EN-BLOC DREAM - Her $400,000 home is now worth $660,000
EN-BLOC NIGHTMARE - Woman has already bought another home. If no en-bloc sale, she will end up with two homes and loans she can't service
By Desmond Ng
December 02, 2006
HER dream could easily turn into a nightmare overnight.
Some residents of Waterfront View who are unhappy with the onjection to the en-bloc sale, (from left) Mr Justine Monterio, Mr David Govinden, Mrs Shirley Rance and Mr Bill Rance. -- MOHD ISHAK
The Waterfront View condo en-bloc sale was supposed to have been a financial lifeline for resident Madam Aminah.
But one family does not want to sell and has appealed. If they win their appeal, it could be disastrous for Madam Aminah.
The 50-year-old housewife said she could find herself saddled with two homes and a huge financial burden.
Madam Aminah paid $755,000 for her Waterfront unit during the property-price peak in 1995.
Today, she says her 1,800-plus sq ft unit can fetch about $400,000 in the open market - a potential loss of about $355,000 if she sells at that price.
So, it was a relieved Madam Aminah who enthusiastically voted 'aye' to the en-bloc deal in March, which would mean a payout of about $660,000 for each unit.
Buoyed by the good news, she and her family found a replacement condo unit of about the same size in Siglap, paying $700,000. She said they paid a deposit of about five per cent, or $35,000, in July.
Then came the appeal against the en-bloc sale.
Madam Aminah said she still owes the bank about $200,000 for the Bedok Reservoir property.
She said: 'If the en-bloc doesn't go through, what will happen to the rest of the people and us too? We may have to forfeit the deposit for our Siglap place. We can't be stuck with two apartments.
'Some of us have to suffer some loss but we have to move on. If we stay put, we may incur more maintenance cost.'
SMALLER LOSS
For Madam Aminah, accepting the payout would mean a loss of almost $100,000 ($755,000 minus $660,000). This loss doesn't include the loan interest.
But she said she'd rather bite the bullet now than continue living in the ageing estate.
Said Madam Aminah: 'The estate is not in a good state. We were told by the management committee that we need to spend about $80,000 to $100,000 each household to upgrade the estate, such as the lifts and common areas.
'It's a lot of money, and where are we going to get the money?'
Madam Aminah is married with four children. Her husband is in the marine engineering industry.
Waterfront View, a 99-year leasehold property, was built by the HDB in 1984 and privatised in 2002.
The estate was sold for $385 million in May to FCL Peak, a joint venture between Frasers Centrepoint and Far East Organization.
About 96 per cent, or 560 out of the 583 home-owners, have consented to the en-bloc so far.
Madam Aminah is just one of the many residents there who have to put their year-end celebrations on hold and wait for the the Strata Titles Board (STB) to decide if the collective sale can go through.
Other residents are also upset about the recent turn of events.
Insurance agent David Govinden, who has been living in that estate since 1988, felt strongly about the objection.
He paid about $220,000 for his 1,711 sq ft unit in 1988.
Said Mr Govinden: 'I think it's a great disservice to the majority who voted for the en-bloc. Now, some people are feeling jittery about whether the en-bloc can go through.'
The 57-year-old said that the open market price for a unit there is no more than $400,000 - a far cry from the $660,000 offered.
He added: 'This estate is breaking down. We have to spend more money to get things done or go for an en-bloc. We have to think about the future.'
For Mr Bill Rance, 62, the en-bloc objection came as a surprise. He and his family paid about $235,000 for their 1,711 sq ft unit in 1985.
He said: 'Before the en-bloc news, some people spent up to a year marketing their place, but there were no viewings. That's how bad it is.
'This en-bloc may be the best thing that has happened to this estate.'
Despite all these opposing views, Mr Yeo Loo Keng, who objected to the en-bloc sale (see report on facing page), said he has not received any abuse from his neighbours.
He said: 'No one has given me dirty looks or confronted me. But I did explain to some of my closer neighbours my predicament and they accepted my explanation.'
As in any en-bloc deal, you can never please everyone, said ERA Singapore's assistant vice-president, Mr Eugene Lim, and STB will go through the process to see if anyone has been unfairly treated, he said.
But he said he had not heard of any en-bloc deal being stopped by one individual.
'The channel is always there for the unhappy ones to appeal against the en-bloc. Some may feel the distribution method is not fair. But there's always a price to convince people who don't want to move,' he said.
NOT happy with the en-bloc payout? Or you simply love your estate too much?
02 December 2006
NOT happy with the en-bloc payout? Or you simply love your estate too much?
According to the Strata Titles Board's (STB) website, a unit owner who has not agreed to the sale can file an objection with the board. He has to do so in writing, within 21 days of the date of the notice for sale.
The board may not approve the sale if it is found that the transaction was not entered into in good faith, after taking into account:
The sale price for the whole development
The method of distributing the sale proceeds
The relationship of the purchaser to any of the flat owners.
Other factors for non-approval: If the objecting unit owner suffers a financial loss, or the sale proceeds are not enough to redeem any mortgage or charge against the flat.
The Act says an owner in an estate subject to an en-bloc sale will be deemed to have incurred a financial loss if the sale proceeds, after any deduction allowed by the board, are less than the price paid for the property.
