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25 Apr

Guide to Insuring your Home

When it comes to ensuring that the value of your home and its contents are rightly accounted for when unfortunate circumstances hit, no effort should be spared in unearthing the best available insurance plans to suit your needs.

Don’t get burnt by sudden disasters; get the right policy for your needs. Image courtesy of Thinkstock.

Don’t get burnt by sudden disasters; get the right policy for your needs. Image courtesy of Thinkstock.

Assessing your needs

The first step to take in insuring your home is figuring out what you really need, as this will give you an idea of how much coverage to get. Reflect on how much you are financially invested in your piece of property, and how much more you are willing to fork out to protect its value.

  • Do you have many valuable possessions?

Take into account your state-of-the-art computer, expensive jewellery, artwork, or designer furniture. You may also wish to insure items of sentimental value, but don’t get carried away. What is important to you may not be of monetary value.

DirectAsia.com covers loss or damage to your home contents, which they define as “anything inside your house and garden that you would take with you when you move”.

  • Is your location prone to damages?

Singapore’s location on the globe may keep us safe from hurricanes or volcanic activity, but some homes remain at risk to the occasional flash-floods and earthquake tremors. If your home is perched on ground level or located on the lower floors of the building, at a low-lying area like Bukit Timah Road or Stevens Road, you might want to choose a policy that covers your belongings and renovations in the event of a flood.

DBS’s HomeShield plan insures against floods with damages up to an excess of $100. DirectAsia.com insures against floods and earthquakes, but covers only homes that have not previously suffered damage from floods and other listed disasters.

  • Did you splurge on your home?

If you purchased your home for an extravagant price and lavished it with renovation projects, you might want to spend a bit more to insure your investments in the home. However, stick within your budget and go for the best option you can afford.

Aviva’s Home plan covers fixtures like built-in wardrobes for a maximum sum insured of $100,000.

Basic coverage

Some houses come with their own insurance policies.

When you buy a new Housing Development Board (HDB) flat, you may be required to apply for two kinds of insurance: the HDB Fire Insurance Policy, and the Home Protection Scheme. The former is meant for those taking a HDB loan. The latter is for those who have arranged for monthly housing repayments via their Central Provident Fund accounts.

The Home Protection Scheme, in particular, is a mortgage-reducing insurance scheme. It ensures that your home will not be lost should you not be able to complete your housing loan payments.

Similarly, private homeowners taking out a bank mortgage have to first take out a fire insurance policy. Some banks, like Standard Chartered, offer free home-insurance for the first year when you take up a housing loan with them.

However, these policies usually have very basic coverage. In a typical fire insurance policy, only the walls and ceilings of your home are covered in the event of a fire. This means you cannot claim for the loss of your flat-screen television. Neither can you claim for items stolen or damaged by other means.

Choosing the right policy

If your basic home policy is insufficient, you should search for better solutions in the market.

Take note of these key points when deciding on a suitable plan:

  • Items covered

Check if the policy covers renovation costs and the value of contents of your house. Some policies even cover personal accidents and liability, loss or damage to valuables outside your home.

  • Definition of terms

Insurers do not all have the same definition of risks. Pay attention to these definitions as they can make a difference to what belongings you can seek damage against, and ultimately the amount you can claim.

  • Excess clause

This is the minimum amount you have to bear for all losses except those resulting from fires. Find out exactly how much you have to foot per item. For example, DBS’s HomeShield plan has an excess clause of $100 for water damages.

Tips:

  1. Most insurers offer more than one housing plan. Some, like Aviva, offer you the flexibility to add only the benefits you need, so you won’t have to pay more for a comprehensive plan you won’t fully utilise.
  2. Over-insure rather than under-insure, as it is common to accumulate new items in your home over time. The less you insure, the less you can claim. However unlike many insurers, Great Eastern’s HomeSupreme plan has a ‘First Loss Policy’ that does not penalise you for under-insuring.
  3. If you are a pet owner, look out for a plan that includes coverage for your beloved animal. Great Eastern provides coverage for the accidental death of pedigree dogs, but there are plans that cover cats and dogs for a handful of unfortunate situations.

