Tenanted or Not Tenanted - Which Is Cheaper?

[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

[Squall8888]

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.

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

[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.

[vip]

Condos where most units are bought for own stay are better left vacant for sale. The reverse is true.

[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!

[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.

[proud owner]

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

[zzz1]

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,

[blackfire]

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.

[vip]

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.

[blackfire]

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.

Inventory list is a must. The problem is that during handover, the tenant can still claim that the damages are done prior to their lease, you can't go back to the seller to verify.

[zzz1]

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.

yap yap...is also subjected to their avaliability....

is their small little excuse piss you off....normally i just bear with it and let the agent do their job....i just keep followup with the agent..

[blackfire]

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.

I think one way is to play hardball with the tenant. He or she must show prove that the damages are prior to the lease, such as stated somewhere in the inventory list, TA, etc . If he can't prove (Not you to prove), I suppose u have grounds that he or she is responsible for the damages.

[blackfire]

yap yap...is also subjected to their avaliability....

is their small little excuse piss you off....normally i just bear with it and let the agent do their job....i just keep followup with the agent..

Such actions are common among tenants, just tell your agent to be the "bad guy", tell the tenant that under the TA he is supposed to have viewings, if not, the landlord has the rights to consider the return of the deposit. Better to part in goodwill. The rental deposit is the landlord's chips.

[devilplate]

yap yap...is also subjected to their avaliability....

is their small little excuse piss you off....normally i just bear with it and let the agent do their job....i just keep followup with the agent..

dun gancheong to sell lor...

jus wait for 1 more mth la...den do a nice spring cleaning and tidy up ur unit b4 viewing lor(i even spend few hundred to repaint the whole place and touch up minor stuffs b4 just to make it looks more presentable to potential buyers)....can definitely fetch better price one

not unless u r looking for replacement tenant....

[zzz1]

dun gancheong to sell lor...

jus wait for 1 more mth la...den do a nice spring cleaning and tidy up ur unit b4 viewing lor(i even spend few hundred to repaint the whole place and touch up minor stuffs b4 just to make it looks more presentable to potential buyers)....can definitely fetch better price one

not unless u r looking for replacement tenant....

.

is their actions piss me off....initially they seem to be a nice tenant...i even out of good will replace few items when they suppose to take over the maintenance....

and yes...not in hurry to sell...

[mcmlxxvi]

dun gancheong to sell lor...

jus wait for 1 more mth la...den do a nice spring cleaning and tidy up ur unit b4 viewing lor(i even spend few hundred to repaint the whole place and touch up minor stuffs b4 just to make it looks more presentable to potential buyers)....can definitely fetch better price one

not unless u r looking for replacement tenant....

My nice Polish tenant last time told me that in HK it is the norm to white wash or repaint the walls after every tenant exit.

[proud owner]

My nice Polish tenant last time told me that in HK it is the norm to white wash or repaint the walls after every tenant exit.

In HK, rent are much higher ..so can affiord lah


spore rental so low .. want this and that .. hard for landlord ...

for mine ... i actually do touch up until its new new .. cos it is my house ..
house/condo needs constant maintenance .. then it can last longer and always look nice ...

though its the tenant's responsibility to also maintain the unit .. i rather do it myself .. afterall it is my assets

[devilplate]

its like a woman with and without makeup