Windy Heights

[VS]

to VS :

you shuld buy only becos you love the space not the enbloc potential

there are many who bought other projects with enbloc in mind and ended up holding for 10 over years ...

i am not sure about the water seepage issue ...but for old projects..

when u do the renovation you might want to RE WIRE the entire unit ... the wirings enbedded in the walls / ceiling can be so old the short circuit frequently when theres lightnings ... also i really dont know if the are working properly

so do take this into consideration when bargaining ...

Tks for your advice. The unit that i am considering is a renovated unit, so should be safer. I am prepared to stay for 10 years or more. I stayed in my previous apartment (much more miserable place) for 15 years till it went enbloc. The good thing about the current Windy Heights price is that the "enbloc" factor is not included at that price of $1K psf, unlike some old 99-years condos like Laguna Pk, Horizon Towers, Mandarin Gardens and Bayshore Pk, in my opinion.

[Amber Woods]

Tks for your advice. The unit that i am considering is a renovated unit, so should be safer. I am prepared to stay for 10 years or more. I stayed in my previous apartment (much more miserable place) for 15 years till it went enbloc. The good thing about the current Windy Heights price is that the "enbloc" factor is not included at that price of $1K psf, unlike some old 99-years condos like Laguna Pk, Horizon Towers, Mandarin Gardens and Bayshore Pk, in my opinion.

I was also considering buying a unit there last year. However, after doing my sum, I found that the transacted prices for the units there were way above its current 'en bloc price'. The land size according to the agent was about 250,000 sqft with plot ratio of 2.1. With 200 units, if the site will to sell en bloc now at today's price, each unit will probably receive about $1.8m. Units there are going for more than $2m. I am not sure about the next 10 year. However, if I should buy into the development at the current price, I will be among the few to object to the en bloc sale if it ever happen within the next 5 years. It is very stressful to be among the Minority in any en bloc sale.

[Amber Woods]

I was also considering buying a unit there last year. However, after doing my sum, I found that the transacted prices for the units there were way above its current 'en bloc price'. The land size according to the agent was about 250,000 sqft with plot ratio of 2.1. With 200 units, if the site will to sell en bloc now at today's price, each unit will probably receive about $1.8m. Units there are going for more than $2m. I am not sure about the next 10 year. However, if I should buy into the development at the current price, I will be among the few to object to the en bloc sale if it ever happen within the next 5 years. It is very stressful to be among the Minority in any en bloc sale.

I would like to add that buying at current price ($2.2 to $2.4m) when the en bloc value is only about $1.8m means that the development would not be able to get the 80% support since the individual could sell his unit individually in the market at a much higher price. I think the development has been 'chased' up the price by ill-informed investors with so call 'en bloc potential' without doing their sums.

I am not even sure that 8 to 10 years down the road, those buying at current price will enjoy any gain even if the site could go en bloc and assuming that property prices rise by another 30%.

Of course if you want to enjoy the space for own stay, the decision will be very different.

[chiaberry]

Tks for your advice. The unit that i am considering is a renovated unit, so should be safer.

You can't vouch for the quality of the renovations. Not talking about the external fittings but the electricals/plumbing. I personally would look for an unrenovated unit and do it up myself. At least I would know what's gone into the renovations. There's nothing more miserable than having to hack walls/remove false ceiling when those renovations done by previous owner start to come apart in a few years time. If the unit was renovated for rental previously, it is likely they might have cut corners to save costs.

[mcmlxxvi]

Homes in Singapore come with different lease periods:

*

30-year lease (HDB studio apartments)
60-year* lease (private housings)
99-year lease (executive condominiums, private housings, all HDB flats except for studio apartments)
103-year lease (private housings) (Theses houses sit on freehold land owned by private developers.)
999-year lease (private housings)
Freehold* (private housings)
*A land at Jalan Jurong Kechil is the first 60-year-lease plot to be sold (on 15 November 2012) for residential development; thus 60-year-lease homes will be available soon.

Most housing estates in Singapore either fall into freehold or 99-year lease, with the latter making up the bulk.

A 999-year lease is almost equivalent to freehold.

While 30-year-lease HDB studio apartments come in short supply and are only meant for elderly residents.

Private developments with a 103-year lease period (the lease period is determined by the developer) on freehold land are few and far between. At the expiry of the lease, the non-governmental land owner has the right to re-acquire the land (i.e. reversionary right), sell the freehold tenure or extend the lease for a price.

Residential properties with 60-year lease are not available yet, but will be in a few years' time when development on the first 60-year leasehold residential land plot at Jalan Jurong Kechil is completed.

Homes in Singapore are predominantly 99-year leasehold because the government sells most lands on 99-year tenure due to land scarcity in this country. At the end of the lease period, the state can acquire the land without any compensation to the home owners. Currently, the government does not offer freehold land parcels for sales anymore, except for the sale of remnant State land to the adjoining landowner whose existing private land is already held under a freehold title.