 

5 Nov

Hotel or Serviced Apartment? Why A Serviced Apartment may be your Preferred Choice for an Extended Stay

When planning a last-minute business trip or much-deserved vacation, international tourists and travelers alike may often think of a hotel as their first choice of temporary accommodation. However, long periods of time away from home often give travelers a homesick feeling – a natural result of the unfamiliar surroundings and the lack of the familiar trappings of home. This is where the serviced apartment comes in: A serviced apartment’s larger living spaces, home comforts, as well as its comparable affordability can make it an attractive alternative to the more traditional hotel room for those planning a stay of 7 nights and more.

8 on Claymore: The Latest Addition to the Serviced Apartment Line-Up

Poolside at 8 on Claymore

Poolside at 8 on Claymore

The official launch of one such serviced apartment, 8 on Claymore was widely anticipated by industry watchers, with its 85 units increasing the accommodation choices available in Singapore’s prime Orchard district. 8 on Claymore, with its enviable location on the idyllic Claymore Hill area, stands out from the rest with its close proximity to popular facilities such as the American Club and Orchard MRT station, yet far away from the heavy traffic and large crowds on the main Orchard Road stretch.

Hotel-Standard Guest Services

In line with the emphasis on high service standards, 8 on Claymore also provides a personalized orientation tour, so guests staying at the serviced apartment for the first time have the feeling of being “shown around”, and treated as honored house guests with a welcome from the perfect hostess.

Managed by Royal Plaza on Scotts, guests with demanding standards can rest assured that every convenience is available, with services offered ranging from housekeeping services every weekday, to a 24-hour in-room dining service, a service much appreciated particularly after 9.30pm, a time when many restaurants have taken their last orders for the night. Should guests ever get tired of eating take-out, all suites at 8 on Claymore include a kitchen with full appliances and crockery, providing guests with the flexibility of fixing their own meals. A 24-hour supermarket is also conveniently located a short 3-minute hop away.

Generous Inclusives

Visitors to Singapore would also be hard pressed to find a hotel that offers as many free services which are included in the room rate at 8 on Claymore. Complimentary parking, high-speed internet, 70 cable channels, a DVD player and iPod docking station, daily breakfast, and even unlimited coffee made from a Nespresso in-room coffee machine are all included with the basic room rate.

Daily Buffet Breakfast Area at 8 on Claymore

Daily Buffet Breakfast Area at 8 on Claymore

8 on Claymore is also family-friendly, offering babysitting services, laundry and dry cleaning, as well as a children’s playground and pool, facilities that may not always be present even in Singapore’s luxury hotels.

With the high level of privacy, larger spaces and quality of services provided, today’s high-end serviced residences give traditional hotels a run for their money. While the trend of choosing to stay in serviced accommodation instead of a hotel among expats is still rather new in Singapore, the demand for a flexible, value for money alternative to the 4- or 5-star hotel room is very likely to grow over time.

11 Oct

7 “Uniquely Singapore” Acronyms Every Property Investor Should Know

Singapore has been called the “Land of Acronyms”, and with good reason – abbreviations are used widely by locals to refer to highways and buildings, government agencies, financial institutions, political parties … and more.  It should come as no surprise that the local property industry also has its fair share. Here are some of the most commonly used real estate acronyms and abbreviations in Singapore:

1) HDB (Housing Development Board)

While many countries in the world have some form of public housing, Singapore is unique in that about 80% of Singaporeans stay in an HDB flat, giving it the distinction of having one of the highest percentages (if not the highest) of residents in public housing in the world. With the rapidly rising population and land scarcity, the time when an HDB flat hits the S$1 million mark may not be very far away.

2) TOP (Temporary Occupation Permit)

In layman terms, TOP refers to the time when construction is completed and a property is ready to be occupied. The Building Authority would also have issued a Certificate of Statutory Completion (CSC) at this time.

3) COV (Cash Over Valuation)

Most commonly used since the rapid increase of HDB prices since 2007, COV refers to the sum above and beyond what the flat is valued at. COVs have been known to reach highs of more than S$50,000 in recent years. Read the amount in COV that most Singaporeans are willing to pay up to here.

