Mercs: property news & updates

[Mercs]

5 minutes ago, 13177 said:

Of course it is better to buy a newer lease resale flat or even a brand new flat. Whether it is HDB or private. Buying a old resale HDB if it is already 50 year old is not worth, if the person has the intention of selling the flat later to earn profits. Or plan to sell and buy another house. But old resale HDB would be a good choice if the price is not ridiculous, in a good location, can walk to MRT under 10 mins and after buying no intention of selling. Since old HDB size is bigger esp for 3 room.

Buy just MOP hdb resale, stay 30yrs still can retain value to sell. Buy 50yr old hdb resale, stay 30yrs balance less than 20yrs lease how to sell? Nobody can or want to buy anymore.

The only way is rent out balance years, hdb rental yield unbeatable 😉

 

[Mercs]

 

 

 

[Alfc]

21 minutes ago, 13177 said:

Thats why we are stuck. If we want big units, we can only buy old HDB and private condo. But lease is getting shorter and value of the house is decaying. Newer built HDB and private condo size tends to be smaller and layout also not so good. Example an old 3 room flat with a 59 sqm, inside the layout and size of the bedrooms could be seems bigger than a new bto 3 room 65 sqm.

I think partly is because the size stated for old units have more real livable (built-in) space, while the new development stated space could have "fake" space (in the form of big balcony, planters, ledge etc). So have to be a bit skeptical when 65 sqm is real 65sqm or included 10sqm of balcony (aka "fake" space).    

[13177]

7 minutes ago, Mercs said:

Haha, as per dicussed earlier, rich folks just sold/enbloc PTE rightsize to HDB, money/price no issue type.

Willing buyer seller buyer, as mentioned prior- current market is more demand to less supply, so prices just keep going up up and away. Buyers all keep trying to outbid others to secure their choice unit, so now become HDB record price 1.39 mil lor 😛

Which comes to another mentioned often - 'SG property, always ideal to stay vested'

Future property prices unlikely to be any cheaper than what they are already today - like inflation/gst everything price go up and shrinkflation units sizes just gonna get even smaller

In expensive SG playground of the rich - 'Expensive of today, the cheap of 2moro' 😉

 

Precisely, these rick folks from private house owner come to HDB resale to spoilt market lo. Because of these people who set a precedent high transacted pricing, so future price also hover around these level or even higher. I think for these buyer who bought their HDB more than $1m, i really wonder how much can they sell after that? I dont think can sell higher than $1.39M la?!

Anyway, i dont understand why current market is more demand to less supply? Actually there are plenty of HDB flats available in the resale market, also every year so many newly MOP flats release into the resale market. I guess if most people are only looking for a particular location, then maybe demand is less than supply, also if seller continue to ask for crazy price and buyer willing to pay for it, then future HDB resale really doom liao.

[13177]

18 minutes ago, Mercs said:

Buy just MOP hdb resale, stay 30yrs still can retain value to sell. Buy 50yr old hdb resale, stay 30yrs balance less than 20yrs lease how to sell? Nobody can or want to buy anymore.

The only way is rent out balance years, hdb rental yield unbeatable 😉

 

Must see the budget of the buyer. Just MOP hdb resale by right should be more ex than a 50 year old hdb. Even the location of the just MOP hdb resale not in good location. Lets say $300k can buy a 50 year old hdb vs $400k just MOP hdb.

[Kopites]

1 hour ago, Mercs said:

Agree, went to view one unit 2B2B for rental play, brand new just TOP size 600+sqft. Very small, basically once furniture in no place to walk type.

But still, for those that we complain 'small', for Hongkies comes will say ..."wah, very nice!' 😛

With covid WFH, more are realizing the need for space, but I do recall someone also did mention ... 'dun need a lot of space to have sex'

Anyway, for SG property my personal view always go for the biggest whenever possible, in future big units are indeed gonna a luxury to have and rare 😉

 

Such small size unit your tenant market likely to be Asian origin. 

[Mercs]

20 minutes ago, 13177 said:

Precisely, these rick folks from private house owner come to HDB resale to spoilt market lo. Because of these people who set a precedent high transacted pricing, so future price also hover around these level or even higher. I think for these buyer who bought their HDB more than $1m, i really wonder how much can they sell after that? I dont think can sell higher than $1.39M la?!

Anyway, i dont understand why current market is more demand to less supply? Actually there are plenty of HDB flats available in the resale market, also every year so many newly MOP flats release into the resale market. I guess if most people are only looking for a particular location, then maybe demand is less than supply, also if seller continue to ask for crazy price and buyer willing to pay for it, then future HDB resale really doom liao.

Haha, if 20+ year ago, I tell u hdb 'no 1mil no talk', most will say - siao ah, who gonna pay 1mil for an ahgong flat?' Today is reality staring us in the face. Those bought these just MOP mil$ flats, stay another 20+ years future maybe sell 2mil amd up? Possible? Never say never 😉

Why demand more than supply? already mentioned b4 - covid, less manpower, construct delay to both hdb/pte. So lesser sale of balance flats, newly wed couples looking to buy start making babies asap, how to wait so long go buy resale. Some pte owners think now good time to sell at record high, some enbloc need to buy replacement, some sell pte buy hdb for retirement etc ...

