exercise caution if possible about selling with tenancy
Quote:
Originally Posted by nana
Tericia,
thank u for your insights, some points u mentioned nvr cross my mind. Really appreciate.
I guess I can still sell my apt down the road even if it's tenanted? I ever saw advert that says "Sell with tenant".
i will try not to if possible to sell with tenancy. Usually units sold with tenancy will limit the number of people interested because
1) those buy to stay will shun cuz they need a place to move in
2) investors in singapore not as many as stayers. Those who buy to invest will start calculating whether the existing tenancy can cover their mortgage. If not, they also will not consider
3) usually the first perception from people is tenanted units are in terrible shape. So these will not entertain the thought of viewing
4) length of tenancy (if there is 1 or more years left) will also exclude some with existing plans that require them to move in within 1 year or less
5) people usually prefer units they don't have to renovate so tenanted units usually give them the impression they still have to spend cash to renovate and wait to move in after tenant move out. So these cash strap ones will also not consider
so i will suggest that you do some homework about your project first. Turn over rate for rental in your project preferable should be high for you to avoid problems when selling so in event you can't sell, you still can rent out again. I've clients who missed the boat to sell at the height of 2007 (small project in district 10) because they have a tenant renting from them at 2006 prices (which when they sign they thought the rent is very high already) and people shun their units due to this reason. Now, the tenant is gone and they are stuck with unit can't sell and rent has gone down.