View Full Version : Renting landed is better than buying?
Was doing some comparison on the rental rate vs selling price of landed property in Singapore. What I discover is that rental rate for landed property have remain stagnant or in come case decline for sometime while resale prices has shot up drastically over the past few years.
A quick search on propertyguru does show that there are plenty of landed properties in Singapore which is asking about $1 to $2psf in rental, which is about (50%) of what a condo in similar location will be asking.
Hence would it make more sense to actually buy a condo rent it out and then use the rental to rent a landed property (IF) you need that extra space?
e.g. for a 1500sqft condo, you can actually upsize to a 3000sqft landed without having to cough out anything extra other than higher property tax.
Advantage
a) Dont have to be over burden by huge mortgage and fear rising interest
b) Dont have to pay for repair and maintenance of landed property,
c) Plenty of landed property owner desperate for tenant
d) Can upsize and downsize without worries?
Was doing some comparison on the rental rate vs selling price of landed property in Singapore. What I discover is that rental rate for landed property have remain stagnant or in come case decline for sometime while resale prices has shot up drastically over the past few years.
A quick search on propertyguru does show that there are plenty of landed properties in Singapore which is asking about $1 to $2psf in rental, which is about (50%) of what a condo in similar location will be asking.
Hence would it make more sense to actually buy a condo rent it out and then use the rental to rent a landed property (IF) you need that extra space?
e.g. for a 1500sqft condo, you can actually upsize to a 3000sqft landed without having to cough out anything extra other than higher property tax.
Advantage
a) Dont have to be over burden by huge mortgage and fear rising interest
b) Dont have to pay for repair and maintenance of landed property,
c) Plenty of landed property owner desperate for tenant
d) Can upsize and downsize without worries?Quite true indeed! Landed rental is cheap.
Was doing some comparison on the rental rate vs selling price of landed property in Singapore. What I discover is that rental rate for landed property have remain stagnant or in come case decline for sometime while resale prices has shot up drastically over the past few years.
A quick search on propertyguru does show that there are plenty of landed properties in Singapore which is asking about $1 to $2psf in rental, which is about (50%) of what a condo in similar location will be asking.
Hence would it make more sense to actually buy a condo rent it out and then use the rental to rent a landed property (IF) you need that extra space?
e.g. for a 1500sqft condo, you can actually upsize to a 3000sqft landed without having to cough out anything extra other than higher property tax.
Advantage
a) Dont have to be over burden by huge mortgage and fear rising interest
b) Dont have to pay for repair and maintenance of landed property,
c) Plenty of landed property owner desperate for tenant
d) Can upsize and downsize without worries?
Finally you get round to it. Two MM rental gains can more than sustain one landed rental cost. Can even afford to be choosy about it - get the newest and the best located one.
Overall cost wise, two MMs don't quite cost as much as a landed.
The only minus point is that if you meet tricky landlords, might have to move quite frequently.
Was doing some comparison on the rental rate vs selling price of landed property in Singapore. What I discover is that rental rate for landed property have remain stagnant or in come case decline for sometime while resale prices has shot up drastically over the past few years.
A quick search on propertyguru does show that there are plenty of landed properties in Singapore which is asking about $1 to $2psf in rental, which is about (50%) of what a condo in similar location will be asking.
Hence would it make more sense to actually buy a condo rent it out and then use the rental to rent a landed property (IF) you need that extra space?
e.g. for a 1500sqft condo, you can actually upsize to a 3000sqft landed without having to cough out anything extra other than higher property tax.
Advantage
a) Dont have to be over burden by huge mortgage and fear rising interest
b) Dont have to pay for repair and maintenance of landed property,
c) Plenty of landed property owner desperate for tenant
d) Can upsize and downsize without worries?
Actually, if you think about it, instead of 1 unit 1500 sqf condo, you can go for 3x 500 sqf Studio....or if you feel safer (in terms of catchment), 2x 800 sqf 2-bedder. Just have to put up with being a normad and no anchor or home to call your own.
Having said that, a friend of mine rented out her 35 yr old Inter-terrace for the last 30 yrs. Half of the time to 1 family in the last 15 years!
c) Plenty of landed property owner desperate for tenant
Having said that, a friend of mine rented out her 35 yr old Inter-terrace for the last 30 yrs. Half of the time to 1 family in the last 15 years!
Landed houses that are rented out are probably older houses that were bought cheaply by owners.
I don't think landed property owners are desperate for tenants as majority of them would have owned more than one landed. In fact it's cheaper to leave a landed than a condo empty, as there's no monthly maintenance fees to pay.
I know of someone who bought a few semi-detached at less than S$20,000 each 40 years ago and is still renting them now at $4,000 each a month!
Landed houses that are rented out are probably older houses that were bought cheaply by owners.
I don't think landed property owners are desperate for tenants as majority of them would have owned more than one landed. In fact it's cheaper to leave a landed than a condo empty, as there's no monthly maintenance fees to pay.
I know of someone who bought a few semi-detached at less than S$20,000 each 40 years ago and is still renting them now at $4,000 each a month!
Yes, I know quite a few landed owners who have a take it or leave it attitude when it comes to renting out their property. They have no qualms about leaving it empty as the rental is of no consequence to them. As you have pointed out correctly, they do not pay any maintenance and are just holding it for their kids when they grow up (lucky kids !!!).
The main advantage of owning landed is to do whatever you want to the house... renovate or rebuild. Can't do that to a rental.
Landed houses that are rented out are probably older houses that were bought cheaply by owners.
I don't think landed property owners are desperate for tenants as majority of them would have owned more than one landed. In fact it's cheaper to leave a landed than a condo empty, as there's no monthly maintenance fees to pay.
I know of someone who bought a few semi-detached at less than S$20,000 each 40 years ago and is still renting them now at $4,000 each a month!
I think we shouldnt speculate that all landed property owner are so loaded that they can leave their property vacant, nor they are not desperate for tenant. Honestly if they are not desperate, then why bother to rent out at such low price.
Although landed property doesnt have month maintenance fee, but they do have major repair cost which can run into many thousands once every few years, so not everything is free unless you own land.
I would not want my landed property to be left empty for long period of time. Best to have "human Qi"/ Yang Qi. Maybe i a little pang tang.
The main advantage of owning landed is to do whatever you want to the house... renovate or rebuild. Can't do that to a rental.
The main advantage of renting is you are not limited to what you own, you can pick and choose what you like as long as its within the budget.
If you can buy fresh milk from supermarket, why waste time keeping a cow.
this is a very smart move :cheers5::cheers5::cheers5:
Do not have such major repair cost. My last repair was 13 years ago.
I think we shouldnt speculate that all landed property owner are so loaded that they can leave their property vacant, nor they are not desperate for tenant. Honestly if they are not desperate, then why bother to rent out at such low price.
Although landed property doesnt have month maintenance fee, but they do have major repair cost which can run into many thousands once every few years, so not everything is free unless you own land.
For landed properties in prime districts, near international schools or classified as Good Class Bungalows, rental demand is high and prices are more stable.
For terrace houses outside central region, most people buy for their own occupation.
The landed estate where I am staying I notice that houses are seldom for rent. In 2006, the rental is only $1,800 to $2,000. Now it is between $4,500 to $5,000. But hardly can you find any house for rent. After the owner moves out, he just leaves the house vacant, regardless of whether it is for sale or not.
Once you pay off the mortgage, the holding cost of a landed property is very negligible, with no maintenance fee and low property tax. Owners are thus not motivated to rent out the house. They also don't want the hassle of helping tenants with all the repairs in the house.