For new launch developers have balance low unsold stock, for resale also not many serious sellers,  some trying luck asking next new high prices,

If you got any friend/colleague looking to buy/rent you go ask them and they'll tell u - realistically, not much choices in the current market.

[Mercs]

22 minutes ago, 13177 said:

Must see the budget of the buyer. Just MOP hdb resale by right should be more ex than a 50 year old hdb. Even the location of the just MOP hdb resale not in good location. Lets say $300k can buy a 50 year old hdb vs $400k just MOP hdb.

If all things equal as in location/ high flr/ facing etc , no brainer leh sure buy just MOP hdb at 400k, 25% more in price for 50% more in lease. Buying the 50yr old hdb 300k the maths dun add up for me

 

[Mercs]

20 minutes ago, Kopites said:

Such small size unit your tenant market likely to be Asian origin. 

Could be single or couple any origin, current rental market is very strong, lots of demand with reasonably 'good' yield, on top of future captial $$$ appreciation 😉

 

[13177]

11 hours ago, Mercs said:

If all things equal as in location/ high flr/ facing etc , no brainer leh sure buy just MOP hdb at 400k, 25% more in price for 50% more in lease. Buying the 50yr old hdb 300k the maths dun add up for me

 

Like you said if those factors are equal. Example i plan to buy a 3 rm in bt batok, one just MOP asking price $450k, the other 38 year old 3 rm asking price $330k. Even for some people the difference is not say very big and with a much newer and longer new lease for the $450k flat, but some people simply just cannot afford a house over $400k. 😅 The amount loan and the numbers of years loan can make a great difference on the price of the house.

[Alfc]

28 minutes ago, 13177 said:

Like you said if those factors are equal. Example i plan to buy a 3 rm in bt batok, one just MOP asking price $450k, the other 38 year old 3 rm asking price $330k. Even for some people the difference is not say very big and with a much newer and longer new lease for the $450k flat, but some people simply just cannot afford a house over $400k. 😅 The amount loan and the numbers of years loan can make a great difference on the price of the house.

This is somewhat similar to buy new car vs used 5-year car. Depreciation likely similar but there are people who cannot afford the higher price tag (or downpayment) of new which may actually make more sense based on mathematical analysis.

[13177]

Buying An Old 40-Year-Old Resale HDB? Here Are 6 Key Factors To Know

 

[Mercs]

8 hours ago, 13177 said:

Like you said if those factors are equal. Example i plan to buy a 3 rm in bt batok, one just MOP asking price $450k, the other 38 year old 3 rm asking price $330k. Even for some people the difference is not say very big and with a much newer and longer new lease for the $450k flat, but some people simply just cannot afford a house over $400k. 😅 The amount loan and the numbers of years loan can make a great difference on the price of the house.

Agree, talking about loans, one buyer full cash for a 1mil hdb, another buyer buy cheaper 700k with loan, both also have to cover at least 1mil future sale price before can see any profits. Full cash buyer is more or less at fixed cost 1mil purchase price, while loan buyer must first offset loan/cpf interest, assuming if sold at purchase price 700k suppose to breakeven but will become negative sale instead.

With current low interest rate (1+%), those taking loan should work it to their best advantage, as much as possible use only CA$H to service loan and keep cpf funds (2.5%), until a time when IR do go above 3%, can consider to then activate cpf funds for partial repayment to reduce loan interest.

Just MOP vs old HDB to me is a no brainer, always go for the one with longer lease, u may be paying more now but will help retain future resale value. In the context of our property prices which is suppose to double up every couple decades or so, old hdb above 50yrs to see a straight line depreciation down instead, even if buy own stay wanna sit on it also should get something that can still retain value in time to come. Unless these old hdb prices are cheap and on par with the lower lease which is not the case today, those bought expensive old hdb will have buyers remorse in due time, only option left is to rent out provided got alternative housing. 

That said, first rule still buy what can afford and not to overleverage. If affordability issue, can still go for one with longer lease but probably not as good location etc. Something for u to ponder ... enjoy the weekend

 

[13177]

True, when buy a house, longer lease is definitely better. But i still think must see how deep is your pocket and what is your age when making the house purchase.

Example if a person buy a house at the age of 50 year old, maybe a bit stretch on the loan since can only loan up to 15 years if the house is too ex.

