Asked by
I owned a 3Room HDB which is 50 years lease balance and a 3Brm Condo mass market condo. HDB is giving a monthly rental of 2K. Thinking of buying a third but put away by ABSD. Not thinking of giving up HDB because of good rental yield. Any advice to change the game?
0
117 views
Want this question answered?
Get faster responses from our experts by upvoting.
Be the first to upvote this question.

3 Answers

Hi Johnny,

Although the HDB is giving you decent rental income, however, as it is old, the value will depreciate exponentially in years to come which outweigh the rental income. Therefore I would recommend that you sell the HDB and rebalance your property portfolio.

Please feel free to contact me so that I can share with your more information and analysis and assist you further.

Regards,
Nick Tan
(M) +65 9644 4854 
B.Eng(Chemical)(Hons)(NUS) / Cert-in-REA
(E) nick96444854@gmail.com
SEAA Salespersons Achievement Platinum Award 2020

Visit my website to get 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
“I would like to recommend Nick Tan from SRI. Before we engaged Nick, we were working with another agent from a very popular property agency in February 2017. We decided to terminate the contract after 5 weeks of zero viewings and no paper advertisements. Basically he was just waiting for phone calls. We engaged Nick on 20th April and by 10th of May, our unit was sold off. Why Nick? 1. He has good marketing strategies 2. He always kept us posted on what he did (communications!) 3. He made sure we understand the current market situation but he will consistently reassure us that the unit can be sold off 4. He is not greedy and trusting 5. He walks the talk”
Peter & Wendy (Property Seller)

I write to commend Nick Tan (R040814C). When my husband and I first met Nick, we were impressed by his drive, commitment, business acumen and strategical thinking, and decided to engage him. We were not disappointed. Nick sourced for prospective quality buyers in a targeted methodical fashion and was effective in connecting us with serious buyers, notwithstanding the fact that the search primarily took place over Dec – Feb (a traditional lull period). Throughout the transaction, he also gave us helpful advice in various aspects; the advice reflected his personal experience and expertise and was not simply regurgitated from public sources without any value-add. Further, Nick went beyond the call of duty of a competent professional. He had a sense of humanity in the way he interacted with myself and the other parties to the transaction such as my parents. As an example, my newborn daughter was warded into A&E on the completion date of the transaction; the care and concern that Nick showed went beyond the scope of work of an estate agent. I commend Nick for his capabilities and character, and would certainly wish to engage him for future property transactions.
Weilun & Benita (Property Seller)

“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)

“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 Read More
0
Hi Johnny,

1) Rental yield is just a figure to determine whether this is good property investment.
2) No rental yield in the private market can match public housing because of the low cost. But if you look at the amount you are getting is $2k, not a big sum but decent.
3) However, your flat is near 50 yrs old, meaning some small problems are going to surface. You will have to spend some money to repair or to maintain.
4) The capital appreciation amount that you could get is lowering as the day passed. Properly you won't get any out from there when the remaining lease is left with 30yrs. Because young people are not eligible to buy and the bank does not support the mortgage loan. CPF cannot be used for a lease of fewer than 20 years.
Who are you going to sell when it reaches this point in time?
5) Unless this is your fortune house, that you are intending to keep till the lease-end. I would suggest you capitalize on it and move on.
6) Building technology 50 years ago can't beat today's building technology. Materials used also vary from time to time.
7) You have lesser problems and even got a warranty for all appliances received if you buy a new project.
8) Any private 1 bdr in today's market can easily fetch $2k rent anywhere on the island. Although the rental yield is lower, you still get your $2k/mth.
9) You also gain a high chance of capital appreciation for some of the new project purchases which you may gain over $100k just by selling it away once the SSD period expires. Wouldn't that is a better way to capitalize your capital or rather than waiting to collect the $2k/mth?
10) Private development has a higher chance of en-bloc comparing to the SERS program offered by the government which is a mere 4% up till today.
11) Enbloc will continue to happen as land in Singapore is getting lesser as days go by. GLS is not enough to distribute among all the developers in Singapore.

Hope the above answer to your main concerns, but if there are more query, 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://R056727F.propnex.net/
https://www.facebook.com/Homesellerbuyer

Note:
Any response to our answer does not reach us.
The best way to get a follow-up is to Whatsapp or email us directly. Read More
0
Robbie Chen Chee Howe
Hi Johnny,

I understand your rationale of keeping hold onto your HDB flat.

There may be some options you can look at. Perhaps you could share with me more on your profile, family size, etc so I can better craft out a plan for you?

I am experienced and well-versed in both HDB and private 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
0

Still looking for answers?

Get answers from PropertyGuru experts in 24 hours

Previously Asked Questions