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Thread: Smart investor buy resale??

  1. #1
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    Default Smart investor buy resale??

    Quote Originally Posted by Regulators
    u have nothing else to say so u deem it as meaningless? buying resale or buying new launch is all about making money, it is either making the money now or later. A smart investor would make the money now, unless new launch prices are very low, they dont mind taking a calculated risk to make the money later. The problem is if you opt to make the money later, there is no guarantee you can achieve the same profit margin as what the person who bought the resale has achieved. I have illustrated to you why buying m88 one bedder at current prices is a better investment that buying one bedder j gateway at future pricing. Another issue to highlight is there are many one bedroom units in j gateway and it would be an incredible challenge to get the desired rental.
    From the property guru of bukit batok
    "Never argue with an idiot, or he will drag you down to his level and beat you with experience."

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    with j gateway pricing, yes, many smart investors would rather buy resale, capitalise on JLD growth and sell at a profit before you even smell ur keys.

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    Quote Originally Posted by Regulators
    with j gateway pricing, yes, many smart investors would rather buy resale, capitalise on JLD growth and sell at a profit before you even smell ur keys.
    which project do you think is worth buying? Regent Heights? the condo that is rated 5 stars for everything.
    "Never argue with an idiot, or he will drag you down to his level and beat you with experience."

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    Just face it, you are buying J gateway at the wrong time and at the wrong price. Every property owner will he earning another additional few hundred thousand before you even get the keys to your dog box. You can shout whatever pittens you make from your resale in future but others would have laughed their way to the bank months before you get your keys. just don't get too envious along the way

    And you can criticise the rental yield and capital appreciation blar blar blar for Mackenzie 88, the buyer who purchases the unit i recommended you for investment now (same time as ur purchase for J gateway) will emerge $290k richer than you even before you get your keys to your J gateway dog box.

    Quote Originally Posted by Ringo33
    which project do you think is worth buying? Regent Heights? the condo that is rated 5 stars for everything.
    Last edited by Regulators; 01-07-13 at 01:42.

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    Quote Originally Posted by Regulators
    Just face it, you are buying J gateway at the wrong time and at the wrong price. Every property owner will he earning another additional few hundred thousand before you even get the keys to your dog box. You can shout whatever pittens you make from your resale in future but others would have laughed their way to the bank months before you get your keys. just don't get too envious along the way

    And you can criticise the rental yield and capital appreciation blar blar blar for Mackenzie 88, the buyer who purchases the unit i recommended you for investment now (same time as ur purchase for J gateway) will emerge $290k richer than you even before you get your keys to your J gateway dog box.
    Really.

    Can you show us how you make that 290k.
    "Never argue with an idiot, or he will drag you down to his level and beat you with experience."

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    Profit calculation for M88 from now till J gateway TOP as a modest estimate: $(3000 x 48 months + 300 cap appreciation x 500sqft)= $290k plus gross.

    Anyway getting very tired educating someone as daft as you.

    Goodnight.

    Quote Originally Posted by Ringo33
    Really.

    Can you show us how you make that 290k.

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    Quote Originally Posted by Regulators
    Profit calculation for M88 from now till J gateway TOP as a modest estimate: $(3000 x 48 months + 300 cap appreciation x 500sqft)= $290k plus gross.

    Anyway getting very tired educating someone as daft as you.

    Goodnight.
    How I wish things is so simple leh

    a) Are you making the assumption that the apartment already paid in full?
    b) There is no such thing as maintenance fee for Mackenzie88 condo
    c) How do you know it will be 300psf capital appreciation in 4 years? You tua pek kong? why no say 1000psf?
    "Never argue with an idiot, or he will drag you down to his level and beat you with experience."

