montview

Not All Condos Are Equal: Old or New Properties?

In 2007, I had 2 buyers who came to me wanting to buy properties.

The first buyer, against my advice, bought an older condo at Holland Peak for $2.36m. It was built in 1994. He was attracted to the space of the 1819sf 4BR condo. It was then rented out at $4.5k.

He got tired of the low yield and subsequently in 2011, he sold it at a loss for $2.2m.

In the same year that the first buyer bought Holland Peak, the 2nd buyer took up my advice to buy the brand new about-to-TOP 4BR unit at Montview. He paid $2m for the 1744sf sub-sale unit. Upon T.O.P. not long after, the market rent was $6.5k. His family chose to stay there till 2011. It was then sold at $2.6m, making a tidy profit.

Both Holland Peak and Montview are FH properties. Both are in District 10. The former was built in 1994 and the latter 2008. Both ended up differently in terms of rental yields and capital gains.

What is the moral of the story? It is usually wiser to buy newer condos even if they are smaller and usually more expensive $psf.

It is not wrong to buy an older condo for own stay, if space is a must-have for you. But if you are looking at higher rental yields and potential capital gains, then opt for new condo.

Many buyers buy with a mindset of what they want and like instead of looking further ahead. They think they will stay there or keep the property forever with no intention of selling in future. The focus is on the entry point and forget about the exit strategy. That’s why many have regrets about their purchase years down the road.

There are many, many considerations when buying a property, be it for own stay or investment. Do contact me for a non-obligatory discussion to help you with making the right choice. 

danny han pwp

Danny Han has always been in the people’s business, having spent 23 years as a church pastor, five years as an insurance agent, and the last 16 years as a property consultant.

 

Danny has a genuine interest in people and firmly believes in personal integrity. While helping homeowners with their property needs, their interest always takes precedence over his personal gains. Hence, Danny has consistently earned his clients’ complete trust and loyalty. Many of them have become his personal friends.

 

Danny received his Diploma in Mechanical Engineering from Singapore Polytechnics and Bachelor of Science from Oklahoma Christian University of Science and Arts in Bible & Psychology.

 

Besides keeping abreast of the property market trend and constantly equipping himself to better serve his clients, Danny is a passionate foodie, a weekend cyclist, and an avid hiker. 

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