Wednesday, 1 May 2019

HDB Upgrader – why it is so important to buy from a reputable developer?


Collapse of Laurel Tree and Sycamore Tree projects

Today business times reported two condo projects Laurel Tree along Hillview Terrace and Sycamore Tree in Joo Chiat under receiverships. Developer is vehicles of Tan Hock Keng. 
TOP supposed to be in Dec 2016, but had stalled due to insufficient funds.

Receiver told buyers either: 
1) cough up extra premium to ensure completion of project or 
2) receiver to sell the property and return money to the bank. 

Then normally there is no more money left. The buyers were of course the victims.  

Investment knowledge is vital

Therefore, whether to invest in stocks or for HDB upgrader to buy condos, knowledge is so important. Cheap does not mean good.

Back then when I was searching for private apartment upgrading from HDB, the first thing I do is not just to visit property websites. It is to visit to the bookstores to look for books on property purchase.

I learnt that one top criterion is to look for a reputable developer with track records, aside from the usual price, size, location etc. So it’s a no-brainer for me to go for CapitaLand developed properties back then.

Frequent times, smaller and less reputable developers may use cheaper pricing and better instalment plans to attract buyers, but please reconsider. Situations like Laurel & Sycamore Trees do happen. You can just be the unlucky ones.

If the developers are listed companies, you should also check their financial situations from their annual reports. This is where investment knowledge and ability to understand balance sheets are so important.

There are many companies often only appearing “pretty” on the surface with good topline but accumulating incredibly huge debts, and top management only cares about sucking in unjustified huge salaries for themselves and the last thing they are bothered with is the investors/or their clients.







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