chickenrice82
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*Disclaimer: This is for sharing purposes only and is not in any way intended for advertisement purposes. Please consult with your own real estate professional to determine if this is a good investment for your situation.*
My wife and I are in our mid 30s with some savings and one day, we decided it’s time to get an investment property.
We looked at getting a 2 bedroom condo in SG. To the shock of our lives, a 2 room leasehold condo in Jurong is going for S$1 million.
For the following reasons we concluded investing in SG property is financial suicide:
1) Oversupply: many landlords are unable to rent out their properties and those who succeed are often unable to secure rental yields high enough to cover their mortgage payments.
2) High upfront costs: Buyer and Additional Buyer Stamp Duties alone will be S$144,600.
This doesn't include other costs ie renovation, furnishing, agent commission to rent out the property etc
3) Miserably Low Loan to Value: In SG, one can only get up to 45% loan to value mortgage for their 2nd property. This means my cash outlay immediately is 55% or S$550,000 minimum. If the banks value the $1 million property to be worth $800K, my loan margin will be much lower!!
4) Rentability: There's zero guarantee we can rent the condo out at the price we need to cover our mortgage payments. Failure to rent out a property can have a devastating effect on one's finances. So much so that some of my neighbours have had to sell their investment properties in Singapore for huge losses due to this alone.
So what did we do?
Long story short, we were in holiday in Melaka when we chanced upon Hatten's sales gallery.
A consultant there introduced us to their latest project, Harbour City.
A mixed development, it comprises of a mall, hotels, serviced resorts, and Melaka's first indoor/outdoor theme park.
After looking at the floor plans, we decided to purchase a 2 room serviced apartment for the following reasons:
1) Managed for us: Hassle Free, we needn't worry about looking for tenants etc
2) Rental Guarantee: 6% for 6 years, after calculations is more than enough to cover the mortgage payments thus leaving us with positive cash flow
3) Financing Available: we were able to lend up to 60%, much high than Singapore's miserable 45%
4) Listed Developer with track record: Listed in Singapore, Hatten is one of the largest developers in Melaka with a huge portfolio of malls, hotels, serviced apartments and condos - they must be doing something right to be this successful.
5) Bigger Picture: Upcoming Melaka Gateway, right next to Harbour City, will create over 45000 jobs and attract over 2.5 million tourists yearly. High potential for capital appreciation and rental demand.
This investment was a no brainer and we've since signed off the Sales & Purchase Agreement in their Singapore office without hesitation.
If you'll like more info, pm me and I'll have my consultant contact you directly.
Thanks for reading and hope this opens your perspectives on property investment opportunities overseas.
My wife and I are in our mid 30s with some savings and one day, we decided it’s time to get an investment property.
We looked at getting a 2 bedroom condo in SG. To the shock of our lives, a 2 room leasehold condo in Jurong is going for S$1 million.
For the following reasons we concluded investing in SG property is financial suicide:
1) Oversupply: many landlords are unable to rent out their properties and those who succeed are often unable to secure rental yields high enough to cover their mortgage payments.
2) High upfront costs: Buyer and Additional Buyer Stamp Duties alone will be S$144,600.
This doesn't include other costs ie renovation, furnishing, agent commission to rent out the property etc
3) Miserably Low Loan to Value: In SG, one can only get up to 45% loan to value mortgage for their 2nd property. This means my cash outlay immediately is 55% or S$550,000 minimum. If the banks value the $1 million property to be worth $800K, my loan margin will be much lower!!
4) Rentability: There's zero guarantee we can rent the condo out at the price we need to cover our mortgage payments. Failure to rent out a property can have a devastating effect on one's finances. So much so that some of my neighbours have had to sell their investment properties in Singapore for huge losses due to this alone.
So what did we do?
Long story short, we were in holiday in Melaka when we chanced upon Hatten's sales gallery.
A consultant there introduced us to their latest project, Harbour City.
A mixed development, it comprises of a mall, hotels, serviced resorts, and Melaka's first indoor/outdoor theme park.
After looking at the floor plans, we decided to purchase a 2 room serviced apartment for the following reasons:
1) Managed for us: Hassle Free, we needn't worry about looking for tenants etc
2) Rental Guarantee: 6% for 6 years, after calculations is more than enough to cover the mortgage payments thus leaving us with positive cash flow
3) Financing Available: we were able to lend up to 60%, much high than Singapore's miserable 45%
4) Listed Developer with track record: Listed in Singapore, Hatten is one of the largest developers in Melaka with a huge portfolio of malls, hotels, serviced apartments and condos - they must be doing something right to be this successful.
5) Bigger Picture: Upcoming Melaka Gateway, right next to Harbour City, will create over 45000 jobs and attract over 2.5 million tourists yearly. High potential for capital appreciation and rental demand.
This investment was a no brainer and we've since signed off the Sales & Purchase Agreement in their Singapore office without hesitation.
If you'll like more info, pm me and I'll have my consultant contact you directly.
Thanks for reading and hope this opens your perspectives on property investment opportunities overseas.
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