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I was thinking of buying a 2BR DK in sophia hills. Does it make sense as an investment and what sort of rental yield can both rented out separately generate me. Also, how much rents can the conservation buildings fetch and how should I think about the cash flows they bring to the sinking fund?
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2 Answers

Hi,

Projects in the Sophia vicinity is very "rentable" with its proximity to city centre and 3 MRT lines at Dhoby Ghaut, as well as the commercial nodes and educational centres nearby. As a district 9 project, it has one of the most affordable entry quantum in the market and you can be assured of tenants. It is also differentiated from other projects in the area with its spacious land size and as a quiet enclave in the centre of a hill top with 3 conservation buildings, which other projects can't offer. I have run through the whole project with an investor buyer and will be glad to share the rental comparables nearby Sophia to give you a good idea of the expected rental yields. They have bought a dual key unit as well. Looking forward to secure a tenant for them when the project completes.

For the conservation buildings, leasing income from operators are expected to offset the maintenance fees required, which is a plus point for the residential purchasers.

Thanks and hope to have the opportunity to learn about your plans and objectives further. May I have more info and requirements about your plans so to make better recommendations? Thanks and look forward to value-add to your housing plans.

Warm Regards,
Ivan Ng ERA ASAP
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Dear investor,

Before we even go into rentability at Sophia Hills, why have you even derived into considering this project over other projects?

I do not like to sell for the sake of selling when clients have intentions to purchase, but first go through the potential gains and pitfalls, the profile on investment returns and etc, such that the prospective purchaser can purchase with ease.

Have you ever considered, what other forms of investments can you go into with similar amount of finances being committed, what their potential returns are against an uncertain real estate market where there are plenty of investors vying for the same tenant pool? D09 brand new boutique development can only capture rental of $2800/mth currently or even lesser, and that is the pricing we were looking at for city fringe projects just 1 or 2 years ago.

Share with us what you have planned out in terms of such investment and perhaps we can offer you proposals which have been in your blindspot.

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

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Regards,

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