Is buying 99yrs leasehold private condo a bad investment?

[Throttle2]

Good formula. Are you in the property industry?

 

 

me? no.

in cleaning services

[Throttle2]

thx mate, didnt see that you already helped me reply ultramega

[Marquee]

Not ordinary tables....but he wipes golden tables for higher mortals.

 

Nonetheless to TS, here is my personal view.

 

There is no good or bad investment; only good or bad decision. All decisions are good, otherwise one will not make that decision.

 

Do you intend to buy for own stay or do you want buy for investment such as rental yield / capital appreciation?

 

Different objectives will mean different criteria for selecting a property; be it leasing or FH / landed / non-landed. Ideally we all want to have both - own residency and capital appreciation; but those maybe found in D9, 10 and 11.

 

I am pretty sure some leasehold outside typical 9/10/11 may also have the same potential, however, those may not be your preference, such as distance relative to town, parent place, work place, mrt etc etc....

 

If one likes the place and has the intention to stay there for long, then just go ahead to buy one when the price is right. Otherwise, stay at Newton One in sub-600 sq ft apartment oso no shiok.

[Drive_carcar]

By the time you have on about 75 years left in the least, it'll be extremely hard to sell, because banks also don't like to finance.

 

If it's for staying for long term, it can't even be viewed as an investment. A proper investment should generate income. So unless you are renting out the unit, then maybe it might be an investment. And the whether it's a good one depends on its location and nearby amenities.

[Galantspeedz]

For my side it works like this,

 

1st thought is the place must be comfortable when we enter as we are gonna stay there

2nd would be the price

3rd what are the benefits of this house either for capital or yield appreciation.

 

If it meets all 3 criteria then to us the house is a good buy.

 

Thats why once we stay in a new house 6mths down the road we will start to househunt again and this will take 1yr or 2

[Throttle2]

Ok talk to you fellas later, taking a stroll to tanglin mall.

[Sgnick]

By the time you have on about 75 years left in the least, it'll be extremely hard to sell, because banks also don't like to finance.

 

If it's for staying for long term, it can't even be viewed as an investment. A proper investment should generate income. So unless you are renting out the unit, then maybe it might be an investment. And the whether it's a good one depends on its location and nearby amenities.

 

Thanks. So if i go ahead with my plan, i will be stuck with the property for good once it nears the 25 years mark, that is not good. Nobody in thew world wants to be stuck with a property that cannot sell.

 

I will be staying in the condo and is not for rental, but seems like if i buy LH, can only stay a few short years and then sell, to stay well clear of 24 years mark. Cannot be a home that my children grow up in liao, otherwise cannot sell end up becoming a home that I grow old and die in :(

Edited January 24, 2009 by Sgnick

[Kelpie]

for 99yrs leasehold..chances are, some developers will come in and en-block even before it his it's 50th year..if you buy when property prices are low, chances are, you can make a tidy sum during en-block..

 

It really depends on the plot ratio. Govt dictates how tall and how many units you can built within a plot of land. Some 99 leasehold have huge space that can be re-developed and pack more units hence the enbloc potential. If a small 99 leasehold development already has very high density, it will have very little enbloc potential. Having said that, 1300 sqft that is of reasonable size today, could be conisdered huge in 20~50 years later. So only time can tells.

 

Regards,

[Kelpie]

Thanks. So if i go ahead with my plan, i will be stuck with the property for good once it nears the 25 years mark, that is not good. Nobody in thew world wants to be stuck with a property that cannot sell.

 

I will be staying in the condo and is not for rental, but seems like if i buy LH, can only stay a few short years and then sell, to stay well clear of 24 years mark. Cannot be a home that my children grow up in liao, otherwise cannot sell end up becoming a home that I grow old and die in :(

 

IMHO, only buy 99 leasehold for speculative purpose but not for long stay. You want to live and die in, landed property is still a better choice. You can find one with huge garden and bury in there.

 

When a 99 leasehold aged, potential buyers would also be concerned on how to dispose it if they are in financial hardship. In addition, buyer will find it increasing difficult to obtain bank loan for old leasehold unit.

 

Regards,

[Drive_carcar]

I'm afraid so. Buying a 99 LH will eventually means you'll be stuck with the property. Unless the plot ratio of that development has room for growth, then maybe it can be enbloc someday far into the future.