4) LTV (Loan to Value)

LTV refers to the maximum amount a bank will lend for the financing of a property purchase. Hence, for a S$1 million property, a LTV of 80% means that the bank will lend a maximum of S$800,000. More recently, a series of cooling measures introduced by the local authorities to discourage speculation have included the lowering of LTV for second mortgages to 60% from 70% previously.

5) SSD (Standard Stamp Duty)

SSD is imposed by IRAS (Internal Revenue Authority Singapore) on both buyers and sellers of property, and is calculated according to the amount of the property purchase value. For buyers, SSD is calculated according to a “tier” system, with 1% imposed on the first S$180,000, 2% on the next S$180,000, and 3% thereafter. The recent cooling measures have also included new SSD rates ranging from 4% to 6% for residential properties disposed of within 4 years of acquisition.

6) VTO (View To Offer)

VTO is commonly used in open listings, and can sometimes mean that the owner is “testing the waters” by not indicating an asking price in order to see what offers his property can attract. In some instances, a VTO listing may mean that the flat may not have had its valuation exercise completed.

7) Co-Broke

As both the buyer and seller may have agents on each end, a co-broke refers to the agreement where agents on both side agree to share exclusive listings with one another, with a 50-50 split of commission. However, the co-broke system is sometimes abused, in cases where agents may not reveal higher offers or encourage a client to buy a more expensive flat in order to maximize his commission.

11 Aug

Serviced apartments – A Home away from home

Many expats are choosing serviced apartments as opposed to renting or buying properties when posted here for work. Which serviced properties are popular with foreign talents and their families? Are they truly viable options?

Moving into a serviced apartment was an obvious choice for Mr Bruce Goldstein, founder of a high-end interior design firm, when he relocated his family from Miami to Singapore a couple of months ago.

Home for him now is a four-room apartment suite at The Club, Capella hotel’s serviced residences arm, and the 64-year-old said it was the convenience and personal service offered at this type of accommodation that ultimately persuaded him to sign a four-year contract.

The Club by Cappella Hotel is situaed in the relaxed atmosphere of Sentosa Island. Photo by Cappella Singapore.

The Goldsteins are among the many travellers and businessmen who have contributed to the year-on-year growth in demand for serviced residences in Singapore. Many operators say more visitors are opting for serviced residences over renting or buying a home when they are posted to work in Singapore.

This type of accommodation typically caters to longer-staying guests by providing fully furnished units that are more spacious than an average hotel room. These homes can also come with services like weekly house cleaning and baby-sitting services.

Serviced residences say their businesses have been making a good recovery since the recession of 2008-09, when companies were less likely to commit to longer leases due to the troubled global economy. But some operators say that is all in the past – many have reported a monthly occupancy rate of up to 95 per cent, a marked increase compared to their average rates of between 70 per cent and 80 per cent seen last year.

Fraser Suites Singapore - one of Fraser Hospitality's many serviced residences. Photo by Fraser Hospitality.

While guests usually stay between a week and a couple of months, serviced residences operators like Fraser Hospitality have hosted guests who stay on for more than five years. Rental rates too have seen a jump – Far East Organization says its rents have gone up by up to 15 per cent so far this year, as compared to the start of 2010.

More multinational companies are choosing to base their operations here, said Mr Tan Boon Khai, Ascott’s regional general manager for Singapore and Malaysia.

Far East Hospitality also manages a list of serviced apartments in Singapore. Seen here is Regency House on Penang Road. Photo by Far East Hospitality.

This translates to more foreign staff being relocated here – some with spouses and children – for an extended period of time or on a project basis, he said. While American, European and Japanese travellers continue to make up the majority of guests at many serviced residences, visitors from emerging Asian markets such as China, India and the United Arab Emirates are slowly making their presence felt as well.

Factors such as economic stability and a high level of safety and security have also boosted Singapore’s appeal as a global hub among the international business community.

Mr Goldstein said: ‘I know that if at 2am, my wife and baby were to walk the streets at night, they would be 100 per cent safe… the Government is stable and (Singapore) encourages business so I’ve managed to start my company with relative ease.’

