Property rental preferences

Discuss about where to live, renting a property, tenancy issues, property trend and property investment in Singapore.
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behyx
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Property rental preferences

Post by behyx » Thu, 18 Oct 2012 11:38 am

Hi everyone!

I'm a true blue Singaporean with the intention of buying a condominium either at the Seletar/Yio Chu Kang OR Punggol area for rental income. It would be a small studio apartment about 300 sq ft or so, with full condo facilities of course!

As I couldn't make up my mind which to buy, I've decided to ask around here to see what are your thoughts.

Scenario 1 : If you are posted to Singapore to work and you bring your family along, can I say that 90% of the chance you will get a car? And would prefer to stay at somewhere more peaceful (could be further away from amenities such as large malls and MRT) because you can drive out to get groceries?

Scenario 2 : If you're a single posted to Singapore, would you get a car to drive to work every morning? Yes I know our cars are expensive, but let's say you have slightly above average disposable income. Or would you prefer to stay near MRT and amenities, and just take bus/MRT to work every morning?

It'd be great to hear your thoughts before I sink my hard-earned money into properties :)

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Re: Some questions for property rental preferences..

Post by the lynx » Thu, 18 Oct 2012 11:55 am

behyx wrote:Hi everyone!

I'm a true blue Singaporean with the intention of buying a condominium either at the Seletar/Yio Chu Kang OR Punggol area for rental income. It would be a small studio apartment about 300 sq ft or so, with full condo facilities of course!

As I couldn't make up my mind which to buy, I've decided to ask around here to see what are your thoughts.

Scenario 1 : If you are posted to Singapore to work and you bring your family along, can I say that 90% of the chance you will get a car? And would prefer to stay at somewhere more peaceful (could be further away from amenities such as large malls and MRT) because you can drive out to get groceries?

If we have young children that require constant care and the thought of lugging strollers around and folding them in one arm (while handling the said children with the other arm) each time we get into bus or taxi scares us, then yes to the car, especially if the company is paying for that.

Otherwise, no. We don't think sinking our hard-earned money into ridiculously priced cars is a good idea either :P Public transport system in Singapore is good enough and taxis are affordable if occasionally.


Scenario 2 : If you're a single posted to Singapore, would you get a car to drive to work every morning? Yes I know our cars are expensive, but let's say you have slightly above average disposable income. Or would you prefer to stay near MRT and amenities, and just take bus/MRT to work every morning?

Ah this is more like my situation. Answer: Even a bigger no, unless paid by company (like my case). I would still want to stay close to amenities, even if I have the car because hunting for car park is always a headache so I would want to make a quick run to run my errands instead spending twice the amount of time driving out the car, driving a loop around my destination and then driving up and down and about to look for a spot before I could actually run an actual errand.

Like I said, public transport system is decent enough to turn off the appeal of a car.


It'd be great to hear your thoughts before I sink my hard-earned money into properties :)
My advice, get the ones closest to the amenities. The majority of the expats here are actually prudent when it comes to spending. It doesn't mean just because we earn a little bit more on disposable income, we will opt to trash all that out on something not proportional to the actual value (big hint: car).

Plus it is easier for you to find tenants for your rental income.

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Post by zzm9980 » Thu, 18 Oct 2012 12:34 pm

Honestly I don't see most expats that are interested in a studio living out in those areas. Studios would rent well in River Valley, CBD, or the Quays.

If I was looking to rent with a family, I wouldn't take a studio anywhere.

I would say though the average expat family choosing to live in that area probably would get a car. I would also assume they chose that area for quiet and to have more space/greenery, not to live on top of an MRT.

Those are just my assumptions of course.

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Post by behyx » Thu, 18 Oct 2012 2:22 pm

Thanks for the inputs! :)

Ok if I have this scenario..

Let's say I have a fully furnished studio in a condominium for rent in Punggol, I set the price at S$1200 excluding utilities. You can enjoy full condo facilities like gym, pools, tennis court, etc.. It's about 15mins walk away from MRT and a huge mall; but just 2 bus stops away. Bus stop is just outside the condominium.

On the other hand, the average price of renting an ensuite room in a HDB flat is about S$700 excluding utilities. Location is about the same, either by bus or LRT to the MRT and mall. Your landlord might be staying in the same house, or other rooms might be rented out too. Perhaps a shared living and kitchen.

Assuming both studio and HDB room are the same size. Which would you choose?

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Re: Some questions for property rental preferences..

Post by taxico » Thu, 18 Oct 2012 2:27 pm

behyx wrote:I'm a true blue Singaporean with the intention of buying a condominium either at the Seletar/Yio Chu Kang OR Punggol area for rental income. It would be a small studio apartment about 300 sq ft or so, with full condo facilities of course!

As I couldn't make up my mind which to buy, I've decided to ask around here...

