Singapore - Housing 01 (May 08 - Oct 08)

[kennynah]

i just love the very diversified and conflicting views...offered by different sources...

[LenaHuat]

Last week, received from IRAS, revised property tax assessments.
Mid-year, alamak they revised taxes upwards.
So the property market is not that bad...........
Do not be misled by lower transacted prices for some condos, especially those sold by big developers. They are lower because these are less choice units. At the end of the day, trust your legwork and homework.

[kennynah]

if u guys know where Lark stays... you will know those are new flats (4-5rooms) situated next to commonwealth mrt... every time i pass by during the early evenings, i can see that those new flats have not been fully taken up. it appears to be as much as 40% unoccupied. these flats have been ready for occupancy since 3Q 2007...it's been some 9 months.

i was told their 4 room cost $290K, which is not considered expensive, given it's location.

[LenaHuat]

K - Yes, I recalled Lark mentioned abt these flats in the other forum. My mole tells me that's because they have been set aside for the minority ethnic groups and very few of them can afford the prices.

[kennynah]

ah i c..... that could explain....the consistent black patches on the block when seen at night... many of those occupied are "enbloc"ed families from the neighbouring flats.... else, probably even more unoccupied units...

this location very good man...

[LenaHuat]

Yes, good location. If one can rent the flat out at, say S$3000, that's a 12% return
Mdm Lark can rent her flat out and stay with her son.

[kennynah]

wah.....4 room rent out for $3K... this is the current rate? u think? i thought maybe a bit steep....granted, it's a new flat, next to mrt, barber shop, seng siong, long john silvers, toto shop, 4d shop, bus stop, wet market, primary school, otah seller, bread-talk wana-be, NPP, clinics, mosque, church, temple, etc...

[LenaHuat]

Too steep ah?? If rental is S$2,000, it is still a good 8% return instead of 12%.
In other words, it's between 8% to 12%. That's a fantastic return for properties.

[HengHeng]

i think market rate only around 2k nia , coz tiong bahru which is even near to the city area can only fetch 2.2k nia.

But for HBD i think there are many rules and regulations . I think to do with tax and regulations.

[kennynah]

Too steep ah?? If rental is S$2,000, it is still a good 8% return instead of 12%.
In other words, it's between 8% to 12%. That's a fantastic return for properties.

this one i agree....provided good tenants, then it's almost risk free yields... personally benefiting some 13% gross yield (must pay taxes higher property taxes you know) from such arrangements... and i think rental market should remain strong becos of high influx of foreigners, many of whom either have no intentions to purchase properties or cannot afford one in their earlier stages of worklife here. and rental yields are like bonds, lower housing prices = higher rental yields.