Landed houses that are rented out are probably older houses that were bought cheaply by owners.
I don't think landed property owners are desperate for tenants as majority of them would have owned more than one landed. In fact it's cheaper to leave a landed than a condo empty, as there's no monthly maintenance fees to pay.
I know of someone who bought a few semi-detached at less than S$20,000 each 40 years ago and is still renting them now at $4,000 each a month!
I know of someone in similar situation.. he owns an entire row of terraces and rent them out at about 4K each ... the terraces are so old already but ang moh likes them as they need the space.
I see my entire neighbourhood that over the past decade, several big units have already been sold, torn down and either converted to cluster houses or chopped into smaller land pieces of 'tiny bungalows'
Once you pay off the mortgage, the holding cost of a landed property is very negligible, with no maintenance fee and low property tax. Owners are thus not motivated to rent out the house. They also don't want the hassle of helping tenants with all the repairs in the house.
Yes, agree... its a misconception that it is costly to maintain a landed ppty, unless its for own stay where you need regular maintenance, otherwise the holding cost for an empty unit is rather low...
Once you pay off the mortgage, the holding cost of a landed property is very negligible, with no maintenance fee and low property tax. Owners are thus not motivated to rent out the house. They also don't want the hassle of helping tenants with all the repairs in the house.
Precisely, my tenant's friends wanted to stay near her so my tenant took the trouble to locate the owner of the vacant house. My tenant asked the owner to do a bit of minor repairs and rent out the house to her friends.
The owner refused and my tenant couldn't understand why the owner would rather leave the house vacant than collect a few thousand dollars rental a month.
Precisely, my tenant's friends wanted to stay near her so my tenant took the trouble to locate the owner of the vacant house. My tenant asked the owner to do a bit of minor repairs and rent out the house to her friends.
The owner refused and my tenant couldn't understand why the owner would rather leave the house vacant than collect a few thousand dollars rental a month.
My cousin has 3 landed properties ... the oldest one was occupied by her MIL, the second one (which she used to stay with her family) was left empty after her family moved to the third one (newly constructed). She doesnt want to rent out the second unit becos she does not wish to see her house got ruined by tenants. Her intention is to pass down a house to each of her 3 sons after they got married.
For landed properties in prime districts, near international schools or classified as Good Class Bungalows, rental demand is high and prices are more stable.
For terrace houses outside central region, most people buy for their own occupation.
The landed estate where I am staying I notice that houses are seldom for rent. In 2006, the rental is only $1,800 to $2,000. Now it is between $4,500 to $5,000. But hardly can you find any house for rent. After the owner moves out, he just leaves the house vacant, regardless of whether it is for sale or not.
Once you pay off the mortgage, the holding cost of a landed property is very negligible, with no maintenance fee and low property tax. Owners are thus not motivated to rent out the house. They also don't want the hassle of helping tenants with all the repairs in the house.
There are plenty for rent on property website and st classified.
Buying a condo with 3 to 4 bedrooms need to pay monthly maintenance of $400 to $500. That's $4,800 to $6,000 a year and $48,000 to $60,000 in 10 years. When you sell the place, the management office won't give you any refund even though they keep millions in their reserve.
That's why we bought a leasehold terrace house with 5 bedrooms (even though we only had 3 in the family at that time). The maintenance fee we saved we hire a maid to 'maintain both inside and outside of the house'. The balance can be used for any repair.
Now you understand why people buy landed for own stay rather than for rental.:)
http://www.propertyguru.com.sg/listing/11948281/for-rent-thomson-hills
$5900 per month before nego??
http://cdn-sg2.pgimgs.com/images/thumb/c/b/8/5/cb858127742600_1_V550.jpg
http://www.propertyguru.com.sg/listing/12755004/for-rent-sunset-heights
6100sqft detached house $7000 per month
http://cdn-sg2.pgimgs.com/images/thumb/7/0/c/c/70ccfd30335571_1_V550.jpg
$8000 per month - 4,650 sqft / 432 sqm (land), 3,000 sqft / 279 sqm (built-up) Coronation Road West
http://www.propertyguru.com.sg/listing/10573175/for-rent-69-coronation-road-west
http://cdn-sg2.pgimgs.com/images/thumb/c/0/2/f/c02f3423426334_1_V550.jpg
$8000 per month - 2,600 sqft / 242 sqm (land), 2,900 sqft / 269 sqm (built-up) Jervois Road
http://www.propertyguru.com.sg/listing/12734445/for-rent-jervois-road
http://cdn-sg2.pgimgs.com/images/thumb/0/8/8/a/088ad330267596_1_V550.jpg
The main advantage of renting is you are not limited to what you own, you can pick and choose what you like as long as its within the budget.
If you can buy fresh milk from supermarket, why waste time keeping a cow.
I think the main problem is with such a big space it is hard to move often. If you need such a big space, you probably have many stuff...
Small condo easier to change as packing up easy...
That is the main reason why landed rental is cheaper because there is just not much demand. The rental units usually are also very old.
If you rent, you can only get old almost expired milk from the shelves. If you buy, you can have hand made milk shakes tailored to your own liking (renovation).
One of my friends rent a landed property for past 10 years. His rental still remains $800 per month and never increase. Landlord owned a few landed properties and what he wants is no problem from his tenant.
Where to find this type of landlord?
One of my friends rent a landed property for past 10 years. His rental still remains $800 per month and never increase. Landlord owned a few landed properties and what he wants is no problem from his tenant.
Where to find this type of landlord?
Renting a room or whole unit?
All I can say is, landed buyers are a different kind of person.
Wow so cheap? :scared-1:
(Think they are haunted??? :scared-3:)
http://www.propertyguru.com.sg/listing/11948281/for-rent-thomson-hills
$5900 per month before nego??
http://cdn-sg2.pgimgs.com/images/thumb/c/b/8/5/cb858127742600_1_V550.jpg
http://www.propertyguru.com.sg/listing/12755004/for-rent-sunset-heights
6100sqft detached house $7000 per month
http://cdn-sg2.pgimgs.com/images/thumb/7/0/c/c/70ccfd30335571_1_V550.jpg
Renting a room or whole unit?
All I can say is, landed buyers are a different kind of person.
Yes, they have very different thinking. I know of quite a few landed owners who buy a 2nd or even 3rd landed property not for the rental yield but as a legacy to pass onto their kids. When I ask them why, they say that landed is the best. When their kids grow up, they can do it up any way they please and the good thing is that he and his wife can stay with any one of them because there is enough space. They certainly don't buy it for the rental yields. In fact for nice houses, they would rather stay it in themselves or leave it vacant because they are scared that the tenants would ruin them.
Yah loh, rental so poor, rather leave it vacant than rent out, otherwise end up have to repair here repair there for tenants and yet collect peanuts and pay 10% property tax instead of 4%! You see so many advertised is because to claim back the difference in property tax they need to show they try to rent out but no takers mah... :doh:
Yes, they have very different thinking. I know of quite a few landed owners who buy a 2nd or even 3rd landed property not for the rental yield but as a legacy to pass onto their kids. When I ask them why, they say that landed is the best. When their kids grow up, they can do it up any way they please and the good thing is that he and his wife can stay with any one of them because there is enough space. They certainly don't buy it for the rental yields. In fact for nice houses, they would rather stay it in themselves or leave it vacant because they are scared that the tenants would ruin them.
There are plenty for rent on property website and st classified.
