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Old units like people park complex, while it seems like rental yield is high,
1) is there still chances of capital appreciation?
2) will it be harder to rent/ rental is expected to drop as the unit aged?
any advice on what else should we look out for?
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1 Answer

John Tan 奕欣
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Hi there!

In Singapore context, usually the owners will be more keen to go into a collective sale, or en-bloc. As mentioned, older properties will start to have problems such as water leakage, pest issues, structural wear and tear.

While you may buy such properties at cheaper prices, rent them at a competitive price compared to nearby projects, thereby achieving higher rental yield, there are many potential problems you may be facing down the road.

In terms of capital appreciation, there are other factors as well not just the age of property and lease remaining. There are cases of older projects that are still gaining price appreciation despite of the number of years.

The best way to find out more information is to get into the inside.

Hope this helps!

John Tan YS
ERA Realty Network Pte Ltd
R012788H
facebook.com/johntys
powersginvest.com
 +65 9633 8431  Read More
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