1st storey units have extra open space called a PES(private enclosed space) that is bound by a short 1m fence.
That extra space has not much security and privacy. Worst still litter from above floors. And since they are built at the same level as the outer area unlike new hdb flats, you have a privacy inssue as well. Hard to see in what way that extra space is an advantage.
Big PES is very good for investment, because of the bigger total area of your unit. PES is generally priced as 1/2 or 1/3 of the per square foot price of the built in area. So you are buying at a much lower overall $psf than your neighbours who have totally built-in space except for one or two small balconies.
When you sell out in a big bull market like 2007, as you know, a rising tide lifts all boats.
For example your unit is around 2,000 square feet including PES. If the property prices in your area generally increases by $1,000 psf, your profit is around 2,000 x $1,000 psf = $2 mill (before factoring in agent's commission, seller's stamp duty in recent times, cost of your legal, loan clawbacks, loan early repayment penalty, etc)
And that is how people made their big money through property. I know guys who bought and sold big 4,000 square feet penthouses, profited $1-2 mill or so with every trade they made. All you need is to buy at a certain $psf price and sell out only a little bit higher, so get in at the early to mid to late stages of the bull run also can. You won't be holding long term anyway. Only if you can stomach risk.
Edited by Viceroymenthol, 09 June 2011 - 03:04 PM.