[Mercs]

Yea or nay  diff strokes diff folks 😉 happy tio ho 😛

 

https://www.99.co/singapore/insider/couple-tiong-bahru-51-years-lease/

Thirty-year-old couple forgoes BTO/SBF queues for Tiong Bahru walk-up with 51 years lease remaining

"Over the past 10 years, HDB flats which TOPed in 1975-1976 (52-53 years of lease remaining) in Tiong Bahru have seen average psf prices go up 12.22%. With psf prices around S$600-700, these are 3- to 5-room (improved) resale flats at Kim Cheng Street, Seng Poh Road, Kim Tian Road, Moh Guan Terrace, Kim Pong Road and of course, Lim Liak Street. Note the sales volume for these flats in the neighbourhood as well, which shot up to almost 60 units exchanging hands in 2021"

 

 

https://dollarsandsense.sg/5-things-need-know-buying-older-hdb-lease-less-50-years/

5 Things You Need To Know Before Buying An Older HDB Flat With A Lease Of Less Than 50 Years

(Buying older HDB flats come with their own unique implications for financing, retirement adequacy, and future sale)

 

You May Find It Difficult To Sell Your HDB

For obvious reasons, it would be more difficult to sell your HDB in the future. Due to the above-mentioned restrictions on financing options for older HDB flats, your pool of potential buyers might be more limited when you plan to sell. This might lead to you taking a long time to sell, or you needing to lower your asking price to make the sale.

In addition to the same considerations that you have as you are deciding to purchase an older HDB flat, your future buyers will have to contend with the same issues but with an even shorter remaining lease. Additionally, the aging estate conditions may have deteriorated with wear and tear, which may negatively affect your resale value, even if the flat interior is well-maintained.

 

Buying An Older Resale Flat Could Limit Your Retirement Options

While it may be a reasonable choice to buy an older resale flat with a lease of less than 50 years based on your circumstances today, you should also consider how it may affect your plans in the future.

Even if you plan to make this flat your ‘forever home’ and have no plans to ever move out, the shortened remaining lease does limit your retirement options. In a pinch, you might have difficulties selling,  and might not be able to participate in the HDB Lease Buyback Scheme to boost your retirement savings. Potential homebuyers need to be aware of these considerations when shopping for an older flat.

 

 

 

 

 

[Rskc]

On 4/1/2022 at 11:16 PM, 13177 said:

Precisely, these rick folks from private house owner come to HDB resale to spoilt market lo. Because of these people who set a precedent high transacted pricing, so future price also hover around these level or even higher. I think for these buyer who bought their HDB more than $1m, i really wonder how much can they sell after that? I dont think can sell higher than $1.39M la?!

Anyway, i dont understand why current market is more demand to less supply? Actually there are plenty of HDB flats available in the resale market, also every year so many newly MOP flats release into the resale market. I guess if most people are only looking for a particular location, then maybe demand is less than supply, also if seller continue to ask for crazy price and buyer willing to pay for it, then future HDB resale really doom liao.

I know of someone who bought pinnacle resale at 1m, mid high level, just few years back. Then pp said "siao", 1m for hdb. But today the new owners probably already sitting on profit cos they can probably now sell at 1.2m comfortably since latest highest is at 1.4m.

For the 1.4m, from a financial point of view, if one day, the owner decides to rent out @ today's rent of say at constant $3500 (realistically should raise with inflation), he only needs 30 years to recoup it since there should be no lack of tenants for that area, and also bearing in mind that it still has ~80 years lease to go. 

Nearby Tanjong pagar plaza, 46 year old hdb 3rm hdb is renting out at ~$2.5k per month in today's price.

Just putting myself in their shoes as it was mind bobbling to me too but it seems logical after putting the numbers together.

[Mercs]

On 4/2/2022 at 8:48 PM, 13177 said:

True, when buy a house, longer lease is definitely better. But i still think must see how deep is your pocket and what is your age when making the house purchase.

Example if a person buy a house at the age of 50 year old, maybe a bit stretch on the loan since can only loan up to 15 years if the house is too ex.

 

For most common folks property is the one and only most expensive purchase in their lifetime,  buy hdb with intent to stay for life, imagine young couples 20s 30s buying 50yr old hdb, when in 70s 80s lease finish value drop to nil, risky and scary thought, long lease the more of importance, at least cover till age 95 as per recommended by hdb. Ideally, require a 2nd backup property.

 

 

 

At age 50s, probably not ideal to stretch with loan, as much as possible full cash purchase, keep cpf to fund retirement, buy within means. At this age everything start to slow, earning power may drop, ideally should have already achieved financial independence and be debt free, unless it's buying 2nd property invest this different ballgame, tenant rental to service loan not out of pocket.

 

 

 

 

[Mercs]

 

 

 

https://www.edgeprop.sg/property-news/e-application-sing-holdings’-north-gaia-ec-start-april-7

E-application of Sing Holdings’ North Gaia EC to start on April 7

 

https://www.straitstimes.com/business/invest/newer-units-have-better-facilities-older-ones-have-more-living-space

Newer units have better facilities, older ones have more living space

https://www.straitstimes.com/business/invest/inthemoney-go-for-older-leasehold-condo-units

Go for older leasehold condo units?

(In this fortnightly series, we address readers’ queries on investing issues. This week, we look at the value of older leasehold condo projects)

 

https://stackedhomes.com/editorial/15-most-profitable-condos-by-transactions-divided-by-region/

https://stackedhomes.com/editorial/dont-be-naive-tips-on-dealing-with-experienced-seller-agents-as-a-first-time-homebuyer/