Legally, real estate agents represent the seller of a property. The seller, after all, is  the one who pays their commission, and agents in the Singapore property market therefore have a fiduciary relationship with the seller. This in no way means that agents may do anything that is not in accordance with the law . Real estate agent is just that, an authorized agent of the seller for a particular property transaction.

More recent trends have introduced buyer’s agents, who usually work on a fee basis exclusively for the buyer, and dual agents. Dual agents represent both seller and the buyer, particularly in cases where the agent’s company is the listing company. Dual agency is legal in most country, however, most consumer advocacy organizations recommend against the use of  a dual agent. This is because there is a  conflict of interest on the part of the agent – they receive a commission based on the selling price of the property. The higher the price, the higher their commission, so their reasoning is that dual agents never really have the buyer’s best interests at heart.

If you’ve decided to work with a dual agent, it is important that you disclosed the fact  to both the buyer and seller, and they both have to agree. The agreement should be in writing. Dual agents are bound by law and ethics to treat both buyers and sellers honestly, equally, and fairly. Dual agents can be prevented from divulging confidential information to both  party. This could severely harm negotiating positions.

The bottom line in dealing with a dual agent is to remember that the buyer and seller have conflicting interests in the transactions. It’s very difficult for an agent to truly and equally represent both parties, since the conflicting interests make that inherently impossible. If you do choose to use a dual agent, be sure that the  exact nature of your relationship with the dual agent is clear. Know what services the agent will be performing in your behalf,  how the agent will be paid, and how will future  conflicts that may arise will be handled.

Cleaning the home with clutters always posed a problem to those who are living in the same house. There are plenty of good reasons why we have to address the propblem on clutter in the home. Singapore Property Exchange made a  lists of things to follow in order to minimize clutters in your  Singapore property home. Now, if you plan on moving to another property much smaller to your current house, or if you are merely looking to let go of  some unwanted  belongings,  before you proceed upon your plan, don’t you think this is the best time to downsize  your stuff ?

Here are a number of ways you canlessen your stuff before you make that most anticipated move to another Singapore property:

Plan a Garage Sale – As they say, one person’s junk is another person’s treasure. With this in mind, you can hold a garage  sale. This way you can not only get rid of your unwanted or unused household stuffs, but you can also generate money in the process. Clear out the attic, the garage and the closets in your home and spend the  weekend holding your garage sale. Advertise in your local paper, throughout your neighborhood and even at your local library so you can be sure to get plenty of prospective buyers.

Donate – Once you have finished your garage sale, pack up the remanings that was not sold and call a local charity. You can make other people happy by giving them your unused items and at the same time you can write off the donations on your year-end federal taxes. Photographed  and catalogued the event and the things that was donated. Asked for a receipt from the charity  for tax purposes.

Gift – Now is a great time to give  furniture and other valuable  householditems ,that you think you will no longer need,  to close friends and family members. Your children would appreciate your cherished mementos, and you can be sure meaningful items stay in the family.

Throw them away – Sometimes it’s like ripping a Band-Aid off, but recognizing that there are simply household goods that you no longer need or want and getting rid of them quickly may be a great thing to minimize clutters in your home. Separate what can be sold or donated from what must be thrown away, but do it passively so that you don’t find yourself moving with things you no longer need or want..

As the year draws to a close, Singapore property analysts and economists ponder over the factors at play in the real estate market both locally and globally. What are they and how will they affect you?

Property has been enjoying a boom like no other in the past two years but if Standard Chartered’s experts are right , the good times are coming to an end. The bank’s analysts have turned markedly bearish, with a report foreseing residential rents and prices plunging 30 per cent over the next three years. This will be ahurting reversal given that prices surged 18 per cent last year – as Singapore return back from the global financial crisis – and a further 6 per cent in the first nine months of this year.

Stanchart sees problems ahead, including slower population growth due to stern  immigration policies and the unprecedented supply of completed homes coming onstream. Rock-bottom interest rates could also edge up from 2013, further dampening the market.  Muchmore, added to the problems are the debt crisis involving European Countries and  concerns of a severe downturn in China could also have a considerable impact on demand and prices.

After four rounds of cooling measures since September 2009, the Urban Redevelopment Authority (URA) has found price gains moderating for eight consecutive quarters. They inched up just 1.3 per cent from the second quarter to the three months to Sept 30. Another report – from DTZ Research –observed that transaction volumes dropped 25 per cent in the third quarter as global uncertainty and stock market volatility took their toll on sentiment. So with all asset classes said to move in cycles – the classic boom and bust scenario – is the Singapore property market headed for a sustained downcycle and a correction in prices? What factors are at play?

