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Her.
To love is nothing.
To be loved is something.
To be loved by the one you love is everything.
Wednesday, April 29, 2009 / 12:45 AM
p/s: bear with me for this long entry!
"the time now 1pm and you may begin writing your paper," said Prof Ong - my real estate finance prof. once i opened up the exam booklet, it really sucks big time. it just reminds me of my statistics paper last semester. super hard. it really makes my mind goes cramp all the way for 2.5hrs.
exam format? answer all 3 questions from section a & choose 1 out of 2 questions from section b.
section a (answer all questions)
question 1 (30 marks)
mrs low is a 62 year old retiree who lives in a 3-rm hdb flat. her husband passed away a few years ago & she is living off his pension & savings. although mrs low has 2 children, she lives alone as her children are living with their own families.
mrs low has been considering mortgaging her flat under a reserve mortgage, but she recently learnt about the hdb lease buyback scheme (lbs) introduced in mar 09. she is uncertain whether to take up a reverse mortgage or the lbs. mrs low has approached you for advice.
from your discussions with mrs low, you ascertain the following facts:
* the 3-rm hdb flat is located in bedok south ave 1 & was built in 1976.
* the flat is currently mortgage-free.
* mrs low receives a monthly allowance of $500, comprising her husband's pension & allowance from her children.
* mrs low monthly utilities amount to $80 & pays $40 in s&cc fees. she estimates she requires about $300 for her daily subsistence.
* mrs low suffers from high blood pressure & diabetes. her monthly subsidizes treatment at the nkf amounts to about $130/session & she requires 4 treatments per month.
* she does not wish to impose a financial burden on her children who have their own challenges under the current economic circumstances.
you searched the resale price of hdb flats in bedok south from the hdb e-services website & estimated that the average transaction is about $240,000. a quick desktop valuation check provided confirmation.
(a) suppose hdb is willing to provide a reserve mortgage (rm) loan at 5% p.a. for 20 years up to 80% of the current valuation. ignoring upfront fees, calculate the maximum monthly amount that mrs low would receive under the rm loan. (6 marks)
(b) under the lbs, hdb will buy the balance of lease so that owner is left with 30-year lease. the remaining term of the lease on mrs low's flat is 66 years, which means that under the lbs, hdb wil buy back 36 years. in addition, the government will provide a top-up of $10,000 in subsidy, of which part is paid to the owner upfront & the remainder will be used to purchase an immediate annuity from cpf. you estimate that hdb will pay $98,000 for the remaining 36-yr lease. how much will mrs low receive upfront? (4 marks)
(c) for a female owner aged 62, cpf pays an annuity for life that is equivalent to 5.6% of the lump sum paid upfront. what is the expected monthly annuity under the lbs? [hint: treat the annuity as payment received in perpetuity.] (6 marks)
(d) would the 2 schemes be able to meet mrs low's current needs? (4 marks)
(e) how would you advise mrs low on the risks associated with the two schemes? (6 marks)
(f) which scheme would you advice mrs low to take up? subtantiate your answer. (4 marks).
question 2 (40 marks)
the real esate development company you work for has received an investment proposal to buy a distressed residential development. the development comprises 120 units, each with a built-up area of 1,000 sq ft. the project is still under construction & is expected to complete only in 12 months' time.
the seller is experiencing cash flow difficulties & is willing to sell the uncompleted development subject to a non-negotiable term that the buyer assumes all outstanding liabilities amounting to $8.5m. the bulk of the outstanding liability is in the form of construction cost paybale. in return, the buyer will asume full control over the project account, into which the deposits from unit buyers have been paid into, as well as all revenues due.
the balance in the project account is currently $2.5m, being proceeds from the first lanch 6 months ago. the seller was able to sell 50 units at an average price of $500 psf. 10% of the sale proceeds were paid into the project account & the balance 90% will be due on completion (month 12). however, it is anticipated that the existing monet in the project account will e used to offset the outstanding construction liability once the necessary paper work is completed.
