New Property Measure: Limiting TDSR to 60%

Starting from today, house purchasers are hit by another major regulation restriction which may affect their options greatly. The Monetary Authority of Singapore has limited property loans to 60% of the loan applicant's Total Debt Servicing Ratio, anything property loan with the borrower's TDSR above the subscribed threshold will be rejected. In the name of being financially prudent.

To close the loophole on current property loans in which the loan tenure is pegged to the younger of the applicants, pratical changes are also made to Loan-To-Value clause. It is now a requirement for the mortgagor (loan borrower) to be the owner of property as previously, mortgage loans can be processed under a third party's name in order for the property owner to stretch the loan tenure.

So this is how it works basing on the simplest calculation, just a rough idea for you. Please don't quote me on this. For most accurate calculations please seek advice from your banker.

Assuming that I earn $3000 monthly with AWS and VB(1 month), rental revenue of $500 monthly (for rental of one room), and a car loan repayment of $800 monthly..


Annual pay
$3000 x 12 = $36,000

AWS+VB+Rental Revenue
$3000+$3000+ ($500 x 12) = $12,000

Regulated at least 30% off calculation for bonus and rental revenue
$12,000 x 0.7 = $8,400

Annual pay+AWS+VB+Rental Revenue
$36,000 + $8400 = $44,400

Total Revenue - Car Loan repayment
$44,400 - ($800 x 12) = $34,800

Annual 60% of TDSR
$34,800 x 0.6 = $20,880

Assuming you're looking at a loan tenure of 15 years..
$20,880 x 15 = $313,200

$313,200 is the amount that you can get a loan for. Or $616,400 for a 30 years loan tenure. And this is not factoring in the interest rate, so expect the amount to be even lower. Reality check.


This is a good move if you have seen enough of house repossessed by relevant authority. However, there are more implications to this move.


1. People cannot buy more expensive/better housing, ceteris paribus

While this new measure will force down the immediate demand for housing, hoping that it will induce the effects of cooling. However, it will be hard to maintain the equilibrium given all other factors remain constant.

It is good to ensure that the purchasers can truly afford the purchased property at a comfortable rate. But this will also pull down more middle class families who were aiming to purchase a higher category housing to set sight on 'more affordable' housing options, thus tilting the supply and demand of such housing options again.

With the 'reduced affordability', it is important for government to ensure that other factors like pricing, lowers to a corresponding level.


 2. The overnight regulation affects developers both ways

In this case I really sympathise the developer of Forestville EC. After being plagued by various problems since its first launch, the ec finally had an official launch yesterday with 200 over units snapped up. That was better received than its first launch with 100 over units reserved. However, with the overnight change in regulation, I speculate that there will be some units' application withdrawn due to inability to get a loan if they had not processd it by yesterday, which rarely is the case though. Bad news for this group is that their deposit will be forfeited.

On the other hand, this change in regulation had also boosted sales in other projects like J Gateway, which saw overwhelming immediate response by crowds who wanted to avoid the new regulations.


3. Rising interest rates, curbing borderline cases is beneficial

With the interest rates at market low these years, the projected increase will hit hard on property loan holders. The fluctuating SIBOR rate is actually the main consideration. Thus ensuring that TDSR is less than 60% is really a way to prevent bigger crisis.


All in all, don't worry. If you can't meet the TDSR of 60% and below, you still have a chance by getting a guarantor as your co-borrower. Not to mention, the loan application will also be assessed with income-weighted average age for joint borrowers. If everything fails, maybe you'll want to lower your options. Speaking from experience, if you want to know more about the flow of purchase, I'm here. Kudos.

For more please visit MAS website: http://www.mas.gov.sg/news-and-publications/press-releases/2013/mas-introduces-debt-servicing-framework-for-property-loans.aspx

sneak peek: new place

I must rant on McD Hello Kitty craze.

Pardon me if you think it's too excessive but there's just some things we need to know or rethink when it comes to holding campaigns.

So, recently McD launched the Hello Kitty Fairy Tales series in Singapore after Hong Kong. Each kitty is priced at $4.60 with every meal purchase. The series consist of five themed, weekly released kitty, one special mcdelivery kitty, and as percedented, the last Hello Kitty of the series released is a country exclusive limited edition design. For Singapore, it is an all black, skeleton kitty named, Singing Bones. I would say there is a good build up to the campaign and progressive response by McD & Hello Kitty fans when became overwhelming eventually.

The launch of the first two kitties of the series saw pretty good response which saw the kitties finding new home in a matter of days before selling out. The mcdelivery kitty caused sharp increase in web ordering that the system faced a shutdown due to overloading. Then came the third fairy tale kitty which saw even better response. The fourth kitty of the series is the ugly duckling. Or I call it the jaundice kitty. I thought response wouldn't be so good after all it's yellow. Like duck and cat combination? I was never so wrong. It was sold out in most outlets by breakfast hours, and by lunchtime, it was announced by McD's Facebook that it was sold out islandwide.  

