Originally Posted by OLY99
when is it close?
Junior
when is it close?
I am new here...
It's not even started. To begin, there must be a developer agreed to bid a minimum bid sum (as define by URA, amount not sure) in order to trigger the GLS. URA will launched the GLS thereafter. Generally, developers are given between 2 to 3 months to submit a bid.
The first JE white site was triggered in the same manner as mentioned above.
I am new here...
According to caveat, there are some units transacted during early Nov or around LF launch for Caspian, Lakeshore and Lakeholmz...
Maybe, owners for these three projects were more kanjeong to cash out profits....PV owners more "zai" and firm for higher profit margin......
Newbie
Same here, I also jai jai waiting for someone to buy mine at $1,100psf. Hehe.
Go for Smallest Unit
This is where its going to be exciting.
I am new here...
Agreed too that JE will be very exciting....
In particular, Ivory Height would be very interesting to watch as it's sitting side by side to Jurong Transportation hub and the future entertainment village (current science centre).... Also, IH is the only HuDC turned condo in Jurong area and we all know that HuDC condo has very good potential for enbloc due to it's plot ratio advantages.... We could well seeing another "Ferrer Court enbloc" coming in the future when Jurong gateway dream materialised.
Junior
According to caveat, there are some units transacted during early Nov or around LF launch for Caspian, Lakeshore and Lakeholmz...
Maybe, owners for these three projects were more kanjeong to cash out profits....
I do a check with agent and the response is now PV 2 bedrooms selling at least S$800K and above for some sellers and some owners who bought at past 2 years are not selling and waiting for the place to further developed esp the white site and the canadian school to complete..
Newbie
Today very noisy at Parc Vista...
F16s.
Senior
The asking rent is about $3k for a $900k unit, which gives a gross yield of 4%. After deducting an optimistic interest rate of 2% and depreciation of 1% due to leasehold, net yield is about 1%, which is quite risky... so really have to buy for own stay or wait for enbloc.
Exalted
errr...i disagree with ur way of calculating rental yield wor....
u borrow 2% to fetch 4% rental yield leh
Senior
Oh, sorry, I was too busy just now so just estimated in my mind (that's the problem of not being an accountant). Here's a slightly more accurate one with Excel for a 900k unit over 30 years loan:errr...i disagree with ur way of calculating rental yield wor....
u borrow 2% to fetch 4% rental yield leh
Cost of unit $ 900,000
Downpayment $ 300,000
Bank loan $ 600,000
Rental p.m. $ 3,000
Instalment p.m. over 30 years (2% interest) $ (2,500)
Depreciation based on $900k over 82 years lease left $ (900)
Net income p.m. $ (400)
Yield on $300k -1.6% !!!
Of course rental fluctuates but overall doesn't seem worthwhile to rent out as investment with 30 years horizon. So got to self stay or enbloc. Feel free to comment! Thanks
Last edited by hyenergix; 03-12-10 at 12:55.
I am new here...
Excellent computation.Oh, sorry, I was too busy just now so just estimated in my mind (that's the problem of not being an accountant). Here's a slightly more accurate one with Excel for a 900k unit over 30 years loan:
......
......
Of course rental fluctuates but overall doesn't seem worthwhile to rent out as investment with 30 years horizon. So got to self stay or enbloc. Feel free to comment! Thanks
I've use your approach and I found ZERO project with positively yield.
Maybe my math very bad.Mind to share which project can yield positively?
Senior
Must get FH or 999LH as they don't have land depreciation cost. I look at 99LH condos as consumer items that you pay to use and lose their values after that, unless got enbloc... OMG, must go back to work nowExcellent computation.
I've use your approach and I found ZERO project with positively yield.
Maybe my math very bad.
I am new here...
That is the point which I must disagree with you.Must get FH or 999LH as they don't have land depreciation cost. I look at 99LH condos as consumer items that you pay to use and lose their values after that, unless got enbloc... OMG, must go back to work now
In essence, the computation suggest for investment, LH will DEFINITELY give u negative yield hence property investor should only consider FH or 999 projects.My apology for the disagreement. No offend hor
Any further comment from fellow formers?