Several serviced residences are enhancing their properties and putting in new features to satisfy this growing demand. Mr Tan said a few of the squash courts at some of Ascott’s Somerset properties have been converted into children’s playrooms to cater to the families that stay there.

Fraser Hospitality’s Fraser Suites property has also seen a revamp. The newly renovated premises now boast a new gym and an all-day cafe. Mr Robert McIntosh, executive director of CB Richard Ellis Hotels, Asia-Pacific, said the future for serviced residences looks promising.

Rest your head after a hard day's work in Singapore's busy CBD, at the Ascott Raffles Place. Photo by Ascott-Somerset Residences.

Unlike hotels, guests in these homes stay locked in a lease for longer, therefore making this segment of the hospitality market less vulnerable to global changes.

The biggest challenge for this industry now, he said, lies in retaining good personnel: ‘While guests are more self-reliant in a serviced residence, they do tend to stay for a longer period. ‘As an operator, you would want to ensure that your staff is able to develop a long good service relationship with guests.

Source: The Straits Times © Singapore Press Holdings Ltd. Reprinted with permission.

Editor’s Commentary:
Without having to worry about property maintenance and interior furnishings, serviced apartments may be a preferred choice for expatriates. Compare prices of living in one to that of renting a property.

5 Aug

Decorating – It’s All About the Timing

Cash over valuation (COV) can be a controversial variable in the Singapore HDB resale market.

By all accounts, COV can be determined by many factors such as proximity to shops, food-courts, public transport or other amenities. As I’ve learnt from our apartment search a couple of years ago, another oft-forgotten determining factor is whether or not a flat is in good condition, well-maintained and recently renovated.

We looked at a number of different apartments before settling on our current block in Sengkang West. I must say that I was both amazed and disappointed that so many potential sellers put very little effort into the presentation of their interior prior to a viewing. It was an immediate turn-off to walk in and see an apartment in disrepair or simply unclean. And to add fuel to the flame, the sellers often asked for cash well above valuation – which would potentially eat into any budget set aside for renovation.

Walking in to the first viewing of what is now our apartment was a different story. The first thing that hit us was that the entire place was immaculately clean. What’s more, the renovations were already completed, and gave us an insight into something that we hadn’t seen in any other flat we had viewed. Its layout was completely unique and I can guarantee that there is no other apartment with the same fantastic features – although every 5-room flat in our block was identical at ‘birth’.

Along with the gorgeous browns, tans and light décor, one of the knock-out features of the open plan living areas is the built-in bar. Although we don’t entertain as much as we would like to given our busy lifestyle, the bar perfectly complements the rest of the decoration style.

The built-in bar. All images courtesy of Peter Breitkreutz (aussiepete.com).

The built-in bar. All images courtesy of Peter Breitkreutz (aussiepete.com).

We had no previous experience with decorating a property in Singapore, nor did we have any benchmark on how to go about it. We just researched extensively and went it alone – as a result, I’m guessing that although we were more than happy with the end result, we may have paid much more than we should have.
Here’s my key advice: be sure to plan your settlement and handover date in relation to required renovations, decorations and relocation very meticulously. Do not under any circumstances think that if you only have a small amount of work to be done – bathrooms or painting, for instance – that you will be able to co-locate in your new home while the work is underway.

When looking at any renovations in a HDB, the first thing to do is understand exactly what you are trying to achieve. In the case of our bathrooms, my wife had some very specific requirements in terms of placement of sinks, showers, toilets and the new bathtub. I had my own expectations about hot water systems, space utilisation and ambiance.

A computer-designed 3D visual of the common bathroom.

A computer-designed 3D visual of the common bathroom.

Once we had decided on a framework of what we wanted, we then went online and found contact details for a number of different renovation companies. We also visited a few companies we’d seen over the previous couple of years.

After talking with a number of these companies and looking at some of their previous work and testimonials, we eventually settled on a couple to give us quotations on our requirements. This involved selecting the tile patterns and designs that we wanted – the fixtures and fittings – toilets, bathtubs, shower heads, taps etc. After much searching we found a successful interior decorating firm that looked after our permits, provided labour, drew final designs and worked with us closely through all stages.

