Our flat resale journey - selling

When we finally decided to sell our current flat, with the primary purpose of "cashing-in", in order to have some money to close out some loans and still have some savings left, my wife took a long time getting the thought to sink in. She vacillated between yes and no, ok and why, what if and what if not, etc., etc. I understand. I didn't go through the same emotional roller coaster. I'm a man. She's a woman. And women tend to have more chance of getting attached. And a house that becomes a home is one thing that is sure to forge an emotional attachment to our spouses, especially when they are not working and they put a lot of energy in beatifying the home.

Cutting it all short, 2 weeks or so later, she settled. But a day or two of waiting for prospect buyers to come, I also found myself experiencing - well, that is what is even more torturous - quite an energy-sapping process: waiting. We did feel that there'd be nobody coming to even view the flat, much less to buy it!

Our agent was on the opposite pole, and she was quite confident of closing a deal, and doing the sale. We engaged her service last day of April, and she made it a point that by end of the next month, which is May, the resale is a closed and done deal. That’s what she said.

We talked about the schedule of the flat viewing; evening is ok, and even on some late night schedules, we agreed – if the buyer is serious. You see, she explained that it is not always the one who bids the highest who will end up as the final buyer who will close the deal with you. Not even at a time when the competition is so fierce, where the law of Supply and Demand* is very prevalent and very much in effect – both sides. Buyers tend to offer higher than the LO+ so that the Seller usually asks for a sky-high COV+. If many buyers would like to buy your flat, they would naturally offer more, and the COV goes higher and higher. Sounds good, right?

Wrong!

There is usually a paper that will be signed by both parties to initiate the resale, and it is called The Option. It carries a provision to lock-in the pre-supposed sale within 14 days, so that both Seller and Buyer cannot engage in any other transactions. It is legal and binding, and breaches will be legally dealt with. So what now? You see, at the end of the day, the one who shells out a thousand dollar and signs the Option form is not always the one who will finalize the flat resale. People can get pumped up and excited when in a heated bidding state, and what usually happens is that when they come home, cool down and realize what they’ve done, they’d simply let the grand be forfeited, instead of ‘really coughing up’ the very high COV. That is the point that our agent is always making. And, even they they do finalize the flat resale, they’re no longer happy – right from the start.

That is one very good lesson that I have learned from our flat resale.

She’s right. She has the right confidence, and she has the right motivation. She always talk about selling the flat at a ‘reasonable’ price, to the party who ‘needs a roof’ over their head – which usually means a lower COV, but a happier experience for both seller and buyer.

I agree.

For if there would come prospective buyers, and one who has more money bids higher than the one who needs the flat, and as in the case mentioned above where they don’t exercise their option and don’t finalize the resale, you end up:

1. Getting a thousand dollars for free (since buyer didn’t exercise option to purchase, the initial deposit is forfeited. Indicated in the guideline)
2. Losing 14 days in the process
3. Losing ‘real’ buyers

Our flat value has increased by $100k in a matter of 2 years, and since we didn’t need any renovation when we moved in, we saved a lot then. What’s more, we were able to occupy the flat prior to the resale process completion date. Mid Nov 2007, we submitted the resale application, mid Dec 2007, the owner already gave us the key to the flat – 3 months prior to the resale completion date. These past events helped us to decide to do the same good deed done to us.

In all, there were only 3 batches of buyers who came and viewed our flat: 15-May team, 22-May team, and 23-May team. We have a 3-bedroom flat, but one common room was hacked and merged with the master bedroom, in effect making ours a 2-bedroom flat, 1 common room and a master bedroom becoming a huge bedroom with its walk-in wardrobe and air-con unit and all, very suitable for a young couple (as were the previous owners) and couples having small kids. Currently, we have 3 queen-size beds in the master bedroom, where we all sleep, and the common room is the study room for the kids. If you are the type of parent who’d wake up several times during the night and check on your kids, especially when they are infirm and you’d have to monitor their temperature or wake them up for their medication, this bedroom size and build is very suitable for you. It is for us. It was - then.

