Best Condo Investment for 2011

[advice_please]

Hi all, my wife and I have been watching the red hot property market for some time now and have taken advice from experts such as agents and also locals for their more impartial view point.

We see the market here is very strong and have decided to take the plunge as w ewould like to get in on the ground floor of this rising market. So we will take a mortgage out at 60% of the price and spend the rest in cash. We have to SGD 1.2 million to spend including the mortgage.

 I would like capital; appreciation of 10-15% in the first year and we will rent the property out and would be aiming for a yield of 5% per year. Can people recommend condos that are likely to fulfill these investment criteria. Thanks in advance for your suggestions.

[YeahRight]

., and you haven't noticed that the govt has just slapped the property market over the head with a large concrete block? One might even suspect that you were of an agentesque persuasion . If prices do go up 15% in the next year, there will be another slapping

5k a month for a place that costs 1.2m? It's going to have to be 99yr or landed if you are a citizen or PR. either way you are going to be damn lucky

[advice_please]

I was saying 5% so I guess that would mean 6000 rent per month as I will need to cover costs such as maintenance. I think I can get this as a lot of Japanese or angmo foreign talent will pay through the nose for a condo and they have big allowances. In fact, I was advised to find out their allowance and if it is more than 6000 then go for the maximum as this is money that landlords in Singapore should expect to earn.

And I don't see why the market should not rise by 15%, Singapore bricks and mortar has been going gangbusters, like the Singapore economy. In fact, when I was speaking to the agents I heard about 15% GDP growth, so this place aint crashing.

[dis 9-11 landlord]

I was saying 5% so I guess that would mean 6000 rent per month as I will need to cover costs such as maintenance. I think I can get this as a lot of Japanese or angmo foreign talent will pay through the nose for a condo and they have big allowances. In fact, I was advised to find out their allowance and if it is more than 6000 then go for the maximum as this is money that landlords in Singapore should expect to earn.

And I don't see why the market should not rise by 15%, Singapore bricks and mortar has been going gangbusters, like the Singapore economy. In fact, when I was speaking to the agents I heard about 15% GDP growth, so this place aint crashing.

don't forget to include income and property taxes on top of maintenance.
depending on how 'irresponsible and destructive' your tenant can sometimes be and other unforeseen emergencies ... sometimes ongoing maintenance can cost way more than you project.

repairmen are interesting folk too ... even if you're local, how they charge sometimes is gauging affordability according to localities.

also factor in replacement and renovation costs, in between move-ins/move-outs.

[Kubes.SG]

advice_please:   I see three scensrios behind your questions.

1)  you are an agent trying to talk up the market.
2)  you are genuine but completely and utterly clueless and too trusting (but self-aware).
3)  you are an idiot with zero understanding of SG property cycles nor that SG property agents are all liars and dishonest.

Success in the SG property market is based on getting the timing right.  When the Govt takes measures to reduce property prices and speculation, IT IS NOT THE TIME TO BUY.  Why do you think the agents are showing you so much attention?  Did any of them tell you prices are expected to decline 10% this year?

[Clearly]

a troll

Do not feed him.

[Kubes is back !]

Hey Kubes, you are back, great ! Some on this board were worried you ran into trouble after your post "Hard Truth about Singapore".

So you can continue entertaining us with your assertions based on cooked/manipulated facts !
Welcome back Mr fraud !

[$Pripps]

advice_please:   I see three scensrios behind your questions.

1)  you are an agent trying to talk up the market.
2)  you are genuine but completely and utterly clueless and too trusting (but self-aware).
3)  you are an idiot with zero understanding of SG property cycles nor that SG property agents are all liars and dishonest.

