The Singapore Forum

http://www.straitstimes.com/breaking-ne ... n-20120913
Very few Singaporeans are cash rich but yet this couple can fork out $195,000 on COV.

HDB flats are becoming overpriced that I doubt my girl can afford it 20 years from now

EEEEECK!!!!!

Why does the HDB market have this weird COV concept anyway?

There are some strange practices for house buying in different countries. Strange indeed.

We have had collected our key and good thing is we do not need to pay COV. Use the COV on renovation instead.

when I bought my place in 2002, I don't recall it was known as COV. We just had to do a valuation and buyers offered either above or below the valuation price. If it is below, i think HDB would question why as their main interest is to ensure that they get back the CPF monies + interest on the original purchase. And at that time I think there were errant agents/sellers who if a buyer offered above valuation, people tended to under declare the selling price and pocketed the "above valuation" cost. Then I think HDB became tough on that. Anyway, I guess over time it became known as COV.

when I bought my place in 2002, I don't recall it was known as COV. We just had to do a valuation and buyers offered either above or below the valuation price. If it is below, i think HDB would question why as their main interest is to ensure that they get back the CPF monies + interest on the original purchase. And at that time I think there were errant agents/sellers who if a buyer offered above valuation, people tended to under declare the selling price and pocketed the "above valuation" cost. Then I think HDB became tough on that. Anyway, I guess over time it became known as COV.

I was so used to the Singapore house market that I was very surprised that in the UK, there was no such thing as valuation as when I enquired to see the valuators report on houses that we were interest in, I was told that there was no such practise. A bit tricky to assign its worth as some houses looked derelict yet had a huge price tag on it!

An item is only worth as much as someone is willing to pay for it.

I have a load of wine sitting in a warehouse somewhere and in all honesty, I've got no idea what it's worth cos I can't sell it.

Unless you are paying cash, in the UK you will need a valuation for mortgage purposes and I would think at the moment they will be quite conservative.

If you are paying cash, you would be very wise to get your own valuation regardless.

Yes, there certainly is a need for a valuation from the bank in the UK, and this is exactly the same as the private property mkt in Singapore. It is the HDB market that is weird