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Thread: First investment need advice!!

  1. #1
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    Default First investment need advice!!

    Hi great masters & experts!

    I would like to invest in a private property & would be grateful for any sound advice on which development I should consider. The property including stamp duty should be within $1.1mi & this will be my first property purchase.

    My plan is to cash out within 5-8ys & then buy a hdb resale flat to retire in as I am already 42 yrs old. Meantime I am living with my parents.

    Location doesn't matter as it's for investment so capital appreciation & rentability is most important.

    I Am considering Trilinq 2 bedder costing about $1.05million but psf is about $1500 which seems to be steep. If I look at CCR, I can only get a 1 bedder with my Budget. Which would have better potential?

    Appreciate any advice on where's the best potential bet to place. Thanks!!

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    Not an expert nor a Master but a Retired Master Sergeant.

    Not enough info from you to give advice.

    Need to know the following.

    1. Cash on hand.
    2. Yearly income excludes Bonus, etc.
    3. CPF OA.
    4. Any Loan from FI.

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    Quote Originally Posted by Arcachon View Post
    Is the above referring to Seller Stamp Duty (SSD)? SSD is based on selling price of the property and not the original purchase price.

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    Quote Originally Posted by Arcachon View Post
    Not an expert nor a Master but a Retired Master Sergeant.

    Not enough info from you to give advice.

    Need to know the following.

    1. Cash on hand.
    2. Yearly income excludes Bonus, etc.
    3. CPF OA.
    4. Any Loan from FI.
    Hi Master Sergeant!

    Limited fund.. S$300k in cash (I would like to keep $100k for emergency so will only use $200k for the purchase), $360k in OA, yearly income is just S$70k, no loan/debt currently and no property :-( Max housing loan I qualify with is about $600k.

    Appreciate your kind advice!

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    Age 42.
    Cash 300K
    Used up to 200K
    Emergency fund 100K
    CPF OA 360K
    Yearly income 70K

    The plan is to cash out within 5-8ys & then buy a hdb resale flat.

    http://www.propertyguru.com.sg/listi...le-the-trilinq
    The Trilinq @ Clementi MRT
    NEW PRICING & NEW RELEASES with effective from Jan 2016!
    1037000 for 710 sqft S$ 1,460.56 psf.

    The question needs to ask yourself.
    1. Why would anyone want to buy from you?
    2. How much can the property appreciate in 5-8ys?
    3. Why buy private, 5-8ys sell than buy HDB?
    4. Why buy stay when you have already a place to stay?

    My answer.
    1. Don't think anyone would want to buy unless those staying near the area. No en-Bloc, not freehold, not near MRT.
    2. Not much.
    3. Should buy HDB resale than 5-8ys buy private.
    4. Buy to stay and parents move in together and rent out HDB.

  10. #10
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    http://www.hdb.gov.sg/cs/infoweb/res...singles-scheme

    1. Don't think parents would want to move out of their comfort zone so staying with them is out.
    2. Have not eaten any cherry must find a way to eat.
    3. BTO for Single is out, 2 room HDB cherry too small, take too long to eat about 7 years.
    4. Single can buy 2 to 5-room under the Single Singapore Citizen Scheme, 5 room cherry look good.
    5. Look for the biggest cherry and rent out the other room for rental income.
    6. After MOP than look for a private condo.

  11. #11
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    Die Die must buy Private.

    This is what I will do.

    1. Look for resale freehold, new private condo you are paying for the future price so not much appreciation.
    2. Look for HUDC and wait for en bloc.
    3. Look for freehold walk-up apartment and wait for en bloc.

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    Quote Originally Posted by Pynchmail View Post
    Is the above referring to Seller Stamp Duty (SSD)? SSD is based on selling price of the property and not the original purchase price.
    Nope, SSD is on the original purchase price or the market value whichever is higher.

    e.g. buy 1,000,000 than sell 800,000 within first year. SSD is 16% of 1,000,000 about 160,000 only.

    https://www.iras.gov.sg/irashome/Oth...tial-Property/

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    What is the difference bet resale FH and new private condo?
    Isnt future pricing also factored in for resale FH also?

    For old resale FH, would upside also be limited since the runup of prices the last few years also pushed their prices high high

    if a new higher priced LH condo has higher yield than old resale FH, would not both even out in 5-8 years?


    Quote Originally Posted by Arcachon View Post
    Die Die must buy Private.

    This is what I will do.

    1. Look for resale freehold, new private condo you are paying for the future price so not much appreciation.
    2. Look for HUDC and wait for en bloc.
    3. Look for freehold walk-up apartment and wait for en bloc.