Those houses you quoted are usually NOT meant for locals, but rent out to expatriates with handsome housing packages, e.g. the family of a CEO or MD in a multinational corporation's regional headquarters in Singapore. Owners are looking for company lease only :)
I am surprised that these agents put an asking price there. The practice is to leave it blank or have an indicative range there. So when the HR person or agent representing the company call, the owner's agent will ask, "What's the company's budget?" And the maximum housing budget of the expatriate will be the asking rent.
If you work in an MNC, or you yourself (or you know someone) who rent/lease these houses, you'll know exactly what I mean :)
Those houses you quoted are usually NOT meant for locals, but rent out to expatriates with handsome housing packages, e.g. the family of a CEO or MD in a multinational corporation's regional headquarters in Singapore. Owners are looking for company lease only :)
I am surprised that these agents put an asking price there. The practice is to leave it blank or have an indicative range there. So when the HR person or agent representing the company call, the owner's agent will ask, "What's the company's budget?" And the maximum housing budget of the expatriate will be the asking rent.
If you work in an MNC, or you yourself (or you know someone) who rent/lease these houses, you'll know exactly what I mean :)
Actually you are wrong, those I quoted are actually within the budget of Singaporeans who are living in condo. Example, if you are living a 3 or 4 bedder condo in prime district, you could easily rent it out for 5 to 6K and that should be sufficient to rent yourself a landed property that it as least twice the size.
One of my friends rent a landed property for past 10 years. His rental still remains $800 per month and never increase. Landlord owned a few landed properties and what he wants is no problem from his tenant.
Where to find this type of landlord?
in situation like this, who do you thing get the better end of the bargain?
Yes, they have very different thinking. I know of quite a few landed owners who buy a 2nd or even 3rd landed property not for the rental yield but as a legacy to pass onto their kids. When I ask them why, they say that landed is the best.
You are right that many Singapore parents have this thinking.
But they often forget one thing: to ensure that their children have the capability and earning power to continue staying in the property, before passing it to them.
When I go house viewing, I have seen too many cases when:
1) Children cannot afford to maintain/upgrade the house. It gradually becomes the most rundown house in the neighbourhood.
2) Children or sibings can't wait to sell the house and divide the sum immediately after the passing of their parent.
3) The house is the only asset to be sold for quick cash. You can imagine that the cash will be spent before long and nothing will be left.
An investor once told me this,
"Nine out of ten landlords have unfilial sons. My strategy is to wait for the good-for-nothing next generation to dump properties bought by their parents' hard earned money."
Yah loh, rental so poor, rather leave it vacant than rent out, otherwise end up have to repair here repair there for tenants and yet collect peanuts and pay 10% property tax instead of 4%! You see so many advertised is because to claim back the difference in property tax they need to show they try to rent out but no takers mah... :doh:
If you want to cheat, at least put a price that is higher lah, or else someone is going to blow the whistle
this one not too bad either.
$7000, 5,000 sqft / 465 sqm (land), 5,000 sqft / 465 sqm (built-up)
http://www.propertyguru.com.sg/listing/13285327/for-rent-singapore
http://cdn-sg2.pgimgs.com/images/thumb/6/d/3/1/6d310e31808776_1_V550.jpg
Renting a room or whole unit?
All I can say is, landed buyers are a different kind of person.
Siingle storey conner terrace whole house.
Was doing some comparison on the rental rate vs selling price of landed property in Singapore. What I discover is that rental rate for landed property have remain stagnant or in come case decline for sometime while resale prices has shot up drastically over the past few years.
A quick search on propertyguru does show that there are plenty of landed properties in Singapore which is asking about $1 to $2psf in rental, which is about (50%) of what a condo in similar location will be asking.
Hence would it make more sense to actually buy a condo rent it out and then use the rental to rent a landed property (IF) you need that extra space?
e.g. for a 1500sqft condo, you can actually upsize to a 3000sqft landed without having to cough out anything extra other than higher property tax.
Advantage
a) Dont have to be over burden by huge mortgage and fear rising interest
b) Dont have to pay for repair and maintenance of landed property,
c) Plenty of landed property owner desperate for tenant
d) Can upsize and downsize without worries?
There is a mismatch between the price and rental for landed. That's the reason why the yield which is already low in the first place is being further depressed.
In other words, landed are overpriced
Landed is for own stay and not an investment for Rental returns but capital appreciation.
There is a mismatch between the price and rental for landed. That's the reason why the yield which is already low in the first place is being further depressed.
In other words, landed are overpriced
Was doing some comparison on the rental rate vs selling price of landed property in Singapore. What I discover is that rental rate for landed property have remain stagnant or in come case decline for sometime while resale prices has shot up drastically over the past few years.
A quick search on propertyguru does show that there are plenty of landed properties in Singapore which is asking about $1 to $2psf in rental, which is about (50%) of what a condo in similar location will be asking.
Hence would it make more sense to actually buy a condo rent it out and then use the rental to rent a landed property (IF) you need that extra space?
e.g. for a 1500sqft condo, you can actually upsize to a 3000sqft landed without having to cough out anything extra other than higher property tax.
Advantage
a) Dont have to be over burden by huge mortgage and fear rising interest
b) Dont have to pay for repair and maintenance of landed property,
c) Plenty of landed property owner desperate for tenant
d) Can upsize and downsize without worries?
It depend on your need. My boss rented out his semi-d and stay at condos now. He staid it is better security for his two kids and they can enjoy the facilities at condos as he use to travel.
This is exactly why I think there is a good potential for cluster housing...which offers more space compared to condo and and at the same time u have the security and facilities. Of course, u need to pay the maintenance which landed owner don't need to. This cater for ppl with different needs. And when this segment of cluster housing is not growing in numbers, as fast as demand, potential will be there and rental yield much better. :2cents:
It depend on your need. My boss rented out his semi-d and stay at condos now. He staid it is better security for his two kids and they can enjoy the facilities at condos as he use to travel.
Landed is for own stay and not an investment for Rental returns but capital appreciation.
http://forums.condosingapore.com/showthread.php?t=14982&highlight=myth
2. Buy, Hold and Sell Property for Capital Gains
You’ve heard people who boast about how they make a fortune buying and selling properties,and you’re eager to learn how they do it. What if I say this strategy is no different from gambling? And you don’t need to learn to gamble. I rather you go buy 4D or TOTO which is a lot less expensive (of course the odds are different).
I call this the Buy, Hold and Pray strategy. As my late multi-millionaire grandfather put it, “Amateurs invest on capital gains. True-blue investors invest on immediate cash flow.” Nobody knows or can predict the future, not even thegurus. A good investment makes money for the investor on the Buy, not on the Sell.
You should prioritize cash flow over capital gains. Your immediate cash flow return should be at least on par or greater than current inflation rate. If you wish to, you should be able to buy a good investment property, hold for passive cashflow and never sell
almost whole of 2012 i was renting a semi-d in siglap...dont know if it was the best or worst year of my life...after i completed tenancy owner must be thanking me cos i pay him rent and his house value went up by $200k...according to the agent...:(
proud owner
17-02-13, 10:36
It depend on your need. My boss rented out his semi-d and stay at condos now. He staid it is better security for his two kids and they can enjoy the facilities at condos as he use to travel.
what kind of security is his concern ?
aint spore boasting to be the safest place ?
Where is the location?
