THe place where I am currently living in is considering joining the en-bloc fever. While I wasn't around to participate in the discussion, yesterday I found out that the proposed method of disbursing the proceeds from the en-bloc has run into some sticky issues.
Why?
Primarily, in the condo where I live there are units of multiple sizes, ranging from 1800 sq ft to 900+ sq ft. In terms of paying for the maintenance and sinking fund, owners of the 1800 sq ft units pay an equivalent of 4 shares, whereas the rest pay 3 shares worth, each share being worth X amount of dollars.
However, in the event that the sale is successfult, the proposed disbursement will be made based on the land area of the apartment.
THis is where the unhappiness come in. Some unknown person has taken the trouble to calculate the potential gain or loss, by comparing the potential sale value of the condo against the various land area, units of share and a combination of 50-50 land area. Good work.. whoever you are.
Then there are accusations that the en-bloc committee is completely made of owners from the larger units.
Now I have a problem. While I understand that the unhappiness of these smaller units, but:
1) The condo sale has not even gone through yet. Personally, I think this is the best opportunity to realize some gain from the investment. I love the place I am staying in now because I doubt if anyone will ever find such a nice, spacious condo in Singapore anymore. But I am also a realist as I know that the unit prices in the open market will never match the proposed price shoud the en-bloc succeed.
2) I do not think it is fair to accuse the en-bloc committee of any supposed conspiracy to fatten their own pocket. THe invitation was open to ALL owners, regardless of the size of their units. WHY did any of the owners of the smaller block not find it in their interest to join the committee. The committee members volunteered their own time and effort for everyone, and in doing so, I would rather put my trust in them to do the best for everyone than some greedy fella who after seeing the potential $$$ amount decides to find ways and means to fatten his or her own pocket.
3) This person has remained anonymous. I think this is a disgrace. At the very least you should put down who you are and a contact so that people will know that you are not operating by night. If you have put in the effort to do all the calculation, and posted notifiers in people mail-boxes, you should also be brave enough to put down you contact. If for nothing else, it gives owners sharing your view a person to rally with. Plus there is no action item. Come on, you can't be that naive? The best way to catch the committee's attention is to form a group to forward your cause. Since you have not left a number, I would assume that you are just an agent provocateur and nothing more (not a leader)
4) I do not think this agent provocateur has done all his sums. Perhaps it may be better for him to work with the en-bloc committee instead of blowing more smoke to confuse other owners.
In the end, I for one will sign for the en-bloc.
Why? Because if successful, this may represent the only chance for us to upgrade to a bigger home (which we were planning on in any case). But I do emphatize with those that have stayed for many years as the cost of getting such a large flat will not longer come cheap, and most will find that they will have to start a new housing loan again, unless they are willing to move to a smaller flat or to a HDB.
A curious bystander, looking at the Singapore Economy. I am an interested investor, looking at how to get into the investing game. The investment I like a Venture Capital and perhaps some Private Equity.
1 comment:
Interesting post, and I suspect I know which en-bloc you're at - District 10? If not, it appears there are more sites that are going through the same problem as yours.
Re anonymity. In a small knit community like a condo where most people including you and me stay, en-bloc sales can create rifts among neighbours which can turn really ugly. I've had colleagues who have had vandalism done on their property or vehicles when pro-sale subsidiary proprietors have discovered who refused to sign, and hence prevent these pro-sale SPs from the windfall they want. Who signs on the CSA is not a blind process - the sales committee certainly knows who exactly is not keen on selling. And it is far easier for the pro-SPs to compile those who signed the CSA and make it known to most of these owners, who are the ones stalling the sale.
It gets ugly. Disgrace only comes into it if one can stand among equals and make a fair pitch. Unfortunately, this is not the case once the signature collection starts and your condo literally splinters into the Ayes and Nays.
Re Sales Committee. Unless your development has sufficient numbers of small unit owners who are willing to become part of the SC (and they have to be ratified via an EOGM), the composition of the SC is likely to be formed EVEN BEFORE the first owner's meeting. Most of them typically comprise of the management committee which causes all sorts of conflict of interest if you think about it (the SC wants to sell, the MC needs to maintain the property, and if the MC=SC... just see how run down your place will get during the 1-2 years of the en-bloc). A concerned owner cannot just join the SC, and furthermore if he/she is still a minority, it wouldn't matter as votes during SC meetings will nullify their points most of the time. I know because I was in an SC and wanted the process to be as fair as possible to everyone, but the SC wants a fast sale.
I wish you luck in your en-bloc. Incidentally, how long have your been living there, and aside from your realist inclinations, why are you not attached to your home? I noted that you've emigrated extensively in the past, and wonder if that might have something to do with you having less a need to establish a close social attachment to your home and its surrounding community/place. If that is so, don't you think en-blocs will effectively evict owners who have been staying there for a substantial period of time, who have grown an attachment and a familiarity with that place and find it hard to move elsewhere?
Or does that matter not?
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