Anticipating an even stronger response, McD tried to mitigate the situation by limiting the purchase to 4 per person. Did I say that you have to buy a meal to qualify for one kitty purchase? Yes. 

Then came the dreadful day where fans were queueing as early as 6pm the day before, hoping to be the first to get their kitties at 12am. Others queued overnight at McD's non-24 hours outlets. 

What was wrong? There's willing parties to purchase, willing parties to queue. Perfect? 

No.

There were opportunists (reads black market) who took in pre-orders online before the launch, there were non McD diners, non this non that. Then there's the people who sent one family member to queue, when the queue coupons were given out, before you know, the entire family cuts your queue and swoop up all the kitty coupons. Fights ensued. 

Morality aside, people and do whatever they want and who am I to care? What really hurts me is really, the wastage of food. You've seen and heard about the craze. As crazy as it is, is the amount of wastage. Having four meals to one individual for the sake of four kitties which is being black marketed for skyhigh and unrealistic prices now. Imagine the amount of waste. Either that or obesity. Sheessshhhh. 

I'm sure more can be done. Like selling meal vouchers in place. Or seize the chance for a food donation drive, like diners who wish to donate their may do so while McD delievers to the needy and gaining publicity at the same time. That being said, it's easier said than done as McD have to gauge their food supply. Just limit one kitty to one person saves all trouble. Fair.

Wastage is like robbing the poor of food and dumping it. Deep within, it's humiliation and causes great chagrin. 

Do good. Be good. Thank you.

photo: ebay singapore

Kindness starts early!

On my way to work, saw this very heartening scene on the train from tampines towards tanah merah. Amidst the morning crowd, this smrt staff helped a malay lady with her pram and got her a seat. I presumed the smrt staff had gotten up the train with the macik at tampines as she alighted one stop later at simei and walked towards the opposite platform.

Sneaky as i was, i took a photo of the smrt staff. Sorry for no informed consent but i really appreciate your kindness! Thank you for making my morning with your graciousness and work dedication. 

I'm sure kindness is a cycle. People who have seen it, touched by it will definitely continue to do the same. Be kind everyone! 

[ADV] The Lone Ranger: Classic Western Genre With a Twist

As a communications major, it is no wonder why The Lone Ranger posts such an appeal to me. The classic Western genre, majestic opening scenes, cowboys, guns, deep and attractive voices, coupled with all the masculinity of the lead characters! Western genre films are just so hard to resist even from then.

I really love how The Lone Ranger (2013) leverage the playing field by bringing a twist to the classic oldies kind of production. While majestic opening scene stayed, Disney Studios actually pretty much took away the uncomfortable gore expected of classic Western genre and pumped in hints of humour. Nice twist, clever act.

The well reputed production team also value adds to The Lone Ranger (2013), while it does sounds like a publicity stunt when "From the team that brought you “PIRATES OF THE CARIBBEAN”, now comes Disney/Jerry Bruckheimer Films’ “THE LONE RANGER”!" is splashed across publicity materials, the real deal is really within the film itself. The misc en scene, framing and all, renders the film worth its ticket price definitely.

While I'm more of a technical person when it comes to film, I think that it might be hard to miss for some fans as the lead characters consists of Johnny Depp and Armie Hammer! *Gasp*

Imagine deep manly voice resonating in your head: "Never Take Off the Mask".

Catch Disney’s “The Lone Ranger” in Singapore cinemas this 4 July 2013! For more updates, like the Official Walt Disney Studios Singapore Facebook Page, follow @disneystudiosSG and subscribe to the Official Disney Studios Singapore YouTube Channel!

All Hail Singapore!

Hailstorm falls in western part of the sunny island on 25th June 2013, of which the last occurrence took place five years ago in 2008.

Amidst the hazy situation in Singapore recently, some citizens have feared that the composition of the hailstones may contain toxins from the cloud seeding activity in Indonesia in a bid to contain and bring down the forest fire. However, this worry is unfounded for, as the cloud seeding activity is too distant from Singapore. That being said, it does not mean that the haze situation did not contribute to this rare occurrence.

To make understanding easier, we shall take a look at the formation of hailstorm. As released by the National Environment Agency's spokeperson, hailstorm forms as a result of "supercooled water droplets freezing on contact with particles in the air, such as dust, during a thunderstorm". So, essentially, how hailstorm is conjured depends on multiple factors, inclusive of particles in the air which may be linked to the recent haze episode.

All in all, this occurrence though rare, is not unprecedented. Instead of creating mass panic, like posting messages like "CRAZY HAILSTONES IN SG, CAN KILL!", it is important for our sunny people to stay composed and positive. Work life order must be in place and together we can combat all situations. Stay strong. And yes, those hailstones won't kill you but I can't say the same for the resultant fallen trees and broken windscreens.

Majulah Singapura.

video credits: youtube user tiramisupoop & channel5news

On the street: Ipad!

