Jump to content

When are 99yr lease condos 'too old' to be worth investing?


Elmo
 Share

Recommended Posts

Hi bros/sis,

 

Was thinking of shifting to a place within a km of a Pri Sch but all around are condos/bungalows and only a few HDB blocks.

Spotted some 99-yr lease condo estates of less than 20 yrs but not sure whether they are still worth investing in.

 

Hope to receive advice on when is a 99-yr lease condo considered 'too old' to invest in.

 

Thanks in advance.

↡ Advertisement
Link to post
Share on other sites

hang on.

 

You using or investing?

 

can alter the ball game.

 

 

if for staying, most important is suit your requirements and you like.

for investing, most important is suit other people requirements and other people like.

 

 

 

Link to post
Share on other sites

hang on.

 

You using or investing?

 

can alter the ball game.

 

 

if for staying, most important is suit your requirements and you like.

for investing, most important is suit other people requirements and other people like.

 

More for investing as I just want to stay there for maybe less than 10 yrs when both my kids are out of the Pri Sch. So was wondering whether by then I can still sell with profit and probably downgrade back into HDB flat.

 

Link to post
Share on other sites

I suppose, in general, any project more than 20 - 25yo can be considered "old", cos you yourself would be looking at staying in it for at least 10 years, by then it will have maybe 61 - 66 years left on the lease.

 

having said that, there are several factors which can help mitigate the decline in property's capital value due to the run down of the lease...

 

- if the Pri Sch is a popular one, there will always be a ready pool of parents keen to buy / rent

- estate maintenance, have seen some well-maintained 30yo condo and poorly maintained 10yo ones

- any upcoming MRT station already announced by LTA

 

also, does the 1km proximity ensure a place in the school or is it still subject to balloting ?

 

have a look at the transacted prices and number of transactions over the last few years to get a feel on the demand for the project.

 

Link to post
Share on other sites

Anyone know if the Government has extended any 99 lease properties for say another 99 years???????????

 

Is it possible?

 

I think the only possibility is to en-bloc the entire estate and let the developer apply to extend the lease up to 99 years again. In the past, 99 years leased-hold property value will start to drop once it hits 10 years old. But recently due to the en-bloc sales, those condo with good location and with low build ratio still maintain good resale value. For example, Mandarin Gardens, Laguna Park, etc.

Link to post
Share on other sites

I suppose, in general, any project more than 20 - 25yo can be considered "old", cos you yourself would be looking at staying in it for at least 10 years, by then it will have maybe 61 - 66 years left on the lease.

 

having said that, there are several factors which can help mitigate the decline in property's capital value due to the run down of the lease...

 

- if the Pri Sch is a popular one, there will always be a ready pool of parents keen to buy / rent

- estate maintenance, have seen some well-maintained 30yo condo and poorly maintained 10yo ones

- any upcoming MRT station already announced by LTA

 

also, does the 1km proximity ensure a place in the school or is it still subject to balloting ?

 

have a look at the transacted prices and number of transactions over the last few years to get a feel on the demand for the project.

 

Thanks for the advice bro!

The Pri sch is very popular, such that the few HDB blocks near it are very overpriced....and with the recent property price surge, the COVs are way above the avg seen since 2008.

Some COVs cost as much as a Hyundai Avante.

Most are shouting prices that can get me a condo elsewhere, and they are just 5-rms.

 

No balloting required for less than 1 km, which is a big plus.

So once I get a home near there, it should be quite 'confirmed' registration.

And yes....got MRT coming up there. Once it was announced, the prices jumped at least 20%.

 

Think it will be a good area to live in, though I feel the whole area's pricing is hyped up by the sch and the MRT.

All the freeholds/999yrs condos are easily more than 1 mil. So with my budget, I have to look for smaller units in 99-yr lease.

Probably still worth investing in, but have to time my purchase. If the double-dip economy crisis is as predicted, probably can enter then.