It'd be great to hear your thoughts before I sink my hard-earned money into properties :)
300 sq feet is too small for a place in YCK/Seletar/Punggol/Sengkang.

having said that, there's demand for rental homes/rooms every where in singapore - it just comes down to "HOW MUCH?" (and LOCATION, but that's another story).

if it's competitively priced, you'll get tenants even if it's far away from the city. therefore, you need to do your home work with your banker to make sure you can service the loan with realistic rental figures in mind.

also note that it's not uncommon for rental property to stay vacant for a month or two or (god forbid) sometimes even longer when you're in-between tenants. being a landlord is sometimes worse than a full time job.

if you can't afford it (mentally and monetarily), then don't do it for the sake of trying to hop on the i-should-buy-an-apartment-for-rental-"income" bandwagon.

loans are easy to get now, but i think you (like many many singaporeans furiously buying property now) have never experienced the call from the bank telling you that your property has just been revalued and... DOT DOT DOT.

of course, if you have no need to service a loan, that's a different ball game. but again; 300 sq feet is too small for a place in YCK/Seletar/Punggol/Sengkang. i would probably use it as a down payment for a bigger property. preferably else where.

and, have you visited a real 300 sq feet "apartment" before? (not show flat) i've lived in one before as a bachelor and there was not much space for anything.

at that time i lead a very spartan life (my furniture was mostly made out of pizza boxes) and i was always not at home yet i still found it small.

god forbid if a friend or TWO wanted to come over... (and that's not because of my pizza box coffee table, DIY 2x4" shelves and blue-tacked movie posters that i now cringe at the thought of)

take care of your money, not the other way round.

just my 2c.

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Post by JR8 » Thu, 18 Oct 2012 10:04 pm

Scenario 1: you're suggesting a family live in a 300ft studio?

No, I must have misunderstood that.

More to the point what would your rent less expenses be as a percentage of your monthly mortgage?

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Post by offshoreoildude » Thu, 18 Oct 2012 10:18 pm

Firstly I despire the term ' True Blue Singaporean'. It's theft of the Aussie monicker ;)

I don't see any demand so far out. You're just trying to talk yourself into a buying a shoebox. IF you don't have the cash for something with a better yield - join up with friends and family and buy something bigger and more central.
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Post by JR8 » Thu, 18 Oct 2012 11:00 pm

offshoreoildude wrote:Firstly I despire the term ' True Blue Singaporean'. It's theft of the Aussie monicker ;)

You're being ironic I imagine, seeing as it is a British expression.

:wink:

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Post by cw1483 » Fri, 19 Oct 2012 2:51 pm

Funny, when I read it, I thought it was from the true-blue American expression.

To answer OP's question, as a newbie to Singapore, I would not consider car ownership seeing how transportation here is so much more efficient than back home. (In my office, of the 10 expats I know, only 1 has a car and the guy has 4 kids and 2 dogs, so maybe that's why). With family, I wouldn't consider living in such a small place of 300 sq ft. If single, I wouldn't consider living so far from CBD. Of all the young single folks at my office that are expats, they are literally living 1-2 MRT stops away from CBD. With their above average income, those young-ins just takes trips vacation travel in lieu of spending the expense on a car.

If your target renter are expats, then do look around that area to see if the expats you are targeting.

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Post by x9200 » Fri, 19 Oct 2012 4:26 pm

Generally IMHO it is bad to very bad idea to have a 300sqf condo in the wild targeting at the expats.
1) it is no go for any family
2) it is not attractive for younger folks as such areas are practically pub / inn free.

Expats living in remote condos are typically those who work in that part of the island> Less, because they could not afford any better location.

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Post by offshoreoildude » Fri, 19 Oct 2012 5:13 pm

Well the OP is really just trying to talk herself into buying a shoebox. Don't do it! There will be a property bubble pop at some point and those sorts of projects will crater first.
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Post by therat » Fri, 19 Oct 2012 10:01 pm

TS, did you physically see how big is 300 sq ft?

Even with 450 sq ft, I already feel is too small.

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Post by behyx » Fri, 19 Oct 2012 10:20 pm

Hi all!

Thanks very very much for the insights! :)

Ok I actually planned to get a dual-key unit at a newly launched executive condominium, stay in the larger unit and rent the smaller (studio) unit. Thus we have our own privacy.

It is really about 250-300 sq ft as seen from the floor plan :

Image

However due to over-subscription, the developer had to do a balloting session today. Unfortunately, we are unable to secure a dual key unit before our ballot number is called. There were only 15 such units, very popular.

Well, I guess it's a good thing I didn't secure a unit because it seemed really hard to lease out the 300sq ft studio.

Well plan B, we are planning to get a smaller 2 or 3 bedroom executive condominium for our own stay at the Seletar/Yio Chu Kang area. As for investment, probably in the future... Hopefully we can be successful in the ballot system this time round.

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Post by JR8 » Fri, 19 Oct 2012 10:26 pm

behyx wrote: Well, I guess it's a good thing I didn't secure a unit because it seemed really hard to lease out the 300sq ft studio.
And the careful research that you had done beforehand had suggested otherwise?

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Post by taxico » Sat, 20 Oct 2012 11:36 pm

behyx wrote:Ok I actually planned to get a dual-key unit at a newly launched executive condominium, stay in the larger unit and rent the smaller (studio) unit. Thus we have our own privacy.

It is really about 250-300 sq ft as seen from the floor plan...

...Well, I guess it's a good thing I didn't secure a unit because it seemed really hard to lease out the 300sq ft studio.

Well plan B, we are planning to get a smaller 2 or 3 bedroom executive condominium for our own stay at the Seletar/Yio Chu Kang area.

As for investment, probably in the future...

Hopefully we can be successful in the ballot system this time round.
please don't let show flats and brochures blind you from the fact that new apartments these days have a lot of dead/unusable space factored into the floor area.

do you know what dual key units are for? they were not designed for what you have/had in mind. i don't know why singaporeans go crazy over something new and fresh - always.

i'd hate to be living next to my mother in law... yuck. i'd also not like living beside my tenant.

the "best" EC in that area is nuovo (old EC) due to its proximity to the train station. noisy though, but that's what living near the station is like i think.

don't be upset even if you don't manage to secure a place right now. there's no shame or harm in renting for a year or two.

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