Walk-up apartment

[Kafka]

Hi people, would like to hear opinions on this: I really like the walk-up apartments in the Tiong Bahru area and the neighborhood itself... regardless of the prices (same than suburban condos, $1000psf+) and housing market trends, would you buy a home with a remaining leasehold period of 55 years?
For obvious reasons, none of the 99-year freehold housing in Singapore has come to extinction yet, but I'm really wondering how the price would fluctuate as we get closer to the lease-extinction date... I would think that buying with a 5-year horizon then resale should be fine...
Thanks

[GGirl]

Hi, I guess whether or not you should buy depends on the reason for purchasing? 

If it's as an investment to lease out, then it doesn't really matter how much leasehold is left. 

If you're buying to live in yourself, work out if the rent saved and peace of mind is worthwhile.  Do you intend to live there for the rest of your life?  The problem seems not to be that people are against older buildings per se, but the difficulty in getting a mortgage from the bank.

Check out Singapore Land Authority, they compile a table showing the price comparison for a leasehold property compared to if it were freehold.  With 55 years remaining,  it's estimated the walk up would be worth 77% of the freehold value.  Hope this helps

[Leasehold nightmare]

it's worth pointing out that banks here generally won't give loans on properties with less than (I think) 60 years left on the leaseholds.

It's also worth pointing out that getting leaseholds extended isn't the formality that it is in most other countries.

[Indeed....]

Yep, banks won't give loans on properties with less than 60 years to run on the lease. So unless you're paying cash for one of those Tiong Bahru appartments, I'm not sure you could progress any further.

Having said that, I think those apartments do have some kind of protected status which might make a difference.

[Protected]

The protected status means that the building will be allright, but it does nothing to protect you as the owner if in however many years the government has plans for that building to redevelop it into another historical theme park or whatever. You're out.

[Kafka]

Thanks all for your comments... I'll check with banks, but I did not expect the possible issue to be with the loan, in that case that will be a no go for me, sadly I don't have 1 million+ in cash