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Serious Qn: Should i buy a resale condo, or a project that TOP 2022/23

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Old 10-09-2018, 11:44 PM   #1
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Serious Qn: Should i buy a resale condo, or a project that TOP 2022/23

Serious question, i am below the age of 30. And looking to purchase a private property solely under my own name. Budget 800k - 1m

Of course, i have an existing place to stay, and i am solely looking at an investment view point.

Two options come to my mind:

- Purchase new project, lock in 5% upfront, and progressive payment till 2022/2023 to get keys. Maybe could sell away once SSD up to lock in gains? But current decent projects are priced 1600psf++ onwards at least - not sure on the upside.

- Purchase a resale condo, rent out, collect rental till 3 years SSD up. Sell it off and use proceeds to enter Balance Units of Unsold new project or just TOP Projects. Of course rental is subjected to market condition. But seems that i will be getting instant rental from this option.


What would you do if you're in my position, please share

Last edited by bettersaint; 10-09-2018 at 11:53 PM..
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Old 11-09-2018, 06:18 AM   #2
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What make you so sure that property prices will run up within 3 years to the extent it covers your financing cost, transaction cost? If it pans out then all is good. Otherwise have you thought of the worst case scenario?
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Old 11-09-2018, 07:30 AM   #3
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What make you so sure that property prices will run up within 3 years to the extent it covers your financing cost, transaction cost? If it pans out then all is good. Otherwise have you thought of the worst case scenario?
According to ervino, Singapore FH CCR property is the best thing since sliced bread and peanut butter. He had made 55.7% CAGR on them.
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Old 11-09-2018, 08:07 AM   #4
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DukeCS33, here are a couple questions to ask before leaping into your possible real estate tycoonism:

1. Looking at your total household wealth, what is the current split between investments/savings in Singapore (such as CPF, real estate, STI stocks, Singapore Savings Bonds, etc.) and investments/savings overseas (such as global stock funds)?

2. Looking again at your total household wealth, what is the current split between investments/savings in real estate (such as REITs, shares of STI stocks that are focused on real estate such as CapitaLand, your own home if you have one) and non-real estate?

3. Looking one more time at your total household wealth, what is the current split between stocks/stock-likes (which includes all real estate) and bonds/bond-likes (which includes CPF)?

Now, if the answer to #1 is ď100% Singapore, 0% global,Ē or something close to that, then youíre hoping (praying) that Singapore will consistently outperform the rest of the world ó and thatís quite a risky bet. If Singapore merely catches a cold, or walks while the rest of the world runs, you lose. If the answer to #2 is ďover 20% real estate,Ē then youíre already heavily concentrated in one sector, and thatís sector-specific risk. (How would you feel about having 40% of your wealth allocated to steel manufacturers, to pick some other sector at random? Itís the same basic principle.) If the answer to #3 is that most of your wealth is sitting in fixed deposits, bonds, and traditional CPF, and youíre looking for some place for those dollars to go, then you likely have an age inappropriate portfolio thatís not well positioned for retirement goals.

So whatís the current situation?
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Old 11-09-2018, 08:39 AM   #5
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What make you so sure that property prices will run up within 3 years to the extent it covers your financing cost, transaction cost? If it pans out then all is good. Otherwise have you thought of the worst case scenario?
Well, The worst is for me is probably holding it and will be a future place for me to stay, becoming my primary residence if necessary.
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Old 11-09-2018, 08:46 AM   #6
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Hi BBC, not sure what’s the link to my current thread. By replying to dukeCS33. Would appreciate your inputs on thread topic

DukeCS33, here are a couple questions to ask before leaping into your possible real estate tycoonism:

1. Looking at your total household wealth, what is the current split between investments/savings in Singapore (such as CPF, real estate, STI stocks, Singapore Savings Bonds, etc.) and investments/savings overseas (such as global stock funds)?

2. Looking again at your total household wealth, what is the current split between investments/savings in real estate (such as REITs, shares of STI stocks that are focused on real estate such as CapitaLand, your own home if you have one) and non-real estate?

