

 

[xebay11]

The good ones switched to marketing overseas properties eg UK, ANZ, Thailand, Malaysia, Philippines. Singapore don't allow foreign agents to sell overseas properties in Singapore. Currently, the fastest growing sector is the resale market for iskandar properties now, not developers' sales. Many realized that iskandar developers takes their bloody own sweet time to complete but claims 80% of money from bank loan and can change designs as they wish. So new wave of iskandar buyers only want to consider completed units.

The latest news i heard:
- class-action from iskandar KSL buyers in KL because the designs anyhow changed and swimming pools reduced.
- country garden piling company slowed down works because $$$ not paid in time.

Why only good ones? Marketing overseas properties is open to all, no skill level exclusive.

Overseas property market, this one you really don't need SG agents, take a trip there and try to do your own homework and get direct from developer, many SG agents knowledge of overseas brochures are no more than the glossy brochure.

 

[xebay11]

Wonder if there is any effective way to identify good and honest agents around, other than word of mouth?

Talk to them and find out.

 

[kaipoh]

JB pretty lady agent begs me to buy Iskanda Property for Investment, after a few communications I told her I wanted to keep her and put her name there because it's so much cheaper, she agreed, I paid a down payment the rest on May Bank Loan by Installments. I am arranging a 10 years lease from her. am I doing it right?

I heard Aust property market is hot in the past 12 months. Many local agents changed focus and made more selling ANZ, UK, Philippines, Malaysia and Thailand properties and gets appx 2% commission because the quantum for overseas properties are usually lower.

The taxes are high in australia so many people take a token 30-50% financing to use interest expense offset their tax burden.

 

[Runifyouhaveto]

JB pretty lady agent begs me to buy Iskanda Property for Investment, after a few communications I told her I wanted to keep her and put her name there because it's so much cheaper, she agreed, I paid a down payment the rest on May Bank Loan by Installments. I am arranging a 10 years lease from her. am I doing it right?

keep her? as in become mistress?
I think it is a good idea. She got any sisters?

 

[xebay11]

JB pretty lady agent begs me to buy Iskanda Property for Investment, after a few communications I told her I wanted to keep her and put her name there because it's so much cheaper, she agreed, I paid a down payment the rest on May Bank Loan by Installments. I am arranging a 10 years lease from her. am I doing it right?

Bad move, she will just take the property and you don't have a chance in hell to get it back.

 

[Runifyouhaveto]

Bad move, she will just take the property and you don't have a chance in hell to get it back.

No, I think Kaipoh very smart.

1. They can loan up to 90% for malaysia properties, definitely can loan 90% if got 2 names. If Kaipoh is paying 10% for a 10-years lease (legally binding), i think it is a good deal.
2 If Kaipoh finances the loan instalment under the beautiful agents name, 'he can just pay minimal amount and serve the interests
3. In fact, if market super big crashes (not likely), Kaipoh can ignore loan if his name is not included in the loan.
4. Malaysians are also eligible to buy <$500K condos in Iskandar = more cheap deals to choose from.
5. If Kaipoh keeps her as mistress = more goodies.

Finally it doesn't make sense for the girl to run away if there's only a 10% downpayment because of sellers' penalty

 

[Runifyouhaveto]

Learn something new from Kaipoh today.

Malaysian girls who are eligible for 90% bank loan, can pm RUN for discreet discussions on downpayment financing :p

 

[Runifyouhaveto]

Singapore Housing Purchases Drop as Rates Poised to Rise

http://www.bloomberg.com/news/2014-...g-purchases-drop-as-rates-poised-to-rise.html