Looking for advise, opinions in property investment

[DayDreamer]

Cash flow??? I have set aside some money enough to pay off the outstanding property loans in event of downturn but unlikely to happen. Even so, I reckon a certain percentage top up.

Only one word, Cash flow.

[frumnat]

Ya, I guess the same reason too. Main business is not growing but shrinking.
But it is from my father's friends who made me realised that they invested in properties and are making a killing at their old age. They made money in their business but it is their properties that made the most. All happily retired. However, that period is over.

I am not sure if my approach is correct. I have never sold any properties in sg. So when I read that people in the forum are making a killing by flipping, I am quite envious. My risk appetite is very small.
Once I pay off enough of the loan, then I will look into properties.

You should be very thankful for your father’s friends. Many ones do not have such luck to realize property WAS the way to make a fortune. It is getting much tougher now with all the regulations and measures.

[Tulip09]

Points noted. You mentioned LH has en bloc potential but it would not happen to all right?
So, do you reckon there a cut off point (yrs) where the value decline as the lease gets closer to expiring. What is the course of action?

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.

[frumnat]

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.

[frumnat]

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.

So what do you guys think?

[DayDreamer]

Thanks for sharing your tips and views. I will keep that in mind.

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.

[DayDreamer]

Like your friend, my LH is just next to a mall and mrt. TOP about 2 yrs ago. Price went up and dropped. I anticipated the price not to swing that much because of the location but guess I am wrong.

So what do you guys think?

[DayDreamer]

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.

[DayDreamer]

So are most of you guys still in property, collecting rental or sold everything, made money and invested in other assets? Or waiting.

[Arcachon]

Me singing the same song for years.

[DayDreamer]

What would that be?

Me singing the same song for years.

[Arcachon]

What would that be?

Can Someone sing for me, else I will sing again.

[anythingwhatever]

Can Someone sing for me, else I will sing again.

Elvis: "Wise men said, only fools rushed in, but I can't help falling..."

[DayDreamer]

[propertyxpresssg]

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[DayDreamer]

Chris Martin "And you can say what is, or fight for it
Close your mind or take a risk
You can say it’s mine and clench your fist
Or see each sunrise as a gift"

Elvis: "Wise men said, only fools rushed in, but I can't help falling..."

[Arcachon]

Tommorrow if I can walk up Humpbawang hill I am Happy.

[DayDreamer]

Catch no ball sir

Tommorrow if I can walk up Humpbawang hill I am Happy.

[Arcachon]

The Hill with a lot of Hump

We call it Humpbawang hill.

Tommorrow I go count Hump.

[DayDreamer]

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?

[Arcachon]

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?

Tell him you want to buy over his unit instead.

[DayDreamer]

It is worth a try during the next downturn. If price is right. But not now. No money to be made.

Tell him you want to buy over his unit instead.

[otansg]

It is worth a try during the next downturn. If price is right. But not now. No money to be made.

You do not know what Archacon is trying to tell you?

[DayDreamer]

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.

You do not know what Archacon is trying to tell you?