Not wanting to complicate things, and with the need to move into our flat as soon as possible, we also had the design company take care of securing professional painters to give the entire apartment the once-over.

The newly painted lounge room.

The newly painted lounge room.

The entire process of renovation was actually quite quick – maybe 3 to 4 weeks if I recall correctly – from the moment they entered the premises to the time they gave us the key back and we started moving furniture.

Although the exercise was relatively expensive, we were ecstatic that we were able to move into our very own resale flat that was unique to us in every way we wished it to be.

7 Jul

Rent not buy – Furniture that is.

If you’re looking to rent a place for yourself, or to furnish your second home so you could rent it out, buying furniture might not be the best choice. How about renting furniture in Singapore? How do you go about that and how much could it save you?

When American Guy Gethers moved here to take up a post last year, he was certain he did not want eventually to ship his furniture home or to his next posting.

Nor did he want to hold a yard sale to sell it all for a song.

His solution: Rent all of it.

For about $2,000 a month, furniture rental company Home Essentials stocked up his three-room rented apartment in River Valley with everything from wine glasses to the bed, with its in-house interior designer seeing to the aesthetic aspect.

Renting furniture could be the way to go if you're looking to rent a unit in condominiums in the popular River Valley area. Urbana condominium in River Valley road.

Said Mr Gethers, who is in his 50s and is vice-president of global casino credit at Marina Bay Sands integrated resort: ‘After my previous posting in London ended, I had a lot of trouble shipping home my furniture and finding a place to store it. I wasn’t interested in going through that hassle again.’

Besides Home Essentials, about half a dozen furniture rental companies operate here, most of them around for more than a decade.

Stocking up a home with rented items, ranging from appliances right down to cutlery and even wall paintings, is not a cheap option. A three-bedroom unit can cost at least $500 a month to furnish, depending on the style and quality of the furnishings and the size of the place.

Rental contracts typically last two years. Home Essentials owner Sam Exline, 69, said it is probably cheaper to buy one’s furniture, but expatriates must dispose of the items when they go, and shipping the furniture home may be expensive.

But Lian Huat Leasing senior sales executive Ivan Say noted that the cost of renting includes insurance of the items and servicing of the home appliances.  ‘People approach us more for the service than for the product,’ he said.

Furniture rental companies like Lian Huat Leasing can not only help you interior decorate but also provide all the furnishings you need.

These companies do not just get business from the burgeoning expat community Singaporeans who rent out their second homes often turn to them.

When the rental market grew in the past two years, business of these companies also increased.

Ms Khommi Tan, marketing manager of Expats Furniture Rental, said the number of local landlords among her clients rose 20 per cent in that time.

Mr Say said nearly a third of his clients are local landlords, an increase from 10 per cent five years ago. They want to be able to give their tenants the style of furniture they want, rather than buy items their tenants may not like. Tenants also want choice, Mr Say said.

Local landlords have found that tenants prefer the options of renting decor they like from furniture rental companies like Expat Furniture Rental.

Property agent Patrick Low confirmed this, saying: ‘I think tenants prefer this option. I’ve seen some who have picked fault with fully furnished homes – they say certain items are low-class or ugly.’

Rental firms factor in wear and tear over the years, although, as Mr Say observed, cases of damaged items are rare.

Clients like Mr Gethers are clearly sold on the concept. He said: ‘I’m very pleased with this one-stop shopping experience. It would have taken me quite a lot of time to look for everything on my own. The service was invaluable.’

Source: The Straits Times © Singapore Press Holdings Ltd. Reprinted with permission.

Editor’s Commentary:
Furniture rental companies can help expatriates save time, money, and lots of frustration, but bringing what you select to your doorstep, and swiftly removing them when you leave.

23 May

Are Serviced Apartments Really Any Different To Hotels?

Luxurious and plush but often characterless. Hotel rooms never quite manage to capture that homely feel that can make a stay so much more relaxing and that’s why I decided to test out serviced apartments when I recently relocated to Singapore. Surely they must offer something different?

