Viewing 13 posts - 1 through 13 (of 13 total)
  • Profile photo of DeanCollinsDeanCollins
    Participant
    @deancollins
    Join Date: 2015
    Post Count: 376

    What the heck….you can get a 5 year fixed mortgage in Singapore for 2.55%

    How come ANZ are able to provide so cheap in Singapore but in Australia its almost double?

    Are the govt etc subsidizing etc?

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    Their currency is currently in deflation – it’s all just about margins.

    3.35% margin between that fixed rate in the current inflation rate.

    Australia has circa 2.8% margin between underlying inflation rate and comparable five year fix.

    • This reply was modified 8 years, 3 months ago by Profile photo of Corey Batt Corey Batt.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
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    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of DeanCollinsDeanCollins
    Participant
    @deancollins
    Join Date: 2015
    Post Count: 376

    Can you provide more of an explanation as I don’t understand what you are proposing there.

    Also I understand that there may be some variation in cost of borrowing based on RBA/Fed etc for variable but how can it be that different for a 5 year?

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    Why do people lend money to others? For profit. You’re not going to lend out (especially at a fixed rate return) for a negative return (below inflation). There are some market distortions where this might happen, but for the most part this is the reality.

    Effectively there is a margin between inflation and rate being offered – then lumber on the other costs of funding and that’s where the fat is.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of DeanCollinsDeanCollins
    Participant
    @deancollins
    Join Date: 2015
    Post Count: 376

    lol at “for profit” comment….ok maybe not that basic.

    what I’m trying to understand is how is the ANZ bank able to offer 5 year in Singapore when the same term mortgage here in Australia is about double that.

    Every second article I’m reading about Australian banks is claiming their cost of borrowing is jacked and going up so much that they have to be pushing loans to 5% in order to make a profit.

    What I don’t understand is how they can be claiming this and then offering 2.55% in another country.

    Is it just there is more competition in Singapore for retail mortgages than the Australian big four?

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    Dean – as above, it comes down to the local currency inflation rate. ANZ is lending in Singapore in the local currency and profiting on the margin between cost of funding and sale price. Cost of funding will not drop below the underlying inflation rate unless for distortion reasons (happened for a while with USD borrowings when EU funds were happy to push their capital at a guaranteed loss just to protect the majority of the capital in a stable environment).

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of DeanCollinsDeanCollins
    Participant
    @deancollins
    Join Date: 2015
    Post Count: 376

    Lol irony on timing…. this was in my inbox this morning :)

    https://foragerfunds.com/bristlemouth/loans-in-a-zloty-trouble/

    Profile photo of realestateprorealestatepro
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    @realestatepro
    Join Date: 2021
    Post Count: 0

    Singapore’s current mortgage rate for fixed is 4.2% and 3.8% for a floating rate. i believe that its slightly lower than Australia. Wonder why the difference.

    realestatepro | Pro-Handy Australia
    https://pro-handy.com/au/

    Professional Handyman Services Australia Wide

    Profile photo of realestateprorealestatepro
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    @realestatepro
    Join Date: 2021
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    Saw this in the news recently: https://www.straitstimes.com/business/property/dunman-road-mega-site-draws-128-billion-bid-pine-grove-gls-site-draws-6715-million-bid

    With the global slow down and increase in rates, its interesting that Singapore’s property market is still pretty strong and stable.

    The tenders for two state-owned plots closed on June 2 in Singapore, resulting in mixed outcomes. Developers displayed eagerness to bid for the Pine Grove site, while the mega-site in Dunman Road (Grand Dunman) did not receive as much attention. This is consistent with the developers’ mindset of bidding for sites with high demand, but only up to a certain point due to the high prices of some mega-plots. The Dunman Road site, the largest Government Land Sales plot since May 2018, only received two bids, possibly due to the considerable price and risks associated with construction costs, cooling measures, and economic uncertainty. SingHaiyi Group submitted the top bid of $1.28 billion or $1,350 per sq ft per plot ratio, although the developer has not commented on its intentions for the site. In contrast, the Pine Grove (Parcel A) plot – (Pinetree Hill) received five bids, resulting in one of the tightest races in recent memory. The UOL Group and Singapore Land Group joint venture emerged victorious with a bid of $671.5 million or $1,318 psf ppr, beating Allgreen Properties’ bid by just $800.

    realestatepro | Pro-Handy Australia
    https://pro-handy.com/au/

    Professional Handyman Services Australia Wide

    Profile photo of DogherDogher
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    @dogher
    Join Date: 2021
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    It turns out that it was necessary to go to Singapore to apply for a mortgage.

    Profile photo of bernardkoh80bernardkoh80
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    @bernardkoh80
    Join Date: 2023
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    Hi, any one has information on how Lentoria will perform as it launches next year?

    • This reply was modified 7 months, 1 week ago by Profile photo of bernardkoh80 bernardkoh80.
    Profile photo of bernardkoh80bernardkoh80
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    @bernardkoh80
    Join Date: 2023
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    Saw this in the news recently: https://www.straitstimes.com/business/property/dunman-road-mega-site-draws-128-billion-bid-pine-grove-gls-site-draws-6715-million-bid With the global slow down and increase in rates, its interesting that Singapore’s property market is still pretty strong and stable.

    The tenders for two state-owned plots closed on June 2 in Singapore, resulting in mixed outcomes. Developers displayed eagerness to bid for the Pine Grove site, while the mega-site in Dunman Road (Grand Dunman) did not receive as much attention. This is consistent with the developers’ mindset of bidding for sites with high demand, but only up to a certain point due to the high prices of some mega-plots. The Dunman Road site, the largest Government Land Sales plot since May 2018, only received two bids, possibly due to the considerable price and risks associated with construction costs, cooling measures, and economic uncertainty. SingHaiyi Group submitted the top bid of $1.28 billion or $1,350 per sq ft per plot ratio, although the developer has not commented on its intentions for the site. In contrast, the Pine Grove (Parcel A) plot – (Pinetree Hill) received five bids, resulting in one of the tightest races in recent memory. The UOL Group and Singapore Land Group joint venture emerged victorious with a bid of $671.5 million or $1,318 psf ppr, beating Allgreen Properties’ bid by just $800.

    How was the performance of the 2 condominiums?

    Profile photo of bernardkoh80bernardkoh80
    Participant
    @bernardkoh80
    Join Date: 2023
    Post Count: 0

    Hi, any one has information on how Lentoria will perform as it launches next year?

    Latest I heard the showflat will be ready for visits in February 2024

Viewing 13 posts - 1 through 13 (of 13 total)

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