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    You never heard of the word gross n estimate before? If m88 doesn't go up by $300psf, it will spell disaster for your dog box investment at j gateway coz a 400sqft one bedder in jurong can never sell higher than a 500sqft district 9 one bedder. You better pray hard that m88 increases in value if you wish to see capital growth in j gateway. If you don't believe you wait n see lor, talk to u till the cows come home also on use. Continue to sing your praises of JLD, at the end of the day everyone in this forum knows buyers hv overpaid for j gateway. Continue to think your Gordon max is as good n as precious as a real diamond, after all nobody can stop you from fantasizing.

    Always remember a bird in the hand is better than two or three in the bush. Before u even made any money, all property owners of resale units would be miles ahead of you.
    Quote Originally Posted by Ringo33
    How I wish things is so simple leh

    a) Are you making the assumption that the apartment already paid in full?
    b) There is no such thing as maintenance fee for Mackenzie88 condo
    c) How do you know it will be 300psf capital appreciation in 4 years? You tua pek kong? why no say 1000psf?

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    Quote Originally Posted by Regulators
    You never heard of the word gross n estimate before? If m88 doesn't go up by $300psf, it will spell disaster for your dog box investment at j gateway coz a 400sqft one bedder in jurong can never sell higher than a 500sqft district 9 one bedder. You better pray hard that m88 increases in value if you wish to see capital growth in j gateway. If you don't believe you wait n see lor, talk to u till the cows come home also on use. Continue to sing your praises of JLD, at the end of the day everyone in this forum knows buyers hv overpaid for j gateway. Continue to think your Gordon max is as good n as precious as a real diamond, after all nobody can stop you from fantasizing.

    Always remember a bird in the hand is better than two or three in the bush. Before u even made any money, all property owners of resale units would be miles ahead of you.
    Please stop being so philosophical with your thought for a moment because there are plenty of VERY important FACTS which we are discussing here..


    1) From your calculation about generating $290K profit from a 1 bedder Mackenzie unit in 4 years, are you assuming the apartment is FULLY PAID?

    2) Why are there no maintenance fee in your calculation?

    3) In a recent transaction, a unit bought in July 2007 for $1370psf was sold in May 2013 for $1685psf, that is an increase $315psf over 6 years or $52.5 psf per year?

    Having said that, in a recent transaction, a unit 1001sqft Caspian unit saw its prices has risen by $537psf in 4 years, which is $134psf per year, more than double the Rate of appreciation of Mackenzie88.

    And now you are predicting that prices of Mackenzie88 will suddenly rise $300psf before J Gateway TOP, which is about 2 years to 3 years so from now.

    Always remember, dont count your bird before its even hatch, because it might turn out for be a chicken.
    "Never argue with an idiot, or he will drag you down to his level and beat you with experience."

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    Why don't u guys give each other your phone number, come out and u can talk until cow come home...

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    Quote Originally Posted by Ringo33
    Please stop being so philosophical with your thought for a moment because there are plenty of VERY important FACTS which we are discussing here..


    1) From your calculation about generating $290K profit from a 1 bedder Mackenzie unit in 4 years, are you assuming the apartment is FULLY PAID?

    2) Why are there no maintenance fee in your calculation?

    3) In a recent transaction, a unit bought in July 2007 for $1370psf was sold in May 2013 for $1685psf, that is an increase $315psf over 6 years or $52.5 psf per year?

    Having said that, in a recent transaction, a unit 1001sqft Caspian unit saw its prices has risen by $537psf in 4 years, which is $134psf per year, more than double the Rate of appreciation of Mackenzie88.

    And now you are predicting that prices of Mackenzie88 will suddenly rise $300psf before J Gateway TOP, which is about 2 years to 3 years so from now.

    Always remember, dont count your bird before its even hatch, because it might turn out for be a chicken.
    You have the point, make sense!
    Another reason why Mackenzie88 do not appreciate much is because the area surrounded by lots of "Ah Nei" at night.

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    I won't buy a studio in Jurong at 1600 psf. Or worse still, higher floors at 1800 psf. Ridiculous. And I don't think new launch or resale can make much money now but I will buy resale in good location if I have to make a choice. Just a small studio will do.