It depend on your need. My boss rented out his semi-d and stay at condos now. He staid it is better security for his two kids and they can enjoy the facilities at condos as he use to travel.
what kind of security is his concern ?
aint spore boasting to be the safest place ?
http://www.channelnewsasia.com/stories/singaporelocalnews/view/1234589/1/.html
http://www.spf.gov.sg/mic/2012/120615_arrest_colombians.htm
proud owner
17-02-13, 10:54
http://www.channelnewsasia.com/stories/singaporelocalnews/view/1234589/1/.html
http://www.spf.gov.sg/mic/2012/120615_arrest_colombians.htm
ahhah
ok
so now i know ...never to sell singapore as THE SAFEST PLACE ..or can walk around late at night without worries ..
BJ21 has to strike out this point in his list of WHEN U BUY A PROPERTY IN SINGAPORE >>> YOU BUY xxxx except security:doh:
Wa Lao.....which country got no crime.....u try walking alone in our neighboring countries and see how...Einstein Law.....:p
Now I'm wondering if u are local :o
http://www.channelnewsasia.com/stories/singaporelocalnews/view/1234589/1/.html
http://www.spf.gov.sg/mic/2012/120615_arrest_colombians.htm
This is exactly why I think there is a good potential for cluster housing...which offers more space compared to condo and and at the same time u have the security and facilities. Of course, u need to pay the maintenance which landed owner don't need to. This cater for ppl with different needs. And when this segment of cluster housing is not growing in numbers, as fast as demand, potential will be there and rental yield much better. :2cents:
How come townhouse/strata landed psf is lower than the ordinary condo units? For example the psf for the houses in d'leedon is considerably lower than the condo and even the penthouse? What is the logic behind this?
ahhah
ok
so now i know ...never to sell singapore as THE SAFEST PLACE ..or can walk around late at night without worries ..
BJ21 has to strike out this point in his list of WHEN U BUY A PROPERTY IN SINGAPORE >>> YOU BUY xxxx except security:doh:
Singapore is no longer safe like before. A friend of mine who is a retiree recently told me that some bungalow house near his estate also kenna broken into and this is an estate that some very senior minister are living in. In the past, he say you hardly see stranger around the estate, but now you always see strangers, be it construction workers or new tenants etc.
Because the units are much bigger....just like within the same condo, the MM units always has a higher psf compared to the 2/3/4 bedders.
Which is why some time it makes more sense for u to buy cluster than larger condo units...
How come townhouse/strata landed psf is lower than the ordinary condo units? For example the psf for the houses in d'leedon is considerably lower than the condo and even the penthouse? What is the logic behind this?
There is a mismatch between the price and rental for landed. That's the reason why the yield which is already low in the first place is being further depressed.
In other words, landed are overpriced
so bro BJ is right
Because the units are much bigger....just like within the same condo, the MM units always has a higher psf compared to the 2/3/4 bedders.
Which is why some time it makes more sense for u to buy cluster than larger condo units...
But the penthouse house unit are also big , but the psf for them is about the same as the rest of the 4 bedder.
How many penthouses are there in each stack?? Does that answer your question?
But the penthouse house unit are also big , but the psf for them is about the same as the rest of the 4 bedder.
Sala la...in terms of psf, how can landed be overpriced?? Don't talk about those prime location or GCB...
It is more of a preference and also supply and demand. A 3bedder rental in OCR say 4k and a 3000sqf terrace rental is about 5k for eg. A small family of 4, u think they will pick terrace or 3bedder?? So it the condo over price or the terrace over price in terms of the rental??
There is a mismatch, but it is not landed being over priced. :2cents:
There is a mismatch between the price and rental for landed. That's the reason why the yield which is already low in the first place is being further depressed.
In other words, landed are overpriced
Sala la...in terms of psf, how can landed be overpriced?? Don't talk about those prime location or GCB...
It is more of a preference and also supply and demand. A 3bedder rental in OCR say 4k and a 3000sqf terrace rental is about 5k for eg. A small family of 4, u think they will pick terrace or 3bedder?? So it the condo over price or the terrace over price in terms of the rental??
There is a mismatch, but it is not landed being over priced. :2cents:
That's the rental price. I am referring to the prices of the landed properties. You can hardly get any terrace for anything less than 2.8 mil today. And those are in the outskirts. Some owners asking for 3 mil for those terr in casuarina with very small land.
Sala la...in terms of psf, how can landed be overpriced?? Don't talk about those prime location or GCB...
It is more of a preference and also supply and demand. A 3bedder rental in OCR say 4k and a 3000sqf terrace rental is about 5k for eg. A small family of 4, u think they will pick terrace or 3bedder?? So it the condo over price or the terrace over price in terms of the rental??
There is a mismatch, but it is not landed being over priced. :2cents:
obviously the market doesnt see the value in living in small landed property and thats why rental for landed is so depressing. And this could mean that when interest rate goes up, landed property will be the first to get hit due to the large quantum
When you compare apartment to landed, you have forgotten to take into consideration that condo does comes with facilities like a real swimming pool, kids pool bbq pit, gym, function room etc etc. That plays a big part in rental rate.
proud owner
17-02-13, 18:31
Because the units are much bigger....just like within the same condo, the MM units always has a higher psf compared to the 2/3/4 bedders.
Which is why some time it makes more sense for u to buy cluster than larger condo units...
clustered has lower psf becos :
its space is spreaded out over 3 to 4 storey ...
usually it is narrow and tall .... total space looks good but each floor is not big ...
so much climbing ...
entrance thru basement carpark .... bad fengshui ....
obviously the market doesnt see the value in living in small landed property and thats why rental for landed is so depressing. And this could mean that when interest rate goes up, landed property will be the first to get hit due to the large quantum
When you compare apartment to landed, you have forgotten to take into consideration that condo does comes with facilities like a real swimming pool, kids pool bbq pit, gym, function room etc etc. That plays a big part in rental rate.
large quantum is the main reason that would cause landed to drop faster than condo
what kind of security is his concern ?
aint spore boasting to be the safest place ?
Before he stay at this rental condos. His landed house was broke in and what he is worring is not the valuable things lost but his family members' safty. You know money can earn back again but not.......
Of course, if you compara Singapore with other neighbourhood countries we still one of the best but that don't meant ZERO crime.
Where is the location?
District 15.
proud owner
17-02-13, 19:49
District 15.
some 10 yrs ago .... before Seafront, Aalto Seaview or Amber condos were built ..
my friend's semi D at Crescent rd...also kana broken into ...
that i believe is D15
also ... another friend ...whos neighbour was a minister somemore ... at Jelita ... also kana broken into ...
the Ghurkas standing outside the minister's gate very focussed ... only guard the minister's house ..while the immediate neighbour was ransacked..
solid
It's v important to install security system... Mine was also broken into in 1998 near crescent road :doh:
Alternatively, you can rent your PC and but a bungalow in JB.....just need to travel a bit but if you work near the links, West/North, prob take not as much time compared to traveling from East-side to West-side.
Upside is you own the place you pay with your rental and not help someone own their landed (owners with mortgage) or help them finance another property....
Upside is you own the place you pay with your rental and not help someone own their landed (owners with mortgage) or help them finance another property....
Not exactly the case because by renting out your existing place (where you currently live) you generate new rental income to pay for renting a landed property. This new rental income would otherwise be consumed by yourself.
What is the cost of renting a landed property in Malaysia?
It's v important to install security system... Mine was also broken into in 1998 near crescent road :doh:
I remember the spate of robberies in landed homes during the asian financial crisis. The robbers were from a neighbouring country and people were fearful for their maids and daughters. These robbers were known to molest the women in the house as well.
I could recall this period well as someone in my neighbourhood was robbed by these foreign robbers.