The kids are growing, and they would need a room of their own. This is another factor which we considered in the selling of our current flat: to buy a flat with 3 bedrooms, at least. And in the process, we’d have to pass down the flat to a couple or a family that had the same need as us – back then.

So true enough, the tradition lives on. From the 3rd batch was a young couple, starting off, and just like us in many ways: just been PRed+, much around our age back then, and for their case, will be marrying (ceremonially) at about the time the resale’s completion date is scheduled. So it is just right for them to have a flat of their own, to entertain friends, relatives and guests in. They came around 3pm 16-June Sunday, and returned 6.30pm to ink the deal. We’re not sure if they’ve seen other flats, but the even stricter and harder ruling makes you think fast and deal quick. That’s what they did.

And while they didn’t measure up to what we were asking (we’re not making a killing here), they did make a reasonable offer. We thought, we’re not going to be rich with that amount, but we counted our blessings, and with a little more hesitation and haggling, we settled down. While COV figures are rising up to about $58k in our area, we settled with $26k. No, it’s not heroic or modesty. The good deed that was done to us, we are simply paying it forward. We are continuing the tradition. As I said to the young couple, “This is a house of beginnings.” And they got the idea, and we all laughed.

What amused me is that during the time we were negotiating the price, they were staying by the kitchen, beside the toilet, while we were at the living room. Quite an odd team, the couple and their agent, I mused. But look at the pictures, and you’d understand why they weren’t fussy a bit standing around that area. As what our agent said, "4 kids and a big flat, ‘Your wife is a super girl!’"

Our 8-month old baby was helping out in the selling process. She’s actually making a fuss whenever there are people coming and she’s kept inside. So what happened is that we brought her out, put her in her crib in the living room, and she was ‘entertaining’ the guests. She did so all the while there are buyers coming. Or whenever the agent is around the house. Or when an inspector is checking our flat. Quite a trait for a baby, my wife said. She knows how to entertain people.

Our flat is now sold. Resale application has been submitted. First appointment date is marked. Flat inspection is done, and we are clear to proceed. The huge work is up: packing our things and getting ready for the big move.

But before that, we’d have to pick our new flat, and this time, we will be the buyers. May the good deed done return a hundredfold.

Amen!

-----

* The Law of Supply and Demand, in my connotation here, is this: ‘He who supplies makes the demands.’
+ LO stands for Last Offer, where buyers offer a sum when negotiating to purchase the flat. This is referred to as the Cash-Over-Value amount. And usually, the LO is an amount that the Seller didn't agree to. So would-be buyers will check on the LO, and if they are thinking of offering less, they don't proceed, but if more, they go in right ahead. And the Value is the ‘true value’ of the flat being sold, as determined by an independent, third-party valuer authorized by the government body handling matters about public flats. Nonetheless, since the valuer is a person, the Value figure becomes a subjective matter, but not much. How much difference, I should say around $10k.
+ PR means permanent resident, which is quite a similar term in many countries in the world. You are a foreigner, and if you like to staying in the country, you apply for residency. PR status is halfway between a foreigner and a citizen. You have the choice of applying for a citizenship, or revoking your residency altogether. It’s all your own choice.

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Too rich a public servant?

Image via Wikipedia

TOO WELL PAID FOR THE PUBLIC TO HANDLE?

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LONDON - Council chiefs in England and Wales have refused to disclose the salaries of thousands of senior staff, claiming it would lead to a public outcry.

Last summer, the government announced plans to publish the names and salaries of "senior employees" at public bodies who earn over 50,000 ($109,760) a year. Prime Minister Gordon Brown has called the increasingly generous remuneration of council executives "unacceptable".

But the local authorities claimed that the pay disclosures would leave their staff subjected to "personalised attacks and mischief making". For instance, Wandsworth borough council warned that "families could be at risk of abuse and children of bullying due to press misrepresentation of data".

Mr Mark Wallace, the campaign director of the TaxPayers' Alliance, said it was "pure emotional blackmail to claim that anyone's children could be threatened by improved pay transparency in local government".