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    If based on your logic, city square residences will not have such high rental and high cap appreciation. Not only that, CSR has night clubs, KTVs surrounding the project.



    Quote Originally Posted by mkmm
    You have the point, make sense!
    Another reason why Mackenzie88 do not appreciate much is because the area surrounded by lots of "Ah Nei" at night.

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    Quote Originally Posted by lajia
    Why don't u guys give each other your phone number, come out and u can talk until cow come home...
    they wun be keen to debate if there is no audience u see else they would hv long ago argued via pm liao

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    Is a caspian one bedder selling higher than an m88 one bedder? Launch prices of caspian is at the bottom due to financial crisis, how you compare? Moreover, by assuming j gateway will see that 100% increase in price like caspian really makes you look like a twit. So you are telling everyone in the forum u expect to see you 400sqft dog box increase from $800k to $1.6 million??? Is it more realistic for a district 9 5xxsft one bedder to go up from $850k to $1 million or your 400sqft dog box in jurong to go up from $800k to $1.6million?
    Quote Originally Posted by Ringo33
    Please stop being so philosophical with your thought for a moment because there are plenty of VERY important FACTS which we are discussing here..


    1) From your calculation about generating $290K profit from a 1 bedder Mackenzie unit in 4 years, are you assuming the apartment is FULLY PAID?

    2) Why are there no maintenance fee in your calculation?

    3) In a recent transaction, a unit bought in July 2007 for $1370psf was sold in May 2013 for $1685psf, that is an increase $315psf over 6 years or $52.5 psf per year?

    Having said that, in a recent transaction, a unit 1001sqft Caspian unit saw its prices has risen by $537psf in 4 years, which is $134psf per year, more than double the Rate of appreciation of Mackenzie88.

    And now you are predicting that prices of Mackenzie88 will suddenly rise $300psf before J Gateway TOP, which is about 2 years to 3 years so from now.

    Always remember, dont count your bird before its even hatch, because it might turn out for be a chicken.
    Last edited by Regulators; 01-07-13 at 11:29.

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    If you want to factor in maintenance n bank interest, nett profit is around $250k, this is still loads better than what your 400sqft dog box would perform on TOP.
    Quote Originally Posted by Ringo33
    Please stop being so philosophical with your thought for a moment because there are plenty of VERY important FACTS which we are discussing here..


    1) From your calculation about generating $290K profit from a 1 bedder Mackenzie unit in 4 years, are you assuming the apartment is FULLY PAID?

    2) Why are there no maintenance fee in your calculation?

    3) In a recent transaction, a unit bought in July 2007 for $1370psf was sold in May 2013 for $1685psf, that is an increase $315psf over 6 years or $52.5 psf per year?

    Having said that, in a recent transaction, a unit 1001sqft Caspian unit saw its prices has risen by $537psf in 4 years, which is $134psf per year, more than double the Rate of appreciation of Mackenzie88.

    And now you are predicting that prices of Mackenzie88 will suddenly rise $300psf before J Gateway TOP, which is about 2 years to 3 years so from now.

    Always remember, dont count your bird before its even hatch, because it might turn out for be a chicken.

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    Quote Originally Posted by lajia
    Why don't u guys give each other your phone number, come out and u can talk until cow come home...
    the threadstarter should back off and quit trying so hard to prove his unprovable point in so many threads.

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    cool down, OCR up 3% in Q2 after 1.4% increase in Q1

    The price increase in the April to June period was led by homes in the suburban areas, according to a flash estimate released by the Urban Redevelopment Authority (URA) on Monday.

    Prices in these areas outside the central region climbed by 3 per cent in the second quarter, faster than the 1.4 per cent rise in the first three months of the year, the URA said.

    so already 4.4% for 1H, can beat inflation liao this year
    Ride at your own risk !!!

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    Quote Originally Posted by Regulators
    If you want to factor in maintenance n bank interest, nett profit is around $250k, this is still loads better than what your 400sqft dog box would perform on TOP.
    Who are you trying to fool here?