Not exactly the case because by renting out your existing place (where you currently live) you generate new rental income to pay for renting a landed property. This new rental income would otherwise be consumed by yourself.
What is the cost of renting a landed property in Malaysia?
I said to buy a Msian property to live in using income from renting out a PC in Sg.....if rental is SGD4K this will be $10K RM..... enough to pay off $2M + RM loan.....of course you do not neck get a RM$2M + property, RM$1M can get you a decent Demi-D Cluster....over 3500Sqft built-up.
I said to buy a Msian property to live in using income from renting out a PC in Sg.....if rental is SGD4K this will be $10K RM..... enough to pay off $2M + RM loan.....of course you do not neck get a RM$2M + property, RM$1M can get you a decent Demi-D Cluster....over 3500Sqft built-up.
Stay at JB?
You need to consider distance of your work, your children schooling problem, lifestye change, your relative (eg. parent) can not reach you, your mobile phone bill, link way jam....ect.
Too many issues and troublesome Leh.
I said to buy a Msian property to live in using income from renting out a PC in Sg.....if rental is SGD4K this will be $10K RM..... enough to pay off $2M + RM loan.....of course you do not neck get a RM$2M + property, RM$1M can get you a decent Demi-D Cluster....over 3500Sqft built-up.
To buy a Malaysia property, you will need to put in sizable down payment as interest rate in MY is a lot higher than in Singapore. So it will not be worth while if one need to take up 70% loan for a Malaysia property.
I believe that rental market for Malaysia property is pretty lousy bad, so it might make more sense to actually park your money in another Singapore property and then use your rental to pay for your rent in Malaysia.
Advantage is that you are mobile and you can choose to return to Singapore anytime you want without having to worry about mortgage payment for your Malaysia property.
To buy a Malaysia property, you will need to put in sizable down payment as interest rate in MY is a lot higher than in Singapore. So it will not be worth while if one need to take up 70% loan for a Malaysia property.
I believe that rental market for Malaysia property is pretty lousy bad, so it might make more sense to actually park your money in another Singapore property and then use your rental to pay for your rent in Malaysia.
Advantage is that you are mobile and you can choose to return to Singapore anytime you want without having to worry about mortgage payment for your Malaysia property.
...that is precisely what I am saying, buy to stay in JB, provided your travel arrangement is reasonably convenient.....in fact for Yowetan, he can rent out all his HDBs and plonk into his Mt Sinai, rent out the Mt Sinai, and buy another property in JB to stay.His PIL and parents can have lots of space.....In 5 years time, maybe to cash out on his Tiong Bahru with possibly 500K profit, and move back into his Mt Sinai....and yet maintain his Msian landed....
entrance thru basement carpark .... bad fengshui ....
bro, can explain this?
To buy a Malaysia property, you will need to put in sizable down payment as interest rate in MY is a lot higher than in Singapore. So it will not be worth while if one need to take up 70% loan for a Malaysia property.
I believe that rental market for Malaysia property is pretty lousy bad, so it might make more sense to actually park your money in another Singapore property and then use your rental to pay for your rent in Malaysia.
Advantage is that you are mobile and you can choose to return to Singapore anytime you want without having to worry about mortgage payment for your Malaysia property.
Ok, so Malaysia is out. In your learned opinion, if hypothetically, I was a new citizen with millions of dollars to invest in a residential portfolio in SG, what would you advise me to invest in ?
Ok, so Malaysia is out. In your learned opinion, if hypothetically, I was a new citizen with millions of dollars to invest in a residential portfolio in SG, what would you advise me to invest in ?
People like Jim Roger prefer to rent.
People like Jim Roger prefer to rent.
that could be because he gets higher returns from his investment
that could be because he gets higher returns from his investment
He rents because he predicts that the price may fall
Ok, so Malaysia is out. In your learned opinion, if hypothetically, I was a new citizen with millions of dollars to invest in a residential portfolio in SG, what would you advise me to invest in ?
I have told you before that I am not interested to engage it any form of discussion with you in this forum. So please stop asking me all those dumb, childish and pointless questions
I have told you before that I am not interested to engage it any form of discussion with you in this forum. So please stop asking me all those dumb, childish and pointless questions
Huh? Why the sudden outburst? Its a legit question. In fact, a few forumers have already responded. I am quite interested to hear your learned views.
He rents because he predicts that the price may fall
hmm.. that depends on when he started renting right? if he started renting in 2008, then you mean he expecting prices to fall since then?
Huh? Why the sudden outburst? Its a legit question. In fact, a few forumers have already responded. I am quite interested to hear your learned views.
then why not engage them in discussion and stop acting like a crazy monkey behind my back. grow up lah.
then why not engage them in discussion and stop acting like a crazy monkey behind my back. grow up lah.
What's so crazy about my question?
You seem to have strong opinions on property investment here so let's discuss what would be good investment options if I were, hypothetically, a new citizen with millions of dollars to spend.
hmm.. that depends on when he started renting right? if he started renting in 2008, then you mean he expecting prices to fall since then?
If Jim's company is paying for his accommodation, why would he want to buy. As a shrewd investor if he really has faith or interest to make money from property in Singapore, he would have use his company as a investment vehicle to scope up property stocks and reits instead of buying property for own stay.
If Jim's company is paying for his accommodation, why would he want to buy. As a shrewd investor if he really has faith or interest to make money from property in Singapore, he would have use his company as a investment vehicle to scope up property stocks and reits instead of buying property for own stay.
If his company was paying for his accomm, he would be taxed on it as part of employment benefit. his income tax would be higher than his corporate tax.
If he choose to buy stocks instead of ppty, it just means i was right - that he can get better return on his other investment.
To buy a Malaysia property, you will need to put in sizable down payment as interest rate in MY is a lot higher than in Singapore. So it will not be worth while if one need to take up 70% loan for a Malaysia property.
I believe that rental market for Malaysia property is pretty lousy bad, so it might make more sense to actually park your money in another Singapore property and then use your rental to pay for your rent in Malaysia.
Advantage is that you are mobile and you can choose to return to Singapore anytime you want without having to worry about mortgage payment for your Malaysia property.
yes I think this is a good idea. coz given malaysia policy changes are very drastic. If Najib not around they will suddenly change against the Singapore owners. Like in the 87 crisis.
I would prefer park $ some where else and rent in malaysia. Dont like can go back home. easier n less hassle.
To buy a Malaysia property, you will need to put in sizable down payment as interest rate in MY is a lot higher than in Singapore. So it will not be worth while if one need to take up 70% loan for a Malaysia property.
I believe that rental market for Malaysia property is pretty lousy bad, so it might make more sense to actually park your money in another Singapore property and then use your rental to pay for your rent in Malaysia.
Advantage is that you are mobile and you can choose to return to Singapore anytime you want without having to worry about mortgage payment for your Malaysia property.
yes I think this is a good idea. coz given malaysia policy changes are very drastic. If Najib not around they will suddenly change against the Singapore owners. Like in the 87 crisis.
I would prefer park $ some where else and rent in malaysia. Dont like can go back home. easier n less hassle.
yes I think this is a good idea. coz given malaysia policy changes are very drastic. If Najib not around they will suddenly change against the Singapore owners. Like in the 87 crisis.
I would prefer park $ some where else and rent in malaysia. Dont like can go back home. easier n less hassle.
very very true.. esp if after experiencing 1 year of life in malaysia, other than cheaper everything, there is really no price on security and peace of mind. i spend one night in iskandar and decided i prefer home.