Economic outlook

The euro zone crisis is one of the primary factors determining the directions of the property market as experts noted. Singapore’s economy, buffeted by global weakness and uncertainty, is predicted to grow at a lethargic 1 per cent to 3 per cent next year but that could worsen if Europe’s woes escalate or a full-blown financial crisis erupts. Experts add that while anytightening in the global economy will hurt Singapore, thedegree remains unknown as the European crisis plays out in slow motion. There are also other mitigating factors in play.

‘Property markets go through cycles, just like economies. Only if you are in an emerging market where there is a long period of strong economic growth, might you have a long property market upcycle’, said DTZ’s head of Asia-Pacific research Chua Chor Hoon.

The employment and businesses are affected when the economy contracts, naturally,  this will also have a reaction in the  buying sentiment and the capacity to buy homes. Prices will fall if the major global economies deteriorate as Singapore’s economic growth will be affected, she added. DBS economist Irvin Seah said the slowing economic growth generally places a heightened risk of depreciating asset values.

However, housing demand in Singapore has remained in good shape. This was evident by the continuous low unemployment rate while wages continue  to rise. The local property market is also known to be fairly resilient , experiencing just a short blip during the global financial crisis prior to a sharp rebound at the end of 2009. . However, there is the scenario of a hard landing in China – Singapore’s largest export market – as possibly blowing the market most severely. But the risk of a hard landing in China is ‘moderate’ and not big enough to warrant concern as yet. Chesterton Suntec International research head Colin Tan noted that a recession coupled with job losses is likely to drag prices down. ‘The moment when potential buyers feel insecure about their future source of income is when they pull back from buying or begin to divest,’ he said.

In a downturn, foreign capital could also become defensive and pull back from investing overseas, some experts say. Moreover, while another global crisis might also dampen sentiment, this  might lead to more money being put into the markets as governments act tosave their economies. Already, there is talk of a third round of quantitative easing by the United States Federal Reserve. These high levels of liquidity flooding the market might find their way to Asia and continue to support property prices.

Interest rates

Low interest rates that are making mortgages far more affordable have also helped to support the housing market. And with the United States Federal Reserve pledging to keep rates low until mid-2013, rates here are also likely to remain flat. However, Stanchart property analysts say that low borrowing costs are not enough to sustain the market. The increase in the public housing income ceiling and the lower pricing of new HDB flats – expected to siphon demand from the private sector – should still lead to price falls. What more then if rates rise, likely around mid-2013 if the US economy gets back into shape.

Private home buyers are estimated to spend more than 38 per cent of their monthly gross income on mortgage repayments even though rates are only at 1.1 per cent, the report noted. This is slightly higher than the Government’s target of 30 per cent to 34 per cent. ‘If interest rates normalise to the 10-year average of 4 per cent, we estimate the proportion of income spent on mortgage repayments to rise to 50 per cent,’ it added.

Rising interest rates are expected to reduce affordability and trim market demand, possibly leading to prices dipping as well. However, as some experts note, any decision by the US Fed to raise rates will mean that its economy is finally on the mend and that could signal that the global economy is out of the doldrums, which is good news for investors.

Slower population growth

Tighter immigration policies have recently been introduced in  response to the issue over over strained infrastructure and congestion. The Stanchart report noted that population growth is expected to be halved to 1.5 per cent to 2 per cent for the next three to five years as the Government looks to encourage productivity gains and reduce its reliance on foreign workers. But this reduction might have a knock-on effect on leasing demand and rents, especially with foreigners – including permanent residents – making up 37 per cent of the population.

Experts further aver that if demand from tenants falls, rents and correspondingly yields – which are already low at 2.6 per cent to 3 per cent – will fall, with prices following eventually. But AmFraser Securities equity analyst Lau Wei Chong noted that although the intake of foreigners has slowed, the Government maintains its open door policy, which will result to a continued  population growth. This continued influx will alleviate any sharp fall in property prices, he said.

Oversupply

The large number of completed units from the bumper supply of state land releases raises the question of whether these homes can be absorbed by the market. The report noted that the number of homes to be offered for sale is similar to that in 2000, when prices plummeted 20 per cent. As of the third quarter, 37,400 homes are in the pipeline seeking the required pre-requisite conditions to be launched. This is similar to the 36,400 units in the first quarter of 2008 and the 37,500 units in the second quarter of 2000.

The report further emphasized that prices fell down by 25 per cent in 2009 and 18 per cent in 2001. Completions are alsopredicted to reach the  peak in 2015 with a staggering 47,000 units built. This is almost three times the number of private homes developers sold last year, which was itself a record. The unprecedented supply of new HDB flats – 50,000 in total for this year and next – will also divert buying demand from the private sector.