    Lets assuming you bought a Mackenzie 88 unit at $780,000 (463sqft x $1685psf) with 80% borrowing stretch over 30 years.

    Loan Amount : $624,000
    Monthly mortgage : $2150 per month
    Monthly Maintenance : $300 per month
    Monthly Property Tax : $300 per month
    Agent fee : $125 per month
    Total : $$2875 per month

    Rent Collection : $3000 per month (let give assume you can get this kind of rent)
    Net +ve cash flow :$125 per month.


    After 4 years
    Loan Balance after 4 years : $556,095
    Total positive cash received : $125 x 4 x 12 = $6000

    Assuming sold at 1895psf = $877,385 (based on 6 years average rate of capital appreciation of $52.50psf per year)
    Retain profit = $877,385 - 556095 + 6000 = $327290
    Initial down payment : $156,000
    Gross profit = $171,290
    ROI = 5.4% or $42,822 per year. (excluding stamp duty and assuming you have 4 solid year of non interrupted rent with zero expenses on repair of furnitures)
    "Never argue with an idiot, or he will drag you down to his level and beat you with experience."

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    Quote Originally Posted by thomastansb
    If based on your logic, city square residences will not have such high rental and high cap appreciation. Not only that, CSR has night clubs, KTVs surrounding the project.
    Because Chenna/viet gals have better earnings, "ah Nei" don't!

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    Quote Originally Posted by Ringo33
    Who are you trying to fool here?

    Lets assuming you bought a Mackenzie 88 unit at $780,000 (463sqft x $1685psf) with 80% borrowing stretch over 30 years.

    Loan Amount : $624,000
    Monthly mortgage : $2150 per month
    Monthly Maintenance : $300 per month
    Monthly Property Tax : $300 per month
    Agent fee : $125 per month
    Total : $$2875 per month

    Rent Collection : $3000 per month (let give assume you can get this kind of rent)
    Net +ve cash flow :$125 per month.

    After 4 years
    Loan Balance after 4 years : $556,095
    Total positive cash received : $125 x 4 x 12 = $6000

    Assuming sold at 1895psf = $877,385 (based on 6 years average rate of capital appreciation of $52.50psf per year)
    Retain profit = $877,385 - 556095 + 6000 = $327290
    Initial down payment : $156,000
    Gross profit = $171,290
    ROI = 5.4% or $42,822 per year. (excluding stamp duty and assuming you have 4 solid year of non interrupted rent with zero expenses on repair of furnitures)
    The $2150 mortgage is service by the tenant, should be inclusive into the gross profit - int loss.

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    Quote Originally Posted by mkmm
    The $2150 mortgage is service by the tenant, should be inclusive into the gross profit - int loss.
    thats not profit, it goes into paying monthly mortgage to the bank. Its only when you sell your property that you can extract out the profit, that is deducting your selling price with outstanding loan.
    "Never argue with an idiot, or he will drag you down to his level and beat you with experience."

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    Quote Originally Posted by Ringo33
    thats not profit, it goes into paying monthly mortgage to the bank. Its only when you sell your property that you can extract out the profit, that is deducting your selling price with outstanding loan.
    If you are calculating of ROI, this amount suppose to be included. When one sells the property, this amount minus off interest loss becomes the "Nett profit" of the property invested.

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    Quote Originally Posted by Ringo33
    thats not profit, it goes into paying monthly mortgage to the bank. Its only when you sell your property that you can extract out the profit, that is deducting your selling price with outstanding loan.
    Based on your calculation claimed : Assuming sold at 1895psf

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    Quote Originally Posted by mkmm
    If you are calculating of ROI, this amount suppose to be included. When one sells the property, this amount minus off interest loss becomes the "Nett profit" of the property invested.
    I would only consider it as profit if selling price after deducting outstanding loan is positive. And that profit is use to calculate ROI over the holding period.
    "Never argue with an idiot, or he will drag you down to his level and beat you with experience."