Jim Rogers:
2008/2009
http://www.sovereignman.com/expat/why-jim-rogers-is-right-about-singapore-598/
but he felt it was not time to invest in a property yet....in 2008
http://smartpropertybuyer.blogspot.sg/2008/07/jim-rogers-not-buyinng-singapore.html
2011:
Now, the couple is looking to buy a home in Singapore, though they rent for the time being. Feverish price rises in Singapore make a correction likely, he believes. “I am looking for a house but I'm not looking too hard because I expect prices to come down,” he says.
China’s property market is in a bubble in coastal cities, he believes. But he distinguishes that price bubble from the devastating credit bubble that developed in U.S. property.
“You have a price bubble that will end someday — probably this year or next if the Chinese government keeps up their nerve,” he says. “But it’s not going to destroy China. Real estate developers may lose money. Banks may lose money on mortgages. But the whole economy doesn’t revolve around it.”
2012:..think he MTB
He sees no opportunities in Singapore properties now as it is too expensive. Singapore is one of the most expensive places to buy a property. Hong Kong is a worse example. Someone popped the question if US properties are good buys. Jim reckoned that US real estate is cheap and he sees more opportunities in buying agricultural areas though. Jim does not like property investment because it is less liquid. He prefers an asset that he can sell quickly. He also expects interest rate rise and one must make sure he has the holding power to pull through the inflationary period. However, most owners must be able to hold on too, otherwise desperate selling will trigger a market panic.
I guess Jim Rogers is not a property investor and has also missed the boat. Most property gurus said it can't be wrong to buy a landed property. If you have the money, just go ahead and buy it without having second thought. You will be rewarded a few years down the road.
Jim Rogers:
2008/2009
http://www.sovereignman.com/expat/why-jim-rogers-is-right-about-singapore-598/
but he felt it was not time to invest in a property yet....in 2008
http://smartpropertybuyer.blogspot.sg/2008/07/jim-rogers-not-buyinng-singapore.html
2011:
Now, the couple is looking to buy a home in Singapore, though they rent for the time being. Feverish price rises in Singapore make a correction likely, he believes. “I am looking for a house but I'm not looking too hard because I expect prices to come down,” he says.
China’s property market is in a bubble in coastal cities, he believes. But he distinguishes that price bubble from the devastating credit bubble that developed in U.S. property.
“You have a price bubble that will end someday — probably this year or next if the Chinese government keeps up their nerve,” he says. “But it’s not going to destroy China. Real estate developers may lose money. Banks may lose money on mortgages. But the whole economy doesn’t revolve around it.”
2012:..think he MTB
He sees no opportunities in Singapore properties now as it is too expensive. Singapore is one of the most expensive places to buy a property. Hong Kong is a worse example. Someone popped the question if US properties are good buys. Jim reckoned that US real estate is cheap and he sees more opportunities in buying agricultural areas though. Jim does not like property investment because it is less liquid. He prefers an asset that he can sell quickly. He also expects interest rate rise and one must make sure he has the holding power to pull through the inflationary period. However, most owners must be able to hold on too, otherwise desperate selling will trigger a market panic.
yes I think this is a good idea. coz given malaysia policy changes are very drastic. If Najib not around they will suddenly change against the Singapore owners. Like in the 87 crisis.
I would prefer park $ some where else and rent in malaysia. Dont like can go back home. easier n less hassle.
most likely he won't remain in power. even if he does, he would be very unstable
I guess Jim Rogers is not a property investor and has also missed the boat. Most property gurus said it can't be wrong to buy a landed property. If you have the money, just go ahead and buy it without having second thought. You will be rewarded a few years down the road.
When you start hearing too many "gurus" telling you things like that, then you need to pay attention because that mean shit is going to hit the fan soon.
Take a look at the below charts. noticed any pattern?
http://img13.imageshack.us/img13/787/propertyindex.jpg
http://farm9.staticflickr.com/8096/8491119713_d433249926_c.jpg
A BIG difference between then and now is interest rate which is near ZERO percent now. At this level of interest rate, I do not think property prices will go down. When will interest rate go up again?
When you start hearing too many "gurus" telling you things like that, then you need to pay attention because that mean shit is going to hit the fan soon.
Take a look at the below charts. noticed any pattern?
A BIG difference between then and now is interest rate which is near ZERO percent now. At this level of interest rate, I do not think property prices will go down. When will interest rate go up again?
Every crisis is the same, they always believe this time is different until when shit hit the ceiling. When that happen, buyers will turn into vultures and you investment will be rip apart by those who have the cash to "rescue" you.
When you start hearing too many "gurus" telling you things like that, then you need to pay attention because that mean shit is going to hit the fan soon.
Take a look at the below charts. noticed any pattern?
http://img13.imageshack.us/img13/787/propertyindex.jpg
http://farm9.staticflickr.com/8096/8491119713_d433249926_c.jpg
So, in your opinion, is a crash going to happen soon?
By showing the charts, are you saying that history will repeat itself and ALL segments will crash with no single segment spared and the one that went up the most crashing the hardest?
What would you advise potential investors who have plenty of cash and no restriction on any type of property?
Well, each crisis has different triggering events. If a crisis does hit this time, I know this government is prepared to loosen some of its cooling measures. I believe this government wants property prices to remain stable and not to crash the property market. So I think it is still wise to invest in a landed property. Time will tell...
Every crisis is the same, they always believe this time is different until when shit hit the ceiling. When that happen, buyers will turn into vultures and you investment will be rip apart by those who have the cash to "rescue" you.
Well, each crisis has different triggering events. If a crisis does hit this time, I know this government is prepared to loosen some of its cooling measures. I believe this government wants property prices to remain stable and not to crash the property market. So I think it is still wise to invest in a landed property. Time will tell...
it is always wise to invest in a landed ppty.. presumably FH. land is and will become even more scarce. challenge is... when?
it is always wise to invest in a landed ppty.. presumably FH. land is and will become even more scarce. challenge is... when?
Even grandmothers know the value of freehold landed. When my friend was viewing a freehold landed semi-d, there was this grandmother who made an offer. She wanted to buy the semi-d for her grandson! At that time the semi-d was less than $3m.
When you start hearing too many "gurus" telling you things like that, then you need to pay attention because that mean shit is going to hit the fan soon.
Take a look at the below charts. noticed any pattern?
http://img13.imageshack.us/img13/787/propertyindex.jpg
http://farm9.staticflickr.com/8096/8491119713_d433249926_c.jpg
...you referring to Jim Rogers? ...or the 'gurus' on this forum?
it is always wise to invest in a landed ppty.. presumably FH. land is and will become even more scarce. challenge is... when?
that statement apply to all other property including including FH, LH, condo and HDB flat in Singapore. However what is more important in investing in property.
1) Are you buying for own consumption or investment?
2) How much mortgage are you taking to buy your property?
3) Can you afford to hold on when there is interest rate shock?
4) What is a reasonable holding period?
5) Are you buying for paper gain or monetary gain?
...you referring to Jim Rogers? ...or the 'gurus' on this forum?
I am referring "guru" in this forum, as JR is not propertyguru. However I think JR does highlight a very important point. Can today property owner, especially landed property owner due to the large quantum and low rental yield, afford to hold on to their property if interest rate rises from current level to say 2.5-3.0%?
