Condominium

Private housing and condos in Singapore

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Property

Condominium

John Ong Zhenxi
John Ong Zhenxi,
Level 4. Prodigy
Answered 2w ago
People do that with a close group of friends. 3 bedroom have 5-6 ppl. Condo rent of 2.5-3.5K, each person pays 500-700 dollars.

Property

99.co Event

Condominium

Investments

Hey Gabriel, Great question! Here's my personal take on Studio Apartments (aka Shoebox Units, Mickey Mouse Units). ! a) Why are Studio Apartments gaining popularity? There has been a significant increase in trends for a one-person household (individuals wanting to live alone). Citing sources from Straitstime, the proportion of one-person resident households has doubled from 4.6 per cent of all households in 1992 to 9.5 per cent in 2012. Very often millennials (myself included) values freedom, independence, privacy, minimalist living and simplicity over living with their parents, staying in larger houses, or living a luxurious lifestyle. Perks of staying in a Studio Apartment often include the ease of maintenance/servicing, lesser cleaning, shared Condo leisure/entertainment facilities and most importantly a lower capital outlay as compared larger units. Case Study John - a 25 years old college graduate who has just landed his first job drawing a fixed income of $3500 per month. John has not accumulated any CPF in his OA account neither does he have any other savings on hand. In order for John to purchase a property that is valued at $600,000, he will need to accumulate savings up to 20% of the property price (5% option fee in cash and 15% down payment in cash and/or CPF). Which means for John to achieve his goal of purchasing his first property in 10 years at the age of 35, he will be required to save 12.5% (5% + 7.5%) in cash, and 7.5% in CPF. Assumptions Price of Studio Apartment = $600,000 12.5% in Cash = $75,000 7.5% in CPF = 45,000 Remaining 80% of the property payable via a bank loan (John’s increase in fixed income over a 10 year period cancels out inflation and any other interest payable to purchase a property) By doing the math ($75,000/120 months), John would only be required to save $625 per month to achieve his goal of becoming a homeowner in 10 years time at the age of 35. Which is really affordable in my opinion! b) Are Studio Apartments worth the Investment? Also, studio apartments are gaining popularity due to the rise of expatriates in Singapore. Expats living in Singapore are usually here for less than 5 years and thus, they would often choose not to uproot and relocated their family. Which makes Studio Apartments much more ideal and suitable for their lifestyle. Citing sources from Yahoo Finance and ERA, on average, property prices have increased by more than 50% over a 10 year period (2008 to 2018). ! Sharing a personal experience from my family. My parents bought a Studio Apartment at D’Leedon roughly 8 years ago for around $750K. After completion, they manage to rent it out for 36 months (Avg monthly rental receivable of $3.8K - while we rented and stayed in an HDB for $2K a month). They then sold the unit at D’Leedon for close to $1.1 mil. That’s roughly $350K in resale and rental profit for an 8 years investment (47% return on investment)! In conclusion, I’m sold on property investment and I’ve just commenced with my 10 years saving plan. Worst case scenario - I’ll still be a homeowner at the age of “35”, living independently enjoying absolute privacy Best case scenario - I’ll make 50% in returns over a 5-10 years investment period That being said, it’ll be wise for everyone to do their own due diligence when it comes to investment or personal finance. I hope this will help!
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99.co Event

Investments

Property

HDB BTO

Condominium

Yeah that is the first obstacle to overcome. Douglas here. 2nd keynote speaker. No rocket science here. A high paying job, or a good business of your own to accumulate ammo for the first downpayment. Maybe u can buy the occasional TOTO or 4D. you might get lucky. My Dad won some pretty big prizes there so I speak from experience. But I'm not suggesting you to become a TOTO/4D junkie!! It goes to support charities and our sports people, so it's not a bad thing really. And pls avoid all the get rich scams out there. The internet and facebook is crawling full of such scams, out to rip u off. Stay alert. And sober. A discipline to save up is key. It doesn't matter that you earn 10k/mth when your expenditure in the same period is 12 k. Cut down or eliminate unnecessary expenses like bubble tea, starbucks or clubbing. And no , you don't have to live like a monk. You can always combine resources with trusted friends but make sure you have the same goals and agree on when to exit the investment. You can always connect with me via https://www.facebook.com/douglas.chow.908 or simply whatsapp/sms my company 24/7 hotline @83324283 Remember, plan your finances properly, don’t overstretch, do your homework and enjoy your property investment journey. Regards Douglas Chow