Newbie
All salah. Different market different approach. If suburban, buy for capital appreciation and then flip. For city/cityfringe, buy for rental income. Example: buy a Millpoint unit at about $850k, rental at $4k. Quite decent lei.
Sorry, I'm not accountant. I'm a salesman. My moto: try to confuse others if I cannot convince.
Go for Smallest Unit
Dun understand these posts liao. Must ask teacher.
Senior
Of course no offense as all are here to share info and learn from one anotherThat is the point which I must disagree with you.
In essence, the computation suggest for investment, LH will DEFINITELY give u negative yield hence property investor should only consider FH or 999 projects.
Any further comment from fellow formers?
The rate of depreciation is different case by case e.g. for cars the depreciation is the steepest for the 1st few years but for properties there may not be any effort or it could even appreciate in the first 10-20 years. After that I have really no idea, but I cannot bring myself to buy an old pte property with 70 years of lease left. So I don't expect future investors to do so. But if there is a developer willing to buy over and top up the lease then the owners may reap a profit.
But eventually all 99LH must depreciate to $0 if you hold for 99 years because the land must be returned to the government.
Newbie
Wah, I recommend to buy caspian than to buy PV.
Exalted
u r agt ar?? y inflate the rental? 3k more like itAll salah. Different market different approach. If suburban, buy for capital appreciation and then flip. For city/cityfringe, buy for rental income. Example: buy a Millpoint unit at about $850k, rental at $4k. Quite decent lei.
Sorry, I'm not accountant. I'm a salesman. My moto: try to confuse others if I cannot convince.
http://www.propertyguru.com.sg/listi...ent-mill-point
Newbie
I was told by an agent of an existing tenant when I wanted to buy a unit there. Are you an agent yourself? You posted the advert in propertyguru right?? I should have known!
Junior
u sold off yours already is it ? care to share how much u have sold?
understand your feelings, my friend just sold of also cannot wait til LF launch...so quickly sold off at a lesser profit but good for him as he now move to another condo at the west...he needs cash fast...
Junior
Must get FH or 999LH as they don't have land depreciation cost. I look at 99LH condos as consumer items that you pay to use and lose their values after that, unless got enbloc... OMG, must go back to work now
like that calculate than dont buy 99 all buy FH ha ha, than garmen got tough time already as most of the mrt sites are 99...
Senior
In fact, some 99LH property can have better rental yield and capital appreciation compared to FH.
Junior
oh I was referring to the some previous post at previous page on calculation of rental yield in this thread...taking land depreciation into consideration...jia chao liao if like that...
Newbie
HAHAHA! You joking again!
u sold off yours already is it ? care to share how much u have sold?
understand your feelings, my friend just sold of also cannot wait til LF launch...so quickly sold off at a lesser profit but good for him as he now move to another condo at the west...he needs cash fast...
I nearly wanted to buy. But then the F16s kept reminding me why I shud not.
Today morning, they flew. Afternoon, they flew.
Very nice to see.
Not so nice to hear.
Junior
I know I have seen your post somewhere , are u the onewho has sold the place at jurong and moving back to central area? Btw, F16 flying is in whole area,, if it affects PV, all the condo surrounding are also affected by F16...PV is just opposite Caspian, lakeholmz, LF and besides lakeshore, just opposite lakeside MRT...HDB also affected so your post should say F16 fly over lakeside area not over PV...that is the reason why I suspected that you have sold teh place in Jurong and that is PV or HDB near PV...
btw, you are one of the people who do not fancy this area...I have seen your posts before...
Newbie
Yup.
btw, you are one of the people who do not fancy this area...I have seen your posts before...
You are right.
Junior
F16 dont always fly there lah..btw..some interesting article to read if the hot money comes in, JDB is one of the possibility where condo NEXT to mrt is worth looking at ....
Reaping the benefits of wealth creation
Hot-money flows into Asia have hogged the headlines for much of the past month as the investment community acted in anticipation of the second round of quantitative easing that the United States Federal Reserve is expected to unleash.
Rapid and large fund flows into a region tend to inflate prices in all asset classes, creating wealth in the destination countries. Typically, such new wealth created tends to be attracted to property.
