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Thread: More expat turning to buying instead?

  1. #61
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    Quote Originally Posted by ysyap
    Well if renter wants to buy, he'll buy from owners looking to sell and not from owners looking to rent so one less renter in the renting market and one more buyer in the selling market! So sellers benefit but if I don't intend to sell yet, I'll be that extra one more unit in the renting market competing with others looking to rent! Complicated equation but true!

    Yes oversupply is a big problem but I think Mr K will try to minimize it where possible! His tenure depends on it! Hahaha.. very funny if MBT cause undersupply with HDB and KBW cause oversupply. Ironic, isn't it?
    Most probably we end up with many empty houses, but with prices difficult to come down significantly (unless other costs go up a lot) due to support from buyers. Much like in China first tier cities where many condos remain 30-40% unoccupied for more than 1 year after TOP.

  2. #62
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    Quote Originally Posted by ysyap
    Well, if gonna buy 2 bedders, MM oversupply scenario will have little effect on larger units? Or am I mistaken? I'll not get MM studio units.
    if let say 2bedder decent sized rental fetching 5k now....den 1bedder decent sized fetch 3.5-4k for eg....and MM in the vicinity fetch 2.5-3k now....

    so if Mm oversupply and rental drop to 1.5k from 3k.....wat u tink of the decent sized 1/2bedder rental?

    cud be 2 guys sharing a 2bedder at 5k now....each fork out 2.5k.....den MM drop to 1.5k....will they each rent a MM each at lower px and enjoy privacy? i will if i were them

    but of coz, impact is not tat great n immediate bcoz a family of 3 for eg can nvr downgrade from a 2bedder to a MM

  3. #63
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    Quote Originally Posted by ysyap
    Well, if gonna buy 2 bedders, MM oversupply scenario will have little effect on larger units? Or am I mistaken? I'll not get MM studio units.
    If price of MM goes down, it will likely drag the rest of the market downwards too as confidence in pty as investment will be down too..

    This is my own experience. In terms of yield, my 99 LH 2 bedder (D10) has significantly better yield than my FH 3 bedder (D11).

  4. #64
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    Quote Originally Posted by chiaberry
    If price of MM goes down, it will likely drag the rest of the market downwards too as confidence in pty as investment will be down too..

    This is my own experience. In terms of yield, my 99 LH 2 bedder (D10) has significantly better yield than my FH 3 bedder (D11).
    i am very surprised tat u own a 99LH ppty

  5. #65
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    Quote Originally Posted by hyenergix
    Most probably we end up with many empty houses, but with prices difficult to come down significantly (unless other costs go up a lot) due to support from buyers. Much like in China first tier cities where many condos remain 30-40% unoccupied for more than 1 year after TOP.
    china very different la.....

    in SG, most local buyers depend on mortgage leh....china ppl over there mainly use full cash or little loan

    so how many singaporeans can afford to leave their units empty while paying mthly installment....not many

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    Quote Originally Posted by devilplate
    china very different la.....

    in SG, most local buyers depend on mortgage leh....china ppl over there mainly use full cash or little loan

    so how many singaporeans can afford to leave their units empty while paying mthly installment....not many
    If you were to check out those high end projects, most owners would leave empty rather than rent out. Their main focus is capital gain rather than rental yield. I am speaking from personal experience as I have a unit in Paterson whereby the whole floor is empty except for my unit which is tenanted. The project has TOPed for quite a while and I think the occupancy rate is just 40-50%.

  7. #67
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    Quote Originally Posted by devilplate
    china very different la.....

    in SG, most local buyers depend on mortgage leh....china ppl over there mainly use full cash or little loan

    so how many singaporeans can afford to leave their units empty while paying mthly installment....not many
    many, but it is mostly HDB in undesired locations...
    cannot rent, so left empty for 5 yrs.....

  8. #68
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    Quote Originally Posted by devilplate
    i am very surprised tat u own a 99LH ppty
    haha yes I own a 99LH ppty.

    Based on the price I paid for it 4 years ago (it was a resale), my yield nett of everything (bank interest, agents commission, management fees, property tax, repairs) is 3.3%. Based on today's price of a similar recently transacted unit, it would be 2.3%.

    Perhaps I should sell it.

  9. #69
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    Quote Originally Posted by bullman
    If you were to check out those high end projects, most owners would leave empty rather than rent out. Their main focus is capital gain rather than rental yield. I am speaking from personal experience as I have a unit in Paterson whereby the whole floor is empty except for my unit which is tenanted. The project has TOPed for quite a while and I think the occupancy rate is just 40-50%.
    Thats probably because those units are fully paid up and that the premium one can sell in the original developer condition out weigh the potential rental income for the 1 to 2 years.

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    Quote Originally Posted by Jadey
    Thats probably because those units are fully paid up and that the premium one can sell in the original developer condition out weigh the potential rental income for the 1 to 2 years.
    I don't think that such units will be full cash payment unless bought by PRC dudes. Most investors will take at least 30-40% loan on such units so as to enjoy some form of leverage.

    Personally, I take 40% loan on such units as the rental yield is much lower compared to smaller size units whereby 50-60% loan is a safe margin. Also, one must remember to set aside liquidity amounting to 2-3 years of mortgage payment for each property owned as a further safety margin. This amount of money can either be used for cash top up in downturn or proof of funds when obtaining more loans.

    Frankly, most original "developer" condition high end units are disappointing in terms of choice of type of grade of materials used. It could still be full marble but the choice of grade is poor. The same goes for laminate etc. So most people keep it empty so that the next homebuyer will have the "first hand" feel which is worth a premium in SG.

  11. #71
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    Many of the older 3 bedders (TOP 2004 and before) about 1200 sqft is as spacious (if not more spacious) than the newer 14xx sqft units!!!
    So better see for yourself, never base on the quoted size in SQFT anymore!

    Quote Originally Posted by proud owner
    i like 3-4 bedder ..
    will consider 2 bedder as well ... in the city ... as my retirement 'city' home

    But the size is more impt to me ...

    2 bedder > 800 sqft
    3 bedder > 1500 sqft
    4 bedder > 2000 sqft

    will not consider a 3 bedder if its <1200 sqft ..especially when one takes away the balcony + baywindows etc .. its really small ...for me

  12. #72
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    Really? What an irony, most CCR resale price so cheap compared to CCR new launch!


    Quote Originally Posted by devilplate
    right now, most ocr resale px r similar or jus a little cheaper den ocr new launches....to me, resale must b at least 150psf cheaper compared to new launches to redo it to brandnew condition within the unit....and u can nvr change the outdated facade and design n common area to brandnew

  13. #73
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    Quote Originally Posted by teddybear
    Really? What an irony, most CCR resale price so cheap compared to CCR new launch!
    Yes....diff of about 150-200psf at most n new launches sizes abit smaller so quantum about the same or lesser....

    And reno cost at least 50-100psf to turn it bck to almost brandnew condition....so i feel better to get new launches if only 150psf diff....in term of percentage cud b alot la...650psf vs 800psf for instance....150/650=23% whereas ccr resale let say 2000psf, 23% work out to be close to 2500psf for new launches....so resale ccr cud b of better value

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