 

If not for the pri sch, I would have preferred to stay in a HDB all the way. Cheap maintenance and amenities all around [thumbsup]

Link to post
Share on other sites

Neutral Newbie

I am not sure if it is worth investing except if the owners are planning to continue to lease it from people, who already lease the condo for many decades. I wonder if this 99 year lease has expiration... Why don't you invest on brand new property then?

Link to post
Share on other sites

Supercharged

Thanks for the advice bro!

The Pri sch is very popular, such that the few HDB blocks near it are very overpriced....and with the recent property price surge, the COVs are way above the avg seen since 2008.

Some COVs cost as much as a Hyundai Avante.

Most are shouting prices that can get me a condo elsewhere, and they are just 5-rms.

 

No balloting required for less than 1 km, which is a big plus.

So once I get a home near there, it should be quite 'confirmed' registration.

And yes....got MRT coming up there. Once it was announced, the prices jumped at least 20%.

 

Think it will be a good area to live in, though I feel the whole area's pricing is hyped up by the sch and the MRT.

All the freeholds/999yrs condos are easily more than 1 mil. So with my budget, I have to look for smaller units in 99-yr lease.

Probably still worth investing in, but have to time my purchase. If the double-dip economy crisis is as predicted, probably can enter then.

 

If not for the pri sch, I would have preferred to stay in a HDB all the way. Cheap maintenance and amenities all around [thumbsup]

 

wah sounds like bukit timah area...

 

to get the 1km advantage, you can also consider renting. all you need to prove is that the address of your I/C is the place you are renting.

 

my view is the the ppty market is kind of insane and it may or may not be peak yet. If it does, you are hung out to dry. If it does not and continues to rise, then renting is no gd cos you are exposed to the rising costs.

 

The gap bet a LH and FH property is narrowing. If you afford it, it may be gd time to get a FH since the price difference is not that significant as before. Many LH launches (lakeview apt, tennery) makes FH ppty in bukit timah/hillview a bargain haha... jus dun buy new, the prices are crazy!

 

 

Link to post
Share on other sites

Supersonic

Hi bros/sis,

 

Was thinking of shifting to a place within a km of a Pri Sch but all around are condos/bungalows and only a few HDB blocks.

Spotted some 99-yr lease condo estates of less than 20 yrs but not sure whether they are still worth investing in.

 

Hope to receive advice on when is a 99-yr lease condo considered 'too old' to invest in.

 

Thanks in advance.

 

 

if its in a good location i.e near the city, seaview - 99LH no problem. but not those in hdb estates where it's stuck amidst flats.

Link to post
Share on other sites

Supercharged
(edited)

Hi bros/sis,

 

Was thinking of shifting to a place within a km of a Pri Sch but all around are condos/bungalows and only a few HDB blocks.

Spotted some 99-yr lease condo estates of less than 20 yrs but not sure whether they are still worth investing in.

 

Hope to receive advice on when is a 99-yr lease condo considered 'too old' to invest in.

 

Thanks in advance.

there is a rule whereby cpf financing gets more restrictive for leasehold property with <60years in lease.

http://www.cpf.gov.sg/cpf_info/Publication/HSE_faq.pdf

hence usually only when leasehold property step into the 30+ years old region ie (99-60=39) then price drops more due to lower demand arising from more restrictions in using cpf to finance. those that tell you it starts depreciating more steeply from 10years on is just sensationalizing thigns that they don't know well.

 

generally old 99 LH condos n good locations don't suffer noticeably from this problem. on the other hand, i have seen FH condo drop signifcantly in value even when they are only 10 years old. it all boils down to demand and supply. A FH condo in a place where there is low demand and high supply is even more vulnerable to severe price depreciations. it is only more resistant in price depreciation compared to a LH 99 condo in the same area. hence when doing your comparisons, always compare to same area rather than just across the market comparisons of FH and LH99.

Edited by Acemundo
↡ Advertisement
Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...