as the development has yet to be completed, it is estimated that the construction cost to complete the project amounts to $3.5m, payable according to the following schedule:
* mth 1 - $525,000
* mth 2 - $350,000
* mth 3 - $350,000
* mth 4 - $175,000
* mth 5 - $175,000
* mth 6 - $350,000
* mth 7 - $350,000
* mth 8 - $525,000
* mth 9 - $175,000
* mth 10 - $175,000
* mth 11 - $175,000
* mth 12 - $175,000
total = $3,500,000
as the business development manager, you estimate that the earliest date to launch the balance 70 units would be in 6 months' time, at which time, you project the average selling price to be $600 psf. you are optimistic that pent up demand would be good at that time & that the remaining units would sell well.
although the current legislations stipulates 10% of sale price must be paid upon signing of the sale & purchase agreement, the fact that the development is close to completion meants that the revenue inflows are highly dependent on how well units in the 2nd launch sell. you envisage that the revenue from the 2nd launch will be as follows:
* mth 8 - 50%
* mth 10 - 25%
* mth 12 - 25%
(a) excluding the cash flows fromt the 2nd launch, tabulate the monthly cash flows for the next 12 months. (10 marks)
(b) if the relevant discount rate for such projects is 12% p.a., calculate the present value of the cash flows in (a). (5 marks)
(c) suppose the 2nd launch revenue is as projected. what is the present value of the 2nd launch revenue, using the same discount rate of 12%? (8 marks)
(d) what is the maximum price you would advise your company to pay for this development? substantiate your answer. (5 marks)
(e) compute the project IRR if the purchase price is $40m. (7 marks)
(f) suppose your company can secure financing to (i) pay off the oustaning liabilities & (ii) pay the projected construction costs in the next 12 mths. how would the irr of the project change if the cost of financing is 8% p.a.? estimate the levered irr (w/o using cash flows). (5 marks)
-clearly state any assumptions that you make-
question 3 (10 marks)
in feb 09, the 3-month singapore interbank offered rate (sibor), dived to 0.68% bringing it near the all time low of 0.63% reached in june 03. consequently, dbs & ocbc both offer a mortgage rate, under their sibor packages, of 2.43% p.a. & hsbc mortgage rate is 1.93% p.a.
given that the interest rate on cpf funds is 2.5% p.a., how would you advise a potential property buyer as to optimal loan & cpf amounts to utilize?
section b (choose any 1 question)
question 4 (20 marks)
the real estate investment trust (reit) industry in singapore went through a boom period prior to 08 when reits expanded aggressively through their yield accretive strategies & a painful preiod of 08 as the world economy underwent a credit crunch.
(a) using this recent experience, explain why leverage is a double-edged sword for a reit. (10 marks)
(b) how can the absence of asset acquistion by reits in 08 be explained by the credit crunch? (10 marks)
question 5 (20 marks)
private properties purchased after 1 sept 02 were subject to a new regulation that stipulates that the bank loan takes 1st priority in repayment over cpf refund. prior to 1 sept 02, cpf savings withdrawn for purchase must be repaid ahead of the outstanding housing loan.
(a) explain the rationale for this change. (8 marks)
(b) it has been conjectured that the change in regulation should result in lower mortgage loan rates. do you agree or disagree? why? (12 marks)
fuh!
i was like sweating over each & every questions upon asnwering them. i answered questions 1-4. i didn't know what i've written on the booklet were right or wrong. but i'm just hoping for the best. at least a pass please.
lucky that i manage to get 40% saved by having 33 marks. 60% is from this exam paper & i wonder how much marks i need for a pass? after calculated by jiahui, he said is 28.3 marks? is it true? please, put a pass on my grade.
2 more papers to go.
& i'm looking forward for the next 2 papers. gonna strive for the best that i can. even if i can't like what baby told me, "what past is a full stop". thanks baby for making me happy tonight. smooch!
will update you again after my next paper ya. =)
Sunday, April 26, 2009 / 1:21 AM
currently, i'm taking a break from the half-time of the match between manchester united & tottenham spurs. and it's really disappointing coz in this first half, spurs have already win by giving 2 goals to the club. sucks! anyway, i hope manchester will recovery or maybe change some of the players. i really want them to win big just like the previous match with portsmouth. *pray*
well, 2 papers gone. 3 more papers to go! and i'm so so excited. coz you know that in this era, time flys very very super duper fast. and without me realising it, it has been a year already i'm pursuing my studies. which means, i still have another 2.5 years to go! hopefully life will be better then upon my graduation.
