Comments on: Why I don’t like 5/95 housing plan? http://novice.alvinlim.info/2009/06/29/why-i-dont-like-595-housing-plan/ Story about my journey as a novice in investment and money making Mon, 02 Jan 2012 02:45:38 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Alvin Lim http://novice.alvinlim.info/2009/06/29/why-i-dont-like-595-housing-plan/comment-page-1/#comment-2164 Alvin Lim Wed, 15 Jul 2009 14:16:40 +0000 http://novice.alvinlim.info/?p=404#comment-2164 <b>@ jk</b> I do believe that everything has pros n cons. The property market price is supposed to go down during such recession and the developers came out with such plans to attract buyers. More buyers = more demand = price goes up. And the new price could be inclusive of the extra charges. And the new price here could be prices which don't move in line with the current economy. By the way, it's called HIDDEN. Don't expect them to tell u they are charging u more expensive price because of 5/95. That's my personal opinion anyway. :) Oh ya, by the way, this "interest rate absorbed by developer" has already started before the recession by few developers (not so famous). These projects were not very popular and couldn't sell well, esp at premium prices. So the 5/95 attracted more investors to buy..and allowing developers to charge higher. Again, the 2nd point is equally important. If you can afford and don't mind speculate the future, then go for it. If you are not sure what will happen after 2 or 3 yrs and not sure if u are disciplined enough to start saving money to pay for the house, then think twice. Pros n cons to everything. :) And thanks for sharing your opinion here. I know i'm going to get some fire from people with this :P @ jk
I do believe that everything has pros n cons. The property market price is supposed to go down during such recession and the developers came out with such plans to attract buyers. More buyers = more demand = price goes up. And the new price could be inclusive of the extra charges. And the new price here could be prices which don’t move in line with the current economy. By the way, it’s called HIDDEN. Don’t expect them to tell u they are charging u more expensive price because of 5/95.

That’s my personal opinion anyway. :) Oh ya, by the way, this “interest rate absorbed by developer” has already started before the recession by few developers (not so famous). These projects were not very popular and couldn’t sell well, esp at premium prices. So the 5/95 attracted more investors to buy..and allowing developers to charge higher.

Again, the 2nd point is equally important. If you can afford and don’t mind speculate the future, then go for it. If you are not sure what will happen after 2 or 3 yrs and not sure if u are disciplined enough to start saving money to pay for the house, then think twice.

Pros n cons to everything. :) And thanks for sharing your opinion here. I know i’m going to get some fire from people with this :P

]]> By: jk http://novice.alvinlim.info/2009/06/29/why-i-dont-like-595-housing-plan/comment-page-1/#comment-2161 jk Wed, 15 Jul 2009 03:38:52 +0000 http://novice.alvinlim.info/?p=404#comment-2161 I do not agree. Based on the 5/95 package...there really is no extra hidden costs or interests charges until after property completion. All interest charge is absorbed by the developer. Now the prices of the houses are driven up due to that, you you will see that the price of the property is slightly above market value. But keep in mind that the risks are reduced for the buyer in case there is a delay in the construction. And the higher priced property works in favor of the buyer since the price of the property increased instead of paying interest to the bank (interest is still paid, but by developer, so the house seems higher value). So i think it's a win win situation for the developer as well as buyer. Value of property goes up, value of property in the entire area goes up. developer gets to sell subsequent phases at higher price. I do not agree. Based on the 5/95 package…there really is no extra hidden costs or interests charges until after property completion. All interest charge is absorbed by the developer.

Now the prices of the houses are driven up due to that, you you will see that the price of the property is slightly above market value.

But keep in mind that the risks are reduced for the buyer in case there is a delay in the construction.

And the higher priced property works in favor of the buyer since the price of the property increased instead of paying interest to the bank (interest is still paid, but by developer, so the house seems higher value).

So i think it’s a win win situation for the developer as well as buyer. Value of property goes up, value of property in the entire area goes up. developer gets to sell subsequent phases at higher price.

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