However, Dr Chua Yang Liang, head of research at Jones Lang LaSalle South-east Asia, noted that the population has expanded by about 2.8 per cent a year over the past 10 years while the number of completed homes has increased by 2.1 per cent a year. Given the way the growing population has outpaced the housing stock, this has led to a backlog of demand for homes. ‘If the economic crisis is not too severe, this will help to mitigate the sharpness of any price correction,’ Dr Chua added.

I had an experience with an attempted showing this weekend that makes me j shake my head and wonder what people are thinking. This  particular  Singapore  property has been on the market for a while, and is in an area where comparables are not easy to obtain.

My clients are looking for a get-a-way home with waterfront access. They are looking , in particular, some of the larger lakes in the County.

In waterfront property there can be a wide spread of values and some sellers know that the premium for waterfront may be acceptable if the house is right.

As we near  this  particular home, we were greeted by the homeowner that was about to leave. She explained that her mother was staying behind to attend to their dog.  As I peered into the doorway, I was greeted by a pit bull, no leash or collar just barking up a storm.

We suggested that the mother put the dog into one of the rooms while we walked around the outside of the home.

The home had a rental apartment  separated from the main house . It was unoccupied . When we walked in, the place was a mess.

Well, I was disappointed. It certainly did not rise up to my expectation.

The main wall of the house had  been painted in black spray paint with anti-Semitic phrases, racist phrases and graffiti splattered on the walls.

We left the house, and I got on the phone to the listing agent and suggested that they get back and take a look at their listing.

I received a call from the agent later that night,  she apologized profusely on behalf of her client. Evidently a friend of the seller’s son had occupied the apartment for a few weeks and the owner had not entered the house after they left. Thus, they were caught off guard when went there to see the house.

As agent’s we have to attend to our business however , we also have  an obligation to make sure our clients take care of their properties and to remind them that they should be friendly to prosepective buyers. This is especially true  when dealing with rental properties whose owners are foreigners and sometimes lives next door.

Roof repair is one of the most important things that you need to know  if you want to have the best experience while staying inside your house. However, You should be  knowleadgeable in this area in order to prevent from  hiring a  professional in the roof repair business. If you know the basic in the emergency roof repairs, you will be able to prevent small problems into becoming a major one and that will help you save a lot of money. Read this article to learn some of the most basic roof repairs  and apply it to your Singapore property home.

The first tip is that  to check your roof for small damages at least twice every year. This will ensure that you will be able to determine whether you can deal with the damages as soon as possible. If you can find  small damages earlier, you will be able to easily prevent it from  getting  worse and that’s tantamount to hiring a  professional to do the  repair .

If you have seen medium-sized damage on your roof, the best thing that you can do is to contact a professional roof repair service immediately. If you ignore even a  small damage , it can worsen rapidly and that will cause you to spend more money to spend for your roof. This is also the main reason why you need to perform roof maintenance checks regularly.

Small damage on your roof can easily be solved with a sealant. It won’t cost hundreds of  Singapore dollars, so you should not wait for long before you fix the damage. Otherwise, chances are you  will be spending more than you have to if you have attended to the damage sooner. However, there are  cases where the use of sealant is not applicable. You can avail for the services of a professional if you want to determine if  the damage can be resolved by simply applying the sealant or not.

The last maintenance tip that you need to know is to make sure that your roof is clean free from falling leaves and fruits from a nearby tree.  Leaves and fruits are biodegradable, and decaying plants and fruits can cause more damage on your roof. Make sure that your roof is free from this things, and checking it at least once a week will prevent you from spending thousands of dollars in the near  future. If you want to learn more of the basic home repairs for future reference, feel free to visit our website at www.singaporepropertyexchange.com.

Most first-time buyers listened to the advice of friends’, family’s and coworkers’in buying a home. However, it’s only normal reaction to have doubts, as buying a house is a major decision and will take a large amount out of your savings.  It’s quite expensive to purchase a Singapore property home nowadays, thus, careful thinking and  weighing various options are essential. The more you know about why you should buy a home, the less scary the entire process will appear to you. Singapore Property Exchange list some good, viable reasons why you should buy a home.

Pride of Ownership

Pride of ownership is the number one reason why peopledesire to own a house. You are free to paint the walls of  any color you desire, turn up the volume on your CD player, attach permanent fixtures and decorate your home according to your own taste. Home ownership gives you and your family a sense of stability and security. It’s equivalent to making an investment for the future.

Appreciation

Although real estate moves in cycles, sometimes up, sometimes down, over the years, real estate has consistently appreciated. The Office of Federal Housing Enterprise Oversight monitors the movements of single family home values across the country. Its House Price Index breaks down the changes by region and metropolitan area. Many people view their home investment as a hedge against inflation.

Mortgage Interest Deductions

Home ownership is a superb tax shelter and our tax rates are construed in favor of homeowners. As long as your mortgage balance is smaller than the price of your home, mortgage interest is fully deductible on your tax return. Interest is the largest component of your mortgage payment.

