14 Answers

askguru expert
Hi there, thanks for writing to us on AskGuru.

There are pros and cons of buying a new versus a resale condominium. A new condominium's price is higher and fixed. This impacts the future capital appreciation. Also, it takes about 3 years for it to be ready which means you cannot earn rental income.

On the other hand a resale condominiums price is negotiable and can be immediately rented out. However, older resale condominiums are subjected to pro-rated CPF usage which may impact its capital appreciation.

When looking at rental yield, we are looking at the difference between the cost of purchasing the property (including monthly mortgage, maintenance fee, property tax etc) and the income you receive when renting out your property, Thus, if you are looking for good rental yield, the purchase price will have to be affordable with a rental that more than covers the cost. Some areas in Singapore which can command a good rental yield is in Geylang. A good rental yield in Singapore would be anything above 5%. You can calculate your rental yield by calculating your annual rent and divide it with your purchase price times 100. For a property that was purchased at $143,000 with an annual rental income of $21,000, your rental yield would be 14.68%. Apply this in your financial calculation before making your purchase.

2. When looking at capital appreciation, a freehold property is the way forward as a leasehold property loses value nearing the end of its lease. There are other things to look into as well such as upcoming infrastructure projects, economic corridors and so on as they act as property boosters.

3. Demand drivers are strongly correlated to point number two as well as the market condition.

We would advise you to study the URA's masterplan carefully here: https://www.ura.gov.sg/Corporate/Planning/Master-Plan

Hope this answers your question.

Best Regards,

Team PropertyGuru Read More

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Stewart Lim
Hi, appreciate your sharing. For faster reply kindly call or whatsapp me at 9696 4398 as I look forward to assist you. Stewart-PropNex Read More

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Robbie Chen Chee Howe
Hi,

There are many factors which you should consider when purchasing an investment property, apart from rental yield and capital appreciation.

Personally, I feel that financials is the most important consideration, especially in the current situation whereby a recession is looming. We should take care of our "Risks" first before we look into the potential "Rewards" like capital appreciation.

I would suggest you ask yourself these questions first before jumping the gun:

1) Am I going to pay a high cost for ownership of this property?

2) Are there ways which I can enjoy further savings on my purchase?

3) What is my safety net going to be like?

4) Which are the properties that has "less Risk" in today's market?

Remember, managing Risks takes precedence over Rewards in periods like these. If you can manage your Risks well, I am certain that you will be able to reap the Rewards in the years ahead.

I am experienced and well-versed in residential transactions. I will be able to assist you in your property plans. Please get in touch with me for a more in-depth discussion.

Should you need require 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 in the current market.

Thank you.

Best regards,
Robbie Chen
9748 6305
PropNex Realty Read More

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Geryl Lim
Dear sir/mdm,

Whether a resale or new launch, we are unable to broadly determine which will be better, but if we are able to work on the overall planning for this investment, for example what is the financial outlay you intend to put in, the holding period plan out for, we will be able to look into minimising the risk level for your investment plans while maximising the potential of the investment return.

Broadly speaking, an investment gem cannot be spotted easily but due diligence in monitoring the market will be critical in identifying an investment gem. More importantly too, is residential home the only avenue for your investment since ABSD incurred can be relatively significant as a property or are there other options out there that provides similar potential but lesser risks?

I have been in the real estate business since 2009, with more than 10years of experience serving the Singapore real estate market.

I am very active in the residential segment of Singapore real estate market, having transacted hundreds of deals from HDBs to private condominiums and landed properties in Singapore, and have handled many unique cases in sales and purchases as well as rental deals.

Over the years, I have also established a network reaching out to more than 9,400 expatriates, bringing my market presence to both in and outside of Singapore. This has created an additional exposure when I manage my client's portfolios, on top of the conventional on and offline platforms, where other estate agents are relying on. This has allowed me to consistently convert leads into results.

With an evolving market, where change is the only constant, I have also been investing in upgrading of my knowledge and skills sets to improve myself and meet the demands of current and future market.

We are offering our clients a complimentary first consultation without obligations (Absolutely FREE!). Schedule for your FREE session today!

Warmest regards,
Geryl Lim
Associate Deputy Group Director
Salesperson Registration No. R014783H
Email: geryl.lim@orangetee.com / geryl7772@gmail.com
OrangeTee & Tie Pte Ltd 430 Lorong 6 Toa Payoh #01-01 OrangeTee Building Singapore 319402
Estate Agent Licence No. L3009250K
[main] +65 6471 8888 [mob] +65 81577565 [LDA] +65 92787772
www.geryllim.com
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Tenants can visit http://bit.ly/SGExpatRental (Official Rental Requirements - Singapore Expatriates) to indicate your rental requirements.

