Client : Alvin and Doreen
Current Residence : Florence Regency, Executive Masionette, size 1647 sqft, this former HUDC was enbloc and my client was awarded $1.82 million.
I met up with them shortly after the enbloc was announced, they have about 9 months to 1 year to move out of the apartment.
They are unsure of what to do next, whether to move into HDB, downgrade and keep the money. Or buy a condo or buy 2 properties with one for investment.
I assessed their financial commitment, the Florence Regency unit was fully paid, so they can keep the full enbloc money. Currently they do not own any other properties, so they can buy as first time house owner for their next property purchase. No major debts to repay besides ongoing credit card bills and car instalments.
A look into their income, to check income affordability, Alvin, 60 is self employed, yearly income approximately $80,000 and Doreen, 53 is a housewife. This makes property financing a challenge because he can only get 5 years (till 65) or 15 years (till 75).
However, they will have sufficient funds from the enbloc to purchase a new property up to $1.8 million
Because they are unsure of where they would like to move into, I recommended several areas surrounding Hougang, their familiar territory.
Starting with HDB maisonettes, we search and viewed several units in the Serangoon/Hougang area. But these maisonettes are quite old, about 33 years old eg. In Hougang, 1988 maisonette cost $745,000 or in Serangoon a 1985 Maisonette costs $800,000. Buyer is worried that old properties may have resale issue.
Buyer also suggested HDB DBSS in Boon Keng, CityView@Boon Keng, I showed them both a 4 room, 2011 unit cost $840,000 and a 5room, 2011 unit that cost $1,035,000. He backed out after realizing prices there is so high.
I suggested that they consider buying a new launch condo, and rent a place in the interim period for 2 to 3 years.
I explained the benefits that buying new launch is better than resale properties
- New launch is more profitable than resale
- New launch buyers enjoy first mover advantage
- New launch is more affordable, smaller size
- New launch has better facilities and design
- New Launch are easier to rent out
- New launch has a lower monthly maintenance cost
I brought them to preview The Tre Ver, 3 bedroom, 1098sqft, at $1,740,000. and highlighted this project’s remarkable ID finishing, facilities and landscaping.
I also showed them other project to consider
- Garden Residences, 3bedroom+study 1001sqft, at $1,631,000
- Jadescape 3bedroom 1012 sqft at $1,749,694
Client, Alvin consider this option carefully, he like the new condo facilities and landscaping but finally decided against it because rental for 3 years might cost him $90,000 for a HDB 5i type flat.
Finally, I advised him to consider resale condominium since he is hesitant on new launch and find HDB overprice.
But I emphasized on certain pointers that he (buyer) should consider when selecting resale properties.
- Age of property – Older properties need more repairs and maintenance, usually older unit will have pipes and wiring that is very old and may not be enough to fit your needs, it may require more repairs work.
- Less remaining years – Older property have shorter balance shelf life , it will affect the value of the property if you do intend to resell it after a few years.
- Condition of the premises, facilities. Old condos usually have worn out facilities and usually smaller gyms, less function area, less landscaping. May not be as beautiful as the new condos
- Maintenance and sunken cost – Please note the maintenance costs is usually higher for older condos, Do check on the sunken funds too because the condo façade and facilities may need upgrading and it can cost a lot, and owners have to chip in to upgrade later.
We went through many areas because buyer do not know where to choose.
In Hougang – We showed Kovan Melody (2006), Kovan Residences (2011), Kovan Regency (2016). Client said the condos are little old for Kovan Melody, although it is the best location.
In Sengkang
We viewed – The Quartz (2010) , Esparina Residences (2014), The Luxurie (2015)
Near Potong Pasir area – 18 Woodsville (2015), Sant Ritz (2016), Sennett Residence (2016)
Lastly, I decided to show him some very new condos that has just TOP recently, just to re-emphasize my point that you should consider the age of resale condo
Bartley Residences (2016), Tre Residences (2018), Kingsford Waterbay (2018). All these condos are near to Hougang.
Out of all these, viewings , he selected Bartley Residence because it is relatively new, TOP in 2016, and good size for a 3bedroom, and most importantly, it has a side gate to Bartley MRT station that is just beside the condo.
I did a check on ownership with INLIS, as well as a bankruptcy check with Ministry of Law https://eservices.mlaw.gov.sg/io/
Having confirmed all the details, and with the cheque, I submitted an offer for this unit.
All these were done in a timeline to tie in with the move – out deadline set to all enbloc owners.
I suggested that they should consider another property to get passive rental income since they are able to finance it with their enbloc money. But client is conservative and prefer to keep money for retirement.
Thats how I help this client secured their replacement home after a few months of searching various houses.
If you need help to search for properties , do give me a call, I would like to help fulfill your needs and requirements of your new home.
Article contributed by Rick Fok
Rick Fok is a realtor with OrangeTee & Tie Pte Ltd. He has been in this real estate business for 10 years. He is very focus in helping his clients rent properties and he does help many customers to buy new projects according to their needs. His interest include sports such as running and soccer besides just real estate work. He loves to connect with people to discuss properties related issues and gets enormous satisfaction in helping them fulfill their needs.
If you have any queries on this topic or other , please do give Rick a call and he can meet you and discuss this over a cup of coffee.
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