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I want to buy a 2nd property for investment purpose. Which one offers a better return - a 5 year old resale condo or a BUC condo?

Agents tell me to go for a new property. However, a BUC will not have rental until the project TOP, and unit rented out 3-4 years down the road. In addition, I am paying say $300 to $500 psf more for a new one comparing a similar size condo just next to this BUC. (actually the resale unit is bigger, new BUC units are really tiny).

So I am confuse, it actually looks like the under 5 years old resale is a better buy, because I am collecting rent for this 3-4 years period (tenants are paying for me), no doubt when the BUC TOP, this resale will be ~~ 8+ years old, wouldn't this also have some capital gain abeit slower gain comparing to the BUC. Resale completion is within 2-3 months, and I have the funds ready to pay for the required.

Net effect, they even out. As investor I want the best return. Any opinion?
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11 Answers

Hi,

Basically there is no exact right or wrong in choosing a BUC or resale property. There are different factors to consider when choosing between the both though. I actually have some slides that shows which may be a better choice.

What I may suggest is that we can actually meet up for a chat and coffee. No worries as there are no obligations at all. I can share with you some of the advice that I give to my investors. And hopefully that will paint a better picture for you before you decide. My apologies that it is not very convenient for me to post some of our views here in public media.

Over time we have offered many clients our truthful advice regardless whether is it for their sale or purchase or whether is it just making an investment. In fact personally I have just bought another property for investment and I would be glad to share that with you as well.

Looking forward to hear from you soon! Cheers!

Best Regards,

Jeffrey Heng
Senior Associate District Director (Sincerus Division)
NAVIS Living Group - A group in OrangeTee that believes in Technology, Training & Teamwork (3Ts)

Founder of Sincerus Division
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Hi

What are you looking at - Cash flow or Capital Appreciation?

You may want to write to gavin.ng@orangetee.com to continue the discussion.

Regards

Gavin Read More
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Joanne Chia 谢诗琳
Good day sir / madam .

I can help you selectively look for condos that has enbloc potential 10 to 30 years later . Enbloc receipents generally gets the most investment returns .

NO COMMISSION CHARGEABLE WHEN I SERVE PRIVATE PROPERTY BUYERS.

Kindly contact me joanne chia mobile 8333 3327  for a no obligations chat for your property needs.

Joanne Chia
Chia_joanne@yahoo.com.sg
Hp 8333 3327  Read More
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Robbie Chen Chee Howe
Hi,

There is no "one-size-fits-all" solution. Some people may prefer new launches, others prefer older developments, while there are also others who only look at Freehold. Because if everyone thinks the same, everyone would be going for the same property, and there will be alot of unsold properties around, and limited supply for the "hot" properties everyone looks for.

At the end of the day, it depends on what is your objectives as an investor. Every investor wants the "Best Return". Which investor may I ask wants the "Worst Return"? Question here is, what do you deem as the "Best Return"? Is it in terms of rental yield? Capital appreciation? Or other factors like ease of rental, downside risk protection, potential of enbloc? I think once you are clear on this, I think you will find the most suitable property for yourself.

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 in the current market.

Thank you.

Best regards,
Robbie Chen
 9748 6305 
PropNex Realty Read More
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Dear investor,

It seems that you have already shortlisted at least 2 different units which you are doing the comparison now. To be frank, it isn't easy for us to provide any decent opinion without understanding which projects you are referring to, since their location and profile can be quite different. What I'll like to highlight is that the entry price is very important for an investment property, where you not only need to look at the potential rental returns, but also your entry price, simply because you will be competing to secure your prospective tenants and buyers in future to realise the investment returns, and if you are purchasing at similar price range upon entry, this makes liquidity more challenging as I am sure there will be neighbours looking to sell or rent their units to compete against yours too.

Statistics and past transactions will be critical to do the decision making process.

Hope the above helps. I can be reached via email or mobile phone should you require any further discussion in private as we are not alerted to any responses posted here.

We value your home as much as you do! Find out the indicative value of your home at http://bit.ly/UrHomeMatters and get monthly update on your home value. Restructure your portfolio with us, speak to us! Register at bit.ly/RealDealSG today.

Tenants can visit http://bit.ly/SGExpatRental (Official Rental Requirements - Singapore Expatriates) to indicate your rental requirements.

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Regards,

Geryl LIM
Consultant - Director
Global Alliance Property (L3010679B) - Century 21
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Hi Sir/Madam

Please contact me at (65) 96608508  or Silviayang8@gmail.com
or click here http://bit.ly/2tzIQ1a for non obligation discussion.

Thank you.

Warmest regards,

Silvia Yang

PropNex Realty Pte Ltd
Mobile: (65) 9660 8508 
Email: Silviayang8@gmail.com
www.facebook.com/SilviaProperty Read More
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Edvan Lee CK 李钊昆
As Investor I Want The Best Return..

On this line, it appears that you are just "1 among the rest"..
Why do I say so? Pls give me a tinker at 84241222  and I can break it down for u.

Your fellow investor,
Edvan
 84241222  Read More
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Hi.

You properly already realized majority of the response suggest a meet up to discuss rather than direct answer from here.

The main reason is this is not a 1+1 maths problem. There are too many factors to consider before can provide a right solution for you.

I simply will list some of the factors for your consideration when buyer BUC:
(1) Do not worry about valuation, definitely can recevie sufficient support from banks.
(2) More choice than resale
(3) It is your own view to decide which unit can provide a better capital appreciation and yield returns. Resale has to depends on luck on the ideal unit available, usually is lesser choice.
(4) Buying at todays' market rate. This shall dependent on each project psf whether they are marketing at current price or future price.
(5) Early entry advantage. Usually new launch offer certain concession that resale do not have.

Last but not least, those resale that offer attractive price means seller has an urgent need. Implying "not so good" in terms of superstition point of view. The only thing is whether you can accept this.

Hope the above answer to your main concerns, but if there are more queries, do not hesitate and 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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Good evening!

This is a very common question I get from many of my investor clients - to buy resale for immediate returns or to buy BUC.

It honestly depends on many factors such as the location, number of bedrooms, your short and long term investment plans etc. Once I have this info, I can advise you better. Some times, it is indeed better to get a resale unit for investment. Other times, BUC is the right choice.

Do Whatsapp me at 91708295  and let's discuss! Look forward to a fruitful discussion and assisting you.

Bhavina Kaur
 +65 9170 8295  Read More
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We value your home as much as you do! Find out the indicative value of your home at http://bit.ly/UrHomeMatters and get monthly update on your home value. Restructure your portfolio with us, speak to us! Read More
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