3. Looking one more time at your total household wealth, what is the current split between stocks/stock-likes (which includes all real estate) and bonds/bond-likes (which includes CPF)?

Now, if the answer to #1 is “100% Singapore, 0% global,” or something close to that, then you’re hoping (praying) that Singapore will consistently outperform the rest of the world — and that’s quite a risky bet. If Singapore merely catches a cold, or walks while the rest of the world runs, you lose. If the answer to #2 is “over 20% real estate,” then you’re already heavily concentrated in one sector, and that’s sector-specific risk. (How would you feel about having 40% of your wealth allocated to steel manufacturers, to pick some other sector at random? It’s the same basic principle.) If the answer to #3 is that most of your wealth is sitting in fixed deposits, bonds, and traditional CPF, and you’re looking for some place for those dollars to go, then you likely have an age inappropriate portfolio that’s not well positioned for retirement goals.

So what’s the current situation?
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Old 11-09-2018, 09:24 AM   #7
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Re getting a resale unit, i believe it's extremely difficult to generate (+) cashflow from renting it out assuming you take a max loan (75%)
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Old 11-09-2018, 09:42 AM   #8
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Re getting a resale unit, i believe it's extremely difficult to generate (+) cashflow from renting it out assuming you take a max loan (75%)
Yes, its tough indeed, I did my research, seems like only units in Geylang is able to generate enough cash flow to cover the mortgage.

Well, I wouldn't mind topping up the shortfall if necessary, taking it like a forced savings plan.
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Old 11-09-2018, 09:46 AM   #9
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Please don't any how quote me and put words in my mouth hor!

55.7% is average return p.a.!
CAGR is still 25+% p.a. for my returns in properties investment.

What I can claim is that I did so much better than Temasek and GIC!

According to ervino, Singapore FH CCR property is the best thing since sliced bread and peanut butter. He had made 55.7% CAGR on them.

Last edited by ervino; 11-09-2018 at 09:49 AM..
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Old 11-09-2018, 09:57 AM   #10
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Please don't any how quote me and put words in my mouth hor!

55.7% is average return p.a.!
CAGR is still 25+% p.a. for my returns in properties investment.

What I can claim is that I did so much better than Temasek and GIC!
So much? Can share which development or area in CCR Fringe you purchase?
I am personally looking at the city fringe FH units area too
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Old 11-09-2018, 10:14 AM   #11
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I don't buy city fringe, I only buy core CCR in D9, D10 and D11 only.


So much? Can share which development or area in CCR Fringe you purchase?
I am personally looking at the city fringe FH units area too
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Old 11-09-2018, 11:23 AM   #12
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Yes, its tough indeed, I did my research, seems like only units in Geylang is able to generate enough cash flow to cover the mortgage.

Well, I wouldn't mind topping up the shortfall if necessary, taking it like a forced savings plan.
That's not entirely true. some units in Geylang cannot cover the mortgage as well. There is the MCST to factor in as well.

At the end of the day, it's the purchase price that you pay for + rental demand that you should consider for any investment property in the short term.
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Old 11-09-2018, 11:33 AM   #13
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Yes, its tough indeed, I did my research, seems like only units in Geylang is able to generate enough cash flow to cover the mortgage.

Well, I wouldn't mind topping up the shortfall if necessary, taking it like a forced savings plan.
Actually topping up ain't such a bad idea. As long the rental covers the interest portion of the mortgage payment per month, any excess is put towards the principal sum...which you can get back when you decide to sell the apartment next time.
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Old 11-09-2018, 11:43 AM   #14
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What would you suggest with a 1m budget?
Probably a small shoebox in D9,10,11

I don't buy city fringe, I only buy core CCR in D9, D10 and D11 only.
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Old 11-09-2018, 11:45 AM   #15
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I did my research. There is some units for sure. I looked at URA rental data and sale price.

Yeah of cos I excluded the even lorongs which I found out no banks loan for them There is some in Odd lorongs that is + cashflow

That's not entirely true. some units in Geylang cannot cover the mortgage as well. There is the MCST to factor in as well.

At the end of the day, it's the purchase price that you pay for + rental demand that you should consider for any investment property in the short term.
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