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    https://www.youtube.com/watch?v=W6XyvtfYA8Y

    This link was shared by bro Arcachon.

    Watch Propnex CEO explain why resale unit is a better buy than newly launched unit.


    Why resale unit is better than newly launched property :

    1. Higher rental returns
    2. Lower ABSD
    3. Higher savings on the loan interest
    - resale can lock in eg for a period of 3- 5years, and loan fully disbursed from the start, whereas newly launched project, loan not fully disbursed but progressively, and by the time TOP, the locked in period is likely to be over and the higher interest rate kicks in when the full loan is disbursed.

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    Quote Originally Posted by Ringo33
    I would only consider it as profit if selling price after deducting outstanding loan is positive. And that profit is use to calculate ROI over the holding period.
    ROI = 5.4% or $42,822 per year is correct when interest loss = $2150/mth.
    Your calculation is wrong, you have forgotten to include the interest loss over 4 years and the gain from "($2150-int loss)/mth x 48"

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    Quote Originally Posted by mkmm
    ROI = 5.4% or $42,822 per year is correct when interest loss = $2150/mth.
    Your calculation is wrong, you have forgotten to include the interest loss over 4 years and the gain from "($2150-int loss)/mth x 48"
    I am using mortgage calculator from loanguru.

    At the end of 4 years, it will show you what is your outstanding loan. That will take into account how much goes into paying interest.
    "Never argue with an idiot, or he will drag you down to his level and beat you with experience."

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    $1 million (projected sale price) minus $850k (purchase price) minus bank interest for 4 years plus 4 years rental at $3000 minus maintenance (estimated at $250/month) gives you ROI of only 5.4% per year??? You better do your maths properly.

    My projected selling price of $1 million is already very modest as parc emily which is next door on the hill is already transacting at past $1.1 million in today's market (https://www.ura.gov.sg/realEstateIIW...R!-1650326773).

    If you are basing on statistics, statistics show that there is greater upside for upward movement in price for m88 compared to j gateway. You keep shouting caspian has moved from $500 to $1k plus psf, but remember you did not buy j gateway at the peak of caspian even not to mention launch, you are buying j gateway at $1600-1800psf ($400-500psf higher than caspian pricing) and you are assuming ur capital grow will be like caspian between 2009 to 2013, don't you think you look really stupid for saying that?

    you have charted the graph for m88 and criticise it for its lack lustre growth for the past few years in comparison to caspian, a smart investor will see that as a buying opportunity. If m88 shoots up to $2200psf next year, marking a sharp increase of 35% in a space of one year, will you still buy given the phenominal growth? Only goons like u will buy at peak pricing in an area n pray for a new high.

    Quote Originally Posted by Ringo33
    Who are you trying to fool here?

    Lets assuming you bought a Mackenzie 88 unit at $780,000 (463sqft x $1685psf) with 80% borrowing stretch over 30 years.

    Loan Amount : $624,000
    Monthly mortgage : $2150 per month
    Monthly Maintenance : $300 per month
    Monthly Property Tax : $300 per month
    Agent fee : $125 per month
    Total : $$2875 per month

    Rent Collection : $3000 per month (let give assume you can get this kind of rent)
    Net +ve cash flow :$125 per month.


    After 4 years
    Loan Balance after 4 years : $556,095
    Total positive cash received : $125 x 4 x 12 = $6000

    Assuming sold at 1895psf = $877,385 (based on 6 years average rate of capital appreciation of $52.50psf per year)
    Retain profit = $877,385 - 556095 + 6000 = $327290
    Initial down payment : $156,000
    Gross profit = $171,290
    ROI = 5.4% or $42,822 per year. (excluding stamp duty and assuming you have 4 solid year of non interrupted rent with zero expenses on repair of furnitures)

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    Quote Originally Posted by Ringo33
    I am using mortgage calculator from propertyguru. At the end of 4 years, it will show you what is your outstanding loan. That will take into account how much goes into paying interest.
    How do you define the $2150 installment for 4 years? I mean cash return after selling?

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