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Aaron Chong
Hi, I would be most glad to assist you further and pls feel free to let me know if you need any assistance.

Regards
Aaron Chong
9730 8455
aaronchong2774@yahoo.com.sg Read More

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Gavin Ng
Nick Tan
Dear Sir/Mdm,

It is a good time to buy an investment property now as it is a buyer's market. It is important to buy a product that is undervalued in today's market so that there will be good upside potential and also near to existing tenant catchment areas so that you will be able to rent out the unit easily as you wait for capital appreciation.

As to whether a resale or new one, new one offers you a higher ROI and theres a higher chance of making a tidy sum of profit.

I have assisted quite a number of my clients to identify good units to consider and buy. Please feel free to contact me so that I can understand your requirements and work out a budget so that you do not overstretch yourself. I am available for discussion on Zoom during the circuit breaker period.

This is a guide I have written on buying Residential Property:
http://bit.ly/buypropertyguide

Regards,
Nick Tan
(M) +65 9644 4854
B.Eng(Chemical)(Hons)(NUS)
Cert-in-REA
(E) nick96444854@gmail.com
Visit my website to know me better: www.nicktan.com.sg

I was featured recently on Council for Estate Agencies (CEA) Newsletter:
http://bit.ly/CEAnews

Testimonial from Satisfied Clients
“Nick is a responsible, efficient and excellent salesperson. He has very good knowledge of the real estate market and I benefited a lot from his advice and sharing. He is extremely patient when guiding me through the buying process and I am happy to secure a dream house within my budget with his assistance. A highly recommended salesperson who made my house hunting journey a breeze.”
Ms Chia (Buyer)

“Nick provides a delightful customer experience from day one when I engage him as my agent to look for a flat of my choice to the completion of the deal. He is competent, resourceful and has a pleasant manner to work with. He is the Agent of my choice in dealing with properties and I would highly recommend him to others who would appreciate an agent that takes care and can give the customer a peaceful mind.”
Susana (Buyer)

“Nick is very pro-active in helping us to resolve whatever questions and problems that we encountered. All the issues are settled even before us having to request or ask for a second time. He was very frank and transparent with all the details, limitations and advantages that we wouldn’t have known. I think this is the most important virtue to be successful in this line. I will surely recommend him to anyone who needs his service because I trust that they will be equally satisfied!!”
Mr and Mrs Chan (Sold and Bought a property through Nick)

“We are very grateful to Nick for his extensive marketing efforts. With his comprehensive marketing plan, he helped us to achieve a record selling price within 2 weeks of listing our property for sale! We highly recommend his service to anyone who is keen to sell their properties.”
Mr & Mrs Wong (Property Seller)

“Nick has conducted himself ethically and professionally when handling the sales of our property. Thanks to his patience and perseverance, we managed to secure a sales price beyond our expectations.
We are very happy and satisfied with his services and will definitely recommend him to our friends and family in the future.”
Mr & Mrs Tan (Seller of Inter-Terrace House) Read More

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Jeffrey Heng
Dear Sir/Mdm,

Congrats on your decision on a second property for investment. It will not be a comprehensive statement to say whether to go for a resale or a new launch. As you have asked, are there other factors to consider for investment properties, so definitely the answer is Yes. So whether is it a resale or new launch may not be the ultimate factor.

For investment properties that we wish to lease out for rental income, one of the most important factor will be location. As most tenants may not be driving so being in a convenient location or somewhere the tenants can access to public transport will definitely have an edge over others. Age of the condo does make a difference too of course. If today 2 developments in the same location, the newer condo will have an advantage because the facilities are newer and the design usually will look more modern. So in this aspect, new launches will be great.

Next will be size. No one will mind a slightly bigger space for sure. As the houses in Singapore are getting smaller, size becomes a luxury. The older houses will spot a bigger size but nice again we go back to the point where age matters as well. In my experience of house searching for clients, these factors are often intertwined together so we really have a find a good balance between them and see which development best fits our choice.

There are still many items to tick on the purchase checklist. Maybe what I can suggest is that we can actually have a chat on this? We can either just do a call or we can also have a video call or video conference. It will be easier fo me to advise you. No worries this has no obligations at all. We can really just take it as a chat.

Just to share a little on myself. I have been in the industry for 10 years. Over the years, I have served many clients and many are my friends now. Many have also left testimonials for me for my service rendered, I was also featured in CEA's newsietter together with my partner for Great Client Service. I also won the SAEA Real Estate Excellence Silver Award for Best Client Service. I have left some links below so maybe I will need to trouble you to copy the links to your internet browser and take a look. Hopefully this will give you some idea of how I conduct this business. I am proud to say that we have always placed our clients' interests in the top position and I believe we will be able to offer the same level of service to you and hopefully even better.

