Wednesday, May 24, 2006
[RealEdge] TodayOnline Forum : Flat valuation falls, who pays price?
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| Flat valuation falls, who pays price? Wednesday • May 24, 2006 Letter from Kuan Yen Ping I AM writing this letter to speak for those who purchased 5-room and executive HDB resale flats on which the valuation prices have dropped. Many people bought such flats at high prices. Those who purchased the flats before the 1997 Asian financial crisis paid the highest price. Some sold their flats and downgraded to smaller ones due to financial difficulties or they found that it is not worth continuing to live in the big flats in view of the high monthly loan installments. But with the lower valuation prices, many suffered losses in their Central Provident Fund (CPF) savings. Take my case. I bought my 5-room HDB flat in Toh Yi Drive in 1999 at $419,000. After the $40,000 subsidy, I paid $379,000. The valuation price of my flat unit dropped to $335,000 last month — a loss of $44,000 to me. The HDB has implemented measures to boost the demand for new private properties. Likewise, the market demand for bigger HDB resale flats can be increased with changes to the housing policies. The consequence of a further decrease in valuation price of big flats is that those who sell their flats may encounter difficulties paying off the loans on their next property. They may not have enough savings in their CPF account for retirement. | |
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// posted by Shajahan @ 9:10 AM 