Now, rather than tens of thousands of local authority workers having their salaries published, just 114 council staff, most of them chief executives, will have to disclose their pay. The Daily Telegraph

From TODAY, Friday, 19-Feb-2010

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Testosterone gives women greater financial risk appetite

WASHINGTON - Women with more of the hormone testosterone tend to behave more like men when taking financial risks, according to a new study.

"Women with higher levels of testosterone turn out to be less risk averse, more willing to take risks," said Mr Luigi Zingales of the University of Chicago.

Known as the male sex hormone, testosterone occurs in both men and women, but at higher levels in men. It has long been associated with competitiveness and dominance, reduction of fear, and with risky behaviours like gambling and alcohol use. Previous research in England showed that higher levels of testosterone seem able to boost short term success at finance.

Researchers there tested male traders morning and evening, and found that those with higher levels of testosterone in the morning were more likely to make an unusually big profit that day.

The study found that married men and women had lower levels of testosterone than single individuals. AP

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From TODAY, World – Wednesday, 26-Aug-2009

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UK lawmakers slammed over expenses secrecy

June 18, 2009 -- Updated 1249 GMT (2049 HKT)

STORY HIGHLIGHTS

• UK lawmakers publish report on their expenses claims but some is blacked out
  
• Redaction prompts criticism from anti-secrecy campaigners
  
• Reports on expenses leaked to newspaper have caused public outcry
  

UK Prime Minister Gordon Brown has been rocked by numerous resignations recently.

LONDON, England (CNN) -- Anti-secrecy campaigners have criticized a decision by UK lawmakers to censor a report on their expenses claims, some of which was leaked earlier amid huge public outcry.

The online publication on Thursday is the result of a newspaper filing a freedom of information request to see the claims by MPs, but some of the information is blacked out.

The redaction prompted criticism from campaigners seeking transparency. "A great deal of information has been censored so today's move will do nothing to restore public trust -- it looks like a cover-up," Katherine Gundersen of the Campaign for Freedom of Information, told CNN.

"Far from drawing a line under the episode this will fuel further public anger."

Thursday's official release was also anti-climatic because the Daily Telegraph has been printing the expenses claims over the past month after obtaining a leaked copy.

The series of reports by the Telegraph created a scandal by revealing that many lawmakers had claimed excessively or bent the rules. The reports forced the government to release the claims Thursday instead of in July, as originally planned.

Controversial claims detailed by the newspaper included thousands of dollars' worth of interest on a mortgage that had already been paid, money spent to clean a moat on a country estate, and more than $1,000 spent on a small house for ducks.

Some lawmakers claimed the maximum monthly allowance for food; one claimed for dog food; one claimed for Christmas decorations; and another claimed nearly $5,000 for an in-home theater system.

More than a dozen MPs caught up in the scandal have promised to step down in the next election. It also has forced Prime Minister Gordon Brown to reshuffle his Cabinet while polls show popular support for the ruling Labour Party at historic lows.

The latest casualty came Wednesday night with the resignation of Kitty Ussher, a Member of Parliament who was also a Treasury minister. Her office in the northern England city of Burnley confirmed that she had handed Brown her resignation.

Ussher, considered a rising star in Labour, resigned after the Telegraph revealed that she designated her constituency home as her main residence for just one month in 2007 to avoid paying around $30,000 in capital gains tax.

Claims for allowances for second homes -- which most lawmakers have because they need to be in London for parliamentary business -- have been a big point of controversy for other lawmakers, too.

The Telegraph exposed how some lawmakers, like Ussher, "flipped" the designation of their main and second homes to avoid taxes or make a big allowance claims.

Many lawmakers defended their claims as being within the rules. But even where that was the case, the public criticized lawmakers for greed and for taking advantage.

The expenses cover lawmakers' claims from 2004 to 2008. More than 1 million documents and receipts were scanned electronically over the past year to make them available online, according to Parliament's Web site.

Unlike the information revealed by the Telegraph, the online documents are redacted, with key details blocked from view. Parliament said the edits were made to protect the security and privacy of lawmakers, their staff and third parties.

Among the details blacked out are the addresses of lawmakers' second homes. That makes it impossible to use the documents to find out whether lawmakers flipped homes or made other suspicious claims on those homes.

