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Thread: Properties in Geylang Area: Potential?

  1. #31

    Default Re: Properties in Geylang Area: Potential?

    Quote Originally Posted by Unregistered
    Refering to the article, why didnt the person take up the loan from finance house since Finance house are willing to grant him a loan?

    the article mentioned that he worried that he may have problem selling his house in future so he rather give up 22k.

    if he is staying in geylang for the long term he should take up the loan with hong leong than to lose the 22k.

    maybe Finance house charge higher interest?

    anyway i personally think earning 50k a year is not consider high income + a car loan made him less credit worthy despite having a good credit history.

    Agreed. My 2 Cents... there's more to it.
    Let me attempt a simplistic analysis:
    Hong Leong Finance: For maximum loan entitlement, monthly instalments cannot exceed 33% of your monthly income
    * Assuming his annual salary is $50k (including 13th bonus), his monthly salary is about $3846.
    * He asked for a loan of $400k for 30 years which means that his monthly payment is $1852 (based on 3.75% interest rate which is currently HL's rate). That's already 48% of his monthly pay. This doesn't include his car loan

    Even if he was to apply with his wife, it would be a real stretch (if you also include a car loan which easily consumes 10% of his monthly pay)
    (a side note: For those interested, banks will loan you money if your monthly installment - all loan payments - doesn't exceed 40% (UOB goes as far as 46%). So do the math)

    What about his father? Difficult. Age would be the limiting factor.

    We don't have the facts to the above story but as you can see, the reporter didn't do his or her homework of verification.Assuming that the above analysis is true, than his remarks about being afraid that he cannot sell his property in future were just a smoke-screen.

    ..there's always 2 side to a story... take the side that fits your reality .

  2. #32

    Default Re: Properties in Geylang Area: Potential?

    Quote Originally Posted by Unregistered
    i am keen to buy a apt/condo in geylang and rent out. problem is bank does not grant loan. personally i feel it is good investment as long as the property can be rented out 90% of the time and then the rental can cover the instalment

    what is the expected rental yield for atrium residence?
    Atrium Residences will only be completed in 2009 (after the IR opens its doors). Currently, a typical 3 room apartment can fetch anywhere between $2.3k-$3k in the Geylang area. I expect the rents to go up to $3k-3.5k by then. (If the Red-light district moves, then it will be a bonus)

    Currently, the Atrium residences you are seeing in the market are the sub-sales.

    You can still get a loan from the likes of Hong Leong, RHB, May Bank (but the usual credit considerations apply). Alternatively, buy properties whose addresses do not contain "Lor" like those in Geylang Central, Geylang East (e.g Simsville, etc)

  3. #33
    Unregistered Guest

    Default Re: Properties in Geylang Area: Potential?

    Thanks Dareevil

    Do u know there is any Apt worth buying in Lor 26-30? I starting to take a look at Geylang and am not sure but i though FH Apartment may have a higher rental yield right due to lower maintenance fee incurred by Condo
    --------

    Quote Originally Posted by Daredevil
    Atrium Residences will only be completed in 2009 (after the IR opens its doors). Currently, a typical 3 room apartment can fetch anywhere between $2.3k-$3k in the Geylang area. I expect the rents to go up to $3k-3.5k by then. (If the Red-light district moves, then it will be a bonus)

    Currently, the Atrium residences you are seeing in the market are the sub-sales.

    You can still get a loan from the likes of Hong Leong, RHB, May Bank (but the usual credit considerations apply). Alternatively, buy properties whose addresses do not contain "Lor" like those in Geylang Central, Geylang East (e.g Simsville, etc)

  4. #34
    crazy or what? Guest

    Talking Re: Properties in Geylang Area: Potential?

    Buying geylang is like commiting suicide. Unless you are a pimp or wannabe pimp, i suggest you stay out of the area. Do you know how hard is it to re-sell geylang units? If i buy geylang, it is definately for prostitute yield. 2-rm unit to squeeze 6prostitutes, 3-rm unit to squeeze 10prostitues, penthouse to squeeze 20prostitutes(can start a mess orgy club). Geylang will be and always be a fcuk joint. And the banks themselves know it. Potential capital gain is only from yield and not resale. But, becareful not to get caught renting out to prostitutes and so called students.

  5. #35
    Unregistered Guest

    Default Re: Properties in Geylang Area: Potential?

    yap i am keen on renting out for the yield
    not looking at capital gain

    Quote Originally Posted by crazy or what?
    Buying geylang is like commiting suicide. Unless you are a pimp or wannabe pimp, i suggest you stay out of the area. Do you know how hard is it to re-sell geylang units? If i buy geylang, it is definately for prostitute yield. 2-rm unit to squeeze 6prostitutes, 3-rm unit to squeeze 10prostitues, penthouse to squeeze 20prostitutes(can start a mess orgy club). Geylang will be and always be a fcuk joint. And the banks themselves know it. Potential capital gain is only from yield and not resale. But, becareful not to get caught renting out to prostitutes and so called students.

  6. #36
    Unregistered Guest

    Default Re: Properties in Geylang Area: Potential?

    yes, atrium residences is really very good, an amazing find in geylang.... saw it myself... better than some of the condos in the city and fringe.

  7. #37
    Interested Investor Guest

    Cool Re: Properties in Geylang Area: Potential?

