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Old 26-12-2018, 04:23 PM   #1
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Investing in commercial property

With ABSD increased to such an obscene amount, angie xcomsodered investing in commercial properties?

How does one go about doing it?
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Old 26-12-2018, 05:30 PM   #2
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I would say commercial is not recommended for newcomers, commercial stretches from HDB shophouses all the way to warehousing/Industrial so compared to residential it spans a much larger audience so unless you know what you are looking at and target tenant it be hard to advise.

With ABSD increased to such an obscene amount, angie xcomsodered investing in commercial properties?

How does one go about doing it?
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Old 26-12-2018, 05:48 PM   #3
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Agreed! I have friends stuck with commercial properties and willing to let go but no buyers and also difficult to find tenants!

I would say commercial is not recommended for newcomers, commercial stretches from HDB shophouses all the way to warehousing/Industrial so compared to residential it spans a much larger audience so unless you know what you are looking at and target tenant it be hard to advise.
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Old 26-12-2018, 06:23 PM   #4
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Those new launched strata titled retail units with no proper retail management are probably the worse, expensive, untenanted and un-sell able. If have central air conditioning good luck to the buyer



Agreed! I have friends stuck with commercial properties and willing to let go but no buyers and also difficult to find tenants!
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Old 26-12-2018, 06:41 PM   #5
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Agreed! I have friends stuck with commercial properties and willing to let go but no buyers and also difficult to find tenants!
Your friend must be greedy.

He thought he can become a REIT manager?

Just put an asking price of $1. Confirm got buyers or tenants.
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Old 26-12-2018, 09:01 PM   #6
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With ABSD increased to such an obscene amount, angie xcomsodered investing in commercial properties?

How does one go about doing it?
Buy REIT loh.
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Old 26-12-2018, 09:06 PM   #7
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Agreed! I have friends stuck with commercial properties and willing to let go but no buyers and also difficult to find tenants!
Rental is too high for many to consider. I considered renting to do business like nail salon or ice cream parlour or cafe before or even clinic.
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Old 26-12-2018, 09:22 PM   #8
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Rental is too high for many to consider. I considered renting to do business like nail salon or ice cream parlour or cafe before or even clinic.
You need to make realistic expectation.

If many shops are empty and if you are still asking a high rate, nobody will want to rent.

Just drop down the asking rate. Otherwise, you got to suck air if no tenant.
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Old 26-12-2018, 09:27 PM   #9
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Then you continue to be milked again and again?

Buy REIT loh.
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Old 26-12-2018, 09:53 PM   #10
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Some of the malls have so little foot traffic that you can offer 6 months rent free and no one will take it up. No business will want to put up renovation/reinstatement cost if no business.

Long time back when people bought these strata titled retail shops they did so to run their own business (i.e Sim Lim, Golden Mile etc) which created a vibrancy attracting shoppers. Now investors just buy and hope to rent out but in reality it just ends up as a dead mall. Even Gain city couldn't help the Alexandra Central Mall

HDB Shophouse is a better consideration but also not for the blind investors.


You need to make realistic expectation.

If many shops are empty and if you are still asking a high rate, nobody will want to rent.

Just drop down the asking rate. Otherwise, you got to suck air if no tenant.
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Old 26-12-2018, 10:17 PM   #11
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Some of the malls have so little foot traffic that you can offer 6 months rent free and no one will take it up. No business will want to put up renovation/reinstatement cost if no business.
Tenants have to weigh in the relocation, renovation costs and effective rental rate with other available locations.

If the rate is really damn attractive and the business is a strong magnet regardless of locations, I am sure there will be some who are willing to take up.

In reality, there are just so many shops choices in Singapore. Some of the smaller landlords cannot compete with the bigger landlords like Capitamall and Frasers.

That's why it is better to just buy these REITs. If you see their dividends history, they have been stable so far. Best thing, you don't even need to manage the tenants.

Of course, Uncle Ervino will not agree with me.
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Old 26-12-2018, 10:19 PM   #12
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Buy, buy more. Only if you got use for it.
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Old 26-12-2018, 10:34 PM   #13
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Commercial property is very risky. People need a roof over their head no not necessary need to rent a space for their business. Home business and online business are threats to the brick and mortar business model.
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Old 26-12-2018, 10:45 PM   #14
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Some business owners will take a chance, I spoke to them when they first moved to Alexandra mall surprisingly, but despite spending 50k or more on reno they still moved out due to lack of traffic. But of course there are so many variations one cannot rule out a tenant who maybe does not depend on foot traffic for their business and maybe attracted to them but I dealt with such tenants before and they usually prefer to get a industrial unit if possible (larger and cheaper)

One other thing also is the strata title malls these day sell the unit bare (i.e no metal shutters or anything) and that really increases cost for business owners as well.

For property it only make sense if you are using leverage, if pure cash play I would also put into REIT unless I spot a unit with potential en bloc play.

Tenants have to weigh in the relocation, renovation costs and effective rental rate with other available locations.

If the rate is really damn attractive and the business is a strong magnet regardless of locations, I am sure there will be some who are willing to take up.

In reality, there are just so many shops choices in Singapore. Some of the smaller landlords cannot compete with the bigger landlords like Capitamall and Frasers.

That's why it is better to just buy these REITs. If you see their dividends history, they have been stable so far. Best thing, you don't even need to manage the tenants.

Of course, Uncle Ervino will not agree with me.
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Old 26-12-2018, 11:14 PM   #15
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REITs so good like you claimed now?

Then why you sold all your REITs some time ago?!

You are the Hypocrite and tell people to go commit suicide (while you don't walk your talk)?

Tenants have to weigh in the relocation, renovation costs and effective rental rate with other available locations.

If the rate is really damn attractive and the business is a strong magnet regardless of locations, I am sure there will be some who are willing to take up.

In reality, there are just so many shops choices in Singapore. Some of the smaller landlords cannot compete with the bigger landlords like Capitamall and Frasers.

That's why it is better to just buy these REITs. If you see their dividends history, they have been stable so far. Best thing, you don't even need to manage the tenants.

Of course, Uncle Ervino will not agree with me.
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