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Property Investing that will Make your Profit SAFE AND PREDICTABLE

Here Is A Method That Is Helping 5 GOLDEN RULES TO PROPERTY INVESTING

What’s My Home Value?

DOWNLOAD: Condo Price, How much, Can I afford?

Read all my articles

DOWNLOAD

Property Market Outlook 2019

http://bit.ly/DOWNLOADPropertyMarketOutlook2019

I will be glad to guide you personally “How to buy and/or sell your property like a Pro” One-to-One Online real-time web-based coaching anytime, anywhere on your PC or mobile.  Questions ? #AskRealtorMani ? ? 83004411 http://bit.ly/ClickToWhatsApp 

  

What you will get

 

·      FREE Indicative Valuation & CMA Report for your property http://bit.ly/CMAHomeReport

·      Below Market Value Property Deals Alert BelowValue.pdf

·      Insider property news and resources that property investors use. http://bit.ly/CondoPrice

 

Questions / Need Help? #AskRealtorMani

 

Get notification for Below Market Value Property Deals Alert, Returned Units, Clearance Sale, Auction Properties, Indicative Valuation Reports, Property Insider News http://bit.ly/ClickToWhatsApp UPTOWN @ FARRER Send me the Brochure, Price List, Unit types & Availability

 

It’s FREE and easy, nothing to lose, just try, start now  http://bit.ly/ClickToWhatsApp 

 

·      FREE Indicative Valuation & CMA Report for your property http://bit.ly/CMAHomeReport

·      Below Market Value Property Deals Alert http://bit.ly/BelowValue

·      Insider property news and resources that property investors use. http://bit.ly/CondoPrice

MASTER THE 5 GOLDEN RULES

to Property Investing that will Make your Profit SAFE AND PREDICTABLE

Are you Investing or Gambling?

Property Investment is never about luck or emotional buying. On many occasions, we see consumers hopping from different new project show units just to find “the Right One”. But how exactly will this “Right one” presents itself in the face of consumers?

If you had answered “Ambience” and “Feel” of the unit, you are emotional buying. Many times, these feelings have clouded the analytical skills of the consumers, making them overlook other critical aspects such as the land appreciation, location, sensitive pricing/discounts and market sentiments. By the time when the consumers are prospecting for new house, they will themselves in situation where their current property is not fetching the desired price and they have missed the opportune time to enter the market.

Real investors are clear with their goals and what they want out of their property investments. They do not rely on hope that the market will one day, change in their favour. Rather, they are aware of the cycle and when to make the “Right move”.

So, are you an investor or gambler? If you are determined to be a savvy investor, you will definitely be interested in the following.

How do you Determine the Right Cycle, the Right Time and Right Price to Enter?

No alt text provided for this image

At the first, second and even third glance, you may not be able to figure out all the information which this chart is trying to convey. However, if you study in detail or with some guidance, you will be able to mark out a certain trend that is brewing in the market.

Based on this cycle, you can also identify the best opportune time and price to enter the market. 

So the Question now is:

Is This the Right Time to Buy in Today’s Market?

Just understanding the cycle is not sufficient. 

Here are the 5 Golden Rules to Property Investing that will Make your Profit Safe and Predictable:

1. Supply vs Demand

Should we buy when the supply is plenty in the market?

2. Location vs Entry Price

Which is more important? Many always think that buying a good location near MRT is the safest bet as it is easier to rent out. However, is that really true?

3. How do we determine the Right Entry Price for the property?

4. Potential Upside or Risk

5. How can we secure the First Mover Advantage?

Find the answers from Mani

Posted on

Live From The Field

Here Is A Method That Is Helping 5 GOLDEN RULES TO PROPERTY INVESTING

What’s My Home Value?

DOWNLOAD: Condo Price, How much, Can I afford?