Property Tax Deductions

IRS Publication 530 contains tax information for first-time home buyers. Real estate property taxes paid for a first home and a vacation home are fully deductible for income tax purposes. 

Capital Gain Exclusion

Having lived in your  in your home for two years of the past five years, you can exclude up to $250,000 for an individual or $500,000 for a married couple of profit from capital gains. You do not have to buy a replacement home or move up. There is no age restriction , and the “over-55″ rule does not apply. You can exclude the above thresholds from taxes every 24 months, which means you could sell every two years and pocket your profit–subject to limitation–free from taxation.

Preferential Tax Treatment

If you receive more profit than the allowable exclusion upon sale of your home, that profit will be considered a capital asset as long as you owned your home for more than one year. Capital assets receive preferential tax treatment.

Morgage Reduction Builds Equity

Each month, part of your monthly payment is applied to the principal balance of your loan, which reduces your obligation. The way amortization works, the principal portion of your principal and interest payment increases slightly every month. It is lowest on your first payment and highest on your last payment. On average, each $100,000 of a mortgage will reduce in balance the first year by about $500 in principal, bringing that balance at the end of your first 12 months to $99,500.

Equity Loans

Consumers who has a balance in their  credit card  cannot deduct the interest paid, which can cost as much as 18% to 22%. Equity loan interest is often much less and it is deductible. For many home owners, it makes sense to pay off this kind of debt with a home equity loan. Consumers can borrow against a home’s equity for a variety of reasons such as home improvement, college, medical or starting a new business. Some state laws restrict home equity loans.

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As a smart real estate investor you spend a tremendous amount of time deciding whether to purchase a property or not. Even in markets that are red-hot and fast-moving you analyze the condition first and then decide on your investment boundaries so  you can pounce on a deal the moment you recognize it. But what about selling? Choosing the right time to sell a rental property may be more crucial to your success as a real estate investor than your initial decision to purchase it.

Any investor who has been in the game for a while has a story or two about the house he wishes he hadn’t sold or others that should have been sold long before they actually were. Where is that crystal ball when you need it? It’s often better to be lucky than good, but the long-time baseball general manager, Branch Rickey, once said that “luck is the residue of design.” If you want to be “lucky” it is essential to put as much pondering and effort into timing a sale as you do in making the initial buy.

Evaluating your Rental

The most obvious reason to sell a rental property is because it has a negative cash flow. It means that  it costs more to own and maintain it . Why would someone buy a Singapore property in the first place? Maybe they didn’t. The cost of taxes, utilities and insurance may have risen, market rentals may have dropped, or both. Losing money monthly  is a strong indication that it’s time to reevaluate the situation. It still isn’t a sudden decision since there may be valid reasons to hold a property that continue to lose money. Perhaps the likelihood of property appreciation is strong because of things happening in the area or the rents are expected to increase in the near future. Holding a losing property  long enough to change the tax gain from ordinary income too much lower long-term capital gain is an excellent reason to hang on for a little while. You do need to be cautious  to hold on to property that is a losing proposition with no hope of improving.

What about a property rental that is making money? How do you determine when it’s time to cash in? This requires a little more reflection . Does the property still within your overall plan for your investment business? Is the property in  good condition with the rest of your real estate portfolio? What are the expectations for cash flow, vacancy, maintenance, and appreciation? Is the neighborhood evolving ? Are you expecting  major repairs such as a roof or furnace? Are you suddenly having a problem with your tenants or property manager? The biggest question – would you buy this property today?

Evaluating your Future Plans

In the  investment business, real estate or otherwise, there are times when you need to cash in your profit or cut your losses. Many investors lose money because they are reluctant to  loss or they are waiting for a chance to make it big. Now, it is where greed comes into play. Trying to squeeze every last ounce of profit may leave you vulnerable to a market downturn. We certainly saw a lot of that in the recent bubble. Ultimately the decision to sell or hold on comes down to your long and short-term goals. If your rental no longer fits your plan it is definitely time to sell. You do have a plan, right?

Related articles

• Deciding When to Sell Your Rental Property (sellingsf.com)
• The Economy Forces a Higher Demand For Rental Homes (sfrealestatetoday.com)
• Top Benefits of Renting (sellingsf.com)
• How To Choose A Property Manager (realestatenoevalley.com)
• Real Estate Tax Deduction (sfrealestatetoday.com)
• Real Estate Investment Tips That You Should Know (realestatenoevalley.com)
• Real Estate Risk And Considerations (sfrealestatetoday.com)
• How To Talk Like A Real Estate Professional (sellingsf.com)
• Distressed Housing: How to Find the Best Deal in Orange County (sellingrealestatesf.com)