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As an investor, if you have the capability to afford the $900k purchase, I am sure you will have plenty of other choices which will give you better rental returns. I do not think an investor will consider these 2 properties at all in the first place. Just my 2 cents worth.

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Hi,

(1) You have to understand one critical factor here is the remaining lease is 60 years.
This is the last year they are worth this price, as next year, when they reach remaining lease of 59 years, they will not able to ask for such rate.
The reason being simple is due to the policy set in CPF, the younger buyer cannot fully utilize CPF to pay for this property.
An average of 35 years old can only utilize CPF to pay for around 67% of total purchase price.
Thus only the older buyer such as 54 and above able to utilize CPF to pay for 100% of the purcahse price.

That implied that buyer is much lesser than now. You can forget about capital appreciation in future.

(2) From investment point of view, property A seems more attractive in rental yield.
A rental yield = 6.85%
B rental yield = 3.33%

(3) Since you mentioned HDB in one of your response. I would definitely disagree to proceed, as either of them has the potential of en-bloc.
If I can afford $900k, I would rather invest it on a private property with better lease tenure and condition.
May be in short term, I don't get good rental yield, but I would definitely have good chance on capital gain & even the chance of en-bloc.

Hope the above answer to your main concerns, but if there are more queries, please feel free to contact me at 90110636  , or email: ling.ck7@gmail.com if more information is needed.
I'll be glad to assist.

Best regards
Ling CK
 90110636 
ling.ck7@gmail.com

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Hi,

Assuming both properties are 99-year leasehold, and both are 60 years old, this means that there is a balance lease of 39 years left.

As an investor, I will not touch both properties, as I think I would definitely fare better if I park my money elsewhere. If I am only given this 2 choices, I would rather keep my money in the bank. Do not buy for the sake of buying.

Should you need any further assistance in matters relating to property, please contact me at my mobile 9748 6305  . I will be happy to assess and share with you the possibilities for you and your partner in the current market.

Thank you.

Best regards,
Robbie Chen
 9748 6305 
PropNex Realty Read More