Read all my articles

DOWNLOAD

Property Market Outlook 2019

http://bit.ly/DOWNLOADPropertyMarketOutlook2019

I will be glad to guide you personally “How to buy and/or sell your property like a Pro” One-to-One Online real-time web-based coaching anytime, anywhere on your PC or mobile.  Questions ? #AskRealtorMani ? ? 83004411 http://bit.ly/ClickToWhatsApp 

  

What you will get

 

·      FREE Indicative Valuation & CMA Report for your property http://bit.ly/CMAHomeReport

·      Below Market Value Property Deals Alert BelowValue.pdf

·      Insider property news and resources that property investors use. http://bit.ly/CondoPrice

 

Questions / Need Help? #AskRealtorMani

 

Get notification for Below Market Value Property Deals Alert, Returned Units, Clearance Sale, Auction Properties, Indicative Valuation Reports, Property Insider News http://bit.ly/ClickToWhatsApp UPTOWN @ FARRER Send me the Brochure, Price List, Unit types & Availability

 

It’s FREE and easy, nothing to lose, just try, start now  http://bit.ly/ClickToWhatsApp 

 

·      FREE Indicative Valuation & CMA Report for your property http://bit.ly/CMAHomeReport

·      Below Market Value Property Deals Alert http://bit.ly/BelowValue

·      Insider property news and resources that property investors use. http://bit.ly/CondoPrice

MASTER THE 5 GOLDEN RULES

to Property Investing that will Make your Profit SAFE AND PREDICTABLE

Are you Investing or Gambling?

Property Investment is never about luck or emotional buying. On many occasions, we see consumers hopping from different new project show units just to find “the Right One”. But how exactly will this “Right one” presents itself in the face of consumers?

If you had answered “Ambience” and “Feel” of the unit, you are emotional buying. Many times, these feelings have clouded the analytical skills of the consumers, making them overlook other critical aspects such as the land appreciation, location, sensitive pricing/discounts and market sentiments. By the time when the consumers are prospecting for new house, they will themselves in situation where their current property is not fetching the desired price and they have missed the opportune time to enter the market.

Real investors are clear with their goals and what they want out of their property investments. They do not rely on hope that the market will one day, change in their favour. Rather, they are aware of the cycle and when to make the “Right move”.

So, are you an investor or gambler? If you are determined to be a savvy investor, you will definitely be interested in the following.

How do you Determine the Right Cycle, the Right Time and Right Price to Enter?

No alt text provided for this image

At the first, second and even third glance, you may not be able to figure out all the information which this chart is trying to convey. However, if you study in detail or with some guidance, you will be able to mark out a certain trend that is brewing in the market.

Based on this cycle, you can also identify the best opportune time and price to enter the market. 

So the Question now is:

Is This the Right Time to Buy in Today’s Market?

Just understanding the cycle is not sufficient. 

Here are the 5 Golden Rules to Property Investing that will Make your Profit Safe and Predictable:

1. Supply vs Demand

Should we buy when the supply is plenty in the market?

2. Location vs Entry Price

Which is more important? Many always think that buying a good location near MRT is the safest bet as it is easier to rent out. However, is that really true?

3. How do we determine the Right Entry Price for the property?

4. Potential Upside or Risk

5. How can we secure the First Mover Advantage?

Find the answers from Mani

Posted on

Learn To Do 5 MUST KNOW ESSENTIAL ELEMENTS OF SUCCESSFUL PROPERTY INVESTMENT Like A Professional

Apply These 5 Secret Techniques To Improve 5 MUST KNOW ESSENTIAL ELEMENTS OF SUCCESSFUL PROPERTY INVESTMENT

What’s My Home Value?

DOWNLOAD: Condo Price, How much, Can I afford?

Read all my articles

DOWNLOAD

Property Market Outlook 2019

http://bit.ly/DOWNLOADPropertyMarketOutlook2019

I will be glad to guide you personally “How to buy and/or sell your property like a Pro” One-to-One Online real-time web-based coaching anytime, anywhere on your PC or mobile.  Questions ? #AskRealtorMani ? ? 83004411 http://bit.ly/ClickToWhatsApp 

  

What you will get

 

·      FREE Indicative Valuation & CMA Report for your property http://bit.ly/CMAHomeReport

·      Below Market Value Property Deals Alert BelowValue.pdf

·      Insider property news and resources that property investors use. http://bit.ly/CondoPrice

 

Questions / Need Help? #AskRealtorMani

 

Get notification for Below Market Value Property Deals Alert, Returned Units, Clearance Sale, Auction Properties, Indicative Valuation Reports, Property Insider News http://bit.ly/ClickToWhatsApp UPTOWN @ FARRER Send me the Brochure, Price List, Unit types & Availability

 

It’s FREE and easy, nothing to lose, just try, start now  http://bit.ly/ClickToWhatsApp 

 

·      FREE Indicative Valuation & CMA Report for your property http://bit.ly/CMAHomeReport

·      Below Market Value Property Deals Alert http://bit.ly/BelowValue

·      Insider property news and resources that property investors use. http://bit.ly/CondoPrice

Are you Investing or Gambling?