Success in the SG property market is based on getting the timing right.  When the Govt takes measures to reduce property prices and speculation, IT IS NOT THE TIME TO BUY.  Why do you think the agents are showing you so much attention?  Did any of them tell you prices are expected to decline 10% this year?

guessing (1) due to this statement:

I have been watching the red hot property market for some time now

 

[advice_please]

I was saying 5% so I guess that would mean 6000 rent per month as I will need to cover costs such as maintenance. I think I can get this as a lot of Japanese or angmo foreign talent will pay through the nose for a condo and they have big allowances. In fact, I was advised to find out their allowance and if it is more than 6000 then go for the maximum as this is money that landlords in Singapore should expect to earn.

And I don't see why the market should not rise by 15%, Singapore bricks and mortar has been going gangbusters, like the Singapore economy. In fact, when I was speaking to the agents I heard about 15% GDP growth, so this place aint crashing.

don't forget to include income and property taxes on top of maintenance.
depending on how 'irresponsible and destructive' your tenant can sometimes be and other unforeseen emergencies ... sometimes ongoing maintenance can cost way more than you project.

repairmen are interesting folk too ... even if you're local, how they charge sometimes is gauging affordability according to localities.

also factor in replacement and renovation costs, in between move-ins/move-outs.

Thanks for that, some useful advice.

I think it would be fair to look at a rent now of more like 7000 per month or more if the tenants allowance is higher than that. The yield may be even higher as the agents have told me that in fact renovation, wear and tear and taxes are more or less paid for by the deposit from the tenant.

About the government measures to cool the market, these won't have any effect and the prices may go up even more than previously. I have discussed these at length not just with the agents but with locals. Locals know the market more than a bunch of internet plonkers.

I realise now asking for advice on a forum was silly, most of you people know nothing and are not the kind that could afford to buy property or even to rent the kind of high end condo I will be investing in with my wife.

[HowSadNevermind]

ha ha

Not a bad effort.

(1.2m is not going to get you much of a 'high end' condo)

[very sad]

ha ha

Not a bad effort.

(1.2m is not going to get you much of a 'high end' condo)

It isn't going to buy a condo that will earn anything like 7k rent either.

[Ambition]

I reckon you lack ambition

With your $480,000, you should look to leverage yourself up 20 times, so borrow $9.12m and buy 22 flats at $1m each off plan (putting down 20% on each) , and 5 at $1m in the secondary market.  You should be easily able to get 10% net rental yield, so the rent will pay the mortgages on the 5 flats as well as allow you to pay the stage payments on the units being built and you can use the rental deposits to pay stamp duty etc

 After 1 year, your 5 yet to be completed units will have increased in value by 15% - 22 x 0.15 * 1m. Giving a 3.3m profit.  The 5 other units will now be worth 5,75m.  So your total profit will about $4m

[advice_please]

I reckon you lack ambition

With your $480,000, you should look to leverage yourself up 20 times, so borrow $9.12m and buy 22 flats at $1m each off plan (putting down 20% on each) , and 5 at $1m in the secondary market.  You should be easily able to get 10% net rental yield, so the rent will pay the mortgages on the 5 flats as well as allow you to pay the stage payments on the units being built and you can use the rental deposits to pay stamp duty etc

 After 1 year, your 5 yet to be completed units will have increased in value by 15% - 22 x 0.15 * 1m. Giving a 3.3m profit.  The 5 other units will now be worth 5,75m.  So your total profit will about $4m

You make some good points and we will look into this

[more_please]

advice_please is bringing some much needed light hearted amusement to this board - more please!

[Likebutton]

I reckon you lack ambition

With your $480,000, you should look to leverage yourself up 20 times, so borrow $9.12m and buy 22 flats at $1m each off plan (putting down 20% on each) , and 5 at $1m in the secondary market.  You should be easily able to get 10% net rental yield, so the rent will pay the mortgages on the 5 flats as well as allow you to pay the stage payments on the units being built and you can use the rental deposits to pay stamp duty etc

 After 1 year, your 5 yet to be completed units will have increased in value by 15% - 22 x 0.15 * 1m. Giving a 3.3m profit.  The 5 other units will now be worth 5,75m.  So your total profit will about $4m

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