Looking forward to hear from you soon! Cheers!

Best Regards,

Jeffrey Heng
Associate Executive Director (Sincerus Division)
OrangeTee and Tie Pte Ltd
NAVIS Living Group - The fastest growing group in OrangeTee that believes in Technology, Training & Teamwork (3Ts)

Mobile : +65 9858 1322
Email : hengjeffrey@gmail.com
Web : www.sgpropertyadvisers.com

Founder of Sincerus Division
SAEA Real Estate Excellence Silver Award - Best Client Service (2014)
SAEA Real Estate Excellence Award Nominee - Best Client Service (2012/2013)

* Featured in CEA Newsletter for Great Client Service - https://goo.gl/NMusPZ *
* Featured in Propertyguru Magazine With My Partner- https://goo.gl/cioyEu *
* Featured in PropertyGuru Magazine for Team Building - http://tiny.cc/80w5lz *
* Words From Clients - https://www.sgpropertyadvisers.com/testimonials *
* Check Out Our Client Testimonial Video Here - https://youtu.be/WzNepsjH1Oc *
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Taufik Hussein
Hi
While the trend for new developments do show that owners generally gain a higher ROI, but the most important factor is whether you can wait for the development to complete before reaping the rewards of rental income. Do note that one of the factor affecting the rental demand for a particular unit is the location. In addition for new developments, landlord face high competition from others also looking to rent out their unit at the same time. This is less obvious in resale condos as landlords rent out their units at different timings. Another factor you should consider is the risk involve taking in to consideration the current crisis we are in. There are lesser expatriates relocating to Singapore these days and on whether when this crisis will end is anybody guess. Do contact me at 93375051 for a free and non obligatory discussion on this.

Regards
Taufik Hussein
ERA Realty Network Pte Ltd Read More

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Tan Pei Cheng
Hi,
I would be glad to assist you.
Feel free to contact me @ 97100155
Pei Propnex Read More

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D. Kumar
Hi there,
Thank you for your reply!
I believe you’re in midst of considering several condominiums for investment purposes.

Let’s tackle this though step by step.
Firstly, since your aim is primarily centred around the idea of future capital appreciation, I would recommend you an under construction property/ developer unit as they have not appreciated fully as compared to resale. Furthermore, new properties are able to draw a greater pool of tenants seeking newer properties, hence you have an edge there.
There are many factors to asses when picking the right development - location? amenities? accessibility? future capital gain %? Rentability?

Let me share with you some transaction caveats and history of sales in the given developments and surrounding developments for you to have a better outlook on the investment scene.

Perhaps you can contact me at 96659926 for a short discussion for me to run you through the overview of the purchase framework, understand your requirements and specifications as well as calculate your finances on hand (Cash/CPF amalgamation) to construct a financial plan with payment timeline. Based on your investment objectives and protected returns in mind, I will be able to narrow down ideal developments and shortlist exact unit layout type for your perusal. I have actively transacted many private properties (testimonials available on website) and since you may be unfamiliar with the process, you might want to tap onto advise and guidance in this regards, at no obligation of course. I will walk you through the entire process from selecting developments/ arranging viewings, handling bank/finance aspect, arrange for your legal processing matters as well as handle all paperwork at no cost. The purchase of private property does not involve agent fees and thus, you will enjoy expertise at every level at no obligation and cost. Furthermore, I will take the opportunity to run you through past and present transaction caveat & illustrate a pricing and sales report with projected returns/ capital gains for you to observe and understand, offering market insights for your consideration. Thank You!

Visit my website for my recent accolades, awards and testimonials@ www.kumarrai.com.

D Kumar
+65 96659926
ERA Associate Division Director

#1 team of ERA in Singapore, Asia Pacific International for 2014/5/6/7/8/9

ERA 2015 Q1 Top Achievers (Top1%)
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Mark Ng S W
Hi Do contact me at 97970200 to find out "3 must know factors before deciding your next step"

Mark, your RIGHT choice
Propnex Read More

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Summer Wong
Hi! Never a better time to consider an investment property now. Let me tell you why. We can arrange a virtual meeting if keen to discuss further. I can be contacted at 97908382.

Best regards,
Summer Read More

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Ling CK
Hi,

1) Investment meaning you are prepared to hold for 5 to 10 years
2) Are you buying at higher price than your neighbour
3) What are the tenant type
4) Any future growth over that area

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
https://www.facebook.com/Homesellerbuyer

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