Property Investment is never about luck or emotional buying. On many occasions, we see consumers hopping from different new project show units just to find “the Right One”. But how exactly will this “Right one” presents itself in the face of consumers?

If you had answered “Ambience” and “Feel” of the unit, you are emotional buying. Many times, these feelings have clouded the analytical skills of the consumers, making them overlook other critical aspects such as the land appreciation, location, sensitive pricing/discounts and market sentiments. By the time when the consumers are prospecting for new house, they will themselves in situation where their current property is not fetching the desired price and they have missed the opportune time to enter the market.

Real investors are clear with their goals and what they want out of their property investments. They do not rely on hope that the market will one day, change in their favour. Rather, they are aware of the cycle and when to make the “Right move”.

So, are you an investor or gambler? If you are determined to be a savvy investor, you will definitely be interested in the following.

How do you Determine the Right Cycle, the Right Time and Right Price to Enter?

No alt text provided for this image

At the first, second and even third glance, you may not be able to figure out all the information which this chart is trying to convey. However, if you study in detail or with some guidance, you will be able to mark out a certain trend that is brewing in the market.

Based on this cycle, you can also identify the best opportune time and price to enter the market. 

So the Question now is:

Is This the Right Time to Buy in Today’s Market?

Just understanding the cycle is not sufficient. 

Here are the 5 Essential Elements which you Must Know in order to build Successful Investment Portfolio in CCR Segment:

1. What are the Impacts of the Latest Announcement of the Reduction in Government Land Sale?

2. Supply vs Demand

Should we buy when the supply is plenty in the market?

3. Location vs Entry Price

Which is more important? Many always think that buying a good location near MRT is the safest bet as it is easier to rent out. However, is that really true?

4. New Launch vs Resale Property

Are you aware which one is likely to drive higher profit margin?

5. How can we secure the First Mover Advantage?

FIND THE ANSWERS FROM MANI

Posted on

Why 5 QUESTIONS BEFORE BUYING AN OLD CONDO Is The Only Skill You Really Need

Why Ignoring 5 QUESTIONS BEFORE BUYING AN OLD CONDO Will Cost You Time and Money

What’s My Home Value?

DOWNLOAD: Condo Price, How much, Can I afford?

Read all my articles

DOWNLOAD

Property Market Outlook 2019

http://bit.ly/DOWNLOADPropertyMarketOutlook2019

I will be glad to guide you personally “How to buy and/or sell your property like a Pro” One-to-One Online real-time web-based coaching anytime, anywhere on your PC or mobile.  Questions ? #AskRealtorMani ? ? 83004411 http://bit.ly/ClickToWhatsApp 

  

What you will get

 

·      FREE Indicative Valuation & CMA Report for your property http://bit.ly/CMAHomeReport

·      Below Market Value Property Deals Alert BelowValue.pdf

·      Insider property news and resources that property investors use. http://bit.ly/CondoPrice

 

Questions / Need Help? #AskRealtorMani

 

Get notification for Below Market Value Property Deals Alert, Returned Units, Clearance Sale, Auction Properties, Indicative Valuation Reports, Property Insider News http://bit.ly/ClickToWhatsApp UPTOWN @ FARRER Send me the Brochure, Price List, Unit types & Availability

 

It’s FREE and easy, nothing to lose, just try, start now  http://bit.ly/ClickToWhatsApp 

 

·      FREE Indicative Valuation & CMA Report for your property http://bit.ly/CMAHomeReport

·      Below Market Value Property Deals Alert http://bit.ly/BelowValue

·      Insider property news and resources that property investors use. http://bit.ly/CondoPrice

Savvy Buyers Ask These 5 Questions Before Buying an Old Condo

1. Is there an en-bloc committee going around?

If an en-bloc happens in the first three years, you still need to pay the SSD

No, it’s not so you can rub your hands in glee and count on a windfall. It’s to ensure you don’t end up losing money.