  14. #14
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    Quote Originally Posted by Newbie1 View Post
    What is the difference bet resale FH and new private condo?
    Isnt future pricing also factored in for resale FH also?

    For old resale FH, would upside also be limited since the runup of prices the last few years also pushed their prices high high

    if a new higher priced LH condo has higher yield than old resale FH, would not both even out in 5-8 years?


    Take for example

    Farrer Road

    1 side FH
    Sommerville park
    Spanish villa

    the other side LH
    new D Leedon

    both same psf ... if not higher psf for D Leedon


    which is a better bet in the long run ?

  15. #15
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    Quote Originally Posted by Red Dot2 View Post
    Hi great masters & experts!

    I would like to invest in a private property & would be grateful for any sound advice on which development I should consider. The property including stamp duty should be within $1.1mi & this will be my first property purchase.

    My plan is to cash out within 5-8ys & then buy a hdb resale flat to retire in as I am already 42 yrs old. Meantime I am living with my parents.

    Location doesn't matter as it's for investment so capital appreciation & rentability is most important.

    I Am considering Trilinq 2 bedder costing about $1.05million but psf is about $1500 which seems to be steep. If I look at CCR, I can only get a 1 bedder with my Budget. Which would have better potential?

    Appreciate any advice on where's the best potential bet to place. Thanks!!
    I am no expert. So do not blame me if price did not go the way u want. But i find woodlands condo great value for money. Future regional centre, alot of B1 offices to be built and future thomson line. However their price and rentals r rather low now. $900k can get u a large 3 bedder in rosewood or casablanca.
    Jurong and serangoon regional centres price already hype up alot now left woodlands. Not much condo near woodlands central as of now.

    Went to see new launch forest woods at serangoon. 1 bedroom + 1 study room already start from $680k. Face pool units likely $700k above. I find it expensive...

  16. #16
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    Quote Originally Posted by star View Post
    I am no expert. So do not blame me if price did not go the way u want. But i find woodlands condo great value for money. Future regional centre, alot of B1 offices to be built and future thomson line. However their price and rentals r rather low now. $900k can get u a large 3 bedder in rosewood or casablanca.
    Jurong and serangoon regional centres price already hype up alot now left woodlands. Not much condo near woodlands central as of now.

    Went to see new launch forest woods at serangoon. 1 bedroom + 1 study room already start from $680k. Face pool units likely $700k above. I find it expensive...
    Woodlands condo price Low for a reason, far from from city....Forest wood price for a reason... I am no agent, but I have tried both areas...conclusion nver buy Woodlands, I got better yield and rental nearer town

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    Quote Originally Posted by Newbie1 View Post
    What is the difference bet resale FH and new private condo?
    Isnt future pricing also factored in for resale FH also?

    For old resale FH, would upside also be limited since the runup of prices the last few years also pushed their prices high high

    if a new higher priced LH condo has higher yield than old resale FH, would not both even out in 5-8 years?
    Depend on Market, location and timing you will than decide which is the best option. Current market better go for FH because it going to be a long time before another bull run. Being through two bull run don't know can see another before I leave this world. One in 1996 another 2006

  18. #18
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    Quote Originally Posted by Arcachon View Post
    Depend on Market, location and timing you will than decide which is the best option. Current market better go for FH because it going to be a long time before another bull run. Being through two bull run don't know can see another before I leave this world. One in 1996 another 2006
    Actually my reading is a bit different. TDSR will continue to shackle the amounts that people can set aside for properties.

    In the case that all properties are limited in price growth, the leasehold property may experience a reduction in interest payments unless priced identically to the Freehold property.

    My take is for smaller units where plot ratio is not optimised and quantum is friendly, set aside solely for investment, FH is better. For larger units with the intention to be housed (probably forever), leasehold may be more appropriate to minimise risk of not being able to finance loan at some juncture.

    Location is still more important in the current market. And because TDSR limits the bullets one has, it pays to consider carefully.

    Being relatively new is still helpful for own stay and rental as well for modern generation. Unless one treats it as buying land that is not very meaningful for living purposes.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

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    Quote Originally Posted by henryhk View Post
    Woodlands condo price Low for a reason, far from from city....Forest wood price for a reason... I am no agent, but I have tried both areas...conclusion nver buy Woodlands, I got better yield and rental nearer town
    Yes indeed. No one will know the future. Last time people say punggol no good, jurong no good but what happen? Both r extremely far from city too. I remember someone bought sky habitat at $1700psf and reflection at keppel bay during launch and those freehold ccr few years ago say very good sure make money.
    Last edited by star; 26-09-16 at 12:17.

