2 Year Wait

Windfall or Shortfall? Downfall?

If you sign up for an en bloc today, are you aware that it may take up to TWO YEARS or more to get your money? How will that impact you? We spoke to people who have already en bloced and here’s what they told us

  1. If Collective Sales Committee formed Nov 2007 ... Let's suppose your condo gets the dreaded 80% by November 2008, the marketing agent puts your property on the market and takes a year to find a buyer...so that brings us to November 2009
     
  2. Some SPs contest the sale at the Strata Title Board, High Court etc... which takes another 12 months to settle... so that's till Dec 2010
     
  3. IF it goes thru, the developer pays you perhaps in March 2011
     
  4. The legal fees (Y) and other* fees (Z) cost more than you bargained for, so the price you signed for is realistically X -(Y+Z)
     
  5. You go out into the market armed with your cash by April 2011 and look for a property to live in; with inflation, prices are much higher

So here’s the much dreaded reality. You went en bloc. It was supposed to be a WINDFALL. But prices are higher everywhere. After all, it’s at least two years later. To cover the cost of the new home, you find you HAVE to take a mortgage. But, the monthly payments are so high! (Ask any sadder, wiser en blocer who wanted the same space, vicinity and standard of living). (Ask yourself why Horizon Towers and Gillman Heights majority tried to back out of their sales).

  1. Because you are now older, the amount of money you can borrow is of a lesser quantum–and the monthly repayments are higher (older you, shorter payback period)). What, windfall? Better call it SHORTFALL!!!
     
  2. *You had to make mortgage payments to your bank account over the past two or so years, and repay interest on CPF, so that's another hit because of the interest that you had not factored in... DOWNFALL!
     
  3. If you are past or approaching 60, the only way to get a bank loan is to co-borrow with your adult children - or worse, you are turned down for any and all loans and have to downsize to a HDB... or rent...

Such is the power of the en bloc, a really good way to be forced to START ALL OVER AGAIN after those golden years of being financially secure, low or no mortgage, comfortable... but that's all in the past! - En bloced!