2. Are those leaks a problem with your unit, or with the entire block?

You can fix up your own unit – but fixing an aging block takes collective action

Do you see any leaks in the ceiling? That’s quite common in older condo units. But the key is to make sure the problem is within your control.

3. What is the property’s history of rental transactions (even if you’re not a landlord)?

You can check out the property’s past rental transactions on 99.co. You can also ask the property agent what type of tenants are in the development, and what the typical rental rates are. There are two reasons you want to know this:

4. What are the zoning restrictions here?

Take note of the condo’s height limitations, as well as how the area around it is zoned. For example, if the land around the development is increasingly zoned for commercial as well as residential use, it can be a sign the area is being built up into a hub – that brings long term benefits, with more amenities and better en-bloc prospects.

5. How does the remaining lease impact the financing?

Check with different banks, before taking up a loan. Many of them are hesitant to lend for condos with a diminishing lease. However, they all have different policies – one bank may not mind a condo with 40 years left on the lease, whilst another may reduce your maximum loan to a pittance.

Read more…

https://www.linkedin.com/pulse/why-5-questions-before-buying-old-condo-only-skill-mani-/

https://www.linkedin.com/pulse/do-you-know-when-best-time-exit-property-market-after-mani-/

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Do you know when is the best time to EXIT Property Market after you have bought your property??? Should you just hold on to your properties?

Do you know when is the best time to EXIT Property Market after you have bought your property??? Should you just hold on to your properties?

·      Insider property news and resources that property investors use. http://bit.ly/CondoPrice

 

Questions / Need Help? #AskRealtorMani

 

Get notification for Below Market Value Property Deals Alert, Returned Units, Clearance Sale, Auction Properties, Indicative Valuation Reports, Property Insider News  UPTOWN @ FARRER Send me the Brochure, Price List, Unit types & Availability

 

It’s FREE and easy, nothing to lose, just try, start now   

 

·      FREE Indicative Valuation & CMA Report for your property http://bit.ly/CMAHomeReport

·      Below Market Value Property Deals Alert http://bit.ly/BelowValue

·      Insider property news and resources that property investors use. http://bit.ly/CondoPrice

There is a high tendency for many people to hold on to their properties for a long period of time even though their properties have appreciated to double the amount of what they have purchased. Is this the best option for properties which have appreciated?

 

In fact, there is nothing wrong with holding on to the property, but I just felt that many money-making opportunities have been forgone when this option is being chosen. Ask yourself this Question, by working hard for the last 5 years, are you able to save $300,000? I am quite sure it is not possible as I have personally witnessed many couples facing difficulty to attain this feat. Do you know that you can increase your saving by learning the Right Exit Strategies that will help you to build your wealth systematically? 

 

Many of you might be skeptical and will question the RISK involved. Yes, if there is no proper guidance and feasible financial plan, the risk will be so much higher. Therefore, it is always good to learn and plan before taking any ACTION.

Important Chart to take note! What are your thoughts now?

Case study 1 – Being too Comfort

Have you ever wondered WHY The Quartz Condo (in the chart below) has stopped growing for the last 4 years? Currently, the average price of The Quartz is about $1,000psf but the neighboring new launches are selling at $1,400psf. Even an Executive Condo is selling at approximately $1,000psf. 

Below is another set of caveats that shows new launches at the nearby Condo – Kingsford Waterbay. In less than a year, the price of a similar unit was sold higher by $300,000. This is not only happening to this Condo, it is also happening to many other resale condo too. Have you ever asked yourself this question? Why can’t I save $300,000 despite working so hard???  Do you want to find out the Answers?

Many clients today earn a combined income of $12,000 and they are already owning two condominium – one for staying while the other one is generating passive income every month. Many homeowners are not doing this because they are not equipped with sufficient knowledge to do so. Do you want to work hard or work SMART? Do you want to provide the best for your family? 

