Focus on commercial property from residential property

[Santro]

Dear all,
Considering the fact that residential property has already appreciated way beyond anyones expectations, what are your views about commercial property.
I am looking at investing in residential property but not sure if it is a good option in terms of steady rental and capital appreciation. Whats your views on commercial properties like shops/office space.

Thanks
Santro

[mygeemeel]

Dear all,
Considering the fact that residential property has already appreciated way beyond anyones expectations, what are your views about commercial property.
I am looking at investing in residential property but not sure if it is a good option in terms of steady rental and capital appreciation. Whats your views on commercial properties like shops/office space.

Thanks
Santro

Prices have appreciated 2 times. I guess you are late and further more crisis isnt over, i would hold cash and wait and see.

In near term, there would be alot of commercial units launching. It will be flooded.

[gn108]

A few more considerations other than Residential investments
- Loan rates are higher
- GST

[Santro]

I wasnt monitoring the commercial units. Have they also appreciated so much. :doh:
Phew!! No choice but to wait for the right time.


Prices have appreciated 2 times. I guess you are late and further more crisis isnt over, i would hold cash and wait and see.

In near term, there would be alot of commercial units launching. It will be flooded.

[newbie11]

how abt UK?

[Santro]

I did check for properties outside Singapore but was advised by the locals there that the location is ulu..no scope for long term appreciation. Have you come across any good developments overseas.


how abt UK?

[Concours]

Is there a ban on commercial property investment when you are still under HDB's 5 year MOP rule?

[newbie11]

I did check for properties outside Singapore but was advised by the locals there that the location is ulu..no scope for long term appreciation. Have you come across any good developments overseas.

I know Westminster palace gardens were snapped up last week. 2000psf sgd

[hyenergix]

A few more considerations other than Residential investments
- Loan rates are higher
- GST

Note e general 60 years or 99 years lease.

[kane]

Commercial also have freehold but be prepared to pay through your nose.

[sh]

I did check for properties outside Singapore but was advised by the locals there that the location is ulu..no scope for long term appreciation. Have you come across any good developments overseas.

Took me years to understand the subtlety of the singapore market. How to know a foreign market that well? Will be starting from scratch.... very easy to make costly mistakes.

GST for commercial property is a major no no... :tsk-tsk: loose 7% before anything starts....:tongue3: .... unless set up company to get GST back, but too much trouble:(

[Santro]

Looks like almost everything has shot up and no more avenues to invest in. I agree GST is a major set-back. Was looking at places like international plaza and golden miles but asking price is too high.:banghead:

[gn108]

I'm more into freehold...there are freehold industrial strata units in Henderson area and also FH retail strata units in places like Katong Shopping Centre and Holland Road SC.

Rental yields are superior to residentials now but if you invest as individuals and pay GST, then good negociation helps alot.

[Santro]

Thanks Bro for your advise. What do you mean by good negotiation. Do you have experience in commercial properties. Is it easy to deal with corporate clients or need to be aware of the legal aspects.


I'm more into freehold...there are freehold industrial strata units in Henderson area and also FH retail strata units in places like Katong Shopping Centre and Holland Road SC.

Rental yields are superior to residentials now but if you invest as individuals and pay GST, then good negociation helps alot.

[kingkong1984]

Beware the big corporate bullies.

[DC33_2008]

Quite a few new commercial properties on sale in D13 not too far from mrt stn.

[Santro]

The psf prices are high for those properties but can get something for around 600k. Went and looked at a few. But blur blur...Dont know how to assess them since no experience with commercial properties. Some of them 60 yr tenure.
Quite a few new commercial properties on sale in D13 not too far from mrt stn.

[sh]

Looks like almost everything has shot up and no more avenues to invest in. I agree GST is a major set-back. Was looking at places like international plaza and golden miles but asking price is too high.:banghead:

be careful, both IP and golden mile are 99LH properties with 30+yrs gone. depreciation appreciates in speed as the 99 yr runs out.... :(

[DC33_2008]

No more news about enbloc of golden miles?
be careful, both IP and golden mile are 99LH properties with 30+yrs gone. depreciation appreciates in speed as the 99 yr runs out.... :(

[gn108]

Try to get price down to offset the 7% GST if you're buying as an individual. If you're buying via a GST registered company, then no difference - more on location, facing and yield.

Corp clients no different from a Coporate lease in residential.
Commercial property is just a empty space - no need to handle renovations as the office/shop set-up is done by the tenant.



Thanks Bro for your advise. What do you mean by good negotiation. Do you have experience in commercial properties. Is it easy to deal with corporate clients or need to be aware of the legal aspects.

[gn108]

You are right - but sometimes you will get satisfaction in dealing with such 'bullies' when you have a superior product and they need you more than you need them. Then you kick them in the nuts...when the time is right.


Beware the big corporate bullies.