 

I don't mean cannot buy and that you have to scrap your plans. Seeing the economy is bad, wait a bit more and shop for good bargains. You might even be able to afford FH somehow.

 

Remember for properties it's all about location, the view and floor height.

[Milgram]

IMHO, only buy 99 leasehold for speculative purpose but not for long stay. You want to live and die in, landed property is still a better choice. You can find one with huge garden and bury in there.

 

When a 99 leasehold aged, potential buyers would also be concerned on how to dispose it if they are in financial hardship. In addition, buyer will find it increasing difficult to obtain bank loan for old leasehold unit.

 

Regards,

 

I agree. If the purpose is to stay, then FH would be the better option. Buy LH only if you are going to use it for speculative/investment purposes. If one really wants to buy LH to stay, then stay can only be for a few years before one should sell it off to avoid making a loss. My personal opinion - if one wants to buy a 99-year LH condo to stay, one would be better off staying in a 99-year LH HDB....the new DBSS HDB flats (built by private developers) these days are just like condos, minus the frills...

[Tkseah]

IMHO, only buy 99 leasehold for speculative purpose but not for long stay. You want to live and die in, landed property is still a better choice. You can find one with huge garden and bury in there.

 

sidetrack a bit... r we allowed to bury pple in our own property backyard?? need to apply special license or not..

 

[Iziz]

Legally or illegally?

 

[Tkseah]

Legally or illegally?

 

legally lah.. illegally no need to ask liao..

[Iziz]

Kekekeke, ur qn too inducing...

 

 

[Watwheels]

Looking at the resale market, and considering buying condo that is 8-9 years old this year. Is for staying and not renting.

 

Is this a bad investment? Some people tell me never buy 99 years condo. Say next time cannot sell. Is this true?

 

Let's say i buy a 9 years old condo $600K, and stay for 15 years. It will be 24 years old by then.

 

Can it be sold then or too old to sell? What about the value? Will it drop significantly because it's so old and leasehold? How significant a drop, 1/2 price, 1/4 price? What if there's a property boom then, possible for it to retain it's value?

 

I see a lot of TOP dates of the 99 year lease started quite some time already, so by the time you move in stay a couple of years and dan wanna sell it will worth little.

 

Depending on what your plans are. If you plan to invest, dun buy 99yrs. If you plan to stay there for good, sure buy it. But sgporeans all very kiasu one, all want freehold cos in actual fact it's more worthwhile.

 

[Yoongf]

legally lah.. illegally no need to ask liao..

 

Need to check on the URA Masterplan 2008.

 

http://www.ura.gov.sg/mp08/map.jsf?goToRegion=SIN

 

http://www.ura.gov.sg/MP2008/ims/legend.html

 

If property not zoned for Cemetery use, then need to apply to URA for Change of Use.

Need to engage architect to submit Outline Planning Permission for Change of Use.

 

 

 

 

[dinotune]

Sorry to tag on condo thread for my question related to leasehold landed. I wished to start a new thread but couldn't as I'm new here.

 

I recently got an offer for a single-storey leasehold landed property at a price of $300k. But the remaining lease is only 25 years. The historical market price for similar property I found online (sometime Oct 2014) was about $550k. Only thing is I have to pay cash.

 

2 scenarios that run through my mind:

 

a) $300k for 25 year. Say I fork out $25k to touch up, total is $325k. That work out to be only $1.1k per month, which is even cheaper than renting a whole unit either HDB or condo. That seems not bad.

 

b) For $300k, I can pay 20% downpayment for a $950k private condo and after legal fees, stamping fees etc still have maybe $10-20k left.

 

However, I was made to know leasehold once expired the government will take back without compensation and the owner (become tenant then) will have to find alternative premise at own accord.

 

Honestly, I skew towards landed, hence my question really.

 

My friends from Malaysia got to stay in landed for much cheaper cost but they have to bear with dilemma that some day after their groceries shopping they find a stranger sitting in the kitchen waiting for them, or even at night when wanted to take a drink from kitchen and switch on the light only to find a stranger there. So I thought if one wants to stay in landed, Singapore is the place to be.

 

I like to ask folks here that would you even bother to put in your time to consider this offer because it has so little life left that makes it so unattractive? Would it be a waste of money in such a case?

 

Welcome your thoughts and comments.

 

Thank you!

 

 

Regards,

Dino