must thanks some people who give me the motivation for my studies. =)
i had english for academic purpose paper yesterday. sat in the exam hall for 2 hours 15 minutes during 3 parts of the paper - grammar editting, reading comprehension and essay. all the 3 parts have the same topic which is euthanasia. and i really wanna thank my english tutor for introducing this topic in class most of time by sharing all her experiences and knowledge. without her, i don't think i can do this coz at the beginning i have no idea what euthanasia is all about.
well, for some who yet to know what euthanasia is, it's simply means mercy killing in greek. *wink*
so, again sat in the exam hall today for my second paper which is my real estate management. i wanna do well for this paper coz i had past experience in this line as well. being kanchong (thanks to junhan. haha.), i went back to office yesterday after my paper, met my both managers asking for tips and additional info on certain chapters. and they really help me out - giving me the mosquitoes prevention book, T5 lighting information, energy-saving & more. thank you so much. appreciate it a lot.
so, how's the paper? it's a 2-hour paper. 1 compulsory question. choose 2 questions out of 3 then. here is the questions for all the questions.
(1) refer to article, "where noise-makers live side by side":
(a) do you think it is a good idea to have such developments in singapore where "troubles with the neighbours won't happen so often if the people living together share the same hobbies"? explain. (10 marks)
(b) as real estate manager, what selection criteria would you apply in selecting a tenant in this case? also, examine the issue of suitability of user vs. ability to pay rent - which is more appropriate? explain. (10 marks)
(c) what problems do you anticipate in managing this type of development? (20 marks)
(2) "a real estate manager is a jack of all trades, master of non". do you agree? why or why not? give examples to support your answer. suggest wats to enhance the image of the real estate management practice. (30 marks)
(3) while greenery of property is increasingly becoming important in maaging and maintaining a building, it also poses new challenges and issues. discuss. illustrate your answer with examples. (30 marks)
(4) you are appointed as the real estate manager of the upcoming integrated resort (IR), marina bay sands, which is a new type of urban place that integrates with the waterfront promenade with a grand, multi-leveled retail arcade combining civic space, shopping, indoor & outdoor spaces endowed with city skylines views, daylight & plat life, providing and abundance & variety of activities. it is a place that is vibrant & dynamic, a place that transforms form hr to hr, from day to night, and is evocative of the great urban places. it will feature three 50-storey hotel towers offering 360-degree views of the city & the sea, outdoor amenities for the hotel; an iconic arts & science museum on the promotory; 1 million sq feet of integrated waterside promenade & shopping arcade; a state-of-the art 1 million sq foot convention cenrter; two 2000 seat theaters; a casino; and a 4000 car garage. identity the types of crises that could arise in managing the ir & explain why. prepare a crisis management plan for the subject property. (30 marks).
thus peepz, what do you think? if you were in my shoes, which questions will you pick. question 1 is the compulsory question. anyway, i did questions 2 & 4. hope i can good grades for this coz i manage to get 18 out of 20 for my project! so happy.
oukaye then. gtg. the game has started. =)
Wednesday, April 22, 2009 / 9:15 PM
i dunno if i should scream coz it's my exam period. yup! exams!
preparation? guess what? i only have learnt econs and english. sucks ryte! i'm giving extra effort on these two modules coz it's a close book exams. the rest of 3 modules are actually open-booked. thus, i dun have to spend more time memorizing those facts.
it's true closed book exams are better than open book coz you will simply find no answer in your books. but, in the flip side of the coin, it's better due not to having my mind to cramp all those facts and figures. otherwise, my mind will be explode.
and you know what? it reminds me of my poly moments exam period. shhhhh. it's top secret between me & my darlings (sheila, jiha & junhan) and not forgetting ronald too. it's really a risk taking efforts. haha. but afterall, we deserved the good and excellent scores based on our hard time studying together. and i miss that!! i miss studying together with them.
but, i'm looking forward to next semester, the new year, so called my 2nd year in nus. or maybe half-half. you know why? due to my exemption thingy. hahaha. but that's not my point.
me & jiha during the poly days.
and you know what. i gonna enjoyed my uni life from next semester onwards coz i gonna be in the same school with jiha again. in fact, same course as well. not sure if there's any modules that i can be with her but we'll try. no longer eating alone. no longer studying alone. i have partner now baby. hehe. so so excited. jiha, i can't wait to meet you in school next semester. *wink*
oukaye. end of memories. it will never stop once i've said it out. haha.
my exam time table?
