As a development ages , sinking fund goes up too. Also rental may fall as you can't compete with neighbouring newer developments. All this has to be factored into price when buying. Generally I haven't bought any LH that is above 10 years in age. And I would try to unload before it hits the 20 year mark . Not all LH has en bloc potential so most of them will underperform market even when there is a boom. Location matters too I think. The market is more ' forgiving' of older LH when the location is great. But if it isn't well maintained because owners refuse to pay the high Sinking fund, then it won't be easy to rent out at a decent rental.
So far my Industrial has been easy to lease at 7% yield. But when the economy isn't doing well Industrial and commercial will be hit first. So you need to assess your risk appetite.
It seems like the definition of “good location” can be quite subjective. During last CNY, my buddy was talking about the en-bloc potential of his place. He lives at Baywater which is almost 17 years old. Upcoming Bedok Reservoir MRT (DTL3) is right smack next to his place. He loves the location and neighborhood but yet the condo is fast aging as LH property.
Depending on the market, I suggest for him to consider FH in next few years.
My commercial 2 will also have a mrt end of this year. About 500m away. But so far, I don't see any price swing, sale or better rental.
So are most of you guys still in property, collecting rental or sold everything, made money and invested in other assets? Or waiting.
Me singing the same song for years.
You are most welcome on this forum. Are looking advice or opinion related to property investment? If you want to invest in property in Singapore you must contact with property xpress in Singapore. Property xpress is the leading property service provider in Singapore. It has lots of different types of property in Singapore.
Tommorrow if I can walk up Humpbawang hill I am Happy.
The Hill with a lot of Hump
We call it Humpbawang hill.
Tommorrow I go count Hump.
Last edited by Arcachon; 17-08-17 at 21:25.
Quite a surprise, today my neighbour came over and ask if I would be interested to sell my unit. He is expanding and looking for space. I think I can ask for a slight premium as his current office is next door and he wants to join them together. I can make maybe 150-180k. This is probably a one time opportunity.
However, I am using the place for business. And will also need to find a new place at the same area as my suppliers are all there.
Cons
1) I don't see any good deals for the new place.
2) Need to pay new fees, duties, Reno, etc
3) Forgo MRT coming this year and new Bidadari development.
Pros
1) Use profit to downpay.
2) Can look into freehold.
Will you keep or sell?
I am sorry but I don't quite understand him in this case. Been away from the forum for almost 2 yrs.
I read his other threads and he provides good suggestions. Maybe I did not read enough.
In fact a lot are you are very knowledgable in many different areas compare to me.
I am looking to restructure my portfolio in the coming 10 years, by then I will be 48. Maybe along the way, I can grab 1 or 2 more and I will call it a day.
I have not sold anything in Singapore, so only paper gain and loss. But not a single cent in my pocket.
Still working hard to payoff and reduce the loan. Thus I am not sure if this is the right strategy to only hold.
I was just reading the cpf thread, sad to say I am quite outdated.