Orchard Parksuites Singapore www.wotif.com

Orchard Parksuites Singapore www.wotif.com

Basing myself at the Orchard Park Suites serviced apartments while looking for a more permanent residence, I was pleasantly surprised. That cosy, welcoming feeling of a home greeted me when I first looked around. It was hard to pin-point but perhaps the open space as well as distinct rooms and a fully equipped kitchen made it feel like somewhere liveable. Whatever it was, it was significantly different to the predictable shells known as hotel rooms.

Located near Orchard Road, I was close by to all the essentials including shopping, restaurants and the MRT. I soon got to grips with the area and realised that Ngee Ann City shopping centre was for the echelons of high society while Lucky Plaza was where the bargains could be had. Lucky indeed, if your bartering skills were intact. Almost every shop you could ever imagine was in the area from gigantic bookstores to English supermarkets. After trouncing around Orchard Road, coming back to my Singapore serviced apartments was noticeably better than arriving back to a hotel room. It felt comfortable, and with the kitchen facilities I could actually buy food from outside and bring it back with me like I would at home.

Orchard Road Singapore www.wotif.com

Orchard Road Singapore www.wotif.com

As an unexpected bonus the apartment came with complimentary broadband and after looking up the history of Orchard Road I discovered it was named that way because the road was lined with nutmeg orchards back in the 1830s. Peeking out my window revealed that wasn’t the case anymore but for a bit of nature I wasn’t too far from the parks and golf courses via the efficient MRT. I had booked the apartment at Orchard Park Suites through Wotif.com and after a brief chat to the customer service team they kindly offered me a discount because of my lengthy stay.

After staying for almost two months I eventually found my own place but the interim time wasn’t an ordeal, in fact I was fond of the apartment. Serviced Apartments are definitely also good options if you are relocating to Singapore while looking to rent, or if you’re looking for the next property, as they offer short term stays.  If I were to do the whole thing again I’d sidestep Singapore hotels for a prolonged stay like this although I would consider Singapore boutique hotels because these have character in abundance… just perhaps not the sort of character I would like to live in for a while.

18 Apr

Waking Up In A Foreign Land

Serviced apartments, condos, hotels or maybe even house rental – with such an overwhelming list of accommodation options how do you know which to choose when staying overseas for a long time? Increasingly global real estate companies are making these options simpler and one of these companies is CBRE (CB Richard Ellis).

Bangkok Serviced Apartment www.wotif.com

Bangkok Serviced Apartment www.wotif.com

Serviced apartments in particular are proving to be popular choices because of the convenience they provide allied to the homeliness that is frequently missing from a hotel. CBRE offers a host of serviced apartments around the world and with centuries of years experience in the real estate business, literally, you would struggle to find a better provider. As such a prominent force in real estate CBRE offers accommodation in a number of major Asian cities from Singapore, Hong Kong, Tokyo and Bangkok. If you’re heading to one of these cities for a business stay or relocating as a family it might be worthwhile checking out the options available to you and the benefits of renting a serviced apartment. This type of accommodation helps smooth the transition from leaving the familiarity of home to starting somewhere fresh and unknown. Having your own kitchen can be a real comfort and extremely useful while a separate living room can help give the feeling that you aren’t just living out of another hotel room. Let’s not forget that the convenience of serviced apartments is the fact that they are ‘serviced’ and this can make a hectic change in lifestyle much more bearable.

Bangkok www.wotif.com

Bangkok www.wotif.com

A number of CBRE serviced apartments are available to book through the online accommodation specialist Wotif.com. For example in Bangkok there are choices ranging from affordable to luxury and these are all located in the most commercial parts of the city ensuring that nothing of importance is out of reach. Bangkok apartments aside there are also options available in other parts of Thailand including Koh Samui and Phuket. Booking is straightforward from Wotif.com and simply requires selecting the property you want and the dates you will stay, then adding a few details and confirming.

If you don’t think the CBRE choices will suit your stay there are also a number of Bangkok hotels and Phuket hotels which offer a different experience but one that will nonetheless be enjoyable and comfortable.