 

Do not wait further! You should be joining me in this seminar to learn the 5 strategies to exit the property market. After the seminar, I am confident that you will not make the wrong decision and let your property price stagnant for the next 4 years. This seminar is not only meant for home sellers, but also, first-time buyer or home seekers. Click here to register ASAP!

Register Now!

New Launches vs Resale?

Which is a Better Buy Today?

Why RESALE Prices are cheaper than New Launches? Does it mean that we should buy if it is CHEAP?

Have you ever wonder why the resale prices are much cheaper and yet many people still choose to pay morefor New Launches?

Look at the below chart on one of the new launches, Martin Modern. Why is it that the price has shot up from $2,000psf to more than $3,000psf in less than 2 years? In some instances, the prices of Freehold projects did not even reach $3,000psf. Do you want to know WHY?

So the Question now is:

 

Is it worth to buy New Launch or Resale?

MAD RUSH TO SNATCH A UNIT…

IS THIS REALLY THE BEST DEAL???

This happened during a new launch where everyone is trying to get a unit. Will you buy when you see this situation in the showflat? Many times, we saw people interpret long queues as buying good deal and will rush to get a unit when they see such situation. When this happens, I always refer it as the “Kiasu” syndrome.

 

Is this the way to determine the RIGHT ENTRY PRICE? I have seen many people making such decision without differentiating right from wrong. Do you know that one mistake make by emotion may cost you more than hundreds of thousands of dollars? Hence, in this sharing session by me, I will be covering 5 Essential Rulesfor you to take note when identifying the RIGHT ENTRY PRICE property.

 

5 Essential Rules

1. Supply Vs Demand

2. Location Vs Entry Price

3. Spot Safe Entry Price Asset

4. Potential Upside/ Risk

5. First Mover Advantage

 

Just based on the above 5 Rules that you will learn from me, I am sure you will not make the wrong decision in selecting the right property. Even if you have not buy or bought, you should be here to learn this skill from me.

Read more…

https://www.propnex.com/templates/Stirling16April/R055842J

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8 Things Everyone Knows About GETTING YOUR PRIVATE PROPERTY PURCHASE FINANCED That You Don’t

Find Out Now, What Should You Do For Fast GETTING YOUR PRIVATE PROPERTY PURCHASE FINANCED?

·      Insider property news and resources that property investors use. http://bit.ly/CondoPrice

 

Questions / Need Help? #AskRealtorMani

 

Get notification for Below Market Value Property Deals Alert, Returned Units, Clearance Sale, Auction Properties, Indicative Valuation Reports, Property Insider News  UPTOWN @ FARRER Send me the Brochure, Price List, Unit types & Availability

 

It’s FREE and easy, nothing to lose, just try, start now   

 

·      FREE Indicative Valuation & CMA Report for your property http://bit.ly/CMAHomeReport

·      Below Market Value Property Deals Alert http://bit.ly/BelowValue

·      Insider property news and resources that property investors use. http://bit.ly/CondoPrice

Step-by-step guide to

financing your new home

Getting a private property or HDB flat? Between loan

application and key collection, here’s what to expect and

what’s needed from you.

Getting your private property purchase financed

Step 1

Receive the Option to Purchase

An Option to Purchase (OTP) document gives you exclusive rights to a property for a short agreed amount of time (usually 2 to 5 weeks). You have an option fee, which is 1% of the property’s purchase price. This makes the seller contractually obliged to make the property available to you should you proceed with the purchase. To exercise your option to purchase, you must pay a full deposit, which is usually 5%. If you do not proceed with the purchase, the seller will keep the 1% deposit.

Step 2

Apply for your home loan

Now that you’ve found and reserved your dream property, you need to secure a home loan to help pay for it. A mortgage specialist will discuss your financing needs, assess your affordability, and advise you on the next steps. You will need to provide:

  1. Original OTP document
  2. Copy of your ID
  3. Income documents
  4. Latest statements for credit cards and other loans
  5. “Financial Information” printout from HDB InfoWeb

Step 3

Accept your loan offer

When your application is approved, the bank will issue you with a Letter of Offer containing all the details of your selected home loan package. If you have all the required documents, approval can take as little time as 1 hour. The documents you need to sign include:

  1. Letter of Offer
  2. Residential Property Loan Fact Sheet
  3. Declaration of Income and Debts

Step 4

Sign the Option to Purchase

You’ll need to fulfil the requirements of exercising your option to purchase, including paying the remaining 4% of the booking fee. Stamp duty is payable 14 days from this step.

