BELOW $1 MILLION: Freehold apartment in Joo Chiat selling at $600,000

[reporter2]

http://www.theedgeproperty.com.sg/co...selling-600000

BELOW $1 MILLION: Freehold apartment in Joo Chiat selling at $600,000

By Lin Zhiqin / The Edge Property | February 17, 2016


A 431 sq ft unit on the second storey of Everitt Edge in district 15 is listed for sale at $600,000 or $1,392 psf.

Everitt Edge is a freehold apartment development located at Joo Chiat Place, about 700m from Eunos MRT station. It was completed just last year. Schools located within 1km include Haig Girls’ School, Tanjong Katong Primary School and Tanjong Katong Secondary School.

There have been no resale transactions at the development to date. Two subsale transactions were clocked last year at $1,425 and $1,602 psf. In 2H2015, three rental contracts for units of similar size fetched monthly rents that averaged $1,892. This translates into a potential gross rental yield of 3.8%.

According to Senior associate district director Gary Go of PropNex, the seller is looking for offers in excess of $600,000.

[thomastansb]

There are tons of 431 sqft at that price around JC area. lol.

[eric3417]

Pretty decent yield at $1.8k rental if u ask me.
600k Freehold. Time is on buyer side.
Paya Lebar is Commercialising.
Will have additional demand.

[thomastansb]

Risky. At 600k, you probably pay the bank 1.5k? Add maintenance and tax, you have to cough out cash.

Pretty decent yield at $1.8k rental if u ask me.
600k Freehold. Time is on buyer side.
Paya Lebar is Commercialising.
Will have additional demand.

[eric3417]

Hi,

Generally i like to keep my loan amount at appx 50%.
So mortgage with maintenance and tax is still nett positive.

If an investor chooses to go for 70-80% loan,
you are right they might break even or could be slightly under water by $100-$200.

If my TDSR is not affected i would buy this unit.
Long run it's a no brainer. Tenant to service my mortgage.
Capital appreciation is icing on the cake.

Cheers

[Kelonguni]

Risky. At 600k, you probably pay the bank 1.5k? Add maintenance and tax, you have to cough out cash.

To use the simplest way of calculating, the rent represents 3.6% yield of capital. Quite decent already.

In the meantime save more capital to pay down if interest rates indeed rise. But very unlikely to rise much, if rise much should mean economy excelling and everything will take off.

Unless you have something that can beat 3.6% annually and regularly at downtimes such as these.

[thomastansb]

I think 4% is everywhere now. In fact, we should be looking at 4.5% in today's market. 3.6% is crap. No one should be buying a property that give < 4% yield now.

I just saw one unit at tanah merah. 1 min walk to MRT. 4.4% yield. Very decent unit. Very tempted to offer even with ABSD.

To use the simplest way of calculating, the rent represents 3.6% yield of capital. Quite decent already.

In the meantime save more capital to pay down if interest rates indeed rise. But very unlikely to rise much, if rise much should mean economy excelling and everything will take off.

Unless you have something that can beat 3.6% annually and regularly at downtimes such as these.

[Kelonguni]

If leasehold will be close to 5% yield. This is a compromise against non depreciating lease. Pros and cons lah...

I think 4% is everywhere now. In fact, we should be looking at 4.5% in today's market. 3.6% is crap. No one should be buying a property that give < 4% yield now.

I just saw one unit at tanah merah. 1 min walk to MRT. 4.4% yield. Very decent unit. Very tempted to offer even with ABSD.

[teddybear]

Seasoned property investors will know that if you ever get 4% or so (even more than 3%), it is almost certain that that property's price most likely has almost negligible chance of capital appreciation......

Property investment is NEVER ever JUST about rental yield.........

I think 4% is everywhere now. In fact, we should be looking at 4.5% in today's market. 3.6% is crap. No one should be buying a property that give < 4% yield now.

I just saw one unit at tanah merah. 1 min walk to MRT. 4.4% yield. Very decent unit. Very tempted to offer even with ABSD.

[Kelonguni]

It's all about balance. We all know GCB rental maybe 1%.

Seasoned property investors will know that if you ever get 4% or so (even more than 3%), it is almost certain that that property's price most likely has almost negligible chance of capital appreciation......

Property investment is NEVER ever JUST about rental yield.........

[ccreporter]

It's all about balance. We all know GCB rental maybe 1%.

It seems rental yield is about 2.5% for freehold in ccr area.
Do you know whether it is the average rate for ccr based on your experience? Thanks

[Kelonguni]

You can find out from URA website if it is the average rate. Under the current yield compression period, I do sense that it is.

The test is in holding across this period while the market takes time to absorb the remaining units. Another alternative is to buy new unit that does not TOP in the next two years and avoid this rental period if one is looking good for rental yield.

It seems rental yield is about 2.5% for freehold in ccr area.
Do you know whether it is the average rate for ccr based on your experience? Thanks