Deputy News Editor Ben Leapman of The Sunday Telegraph lodged his freedom of information request in January 2005 in order to see the receipts of lawmakers' second home spending, he has said.

From CNN.com; see the source article here.

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British Airways asks staff to work unpaid for up to a month

Just how bad is the economic recession? At least, for some industries, the impact is really that disastrous…

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June 16, 2009 -- Updated 2053 GMT (0453 HKT)

Story Highlights

• Union spokesman: Workers could not afford to work for free for a month
  
• British Airways employs just more than 40,000 people in the United Kingdom
  
• Airline's CEO: There are "absolutely no signs of recovery" in the industry
  
• Last month, the company posted a record annual loss $656 million
  

British Airways plans to reduce capacity by 4 percent next winter by parking up to 16 aircraft.

LONDON, England (CNN) -- British Airways is asking thousands of its staff to work for free for up to four weeks, spokeswoman Kirsten Millard said Tuesday.

In an e-mail to all its staff, the airline offered workers between one and four weeks of unpaid leave -- but with the option to work during this period. British Airways employs just more than 40,000 people in the United Kingdom.

Last month, the company posted a record annual loss of £400 million ($656 million).

Its chief executive declared at the time there were "absolutely no signs of recovery" in the industry.

"I'm 30 years in this business and I've never seen anything like this. This is by far the biggest crisis the industry has ever faced," said Willie Walsh, British Airways' chief executive.

A spokesman for one of Britain's biggest unions said its workers could not afford to work for free for a month.

"It's all well and good for Willie Walsh to say he's prepared to work for free when he earns four times in a month what they do in a year," said Ciaran Naidoo, a spokesman for Unite.

He pointed out that the airline was not ordering staff to work without pay.

"It's a request -- you can take unpaid leave or you can work for free, and the chances of people working for free are very unlikely, but there might be some people who want to take unpaid leave."

Demand for the airline's passenger seats and cargo holds fell during the last financial year, while its fuel bill rocketed to almost £3 billion ($4.7 billion).

Walsh said British Airways' woes were inextricably linked to the downturn in the global economy and that there had been no sign of any "green shoots" of recovery.

Like its premium-class competitors, British Airways is losing customers to cheaper rivals.

The airline's premium passenger numbers fell 13 percent in the second half of last year, in line with the industry average.

Total traffic fell 3.4 percent and while the airline carried 33.1 million passengers last year, it was a drop of 4.3 percent from the previous year.

The dip in demand for British Airways' flights has forced a switch in strategy at the airline.

From the end of last year, it has been trying to tempt passengers with lower fares, sacrificing profit per seat for "bums on seats."

It plans to reduce capacity by 4 percent next winter by parking up to 16 aircraft.

From CNN.com; see the source article here.

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New site to test the waters

Properties, properties, in the midst of the worldwide recession, how I wish, how I wish, I have the means to buy new possession…

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THE first sale site at the proposed Kallang Riverside waterfront lifestyle precinct was made available yesterday — after a scheduled six-month delay.

The 0.74-ha land parcel along the Kallang River with a permissible gross floor area of nearly 20,917 sq m — is envisaged to be a waterfront hotel development catering to business travellers and tourists. It can house hotel rooms and shops like retail and food outlets.

The parcel was scheduled to be available on the Reserve List last December, but as more time was needed to finalise the planning and development conditions of the Kallang River, the URA deferred the release.

The site will show how well the sector is doing, said Cushman and Wakefield managing director Donald Han. "(This) is going to be a litmus test particularly for developers to ascertain whether this is the right timing in view that generally the market has seen some positive news ..." he said.

Based on the plot ratio, the site is expected to be of a "manageable size" that can house 300 to 380 rooms. Price would also range between $150 to "maybe at most" $190 per square foot per plot ratio, he said.

"Mainly on the basis that this is going to be a first mover for a developer to develop a fairly new area ... I think a discount factor for the market would probably be expected."

Under the system, a site would be released for sale only if it receives a bid with a minimum price that is acceptable to the government. 938LIVE

From TODAYonline.com; see the source article here.

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