Step 5

Await legal checks

Your lawyer will exercise the option to purchase on your behalf and take care of all the necessary legal checks. He or she can also offer advice on the unfinanced portion of your purchase.

Step 6

Make the final payment

Once all the legal checks are completed, you will need to sign your mortgage document. At this point, the unfinanced part of your purchase will need to be paid using either your own cash or CPF. And of course, you’ll need to pay your lawyer.

For properties still under construction, the mortgage will remain in escrow. The unfinanced portion can be paid in stage payments, leading up to the completion of the building.

Step 7

Collect your keys

You collect your keys on the day of completion. Your bank will disburse the loan and you will receive the loan disbursement letter.

Within a month of completion, your lawyer will lodge your property’s title deed with the Singapore Land Authority (SLA). The original title deed will be sent to your bank for safekeeping, and you’ll receive a copy.

Step 8

Start repaying your home loan

Your first instalment will be due on the first day of the following month, and every month thereafter. You can pay with funds from your bank, CPF, or a combination of the two. If your CPF funds are insufficient, instalments will be taken from your OCBC bank account.

Your lawyer will assist you with the CPF application if required. To use CPF, you must activate monthly deductions on the CPF website by the 18th of the month for it to take effect the following month.

You can view your loan through OCBC online banking. You will also receive an annual loan statement.

Read more….

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Buyer: Answered: Your Most Burning Questions About IS FREEHOLD ALWAYS BETTER THAN LEASEHOLD? No!

Are You Making These IS FREEHOLD ALWAYS BETTER THAN LEASEHOLD? Mistakes?

·      Insider property news and resources that property investors use. http://bit.ly/CondoPrice

 

Questions / Need Help? #AskRealtorMani

 

Get notification for Below Market Value Property Deals Alert, Returned Units, Clearance Sale, Auction Properties, Indicative Valuation Reports, Property Insider News  UPTOWN @ FARRER Send me the Brochure, Price List, Unit types & Availability

 

It’s FREE and easy, nothing to lose, just try, start now   

 

·      FREE Indicative Valuation & CMA Report for your property http://bit.ly/CMAHomeReport

·      Below Market Value Property Deals Alert http://bit.ly/BelowValue

·      Insider property news and resources that property investors use. http://bit.ly/CondoPrice

Is freehold always better than leasehold?

Many have debated whether freehold properties are better than leasehold ones, especially in terms of capital appreciation. The answer may simply lie in the entry price. Owing to their perpetual legal lifespan, freehold properties command a price premium over comparable leasehold properties. The question is what premium would be considered reasonable.

Based on the Singapore Land Authority’s leasehold table, freehold properties command premiums of around 4% to 10% over leasehold properties that have remaining leases of between 80 and 99 years. Actual transactions, however, suggest that paying premiums of up to 20% over comparable leasehold properties is reasonable.

Southaven I and Southaven II offer some clues. The projects are located next to each other on Hindhede Walk and were completed two years apart. However, Southaven I is on a 99-year leasehold site while Southaven II is on a 999-year leasehold site. This study shall treat 999- year leasehold as freehold. The price gap between Southaven I and II was 8% in 1995, the earliest date when official data became available. That year, 39 units at Southaven I sold for $634 psf and 83 units at Southaven II sold for $688 psf. The price gap widened to 20% by 2012 (see Chart 1a). As a result, prices appreciated around 27% at Southaven I to $804 psf and 40% at Southaven II to $962 psf during that period. Although the price gap fluctuated over time and hit 34% in 2005, the median stood at 20% between 1995 and 2012.

In Toa Payoh, the freehold Trellis Towers commanded an initial price premium of 19% in 1996 over the 99-year leasehold Oleander Towers. The price gap widened to as high as 44% in 2002 although it narrowed again to 23% in 2017, with a median price gap of 31% between 1996 and 2017. Prices appreciated 35% at Oleander Towers and 40% at Trellis Towers in that period (see Chart 1b).

