Any expert here has got any insight to this? Will the size of a development affect the rental yield and capital appreciation?
Ie the bigger the development the lower your returns.
Any expert here has got any insight to this? Will the size of a development affect the rental yield and capital appreciation?
Ie the bigger the development the lower your returns.
"Never argue with an idiot, or he will drag you down to his level and beat you with experience."
Smaller size unit is better for condo. Easier to sell, higher rental yield.
but smaller size resale yield in terms of $ value is lower due to the multiple of pdf to $ gain.
larger units have better quantum gain but rental yield is lower. and in bad times are hard to rent out. I find 2 bedder a sweetspot actually.
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Actually I think it does matter because when a project has got more units, there will naturally be more owners looking for tenant hence rent will be depressed by those who are more desperate to find a tenant. Plus comparing rent amount alone doesnt really tell the average time it take for owners to find a tenant.
"Never argue with an idiot, or he will drag you down to his level and beat you with experience."
For large development, there are more units to compare, hence, there will be fierce competition. Agents have to understand clients' likes/dislikes to help the them find their preferred choice and also helping owners to get better pricings, etc, pool facing, unblock view, high or low floor.
Personally, I think for rental, 2-3 bedrooms seem to be popular.
For selling, it can be any types of unit.
No of similar size units available definitely affect competition
If developments only have very few units of the size that one owns then chances of getting better deals are better.
Quantum for rental is a big factor. Anything >5-6k, pool of tenants is so much smaller.