What should I do if I stay for 30yrs in 99yrs lease condo?

[Stingray]

Hi!

I would like to seek advice on what should I do if I had stayed in a condo for 30yrs plus in a 99yrs lease condo and it is fully paid by that time?

1) should I sell it and buy another one?
2) should I rent it out and also buy another condo?
3) will there be possible to be enbloc for 99yrs condo? How would be the price for an old condo in enbloc?

Could anyone share with me what had happened to most of the 40 yrs old or less condo?

Thanks!

[Kelonguni]

Hi!

I would like to seek advice on what should I do if I had stayed in a condo for 30yrs plus in a 99yrs lease condo and it is fully paid by that time?

1) should I sell it and buy another one?
2) should I rent it out and also buy another condo?
3) will there be possible to be enbloc for 99yrs condo? How would be the price for an old condo in enbloc?

Could anyone share with me what had happened to most of the 40 yrs old or less condo?

Thanks!

Very hard to answer your questions. It's like asking what career should one pursue or what should one have for lunch.

All options are possible, and all answers are "It depends on your objectives and your views."

[cnud]

If I'm faced with this, I will sell and buy another one.

[focus]

If it's me, i will try to recycle capital into new property every time the property passes 30yrs . But better sell at 10yrs .

Only downside is you may downgrade into smaller size units, but for investment ppty, it's no problem.

[ysyap]

Hi!

I would like to seek advice on what should I do if I had stayed in a condo for 30yrs plus in a 99yrs lease condo and it is fully paid by that time?

1) should I sell it and buy another one?
2) should I rent it out and also buy another condo?
3) will there be possible to be enbloc for 99yrs condo? How would be the price for an old condo in enbloc?

Could anyone share with me what had happened to most of the 40 yrs old or less condo?

Thanks!Sell it and buy 2 more projects, one for own stay and 1 for rental but I suspect must pump in some cash and service a mortgage for one of the unit thereafter! :cheers1:

[Kelonguni]

If it's me, i will try to recycle capital into new property every time the property passes 30yrs . But better sell at 10yrs .

Only downside is you may downgrade into smaller size units, but for investment ppty, it's no problem.

Not considering freehold?

[starrynight]

For me, my main questions are:
a. is there en-bloc potential?
b. do I have children I'd like to pass the house to?

I'd be more inclined to sell / move if answer to a. is no, and to b. is yes.

There are definitely cases of 99LH being en-bloc-ed, but the ones which are older are harder to judge. There has previously been talk of en-bloc-ing (i) Mandarin Gardens and (ii) Bayshore, for example, but some people are very skeptical of the chances.


Hi!

I would like to seek advice on what should I do if I had stayed in a condo for 30yrs plus in a 99yrs lease condo and it is fully paid by that time?

1) should I sell it and buy another one?
2) should I rent it out and also buy another condo?
3) will there be possible to be enbloc for 99yrs condo? How would be the price for an old condo in enbloc?

Could anyone share with me what had happened to most of the 40 yrs old or less condo?

Thanks!

[Stingray]

I am thinking of selling it after 10 to 15 yrs but will it be better to 1) keep it and rent out or 2) collect the rent to pay for a new property or 3) to sell it and use the money to buy a new property?

After 10 to 15 yrs, I will also be old so buying a condo would be difficult as the bank might not be willing to loan to an old man. So I am thinking if it is a good idea to rent out the property till either enbloc or end of the lease.

Moreover, when I am getting old, I will need financial for my health so getting another loan would be dangerous and also difficult. This is just my thought.

Any good suggestion?

[maisonjai]

After staying 30+ yrs, our own "lease" will be running out liao.

[Komo]

... if fully paid up it's time to look for the second property:D
if still no children work harder:D

[radha08]

if its me i would sell and donate to charity..ha ha ha

[stiook]

I am thinking of selling it after 10 to 15 yrs but will it be better to 1) keep it and rent out or 2) collect the rent to pay for a new property or 3) to sell it and use the money to buy a new property?

After 10 to 15 yrs, I will also be old so buying a condo would be difficult as the bank might not be willing to loan to an old man. So I am thinking if it is a good idea to rent out the property till either enbloc or end of the lease.

Moreover, when I am getting old, I will need financial for my health so getting another loan would be dangerous and also difficult. This is just my thought.

Any good suggestion?

Good question. I also have the same issue. My unit is about 10 yrs old. I always think I will sell after 5 more years. But then again, I might be able to get good yield (assuming at current rate which is optimistic). Then this unit would be self financing with a little excess. But of course, this also depends on interest rate environment and market sentiments in 5 years time. I just remain flexible on this.

[danntbt]

Good question. I also have the same issue. My unit is about 10 yrs old. I always think I will sell after 5 more years. But then again, I might be able to get good yield (assuming at current rate which is optimistic). Then this unit would be self financing with a little excess. But of course, this also depends on interest rate environment and market sentiments in 5 years time. I just remain flexible on this.
....if you wait, your loan tenure would also be lower, meaning repayment higher.....the way I see it is beside market price, you should also consider these quantum in relation to your ability to service the loan.

[Wild Falcon]

30 years is tricky because assuming straight line depreciation, 30% of the value is already gone down the drain compared to an equivalent freehold or FULL 99LH. You have to ask yourself whether your development got any chance of enbloc within the next 10 years and if plot ratio can be intensified. If the answer is no, I would suggest you move somewhere else. Imagine your condo 40 years old already with only 59 years left. Any developer who wants to enbloc will only pay you 59 years worth of value and pay 40 years to the government for topup - you property won't be worth much anymore (unless plot ratio can go up much more). Whoever individual who buy from you will also take note of the 59 years lease term and your bargaining power will be weak.

[Trapping-bird]

if its me i would sell and donate to charity..ha ha ha

Donate to City Harvest?

[Stingray]

30 years is tricky because assuming straight line depreciation, 30% of the value is already gone down the drain compared to an equivalent freehold or FULL 99LH. You have to ask yourself whether your development got any chance of enbloc within the next 10 years and if plot ratio can be intensified. If the answer is no, I would suggest you move somewhere else. Imagine your condo 40 years old already with only 59 years left. Any developer who wants to enbloc will only pay you 59 years worth of value and pay 40 years to the government for topup - you property won't be worth much anymore (unless plot ratio can go up much more). Whoever individual who buy from you will also take note of the 59 years lease term and your bargaining power will be weak.

I agree with what you said. It looks like the best solution will be to sell away before 20yrs. Thanks so much to all of you who had given suggestions!

[hyenergix]

I agree with what you said. It looks like the best solution will be to sell away before 20yrs. Thanks so much to all of you who had given suggestions!

Many pp will in ur shoes 20+ years from now.

[Stingray]

Many pp will in ur shoes 20+ years from now.

Agree with you. It would be a buyer market by then.