As I was people watching (read: ogling) over a coffee yesterday, it is undeniable how Ipad has become more and more like a fashion accessory, especially for guys. Saw many guys with Ipad on one hand, and their partner's hand in another. As an Ipad owner, I'm also very much enticed by the wide array of Ipad casings available in the market that level up the appearance. So here's my favourite few!

Why is the face mask Merlion not funny?

Many user generated content has been circulating online in view of the current haze situation in Singapore which gives many affected in the country or even the region, a heart lightening moment. Many of the new memes, their sarcasm wins hands down. In comparison, not so funny is probably the masked Merlion. Semiotics wise, understood. But I really don't see the realism in it. Why do our Merlion needs to be masked up?

Unless you're telling me you can inhale and exhale at the same time. Cheerios.

Personal takeaway from Nairobi, Kenya

When I mention about Africa to my close peers, almost immediately they would reaffirm their knowledge that Africa is a continent, not a country. How defensive. Or maybe I'm just passed off as such an English Nazi to them. Otherwise you'll probably be thinking of tribal people speaking in tongues. Hulu hulu hulu.

Having had the honour to represent Singapore Internet Research Centre on a fully sponsored trip to Internet Governance Forum 2011, being still a student at that time, no doubt the best incentive of the representation is the trip itself over all the academic issues. An avid traveller, I take all my trips seriously, Not only on the context of tourism, but also reflection on the socio-economic status and such.

I was well received by the hospitality of Kenyan custom officers who wanted to treat me to their infamous Tusker beer that very night, in which i graciously declined. Met up with my driver, David, who sent me to my hotel. The trip was USD20, and usually it would had been paid to the hotel directly. However, as mine was a last minute arrangement, I was to pay directly to David. He was so excited to see the 20 Dollar bill. Surprised. I was very surprised. For a driver who pry the airport-hotel route, what was the excitement about really. I asked him. He said he has never seen an US 20 Dollars bill before as he don't deal with payment. He only receives a fraction of it in Kenyan Shillings. Probably not the best start to my stay, but it was practical. A practical warning for me to see what I'm going to encounter in days to come.

I stayed in Jacaranda Hotel, a 4 star hotel with no air-con. Rude shock to an asian traveller like me who swears by air-con. There is a mall right behind, but the hotel security discourages us to go out after 7pm. He tries his best to dissuade us from leaving the hotel compound. He was right. After night fall, security is a major concern. Once, we came back from the mall around 8 plus and had to walk over to the hotel's main gate. A group of Kenyan kids just kept following us closely begging for money. The roads were poorly lit, we were not familiar with the surroundings, it was scary. We later met other delegates at the forum who shared with us how she gave one of the kids money and a whole group swarmed up to her.

On my final day before my flight back to Singapore, I made a visit to the slums. The famous Kibera slum,  largest slum in East Africa.  With local guide William, I was able to go deep into the slum to see for myself the living conditions. There was no proper roads, drainage, sanitation, facilities. Used syringes were seen lying around on the muddy trails. I fell several times during the trip as the trails were more muddy than usual due to the drizzle earlier on.

With their own means, they have come up with biofuel for cooking, set up system for buying water and electricity, a small 'town', ornament factory etc. An exclusive livelihood system of subsistence. A pretty intense experience I would say, I left with great admiration to its occupants.

Donating a cup of food in a click.

Having heard enough of how the true receiving is in giving, it really doesn't matter how much you have or can give. all you have to do is to click once to donate a cup of food. one click. the site works through its adsales revenue to substantiate the drive. give food.


http://www.thehungersite.com/clickToGive/ths/home

Janet Chia.

Words are mightier than the sword. Here, I am king.

Having graduated with a Honours Class I in BA Mass Communications, from Liverpool John Moores University in 2012, my dissertation titled, The Social Networking Sites (SNS) Facebook and OpenStudy as student learning forum, was centric on Computer Mediated Communications on social media. I was also awarded the prize for Best Overall Improvement by the university.

My other research interest in Internet Governance had earned me the golden ticket to go on a fully sponsored trip to Kenya for the Internet Governance Forum 2011, in representation of the Singapore Internet Research Centre.

I rise up to challenges and takes pride in what I do. This is cliche but my ambition since young is to be a journalist. I tried submitting my essays to a Chinese newspaper in Singapore, Lian He Zao Bao, and was glad to be published once when I was in Primary 4. Since then I don't think my ambition wavered much.

Upon graduation, I tried sending applications for journalism but was not shortlisted at all. Thus, I tried applying for copywriting. I did up a website to support my application (http://janetchia.wix.com/book). However, without a proper portfolio, I was rejected again. As a stepping stone, I'm currently working in a media company which gives me great exposure of behind the scene workings.

An aspiring journalist, I'm working hard for that byline. Follow me here, or in addition you may get to know me more at linkedin (http://sg.linkedin.com/in/janetchia/ )

Thank you.

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