Not for love of money, but of Humanity. "Greater is he who works for the good of all, then he who works for the good of himself only" ~ Matthew 25:40: "The King will reply, 'I tell you the truth, whatever you did for one of the least of these brothers of mine, you did for me.'"- (NIV). I live in Singapore where the Emperor must not be disturbed.
Friday, January 21, 2011
Re: 'Tax en bloc speculators too'
For those who are not/ 1/2 in favor of an en-block (like e vicinity, want to return to new development), I've 2 suggestions:
1) Vote against it if U're not convinced.
2) Demand an exchange/ tiered compensation scheme (gd idea but currently rarely done)
(i) New Units are priced based on view, facing, floor etc, I understand that based upon psf pricing, the difference btw cheapest unit and most expensive ones may be up to 50%. If the reason for the condo being en-blocked is mainly just for financial gain, then those who stay in better facing/ floor units should demand a compensation premium above the median psf compensation value. (i.e. +/- 5% for facing/ view, +/-10% for floor). This would deter en bloc speculators from buying up cheaper units then gaining a windfall from the en bloc because compensation is currently mostly equal regardless of unit specifications.
(ii) If U are worried about housing prices increasing, then ask about an exchange scheme wherein the compensation for your current home is pegged to the psf price of the new one. E.g. based upon the a/m, the median psf price (compensation) of a unit in your estate is $1400psf and your unit (of median spec.) is 2000sqft (en bloc compensation= $2.8m). Unfortunately, housing prices fall due to poor economy. The median prices of new units in the first yr of launch is priced at a median psf price of $1000psf. Your original $2.8m if not taken in cash prior, but by agreement- to the 'hedge exchange process' would entitle you to choose a unit in the new devp worth $2.0m within 1 yr of launch- this might seem a loss in the event of a weakening ppty mkt but it could have gone either way. The good thing about hedging would be that U are guaranteed a new unit in the new devp regardless of the movement in property prices.
(developers might be keen to offer this scheme as it would reduce their losses in case the price of ppty falls prior to the launch of their new development)
21Jan2011: Tax en bloc speculators too