We saw this happen after the Fed’s first round of quantitative easing that started in October 2008. In Singapore, the benchmark Straits Times Index rose 91 per cent by the end of last year, after reaching a trough of 1,513 points on March 1 last year. Private home prices, as measured by the Urban Redevelopment Authority’s Private Residential Property Index, increased by 24 per cent between 2Q2009 and 4Q2009.
These increases came about even when the economic picture was nowhere as rosy as it is now: Singapore’s GDP growth in 2Q2009 was at 1.8 per cent and the unemployment rate stood at 3.3 per cent. The latest data showed 3Q2010 GDP growth at 10.6 per cent, with full-year growth expected to hit 15 per cent, while the 3Q2010 unemployment rate stood at 2.1 per cent.
Drawing from this, it may be argued that if the fund flows into Asia do materialise and generate another round of wealth creation, property prices here may not come down next year, despite the Government’s cooling measures.
To slow the increases in property prices, the Government has implemented three rounds of measures to moderate investment demand since last year, the latest on Aug 30. And only last week, supply-side measures were introduced when the Government announced a record high quantum of land to be released for sale in the first half of next year.
Although there were periods of immediate slowdown in market activity after these measures, the property market has proven to be very resilient and prices have continued to climb. Those who have been waiting for “distressed sales” can attest to the market’s resilience. Why is this so?
Singapore is reaping the benefits of years of effort to reshape its economy that have contributed to a very strong wealth creation cycle.
Evidence of this can be found from the Inland Revenue Authority of Singapore’s annual reports. On a year-on-year basis, the number of residents with assessed income of $100,001 and above has been increasing. There were 132,399, 153,779, 187,856 and 215,467 residents with taxable income of $100,001 and more in the Years of Assessment 2006, 2007, 2008 and 2009, respectively. Note also that the number did not fall in the recessionary period from 2008 to last year.
Also, the Monetary Authority of Singapore’s Financial Stability Report released this month showed that the net wealth of Singapore households has increased by 29 per cent from the trough in 1Q2009, while household net debt-to-asset ratio remains at a low of 15 per cent, compared to a historical average of 18 per cent. According to the MAS report, the proportion of housing loans in negative equity has fallen from a peak of 2.9 per cent in 3Q2009 to less than 1 per cent since 4Q2009. These factors have contributed to the ability of Singaporeans to continue to buy properties or upgrade.
Fundamentally, investing in Singapore’s private residential property market has probably never been as attractive due to the positive carry. This has been brought about by the low interest rate environment and a resilient rental market, with overall occupancy at 94 per cent as at 3Q2010, according to URA data.
Looking ahead, we are entering into a positive wealth creation cycle: Wage growth and bonuses are expected to be good, the economy is expected to fare well next year and Asian stock markets are expected to rise, according to various reports by equity strategists.
Thus, there is good reason to expect property prices to continue their moderate climb in the coming months. Demand could be further supported by foreign funds, with Singapore’s property market remaining attractive due to a relatively lower level of entry barriers compared to Hong Kong and China and underpinned by sound economic fundamentals.
This, ironically, could trigger more measures by the Government to cool the market. These could include further reduction of the loan-to-value ratios for home purchases, limiting the use of CPF money for investment properties or even introducing a capital gains tax to “catch up” with Hong Kong, among others. The impetus for more measures may come from the need to ensure that Singapore does not get an over-allocation of “hot money”.
But I am beginning to doubt whether Government measures alone would be enough to curb sentiment if the wealth creation cycle continues and credit remains cheap, which would mean that those expecting a prolonged price fall will be disappointed.
By Tan Kok Keong, head of research and consultancy at Orange Tee
Newbie
Firstly the "depreciation" is highly questionable, as it is not linear over the entire 99years, at some time depend on market value, it may appreicate.
Secondly, and most important, part of monthly loan installment is to pay up the principle, which reuced the loan over time. You should only consider only the amount for interest, which is about $1K/mth.
Senior
You missed my 2nd part of my post about depreciation rate. I'm just not comfortable with the thought of buying something that will eventually depreciate
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