However, topping up of the lease of leasehold private housings is allowed.

Lessees may apply for a renewal of the lease with the SLA (Singapore Land Authority). The granting of extension is on a case-by-case basis and will be considered if the development is in line with Government's planning intentions, supported by relevant agencies, and results in land use intensification, mitigation of property decay and preservation of community (SLA, “Waiver of Building Premium”). If the extension is approved, a land premium, decided by the Chief Valuer, will be charged. The new lease will not exceed the original, and it will be the shorter of the original or the lease in line with URA's planning intention.

In addition, near the end of the lease period the State may require the land to be returned in its original conditions. If so, demolition of buildings, land fillings, etc. will have to be borne by the current lessees.

For HDB flats, legally the flat will be returned to HDB at the end of the lease. HDB does not have to make any monetary compensation, or offer a replacement flat to the owners. The owners may also be required to remove any fixtures fitting.

Advantages of buying a freehold or 999-year leasehold home

*

1. Loan Approval

Only a handful of banks will grant housing loans for properties with less than 60 years of remaining lease, and it is on a case-by-case basis. The loan if granted may have a shorter tenure or lower quantum. Thus, if you purchase a freehold property it will save you from the disappointment of* loan rejections, or unfavourable loan terms, because of the lease of the property.

Further, you may have a easier time selling off the property since the potential buyer will have a higher probability of obtaining the necessary funding.

2. Use of CPF funds

For freehold residential properties, you do not have to fret about not being able to dip into your CPF saving, or to do so at a lower withdrawal limit, for your purchase because of the property's expiring lease.

This is because you are not allowed to use your CPF funds for the purchase of private houses with under 30 years of lease left.

For houses with remaining lease between 30 and 60 years, the withdrawal amount is tied to the buyer's age and the remaining lease.

Withdrawal Limit

(The remaining lease of flat or property when the youngest owner is 55 years old / The lease of the flat or property at the point of purchase)* x Valuation Limit*

Valuation Limit is the lower of the purchase price or the value of the flat/property at the time of purchase.

(Source: CPF Ask Us, “What are these additional conditions to use CPF for flats/properties with remaining lease of at least 30 years but below 60 years?” )

These CPF withdrawal rules and the attendant limits will affect HDB flats from 1 July 2013.

*

3.En bloc sales

Homeowners of freehold properties have higher chances of profiteering from collective sales.

Developers may prefer to acquire freehold over 99-year leasehold properties because they do not have to incur a hefty land premium to top up the lease (of which the approval is not even guaranteed), which eats into their profit margins.

Even if developers do acquire 99-year lease lands, they may offer a relatively lower price as they factor in the land premium they have to pay.

*

4. Long-term stability in value

Leasehold housings nearing the end of their tenure will always fall steeply in value. But you will never have to face this problem with a freehold.

However this is not saying a freehold property will not depreciate in value over time. This can also occur due to the decay of the building. When this happens, the redevelopment value of the land may exceed the value of the building; thus resulting in a collective sale.

In summary

Generally, freehold residential properties cost more than leasehold ones. But less clear-cut is which category enjoys a higher rate of price appreciation. If you are considering residential real estate as an investment vehicle to reap capital gain, you should be looking at the rate of price appreciation.

Another warning. If you are attracted to freehold because you are harbouring hopes of bequeathing the property to your descendants till perpetuity, you might want to perish that thought. En bloc sales could go through as long as there is a majority consent. Further, under the Land Acquisition Act, the State has the authority to acquire the freehold property “for public and certain other specified purposes”, with due compensation. This Act also applies to leasehold property.

When all said and done, leasehold homes will still remain attractive to buyers due to their affordable prices and proximity to amenities.

*

*

For more related articles, please visit the following websites:

www.PropertyBuyer.com.sg/articles

www.SingaporeHomeLoan.net

www.iCompareLoan.com

SMS to +65-9782-8606

[VS]

Thank you, for the detailed info. I am waiting to see what happens when old 99-year leasehold reaches 70 years. eg Peoples Park, Pearlbank, Laguna Pk, Golden Mile, and Bradell hts.

[VS]

Thank you, for the detailed info. I am waiting to see what happens when old 99-year leasehold reaches 70 years. eg Peoples Park, Pearlbank, Laguna Pk, Golden Mile, and Bradell hts.

The other place that i am targeting for own stay, if 99-yr leasehold is ok, is Binjai Crest, $600psf only.

[DuaNehNehChioBu]

The other place that i am targeting for own stay, if 99-yr leasehold is ok, is Binjai Crest, $600psf only.

Still wasting time on this thread.

[propertychap]

Based on Masterplan 2013, can Kembangan Plaza build up to plot ratio of 3.0? The plot ratio used to be 1.4 til year 2012 but was revised. So does it mean chances of enbloc will be good ? The height restriction may be removed?