The only justification which i keep hearing in this forum is that, just buy landed sure make money, landed limited (as if this song hasnt been sung in the last few property cycle) or rental yield is not important, when in fact rent is a good indicator of how the market value the property.
for landed, due to large quantum and also higher ppty tax and maintenance, i would think a much higher deposit is needed for peace of mind. so yes, timing is more critical in buying landed. any mistakes made will be amplified.
say you buy OCR 1mil and down 20%. even if interest goes up, you get hit on 800k.
instead you buy landed 3mil. even if down 40%, you still loan 1.8m.
big difference on interest cost.
this is especially true for speculators, because they buy on premise of yield and rental income. if buy for own stay, likely you already looked at affordability and covered yourself with some buffer.
for landed, due to large quantum and also higher ppty tax and maintenance, i would think a much higher deposit is needed for peace of mind. so yes, timing is more critical in buying landed. any mistakes made will be amplified.
say you buy OCR 1mil and down 20%. even if interest goes up, you get hit on 800k.
instead you buy landed 3mil. even if down 40%, you still loan 1.8m.
big difference on interest cost.
this is especially true for speculators, because they buy on premise of yield and rental income. if buy for own stay, likely you already looked at affordability and covered yourself with some buffer.
40% down? You will be surprise that many are bought with 80% and additional loans for rebuilding and A&a because of low interest rate.
40% down? You will be surprise that many are bought with 80% and additional loans for rebuilding and A&a because of low interest rate.
you are talking about speculators.
in the good old days, only towkays and snr execs buy landed. these pple are well capitalised and have no worry about payment.
today, many speculators jumping onto the bandwagon, buy and tear down, rebuilt and sell. for that, the loan is obviously high. but high risk high return, they should know what they are headed for.
in my view, landed is not for short term speculation. on this premise, landed is a good buy in the long run. no-brainer. it only gets complicated when pple try to play with it.
for landed, due to large quantum and also higher ppty tax and maintenance, i would think a much higher deposit is needed for peace of mind. so yes, timing is more critical in buying landed. any mistakes made will be amplified.
say you buy OCR 1mil and down 20%. even if interest goes up, you get hit on 800k.
instead you buy landed 3mil. even if down 40%, you still loan 1.8m.
big difference on interest cost.
this is especially true for speculators, because they buy on premise of yield and rental income. if buy for own stay, likely you already looked at affordability and covered yourself with some buffer.
not true leh, landed property tax is a lot much lower than condo...
as for maitaniance, it may not be neccesary high, at least dont need to pay the condo maintenance fee... free parking for avg of 2 cars..
Actually, landed property owners save more in terms of maintenance fees. It all depends on your preferences and tolerances with regards to your landed property. If a landed property owner does not mind a lower standard of living e.g. repaint the house every 15 years instead of every 7 years, then the cost of maintenance can be very low.
The owners of a private condo have to pay a fixed monthly maintenance fee (can be $300-$800 a month depending on share value) even if the owners do not drive or are not using the facilities. On top of that, the private condo owners are expected to come out with additional money for major upgrading of the condo, e.g. replacing old lifts after 20 years. This additional money is on top of the monthly fixed maintenance fee that the owners pay every month.
In addition, property tax for landed houses are much lower because the rental values are not as high when compared to a private condo. So in the long run, having a landed property will save you more money. In my opinion, Singaporeans should upgrade to a landed property instead of a private condo. This is a privilege which can only be enjoyed by a citizen.
for landed, due to large quantum and also higher ppty tax and maintenance, i would think a much higher deposit is needed for peace of mind. so yes, timing is more critical in buying landed. any mistakes made will be amplified.
say you buy OCR 1mil and down 20%. even if interest goes up, you get hit on 800k.
instead you buy landed 3mil. even if down 40%, you still loan 1.8m.
big difference on interest cost.
this is especially true for speculators, because they buy on premise of yield and rental income. if buy for own stay, likely you already looked at affordability and covered yourself with some buffer.
Actually, landed property owners save more in terms of maintenance fees. It all depends on your preferences and tolerances with regards to your landed property. If a landed property owner does not mind a lower standard of living e.g. repaint the house every 15 years instead of every 7 years, then the cost of maintenance can be very low.
The owners of a private condo have to pay a fixed monthly maintenance fee (can be $300-$800 a month depending on share value) even if the owners do not drive or are not using the facilities. On top of that, the private condo owners are expected to come out with additional money for major upgrading of the condo, e.g. replacing old lifts after 20 years. This additional money is on top of the monthly fixed maintenance fee that the owners pay every month.
In addition, property tax for landed houses are much lower because the rental values are not as high when compared to a private condo. So in the long run, having a landed property will save you more money. In my opinion, Singaporeans should upgrade to a landed property instead of a private condo. This is a privilege which can only be enjoyed by a citizen.
The maintanence fee condo owners are paying will not be enough to cover for the utility bill of most landed owners. When you choose to stay landed don't talk about running cost. For condo owner residents pay to enjoy what they use, like pool gym BBQ pit, function room tennis court, how to compare. If one doesnt need such facilities they will live in hdb lah
Actually majority of condo owners are not using the facilities. Many do not even have a car either. Yet they have to pay for the maintenance fees. Landed owners do not have such a problem.
As for utility bills, it all depends on how you use it. Private condo owners may pay more or less dependent on usage, not based on housing types.
The maintanence fee condo owners are paying will not be enough to cover for the utility bill of most landed owners. When you choose to stay landed don't talk about running cost. For condo owner residents pay to enjoy what they use, like pool gym BBQ pit, function room tennis court, how to compare. If one doesnt need such facilities they will live in hdb lah
i admit i do not own landed nor lived in one, i have no idea of the $$$ involved in maintaining one. but my sense is.. living in hdb/condo. have fixed maint costs. cannot run away too much.
on the contrary.. landed have a lot of "bomb".. if you buy new, you pay thru' your nose. if you buy old and even if you get a good buy, easily have to throw in 50-100k over and above buy price to fixed up roof, etc before you move in. this not even talking about decent reno or A&A.
my feeling is landed is definitely higher maintenance than normal condo (say maint fee $300/mth). please tell me i am wrong. tomorrow i will cheong to buy one landed.
You are mixing renovation cost with maintenance cost. They are different. Renovation cost is usually a one time cost whether it is landed, condo or HDB. As landed properties are usually bigger, the cost of renovation is also usually higher. It all depends on your preferences.
Maintenance cost is necessary to keep your property in good order. As I said before, for landed property owners, he or she can choose what, when and how to maintain his/her landed property. For example, he can choose not to repaint his house after 15 years. As a result, he can save on this cost.
For private condo owners, you are forced to pay maintenance fee whether you like it or not. When there is a major upgrading in the condo, the owners have to pay more. So in the long run, it is cheaper to maintain a landed property when compared to a condo.
i admit i do not own landed nor lived in one, i have no idea of the $$$ involved in maintaining one. but my sense is.. living in hdb/condo. have fixed maint costs. cannot run away too much.
on the contrary.. landed have a lot of "bomb".. if you buy new, you pay thru' your nose. if you buy old and even if you get a good buy, easily have to throw in 50-100k over and above buy price to fixed up roof, etc before you move in. this not even talking about decent reno or A&A.
my feeling is landed is definitely higher maintenance than normal condo (say maint fee $300/mth). please tell me i am wrong. tomorrow i will cheong to buy one landed.
You are mixing renovation cost with maintenance cost. They are different. Renovation cost is usually a one time cost whether it is landed, condo or HDB. As landed properties are usually bigger, the cost of renovation is also usually higher. It all depends on your preferences.
