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I'm going abroad in the next few years. Looking at purchasing a private condo for rental purposes. I will like to seek advice whether it's more economical to (1) purchase a current development & rent it out or (2) purchase a new development & wait for it to TOP in a few years time then renting it out.
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7 Answers

Hi,

New launches have stronger capital appreciation potential whereas resale may not have as strong resale value due to their less balance years of lease. It also depends on your preferred budget and investment horizon. Thanks and hope to understand your requirements further so to value-add further.

Warm regards
Ivan ERA
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Afternoon,

If you are looking at rental returns, getting a resale unit would allow you to proceed once the S&P process is completed. The rental amount can be used to help pay for the mortgage and pay for some other expenses.
If you are getting a new launch project, you will need to pay for the progressive payment installment till TOP.

Do feel free to contact me further should you require additional assistance.

Regards
Mike Lim
 96929209 
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ERA Read More
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Hi,

Thanks for your query!
Your question is one that resonates amongst many investors. Eventually, it boils down to your investment objectives and expectations.

It is always a case of immediate rental VS capital appreciation. You enjoy both these in resale and U/C properties but the scope of gain and extent of benefit financially is what we need to assess.

Generally, U/C properties have a greater appreciating scope while maintaining high rental yield; if you pick the right property with the right attributes. It also follows the ease of framework via progressive payment.

Perhaps you can share more on your objectives but most importantly the requirements ; any particular type/ location/ budget so that I can advise which option will value add and enhance your portfolio. There are currently many projects with ongoing discounts and firesales as high as 18-30%! Perfect time to leverage on the weak market before some reviewal of measures are considered. Having said that, these properties must nonetheless compliment the investment objective you have in mind, as that's priority. To give a property as an example, located in the city centre, mins walk to MRT and Marina Bay, with massive area redevelopment going at huge price cuts- 2BR below $1.5m with projected yield of 4.8%-5.3%! Such yield and PSF are unmatched in vicinity! This is just a rough guide.

Furthermore, there is NO agent fees involved! So you can take this opportunity to discuss more on your preferences & for me to give an entire overview and share more insights to the market, chart out the market price analysis and recent sales transaction caveats, work out comprehensive financial cash projections and provide you with up to date information to the procedural steps and its associated wings- financial (loan) , legal matters etc.

D Kumar
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YT Tan (陈永达)
Good afternoon buyer,

it will depends whether instant investment returns or potential capital appreciation.

If you decide to go for resale units, you are able to enjoy instant rental returns but potential for capital appreciation will be pretty low.

As for new launches, they tend to appreciate over the years during construction period but you will have loss of instant rental turns during that period and might have to fight for tenants with other fellow landlords.

Maybe you can share more with me so I will be in a better position to advise you.

Hope to hear from you soon!

Warmest Regards,
YT TAN 陈永达 | ACCA Graduate, RES
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Why not have the best of both worlds in purchasing a balance unit from developer which has or is about to TOP? Such projects usually have good discounts given and you can look forward into having almost instant rental returns. Newer projects will generally be favoured by tenants over older projects therefore it will be a win all scenario. I am aware of some options if you are able to disclose more information about the financial profiling of this purchase you intend to make.

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Regards,

Geryl LIM
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Masters Of Real Estate
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Hi,
My advise is to purchase a under construction project. Why and where?
To assist and advise, please drop me an email for me to share.

I can be contactable at my mobile or email.

CK Ang
 9046 3808 
res.ckang@gmail.com Read More
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GAN ENG JOO ONASSIS
Hi,

Pls feel free to contact me to have a discussion.

Onassis Gan Eng Joo - CEA Reg No.: R021244C
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