    Quote Originally Posted by crazy or what?
    Buying geylang is like commiting suicide. Unless you are a pimp or wannabe pimp, i suggest you stay out of the area. Do you know how hard is it to re-sell geylang units? If i buy geylang, it is definately for prostitute yield. 2-rm unit to squeeze 6prostitutes, 3-rm unit to squeeze 10prostitues, penthouse to squeeze 20prostitutes(can start a mess orgy club). Geylang will be and always be a fcuk joint. And the banks themselves know it. Potential capital gain is only from yield and not resale. But, becareful not to get caught renting out to prostitutes and so called students.
    I'm also interested to invest in Geylang for the yield. Agreed with you that the best yield will be to rent out to pro. But how to go about renting to pro who are normally on tourist visa and hence only short term stay of a couple of weeks. Issue here is how to get connected to them and also what happen if they don't pay. Maybe, unless we get connected to "pin" but will need to pay high commission. In view of complication and risk, might not be easy to get the anticipated yield. Would appreciate if our knowledgeable Daredevil can help to clarify some of my doubts and offer some info on how to rent to pro for max rental yield. Thks in advance.

  8. #38
    Just my thoughts Guest

    Default Re: Properties in Geylang Area: Potential?

    I'm puzzled. You can buy properties in other areas of Singapore and still get rental yields isn't it. Rental is also going North for location in the West and East and you'll be renting out to working professionals who will give you less headaches. Why would you want to go thru the trouble of dealing with the unknowns and worried about them running away?

  9. #39

    Default Re: Properties in Geylang Area: Potential?

    Quote Originally Posted by Interested Investor
    I'm also interested to invest in Geylang for the yield. Agreed with you that the best yield will be to rent out to pro. But how to go about renting to pro who are normally on tourist visa and hence only short term stay of a couple of weeks. Issue here is how to get connected to them and also what happen if they don't pay. Maybe, unless we get connected to "pin" but will need to pay high commission. In view of complication and risk, might not be easy to get the anticipated yield. Would appreciate if our knowledgeable Daredevil can help to clarify some of my doubts and offer some info on how to rent to pro for max rental yield. Thks in advance.
    Hi "Interested Investor",
    What I am going to share with u might be contrary to the opinions of the Geylang or "prostitute" experts you have heard from. So you decide.

    I own another Geylang unit (99 year leasehold) which I will not tell u where (since i have received so many judgemental comments. A few have even concluded that I am a property agent which I am not).

    I will give u my advice based on my own experience in living there for at least 2 years - and renting my apartment for the last 7 years. I do not claim to be an expert (as I always try to learn from others esp the other experts in this forum) but I guess that qualifies me to give u my own 2 cents worth (vs many others who have made judgements based on their own subjective perceptions and impressions).

    Here are 3 strategies
    Strategy #1: Get a condo near to the MRT stations (Paya Lebar or Aljunied) or the Circle line. While people tend to conclude that Geylang is a red-light district, in reality, the main activites are at lorongs (<20). There might be stray prostitutes from time to time - no choice.

    Strategy #2: Do it the LEGAL way. Do not rent to any tom, dick (pun intended) or harry (another pun intended). No Students (let alone prostitutes). Ensure you check their documents. In my last 7 yrs, I have rent out to Chinese, Koreans, and Indians - all are legitimate working professionals in IT, banking (contrary to what is being said in this thread). I have never had to wait more than 1 month to find a tenant and i have not had huge difficulties collecting the rent. In fact, my current tenant is going to extend his current lease and increase his rent by another $500.

    Strategy #3: Ensure you have ongoing "intelligence" of your tenants. Check with the guardhouse when you go there for maintenance. You will be surprised how much they know. Also ensure that the condo management knows who you are and how to contact you if there is an emergency. (this advice is applicable even outside Geylang). In my case, I insist that for air-con maintenance, the tenants use my contractor (who reports to me what is going on inside)

    Having shared the above strategies, look for condos away from the main activity area. You can consider the odd-number lorongs like The Alcove, where banks are more open to providing loans. Then there are condos in Geylang Central and East (where all banks will provide loans - contrary to popular opinion. ).

    A typical condo (>5 years) with 3 rooms cost between $450-550k. Assuming you place a 20% deposit (80%LTV:loan-to-value ratio), and go for the maximum loan period, you should be able to get a $300-500 positive monthly cashflow (that's extra cash after factoring in your condo maintenance).

    There are people who are going to pour cold water on my recommendations but it's my own 2 cents worth since u asked.

    While this thread has attracted serious investors, clowns, "prostitute" experts and kaypos who have provided entertaining, controversial and sometimes conflicting opinions, the fact is that the verdict is still open on the future of Geylang - which is going to be subjected to political, economic and social factors. For me, I am awaiting the Master Plan 2008 - which changes every 5 yrs. I have also based my investment plans on where Singapore is heading and not on opinions or perceptions.

    Whether or not the red light district moves is immaterial to me. But if there are positive effects of IR, then I am sitting on a gold mine (make it 2). yes, I am taking a risk - and a few call me an idiot - but I have taken a calculated risk - with much upside. Good luck.

    Disclaimer: accept my recommendations at your own risk. I will NOT share anymore other than the above

  10. #40
    Unregistered Guest

    Default Re: Properties in Geylang Area: Potential?

    Ya, got potential.
    In line with the legalisation of homosexuality, also suggest that Geylang be developed into a real Gay World for the people. Change the name to Gayland. hehe.

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