Does it make sense to commit a 99-years lease private condo?
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verykiasu2010:
I agree! :hi5: But maybe extend 9,10,11 to include Bishan....the soil there like very fertile. :evil:if it is of 99-yrs leasehold condo, I won't touch it if it is not in D 9, 10, 11.
however, I will consider a 99-yr leasehold if it is HDB, a few minutes walk from MRT station, amenities around, good schools nearby, good facing, high floor
honestly for 99-yrs leasehold condo in outlying districts - there isn't much diff with an EC or HDB. so why pay premium to be eroded ?
just my personal opinion and personal preference. everyone else is free to disagree -
I look it in another way:
If you are going to buy a condo to rent out, a 99year property is ok because it will definitely fetch a better rental yield compared to a freehold property.
You paid much more for a freehold property compared to a leasehold property but the rental amount could be the same.
A potential tenant will not take into consideration whether the property is a leasehold or freehold. They would be more concerned with amenities, condition of the house and locality, etc.
Of course, location and accessiblity is most important.
JMHO -
fightingmom:
I agree with fightingmom on the consideration for investment properties. Besides that, one should have holding power if want to invest in a L/H. In a bearish market, the price for L/H will fall more than a F/H.I look it in another way:
If you are going to buy a condo to rent out, a 99year property is ok because it will definitely fetch a better rental yield compared to a freehold property.
You paid much more for a freehold property compared to a leasehold property but the rental amount could be the same.
A potential tenant will not take into consideration whether the property is a leasehold or freehold. They would be more concerned with amenities, condition of the house and locality, etc.
Of course, location and accessiblity is most important.
JMHO -
AC_Power:
This is very true. Has seen a L/H ppty in district 8 (next to MRT) appreciating faster than a F/H in district 11 (MRT still under construction).
A 99-year leasehold near MRT station, good school, amenities will always be in much higher demand that one which is 999-year leasehold or freehold which is not easily accessible, without much amenities and located at one far end of Singapore. -
mel2sg:
Will anyone consider buying 99 year lease condo which is around 13 years old this year? If yes, why? If no, why?Hi
Currently, we are staying in HDB, and considering a second property. Last weekend, after lunch we drove around few fully sold near-TOP private condos in the West, for a gauge of how the property market like. There was this property agent who noticed our car & approached us. Briefly telling us the approx psf & price. As we have 2 kids, I asked him for the price of 3-rooms.......my god quoting me $1.1m :scared: somemore it is 99- years lease.
Does it really make sense to buy a 99-years lease apartment - esp when after 20 - 30 years & with the remaining years, do you think still can offload in above purchase price? Or is it considered a depreciating asset in the long term?
Appreciate your comment as I have neither the knowledge nor experience in this area, thanks.
We have no issues with the condo and the nearby amenities.. just a bit concerned with the remaining lease.. Any property experts around? -
AC_Power:
What do u consider a good location?As what all property agent will tell you, when looking at private property, only factor that matter is the location.
A 99-year leasehold near MRT station, good school, amenities will always be in much higher demand that one which is 999-year leasehold or freehold which is not easily accessible, without much amenities and located at one far end of Singapore.
If the location is good, you can be sure that developers will be pushing your condo management to accept their en-bloc offer before 30 years is up. -
Interesting topic for discussion.
DH and I have been invited for new launches and have seen many of these agents telling us that it makes no diff for FH and LH and LH provides more value with close proximity to amenities.
True in some ways but for investors, LH may seem to offer a higher rental yield due to lower capital cost but in actual fact, it merely compensates the owner for the declining years of lease.
In market boom, we can see LH outperforming FH but when it comes to downturn, the impact is worse off for LH on its valuation price. The banks tend to pull back with more restrictive financing for 30 yrs or older LH properties. This is so as banks also want a healthy buffer for the remaining lease.
Personally, LH is deemed attractive for 1st time buyer and upgrader (for more space or within the budget). Nevertheless, if you are looking for capital appreciation than on rental yield, freehold will be a better take.
Just to add.... DH and I are strong advocators for FH properties -
I read on websites that older leasehold condos have a higher chance of enblock. Any info to back this up?
We are first time buyer so we are more keen on leasehold as we are using dividends to finance it. Dun want to overstretch ourselves. -
GiftedGem:
can u share which are the new launches u have viewed and your opinion of them. Thanks.Interesting topic for discussion.
DH and I have been invited for new launches and have seen many of these agents telling us that it makes no diff for FH and LH and LH provides more value with close proximity to amenities.
True in some ways but for investors, LH may seem to offer a higher rental yield due to lower capital cost but in actual fact, it merely compensates the owner for the declining years of lease.
In market boom, we can see LH outperforming FH but when it comes to downturn, the impact is worse off for LH on its valuation price. The banks tend to pull back with more restrictive financing for 30 yrs or older LH properties. This is so as banks also want a healthy buffer for the remaining lease.
Personally, LH is deemed attractive for 1st time buyer and upgrader (for more space or within the budget). Nevertheless, if you are looking for capital appreciation than on rental yield, freehold will be a better take.
Just to add.... DH and I are strong advocators for FH properties -
TheAnswer:
If you are talking about investing in a unit for rental, then location is very important. As many foreign tenants may not wish to invest in cars when in Singapore, most will be drawn to condos that are within 5-10mins walk to any MRT station. In tenant's perspective, rental price, MRT, amenities etc are high on their mind, they DO NOT care if your unit is a 99yrs or FH.
What do u consider a good location?AC_Power:
As what all property agent will tell you, when looking at private property, only factor that matter is the location.
A 99-year leasehold near MRT station, good school, amenities will always be in much higher demand that one which is 999-year leasehold or freehold which is not easily accessible, without much amenities and located at one far end of Singapore.
If the location is good, you can be sure that developers will be pushing your condo management to accept their en-bloc offer before 30 years is up.
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