Maintenance cost is necessary to keep your property in good order. As I said before, for landed property owners, he or she can choose what, when and how to maintain his/her landed property. For example, he can choose not to repaint his house after 15 years. As a result, he can save on this cost.
For private condo owners, you are forced to pay maintenance fee whether you like it or not. When there is a major upgrading in the condo, the owners have to pay more. So in the long run, it is cheaper to maintain a landed property when compared to a condo.
The cost structure is more or less similar.
Only thing is landed owner have to be discipline to put a side $$$ say $200-300 pm for up keep of the place. the pain usually come when no $ was put a side and realized have to pay for some up keeping cost.
The cost structure is more or less similar.
Only thing is landed owner have to be discipline to put a side $$$ say $200-300 pm for up keep of the place. the pain usually come when no $ was put a side and realized have to pay for some up keeping cost.
Especially when owner is old. Not enough $$$ to replace roof, faulty plumbing or electrical wiring. Nowadays also difficult to get good gardener.
Especially when owner is old. Not enough $$$ to replace roof, faulty plumbing or electrical wiring. Nowadays also difficult to get good gardener.
Well, at least you have the choice to bear with the inconveniences and wait till your cashflow is better to deal with it. For condo maintenance, you miss your payments and MC slap late payment charges.
From BCA guidelines
Each SP is required to pay a certain amount of contribution to help maintain and manage the common property of the development. This amount is levied by the management corporation (MC). If you don’t pay your contributions, the MC has a right to recover any unpaid contribution from you as a debt [SECTION 40], or register it as a charge against the strata lot [SECTION 43].
You will have problems when you try to sell your condo as the lawyers will insist that you clear all outstanding debts before the sale can go through.
Actually majority of condo owners are not using the facilities. Many do not even have a car either. Yet they have to pay for the maintenance fees. Landed owners do not have such a problem.
As for utility bills, it all depends on how you use it. Private condo owners may pay more or less dependent on usage, not based on housing types.
There are many class and grade of condo, some are for single while others are for designed for family. Some have little facilities while some have great ones. Usually for large development maintanence fee is very affordable and that help generate good rental returns. 3 - 4 percent no problem.
The same could be said that landed property owners are gearing themselves financially for space which they hardly use. Perhaps space are used to store junks.
From BCA guidelines
Quote:
Each SP is required to pay a certain amount of contribution to help maintain and manage the common property of the development. This amount is levied by the management corporation (MC). If you don’t pay your contributions, the MC has a right to recover any unpaid contribution from you as a debt [SECTION 40], or register it as a charge against the strata lot [SECTION 43].
You will have problems when you try to sell your condo as the lawyers will insist that you clear all outstanding debts before the sale can go through
What's worst is that if you are having difficulty servicing your condo's loan and maintenance payments and are forced to sell your condo, you will still have to beg, borrow or steal the $$$ needed to settle the accrued maintenance fees + late penalty charges before the sale can go through and you get back your cash.
Management Corporations can even force sell your condo unit after 1 year of non payment of maintenance fee. They have the legal right to auction away your condo unit if you refuse to pay up. This has happened a few times in the past when foreign owners of some condo went missing and were not contactable.
Landed property owners do not have such issues. :p
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What's worst is that if you are having difficulty servicing your condo's loan and maintenance payments and are forced to sell your condo, you will still have to beg, borrow or steal the $$$ needed to settle the accrued maintenance fees + late penalty charges before the sale can go through and you get back your cash.
No, you are right. I used to live in landed, but not again. :D
i admit i do not own landed nor lived in one, i have no idea of the $$$ involved in maintaining one. but my sense is.. living in hdb/condo. have fixed maint costs. cannot run away too much.
on the contrary.. landed have a lot of "bomb".. if you buy new, you pay thru' your nose. if you buy old and even if you get a good buy, easily have to throw in 50-100k over and above buy price to fixed up roof, etc before you move in. this not even talking about decent reno or A&A.
my feeling is landed is definitely higher maintenance than normal condo (say maint fee $300/mth). please tell me i am wrong. tomorrow i will cheong to buy one landed.
Management Corporations can even force sell your condo unit after 1 year of non payment of maintenance fee. They have the legal right to auction away your condo unit if you refuse to pay up. This has happened a few times in the past when foreign owners of some condo went missing and were not contactable.
Landed property owners do not have such issues. :p
If not sure, dont anyway hantam leh.
for any mortgaged property, bank will always have the first right to the property. It is only when bank have recovered their loan, then balance will be distributed to other creditors.
Honestly, for 1 year of maintenance how much is that? peanut as compare the interest most landed property owners are paying loh. say 500 per month, 12 month is only $6000.
Anyway isnt it the same when the landed property owners goes missing without a will?
No, you are right. I used to live in landed, but not again. :D
biggest fear is termite.
Termite was also found in one of my wardrobes in my old condo. I had to engage pest specialist Rentokil to terminate the termite infestion. So terminte problem is not only limited to landed properties.
biggest fear is termite.
I am not bluffing. This is a real case that happened in my condo 3 years ago. The Indonesian owner disappeared from his condo unit and did not pay maintenance fees for a few years (amounted to almost $28K) . The MC then decided to take legal action to auction the property. The property was then sold in an auction. Part of proceeds was used to pay back the maintenance fees plus late payment fees.
For landed property owners, there is no worry about maintenance fee...:p
If not sure, dont anyway hantam leh.
for any mortgaged property, bank will always have the first right to the property. It is only when bank have recovered their loan, then balance will be distributed to other creditors.
Honestly, for 1 year of maintenance how much is that? peanut as compare the interest most landed property owners are paying loh. say 500 per month, 12 month is only $6000.
Anyway isnt it the same when the landed property owners goes missing without a will?
Really? That is not my experience - lots of hidden maintenance costs!
I am not bluffing. This is a real case that happened in my condo 3 years ago. The Indonesian owner disappeared from his condo unit and did not pay maintenance fees for a few years (amounted to almost $28K) . The MC then decided to take legal action to auction the property. The property was then sold in an auction. Part of proceeds was used to pay back the maintenance fees plus late payment fees.
For landed property owners, there is no worry about maintenance fee...:p
Yes, I do own a landed house. Did you buy a very old house?
Really? That is not my experience - lots of hidden maintenance costs!
I am not bluffing. This is a real case that happened in my condo 3 years ago. The Indonesian owner disappeared from his condo unit and did not pay maintenance fees for a few years (amounted to almost $28K) . The MC then decided to take legal action to auction the property. The property was then sold in an auction. Part of proceeds was used to pay back the maintenance fees plus late payment fees.
For landed property owners, there is no worry about maintenance fee...:p
What happen if landed owner disappear and didn't pay his mortgage
Termite was also found in one of my wardrobes in my old condo. I had to engage pest specialist Rentokil to terminate the termite infestion. So terminte problem is not only limited to landed properties.
Termite problem in condo is easy fix. When it starts appearing fom the ground in landed property things will get really messy and your roperty value will suffer.
New one live until become old... 5 years already start to require fixing, more and more as the house ages. :doh:
Yes, I do own a landed house. Did you buy a very old house?
Then it is clear that the quality of materials of your house is no good. Mine is more than 10 years old and still almost maintenance free.
New one live until become old... 5 years already start to require fixing, more and more as the house ages. :doh:
New one live until become old... 5 years already start to require fixing, more and more as the house ages. :doh:
Old landed is Already consider cheaper to maintain. Those new ones with roof terrace etc are really pain in the arse. Especially water leakage
Really? That is not my experience - lots of hidden maintenance costs!
Is your landed - attap house? :D
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