Page 1 of 2 12 LastLast
Results 1 to 10 of 19

Thread: Tenanted or Not Tenanted - Which Is Cheaper?

  1. #1
    Newbie

    User Info Menu

    Question Tenanted or Not Tenanted - Which Is Cheaper?

    My friend says that tenanted condos are cheaper because the majority of buyers are looking for units for own stay, they do not want tenanted units. On the other hand, vacant condos can be sold for higher price.

    Is my friend correct?

    Please put forward your opinion and any facts, numbers, etc. will be appreciated.

    JBond

  2. #2
    Newbie

    User Info Menu

    Default

    Your friend comment is too vague. It depends which project you are looking at. In general, those in D1 and D2 are more for rental and those sub-urban are more for home stay. So an investor will of course want immediate rental. A home stayer will want vacant possession. Cannot even compare at all.

    But according to URA data, D1 and D2 are getting popular for home stay as well. It is a rising trend now.



    Quote Originally Posted by jbond
    My friend says that tenanted condos are cheaper because the majority of buyers are looking for units for own stay, they do not want tenanted units. On the other hand, vacant condos can be sold for higher price.

    Is my friend correct?

    Please put forward your opinion and any facts, numbers, etc. will be appreciated.

    JBond

  3. #3
    property soul

    User Info Menu

    Default

    The owner's ability to fetch a good price has nothing to do with whether the unit is vacant or occupied, but more on:

    1) location
    2) quality of the condo
    3) market sentiment

    Some property advertisements mention "tenanted at $x,xxx for till year xxxx" to attract investors looking for good returns and less work.

    Nonetheless, it is easier for your property agent to arrange flat viewings if the unit is vacant. When the property market prices shot up in 2007, many owners left their units vacant for sale once the tenancy ended.
    [URL="http://propertysoul.com"]http://propertysoul.com[/URL]

  4. #4
    property soul

    User Info Menu

    Default

    Condos where most units are bought for own stay are better left vacant for sale. The reverse is true.
    Last edited by vip; 14th October 2010 at 05:14 PM.
    [URL="http://propertysoul.com"]http://propertysoul.com[/URL]

  5. #5
    Exalted

    User Info Menu

    Default

    it is always better to sell with vacant possesion....

    viewing time is so so flexible

    those units tat is tenanted damn difficult to make viewing arrangements....totally turns buyers off

    till date...i nvr bot a unit tat comes with tenancy.....so for me, i prefer vacant unit be it in prime districts

    just to add, sometimes tenanted units prices r very firm...bcoz sellers got rental income...no hurry to sell wat....on the other hand, viewing time is flexible and attract bigger pool of buyers(own stay or investors)...may fetch higher price too...so conclusion: doesnt matter at all!

  6. #6
    Newbie

    User Info Menu

    Default

    Apart from 2 units, all my other purchases came with tenancies. Instant rental income and no worries over finding tenants. The tenants' profile however is important. In terms of financing, banks also consider existing rental income as part of your overall personal income when assessing your loan application. The only problem I faced so far are the damages when the tenants left, they may claim that the damages are already there when they first rented the unit, and this is difficult to verify.

  7. #7
    Senior

    User Info Menu

    Default

    Quote Originally Posted by vip
    The owner's ability to fetch a good price has nothing to do with whether the unit is vacant or occupied, but more on:

    1) location
    2) quality of the condo
    3) market sentiment

    Some property advertisements mention "tenanted at $x,xxx for till year xxxx" to attract investors looking for good returns and less work.

    Nonetheless, it is easier for your property agent to arrange flat viewings if the unit is vacant. When the property market prices shot up in 2007, many owners left their units vacant for sale once the tenancy ended.

    problem is there are MORE selling at a price , that is way too high, considering its miserable rent ..

    i see 2.8 mio condo ..rented at 6.5k
    2.2 mio condo rented at 4k

    even if i am not planning to stay ... the rent doesnt cover the mortgage

  8. #8
    Junior

    User Info Menu

    Default

    Quote Originally Posted by devilplate
    it is always better to sell with vacant possesion....

    viewing time is so so flexible

    those units tat is tenanted damn difficult to make viewing arrangements....totally turns buyers off

    till date...i nvr bot a unit tat comes with tenancy.....so for me, i prefer vacant unit be it in prime districts

    just to add, sometimes tenanted units prices r very firm...bcoz sellers got rental income...no hurry to sell wat....on the other hand, viewing time is flexible and attract bigger pool of buyers(own stay or investors)...may fetch higher price too...so conclusion: doesnt matter at all!
    i had a unit whereby tenancy left about a month and put up for sale...under tenancy aggrement, the tenant had to be infromed and subject to their consent...

    my agent told me that few quries for viewing but tenant always give excuse , either not in town or not convenient,

  9. #9
    Newbie

    User Info Menu

    Default

    Quote Originally Posted by zzz1
    i had a unit whereby tenancy left about a month and put up for sale...under tenancy aggrement, the tenant had to be infromed and subject to their consent...

    my agent told me that few quries for viewing but tenant always give excuse , either not in town or not convenient,
    In the TA, normally the landlord has the rights for viewings during the last 2 months of their tenancy. To be kiasu u can put in a number of viewings allowed during the last two months in the TA. If refused you have the rights to deduct their deposit. Normally, tenants are cooperative becos you are holding on to their deposit, no point making things ugly and unhappy for each other.

  10. #10
    property soul

    User Info Menu

    Default

    Quote Originally Posted by blackfire
    Apart from 2 units, all my other purchases came with tenancies. Instant rental income and no worries over finding tenants. The tenants' profile however is important. In terms of financing, banks also consider existing rental income as part of your overall personal income when assessing your loan application. The only problem I faced so far are the damages when the tenants left, they may claim that the damages are already there when they first rented the unit, and this is difficult to verify.
    If you are buying a tenanted unit, you can ask for the 'inventory list' that comes together with the tenancy agreement.

    Before the handover, you (or your representing agent) can conduct a detailed inspection of each item (including furniture, appliance, floor, walls and curtains). Mark down all the scratches, wear and tear, etc. in that inventory list. Ask both owner and tenant to sign.
    [URL="http://propertysoul.com"]http://propertysoul.com[/URL]

Page 1 of 2 12 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •