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Thread: City Fringe or Suburban for Rentals?

  1. #1

    Default City Fringe or Suburban for Rentals?

    Hi folks,

    If you are looking to buy a unit and rent out for rental income, which will you prefer? Looking at new developments only.

    1) A 1 to 2 bedder in Geylang area, FH, going between 600k+ to 700k+. Examples like Prime Residence, Central Imperial, etc.

    2) A 2 bedder mass market condo at Seng Kang, Punggol, Pasir Ris, etc. Usually in the region of 700k+ to 900k.

    Will it be easier to get tenants in Geylang area? Especially if it is on the verge and not deep in the red area? I see many small developments there and mostly also quite near to MRT...and also only few stations to town. Very convenient.

    In contrast, many mass market developments are large with few 100 units. And may need to also compete with HDBs for rentals? Only plus point is the unit can be considered for own stay.

    thanks for your comments

  2. #2
    Join Date
    Aug 2011
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    1,516

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    Personally, i would avoid the above for rental.

  3. #3

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    Quote Originally Posted by Rosy
    Personally, i would avoid the above for rental.
    care to share the reason?

  4. #4
    Join Date
    Apr 2010
    Posts
    2,067

    Default

    Quote Originally Posted by bonestock
    Hi folks,

    If you are looking to buy a unit and rent out for rental income, which will you prefer? Looking at new developments only.

    1) A 1 to 2 bedder in Geylang area, FH, going between 600k+ to 700k+. Examples like Prime Residence, Central Imperial, etc.

    2) A 2 bedder mass market condo at Seng Kang, Punggol, Pasir Ris, etc. Usually in the region of 700k+ to 900k.

    Will it be easier to get tenants in Geylang area? Especially if it is on the verge and not deep in the red area? I see many small developments there and mostly also quite near to MRT...and also only few stations to town. Very convenient.

    In contrast, many mass market developments are large with few 100 units. And may need to also compete with HDBs for rentals? Only plus point is the unit can be considered for own stay.

    thanks for your comments
    Get a shoebox in CCR, between 800-900k. Rental yield easily 4-5%

    Freehold, supply cut duty to new ruling. U go figure out.

  5. #5

    Default

    Quote Originally Posted by leesg123
    Get a shoebox in CCR, between 800-900k. Rental yield easily 4-5%

    Freehold, supply cut duty to new ruling. U go figure out.
    Sorry, what is supply cut duty? I googled but couldn't find its meaning. thanks

  6. #6
    Join Date
    Apr 2010
    Posts
    2,067

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    Quote Originally Posted by bonestock
    Sorry, what is supply cut duty? I googled but couldn't find its meaning. thanks
    Ps, typo. Supply cut due to...

    URA new formula for developer means no more worth while for developer to develop shoebox. So shoebox in sg will be limited in number liao.

  7. #7

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    Quote Originally Posted by leesg123
    Ps, typo. Supply cut due to...

    URA new formula for developer means no more worth while for developer to develop shoebox. So shoebox in sg will be limited in number liao.
    I see, so for that reason it is a plus to consider a shoebox.

  8. #8

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    Can be anywhere but must be beside mrt and mall with sheltered walkway.

  9. #9
    Join Date
    Apr 2010
    Posts
    2,067

    Default

    Quote Originally Posted by bonestock
    I see, so for that reason it is a plus to consider a shoebox.
    Got different sch of thoughts. Some hate shoebox and feel is inhumane. But personally having stayed in one for a few years, it has its own market. Single or coiple is fine. Get at least 350sqft above with a proper bedroom. Location is important. simple rule of thumb is look around if there are hotels or service apartments in the vicinity. If yes, that is a good location to consider. Rule of thumb, if a hotel room charges $200 per day and you rent your one bedder shoebox for $3000 per mth, would it be attractive to companies to house their single expat? Usually a place with many hotels or service apartment should have respectable malls and good transport nearby too.

  10. #10

    Default

    Quote Originally Posted by leesg123
    Got different sch of thoughts. Some hate shoebox and feel is inhumane. But personally having stayed in one for a few years, it has its own market. Single or coiple is fine. Get at least 350sqft above with a proper bedroom. Location is important. simple rule of thumb is look around if there are hotels or service apartments in the vicinity. If yes, that is a good location to consider. Rule of thumb, if a hotel room charges $200 per day and you rent your one bedder shoebox for $3000 per mth, would it be attractive to companies to house their single expat? Usually a place with many hotels or service apartment should have respectable malls and good transport nearby too.
    I see. Thank you for all comments. I was previously hesitant in getting a unit near to budget hotels as I thought there will be sleazy activities that tenants would avoid. So this is new another good reason to get a unit in GL.

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