Dual Key unit discussion

[Reisor]

Hi, would like to start a discussion on the pros & cons of DK unit (eg. 1+2 type) in SG if you are the investor.

Pro
1. 1+2 unit potentially rental can be 2k+3k = 5k or higher (compare with 3 bedder ~3.5-4k only)
2. considerd as 1 unit so lesser or no ABSD cost depending on 1st or 2nd buy.
3. EC DK units selling out very fast so must be good or is it a "herd" sign?

Con
1. Psf will be higher (not sure how much)
2. Due to shared foyer, demand for rental less due to less privacy.
3. Untested for rental and also resale may be an issue subsequently.

Hope to hear from the experts here.

[Santro]

Can add a pro and a con.

Pro
4. One maintenance fee for two units - This is fixed per month.


Con
4. Splitting or absorbing of utility bills between two tenants - This is variable based on usage. If you intend to absorb it, be prepared to be shocked with massive bills. I know of some subtenants not bothering to switch off aircon as they want to dry their washed clothes and return to a chilled home from work :doh: .

Hi, would like to start a discussion on the pros & cons of DK unit (eg. 1+2 type) in SG if you are the investor.

Pro
1. 1+2 unit potentially rental can be 2k+3k = 5k or higher (compare with 3 bedder ~3.5-4k only)
2. considerd as 1 unit so lesser or no ABSD cost depending on 1st or 2nd buy.
3. EC DK units selling out very fast so must be good or is it a "herd" sign?

Con
1. Psf will be higher (not sure how much)
2. Due to shared foyer, demand for rental less due to less privacy.
3. Untested for rental and also resale may be an issue subsequently.

Hope to hear from the experts here.

[Reisor]

Can add a pro and a con.

Pro
4. One maintenance fee for two units - This is fixed per month.


Con
4. Splitting or absorbing of utility bills between two tenants - This is variable based on usage. If you intend to absorb it, be prepared to be shocked with massive bills. I know of some subtenants not bothering to switch off aircon as they want to dry their washed clothes and return to a chilled home from work :doh: .

For Con, point 4 is a real concern if for rental. Perhaps really not suitable as pure investment unit.

[Santro]

That's why they market it as multi-generation and not investment. On paper,
it may sound a good investment but one has to pay extra $$ for same size unit if dual key and the rental return is variable depending on the tenant profile.


For Con, point 4 is a real concern if for rental. Perhaps really not suitable as pure investment unit.

[sabian]

If you are a tenant, you want to rent such attached unit or a standalone unit for the same rental rate?

So you need to be prepared you may need to discount your asking rental price.

[Reisor]

If you are a tenant, you want to rent such attached unit or a standalone unit for the same rental rate?

So you need to be prepared you may need to discount your asking rental price.

Agree. Also can take it as a rental with higher payout from letting out a room which is isolated from your apartment. Letting out a room with shared facility ~$1k+. Renting out the split unit ~$2k+.