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    Quote Originally Posted by star View Post
    Yes indeed. No one will know the future. Last time people say punggol no good, jurong no good but what happen? Both r extremely far from city too. I remember someone bought sky habitat at $1700psf and reflection at keppel bay during launch and those freehold ccr few years ago say very good sure make money.
    Punggol really no good, but Jurong v good....also made good money on Tis...and rental is easier...but pls don't buy $1700 psf Jurong gateway la........

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    Quote Originally Posted by Newbie1 View Post
    What is the difference bet resale FH and new private condo?



    Isnt future pricing also factored in for resale FH also? Nope, if you buy those not factored in.

    For old resale FH, would upside also be limited since the runup of prices the last few years also pushed their prices high high

    if a new higher priced LH condo has higher yield than old resale FH, would not both even out in 5-8 years?
    Isnt future pricing also factored in for resale FH also? Nope, if you buy those not factored in.

    For old resale FH, would upside also be limited since the runup of prices the last few years also pushed their prices high high

    It take time and effort to look for the gem.

    http://www.todayonline.com/sites/def...?itok=OQ_HAU_H

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    There are gems for every category.

    Main thing is to consider carefully the intention, the risks involved and how much risk one is willing to take.

    For example, if no children and retirement funds all set, LH is no issue as funds are freed up for other investment needs or second property funds.



    Quote Originally Posted by Arcachon View Post
    Isnt future pricing also factored in for resale FH also? Nope, if you buy those not factored in.

    For old resale FH, would upside also be limited since the runup of prices the last few years also pushed their prices high high

    It take time and effort to look for the gem.

    http://www.todayonline.com/sites/def...?itok=OQ_HAU_H
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

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    Timing.

    Bought in 1988 sold HDB in 1995.


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    Bought in 2006. the peak is 2013 guess when will the next peak be.

    With all the control measure and TDSR being the structure of property loan, next peak maybe 20 years from now.



    Last edited by Arcachon; 26-09-16 at 21:18.

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    Quote Originally Posted by Kelonguni View Post
    There are gems for every category.

    Main thing is to consider carefully the intention, the risks involved and how much risk one is willing to take.

    For example, if no children and retirement funds all set, LH is no issue as funds are freed up for other investment needs or second property funds.

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    According to the Urban Redevelopment Authority’s private home prices index, prices have only fallen 9 per cent over three years since peaking in the third quarter of 2013. The magnitude of this decline is small, compared to the 62 per cent ramp-up of prices over a four-year period between 2009 and 2013.

    http://www.channelnewsasia.com/news/...y/3014552.html

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    If no children and retirement funds all set, don't even need to buy property, sell the property and use those to earn better return else where and can also spend the money to rent luxury condo (those with full condo facilities, concierge service, air-con lift lobby etc) to live like a King/Queen!

    Quote Originally Posted by Kelonguni View Post
    There are gems for every category.

    Main thing is to consider carefully the intention, the risks involved and how much risk one is willing to take.

    For example, if no children and retirement funds all set, LH is no issue as funds are freed up for other investment needs or second property funds.

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    But the URA PPI does not tell the whole story.........
    i.e., CCR drop >20 (some even >30%) already over past 7 years...........
    OCR barely drop 1% (may be?)..........
    Also, 20 years old LH private properties probably >15% cheaper than same 20 years old FH private properties (and the gap will increase as both ages further, and LH property value will go to ZERO at end of 99 years lease!)..........

    Quote Originally Posted by Arcachon View Post


    According to the Urban Redevelopment Authority’s private home prices index, prices have only fallen 9 per cent over three years since peaking in the third quarter of 2013. The magnitude of this decline is small, compared to the 62 per cent ramp-up of prices over a four-year period between 2009 and 2013.

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    The right time should be 5 to 8 years from now.

    Best is to buy a 5 room HDB and rent out 4 bedrooms for rental income.

    Collect for 5 years then buys private.

    If property crash buy big one otherwise buy small one.

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    5rm HDB where got 4 bedroom? 3 in total only.

    And befor MOP cannot rent out.

    Quote Originally Posted by Arcachon View Post


    The right time should be 5 to 8 years from now.

    Best is to buy a 5 room HDB and rent out 4 bedrooms for rental income.

    Collect for 5 years then buys private.

    If property crash buy big one otherwise buy small one.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

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