24 apr 09 - english for academic purposes
25 apr 09 - real estate manangement
28 apr 09 - real estate finance
30 apr 09 - principles of economics
06 may 09 - gis for real estate
what i got to say about all those modules?
english - almost prepapred. got to practice more on such grammar editting.
management - i guess i gonna boost up my exam answer based on my working experiences as well.
finance - i hate this but i know i got to get over with it. so, wish me luck for this. need to really study this module.
economics - i have studied but not 100%. left 3 more chapters.
gis - i got lots of days to learn those chapters. thank god.
well, wish me luck for my exams. to those who are taking the exams as well, good luck to all of you.
p/s: i wanna congrats my dearest junhan for getting the interview round under smu in the course of business management. haha. finally, i can heard this happy mood. good luck for your interview my nightmare. =)
Friday, April 10, 2009 / 5:06 PM
Rafidah & Me
this is a picture that i took together with rafidah.
a memory picture.
so what's my motive putting up this picture?
well, yesterday night we had a dinner farewell for her. not many people were there. just me & baby, she & her bf and not forgetting abg khalid. basically just the close ones. invited sheila & endy as well but they couldn't make it coz her mum is going back kampung.
oh my. kampung. so nice. so relaxing. how i wish i got kampung too. will definitely go back kampung on long weekends like today.
stop. back to the main topic. haha.
dinner was held at east coast park. it was rafidah & her bf first time there and they got mixed up with few others food centre. till she went the one at long beach and etc. haha. but lucky, everything goes on smoothly once i reached there. informing them the carpark. now i know, it's carpark E2. haha. and the name of the place is east coast park food village. haha.
so fidah, i hope u did enjoy yourself. =)
had big meal thru. we had seafood again. this time around, different stall from the one we ordered during baby birthday. and i'm glad that the taste is better this time around. we ordered bbq stingray (my favourite - yummy), kangkong, cereal prawn and sweet & sour squid. yummu yummy. i'm hungry man. i just feel like eating them now. haha. how i wish i have my own transport. can just proceed here & there if i'm bored or hungry. haha.
and yeah, i'm hungry now. haha.
we chit chat and everyone was full then. completed all dishes. best! syiok!
and i'm looking forward for such events again.
to fidah, congrats on your new job and i hope you love this new job. all the best and do keep in touch k? =)
Sunday, April 5, 2009 / 9:46 PM
Happy Birthday Sayang.
27 march 2009.
we celebrated baby birthday together with my darlings at east coast park lagoon seafood centre. the five of us together - me, baby, sheila & endy and not forgetting our dearest jiha as well.
we had lots of food. bbq stingray, beef kailan, cockles, sambal sotong, bbq chicken wings and satay. yummy. by the time, all of us were full. super damn full. and this is not over. coz we had the birthday cake cutting. had a small piece and the balance baby was to bring back home. at least he got his nephews to finish up. haha.
by right, we took lots of pictures but in the end, all the pictures were gone. due to my laptop hdd crash that day. so sad. but lucky still have these two pictures. one picture on him and the other picture on us.
me & baby.
baby, once again happy birthday to you. hopefully you didn't regret celebrating your mini birthday celebration with the rest of my darlings. and hope too that you like the present from them. it's a cap from tiltiest cap and polo tee.
upon going back home, baby feel so lucky. he smiled to himself and laughed to himself. haha. just that he feel appreciated. this year, he received not only present from me but also from my darlings and the colleagues. and i believe that it has been such a long time ever since he last celebrate his birthday.
don't worry baby. there will always be. every year. us. together. insya-allah.
that's her
21 october 1987
libra
rabbit
full time student
part-time sales promoter
tutor
"what's meant to be yours will forever be yours."
looking at the stars
a wonderful husband who can lead
a property at good district
a car
a wonderful job
good salary
happy life with my loved ones
"your dreams will be yours if you try to achieve it not hoping."
adventure out
my baby
my darlings
real estate
golf
snooker/pool
bowling
tennis
driving
novels
chocolates
coffee
red
"happiness is due to your commitment you give in the things you like."
looking forward
my late grandma
rafael nadal
nemanja vidic
"woman is the man's backbone to success & vice versa."
me & jiha during the poly days.
Rafidah & Me
Happy Birthday Sayang.
me & baby.