99.co Event

Resale HDB

Investments

Property

Condominium

Douglas here, 2nd Keynote Speaker. That's fine. It's a common strategy that has worked for many Singaporeans. Just save up for it. You can always connect with me via https://www.facebook.com/douglas.chow.908 or simply whatsapp/sms my company 24/7 hotline @83324283 Remember, plan your finances properly, don’t overstretch, do your homework and enjoy your property investment journey. Regards Douglas Chow

99.co Event

Property

Condominium

Hi, Douglas here. 2nd Key note speaker. From my personal experience as well as the clients I serve, a 2 bedder has the highest rental appeal as it appeals to both small families, and singles who dun mind sharing or a single who wants an extra room for visiting friends and family. You can always connect with me via https://www.facebook.com/douglas.chow.908 or simply whatsapp/sms my company 24/7 hotline @83324283 Remember, plan your finances properly, don’t overstretch, do your homework and enjoy your property investment journey. Regards Douglas Chow

99.co Event

Condominium

Property

Investments

Hi. Douglas here. 2nd keynote speaker. It;s pretty ok to rely on the mortgage banker recommended though it's your choice entirely to source your own. Some of my clients rely on my mortgage bankers while others rely on their own long time mortgage bankers, esp my high net worth clients who already have their own private bankers. You can always connect with me via https://www.facebook.com/douglas.chow.908 or simply whatsapp/sms my company 24/7 hotline @83324283 Remember, plan your finances properly, don’t overstretch, do your homework and enjoy your property investment journey. Regards Douglas Chow

99.co Event

EC Condominium

Condominium

Property

Hi there. Douglas here 2nd keynote speaker. Go for an EC if you qualify since it's usually priced 15 to 25% cheaper than comparable new launched mass market condos. You can always connect with me via https://www.facebook.com/douglas.chow.908 or simply whatsapp/sms my company 24/7 hotline @83324283 Remember, plan your finances properly, don’t overstretch, do your homework and enjoy your property investment journey. Regards Douglas Chow

99.co Event

Property

Condominium

Hi Douglas here. 2nd keynote speaker. Don't need to predict. Just refer to LTA's transport master plan. It's all there. Properties near MRT station are the easiest to rent out. Same for my time when I invested in my first property more than 10 yrs ago. Same today too. You can always connect with me via https://www.facebook.com/douglas.chow.908 or simply whatsapp/sms my company 24/7 hotline @83324283 Remember, plan your finances properly, don’t overstretch, do your homework and enjoy your property investment journey. Regards Douglas Chow

99.co Event

Property

Investments

Condominium

Hi there. Douglas here . 2nd key note speaker. Yes it is very much alive. Double digits meaning 10% or more over 10 years is easy. 100% over 10 years could be a challenge though.....we'll see. You can always connect with me via https://www.facebook.com/douglas.chow.908 or simply whatsapp/sms my company 24/7 hotline @83324283 Remember, plan your finances properly, don’t overstretch, do your homework and enjoy your property investment journey. Regards Douglas Chow

99.co Event

Condominium

Property

All condos have en-bloc potential if you have enough holding power. The question should be how long and how much more can you earn? 1) How Long The timing depends on two factors (1) resident demographic and (2) market trends. The residents in the condo ultimately determines if a property goes for En-bloc, so you have to see what the residents are like. I know of a very good property that developers are desperately waiting for an en-bloc, but the very good location is also the reason why the residents refuse to en-bloc. Plus the residents are middle-upper with enough holding power to not want to en-bloc. I know many people who have lost so much money buying these kind of property only to be stuck for years with no en-bloc in sight. Market trend is the 2nd factor on how long. Similar to my previous point, location is a double edged sword. Developments around the condo might increase chances for en-bloc but it will also lead to residents resisting the en-bloc. This is made even worse whenever government announce certain plans in the area as it makes residents demand higher prices that developers refuse to give. 2) How much THIS is the key question you need to ask. Because if a property has a high en-bloc return potential than it is worth waiting it out. Higher en-bloc return comes from: - Freehold vs leasehold - condo footprint vs land area - number of residents per land area - If original plot ratio had been increased
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