Tuesday, 19 January 2010

Would you pay $100, 000 COV?

This was a report found in 'TODAY', here is the link.

This COV thingy is really getting out of hand! It is downright ridiculous to pay COV that much!
In fact, when a valuator valuates the house, he/ she had already consider all factors of the value of the house. Paying a COV to me its just out of goodwill.

With the rise of HDB prices and the increasing amount of COV requested by seller, first time flat owner is finding it tougher to own a house here in Singapore.

I simpy cannot understand why is it that my parents are able to buy a 3-room flat at a good location that is the same size of a new HDB 4-room flat now at less than $20, 000 30 years ago. Nowadays, a 4-room flat will easily cost you at least $300, 000 for one that is located along a good location.

Alright, you say its because of better quality?

Is that true? From my superficial understanding, new flats nowadays have more problems as compared to flats 30 years back. Take for example the current place I'm staying in. Within the 1st year after my family moved in, rain water is able to seep into my bedroom wall, causing the floor to get wet. The rain water did not splash in, it seep in. I don't know how. I had to call Town council at least 2-3 times and HDB another 2-3 times, before they eventually send someone down to take a look at it.

Yes, the word is 'take a look'. Next, they will fix another appointment, say maybe 2 weeks later to do repair work. The root of the problem was the exterior wall. The most frustrating part was, it didn't get any better! The problem remains unsolved.

Apart from me, I'm very sure that there are a lot of young couple out there experiencing problem with their newly purchased flats.

Unlike the flat we bought 30 years ago, it was only after 10 years then you experience problems such as pipe leakage or wall cracking.

Better quality? I don't think so.

Not to even mention that the flats 30 years ago was bigger and more spacious. The new ones that we have now is small! Especially the kitchen! It is almost impossible to have 3 people standing inside there.

Next, you say because of inflation therefore flats are more expensive now.

Allow me to do a comparison. 30 years ago, chicken rice probably cost $1/ plate. It will probably cost you $4/ plate now. That is an increase of 400%.

If the prices of our flats is to increase accordingly it should the most cost us $80, 000 or $100, 000! But what we see now are exorbitant prices!

I don't know if this comparison makes sense, I wrote this blog post in a fit of anger after reading the report mentioned above.

I need to calm downnnnnnnnn....


Anonymous said...

you can be angry but dun be daft ok.

Alan Wong said...

What I do know is that the valuation of a property is based on the estimated price that the property will fetch in an open market on a 'willing-buyer-willing-seller basis.

If there is an additional price (COV) to pay on top of the valuation, it means that the property has been under valued, period. And that directly implies that most of our HDB valuers are simply not professional in discharging their duties.

So the conclusion is that our Gahmen must be condoning the practice for its own political interests.

Anonymous said...

COV is not within HDB control , it is a form of willingness on both buyer and seller 's consideration which is COV. Private property owners have disposed of their property can afford to pay more COV but 1st timer may have problem coughing out this COV.Best solution is buy within your means.

BUY/SELL/RENT specialist.

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