Freehold properties outperformed leasehold properties in capital appreciation when the initial price premium was narrow

Anecdotal evidence suggests that when the premium exceeds 30%, the capital appreciation for freehold properties could fall behind that for comparable leasehold properties. In 2006, freehold One Jervois commanded an initial price premium of 37% over the 99-year leasehold Domain 21 located nearby. A total of 205 units at One Jervois were sold in that year at an average price of $1,004 psf compared with the $731 psf fetched by 44 units at Domain 21. The premium fell over the years, with a median of 16% between 2006 and 2017. As a result, the capital appreciation for Domain 21 outperformed that of One Jervois during this period (see Chart 2a).

Similarly, prices at 99-year leasehold Amaryllis Ville rose faster than those at Newton 18, a freehold property located next door. In 2002, 59 units at Newton 18 changed hands at an average price of $1,115 psf, or at a 31% premium to the 41 units sold at Amaryllis Ville, which went for $854 psf. The premium also diminished over the years, resulting in a median of 21% between 2002 and 2016. In 2016, prices averaged $1,737 psf at Newton 18 and $1,434 psf at Amaryllis Ville, which translates into capital appreciations of 56% and 68%, respectively, since 2002 (see Chart 2b).

Leasehold properties outperformed freehold properties in capital appreciation when the initial price premium exceeded 30%

With an appropriate entry price, freehold properties offer several key advantages. For one, the government has ceased to offer freehold land parcels for sale. The scarcity factor will make freehold properties an attractive asset class for homebuyers. Currently, freehold properties account for about 49% of total apartment and condominium stock in Singapore, while leasehold properties make up the remainder. The proportion of freehold properties is set to decline as future launches will comprise mainly leasehold projects. Freehold apartments and condos located within walking distance of an MRT station are even more limited, accounting for just 13% of total stock island-wide (see Chart 3).

Stock of apartments and condominiums

Certain foreign nationalities show a preference for freehold properties. Between January 2016 and August 2017, 71% of transactions were for leasehold properties and 29% for freehold ones. The proportion of freehold transactions, however, was higher among several key foreign purchasers, namely those from Indonesia (40%), the US (41%), the UK (50%), Australia (50%) and Hong Kong (34%). Interestingly, freehold properties accounted for 60% of purchases by companies.

Freehold properties are also said to have better en-bloc potential. A logistic regression analysis shows that tenure is not a statistically significant variable at the 5% level in determining the success of an en-bloc sale. It is, however, an economically significant variable with a large coefficient.

Finally, the risk of owning a leasehold property becomes significant as the remainder lease runs low. To finance a property using the Central Provident Fund, the sum of the remaining lease and the age of the buyer must be at least 80 years. For properties with remaining leases of between 30 and 60 years, a valuation limit will apply on the amount of CPF contribution that can be used to finance the property. The financing restriction would shrink the pool of potential buyers for ageing leasehold properties. Meanwhile, en bloc is not a guaranteed option for leasehold properties and there is a possibility that the land will return to the state at the end of a lease.

On the flip side, the rental market does not differentiate between the types of tenure of the property. Leasehold properties offer higher rental yields over comparable freehold properties, owing to their discounted prices. The higher yields serve to compensate for their depreciating tenure, higher risks and shorter lifespan to recoup the owner’s capital outlay.

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Why do you need a lawyer in the home financing process?

2 Things You Must Know About WHY DO YOU NEED A LAWYER IN THE HOME FINANCING PROCESS? The important role of your lawyers during the home purchase and financing process.

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Steps your lawyers will adopt on your behalf:

A title search to ensure the title of the property is in order, that there are no encumbrances on the property and that the Vendor is the owner of the property.

Ensure that you pay the required Stamp Duty within the statutory deadlines

If a mortgage loan or CPF savings are intended to be utilised to finance the purchase of your property, your solicitors will liaise with the Bank or their solicitors and the CPF Board or their solicitors

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Buyer: Looking to minimize your “hidden” costs? Here are 3 ways: