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How to Spot Undervalued and Profitable Properties in Singapore: A Guide for Savvy Investors

How to Spot Undervalued and Profitable Properties in Singapore: A Guide for Savvy Investors As one of the world’s leading financial hubs, Singapore is a highly attractive destination for property investors. Whether you’re a first-time homebuyer, a seasoned investor, or simply looking to add to your investment portfolio, there are tremendous opportunities in the Singapore property market waiting to be discovered. Singapore’s property market has been on the rise over the years, with many families and property investors searching for ways to invest in the property market. However, finding properties that offer long-term growth potential and value can be tricky, especially if you don’t know what to look for. In this article, we’ll be sharing with you the properties that have the potential to incur financial losses. These real-life examples are currently happening in the real estate market. Do take note of which properties could be detrimental to your investment and learn from these valuable lessons. 1. Compare Entry Price And Land Breakeven Price When looking for undervalued and profitable properties in Singapore, doing your homework is essential. This means researching the developer and the land breakeven price of the project you’re interested in. Investing in a project within the Central Core Region (CCR) doesn’t guarantee immediate or substantial profits. Let’s explore the Eon Shenton project, a renowned CCR development offering breathtaking sea views and a premium lifestyle. Situated in Tanjong Pagar, at the heart of CBD, this property was expected to have high rental demand and profitability. However, the arrival of the Covid-19 pandemic shortly after its completion greatly impacted rental demand, leading to a significant decline. So, what caused this predicament for property owners? Many owners purchased the property at a peak price without realizing it would decline in the future. As an investor, it’s natural to be enticed by the show flat setup. However, it’s crucial to refer to the developers’ breakeven prices to assess the project’s investment safety. Let’s compare it with Stirling Residences, for example. The breakeven prices of the land versus the entry price of the project are quite close, explaining why data suggests that 100% of Stirling Residences owners are making profits, while Eon Shenton has 93% of owners experiencing losses. 2. Type of Units Available & Size of Development Understanding the different types of property units and their impact on investment profitability is crucial. Let’s take The Parc Condominium as an example. This development offers a diverse range of units, from 1-bedders to 5-bedders, ensuring all owners have the opportunity to profit. As each seller aims for higher prices, the resale volume of a larger development like Parc Condo naturally increases, influencing the resale price. Imagine purchasing a 2-bedder during the launch at $1192 per square foot and later reselling it at $1582 per square foot. This sets a benchmark for future prices, creating a ripple effect that relies on sufficient volume to boost sale prices. On the other hand, let’s consider Viva Vista, a smaller-scale development consisting only of 1 and 2-bedders. This limited unit variety not only restricts owners from experiencing significant gains due to smaller floor sizes but also exposes them to potential losses. Considering these factors, Viva Vista may not be an ideal project to consider due to the relatively higher risk involved. 3. Regulatory Landscape in Singapore Singapore boasts a robust regulatory environment, ensuring stability and predictability for property investors. Staying informed about regulatory changes that may impact property investments is crucial. For example, alterations to Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD) can influence demand and potentially lead to price fluctuations. It’s also important for investors to stay updated on any regulatory shifts that could affect the Singapore property market. Recently, the government implemented cooling measures like higher stamp duty for foreign buyers and policies limiting additional property purchases for Singaporean citizens. By staying aware of these changes, you can adapt your investment strategies to maximize returns in uncertain times. Invest wisely, and seize opportunities in Singapore’s dynamic property market! To ensure a well-informed property purchase decision, it is crucial to consider three key factors: unit type variety, larger development scale, and a safe entry price. These factors help unlock the true value of your property and protect against making a wrong purchase. Armed with these valuable tips, take action today and make a smart move towards one of the greatest investments in your lifetime! Feel free to reach out to me on WhatsApp for a personalized consultation on your property investments. With assistance from this trusty article, may this be one of greatest investments in your lifetime!

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Understanding Rental Yield in Singapore’s Property Market Is Crucial For Your Child’s Future

Understanding Rental Yield in Singapore’s Property Market Is Crucial For Your Child’s Future As parents, we are constantly seeking opportunities to secure a bright future for our children. In this dynamic city-state of Singapore, real estate remains one of the most tangible and promising avenues to ensure this security. However, with numerous property options and the intricacies of the market, making the right choice can be challenging. For many parents considering property investment as a means of asset progression, understanding rental yield is paramount. Singapore’s strategic location, robust economy, and diverse cosmopolitan vibe make it an ideal destination for property investment. While it may be tempting to dive into the world of real estate headfirst, it is crucial to grasp the fundamentals. Rental yield, in particular, is a crucial measure that offers parents insights into the potential returns they can expect from their investment. Rental Yield: Explained Rental yield serves as a financial indicator that evaluates the return on investment (ROI) of an income-producing property. Expressed as a percentage, it reflects the annual rental income earned from the property relative to its purchase price or market value. To calculate rental yield, divide the annual rental income by the property’s value, and then multiply by 100 to obtain the percentage. For instance, if a property generates $20,000 in annual rental income with a value of $400,000, the rental yield would be 5% ($20,000 / $400,000 x 100). Understanding rental yield allows investors to gauge the profitability of an income property, providing valuable insights for decision-making and financial planning. Isn’t that what we want?? Insurance and safety for our financial future?? In a volatile property market like Singapore, which is influenced by global economic forces and local government policies, the primary emphasis lies on stability and yield safety. The utmost objective is to identify properties in areas renowned for historically stable or consistently rising rental yields, giving priority to this guarantee above all else. This assurance holds particular significance for parents with long-term financial obligations, such as their children’s education. Rental yield is crucial for property investors for several reasons. Let me break it down for you: Investment Comparison: Rental yield helps investors compare the potential returns of different investment properties. It allows them to evaluate which properties are likely to generate higher rental income relative to their cost. Cash Flow Analysis: Now, here’s where it gets interesting. Rental yield plays a key role in determining the cash flow potential of an investment property. A higher rental yield means the property has the potential to generate more positive cash flow. And you know what that means? It helps cover all those expenses like mortgage payments, property taxes, maintenance costs, and other operating expenses. Risk Assessment: Now, let’s talk about risk. Rental yield can give you an idea of the risk associated with an investment property. Generally, higher yields suggest higher-risk properties, while lower yields indicate lower-risk properties. So, when you see those higher-yielding properties, keep in mind they may have higher vacancy rates, require more maintenance, or be located in less desirable areas. On the other hand, lower-yielding properties tend to be more stable with lower vacancy rates.Property Valuation: Now, here’s something interesting. Rental yield can actually influence the valuation of an investment property. When buyers and sellers are determining the fair market value of a property, they often consider rental yield. A higher rental yield can increase the value of a property, while a lower rental yield may decrease its value.Return on Investment: Last but not least, rental yield helps investors assess the potential return on their investment. By comparing the rental yield to other investment opportunities or their desired return, investors can determine whether the property is likely to meet their financial goals.Remember, while rental yield is an important metric, it’s crucial to consider other factors like location, market conditions, property appreciation potential, financing costs, and tax implications when making investment decisions. So always use rental yield in conjunction with other financial and market analysis tools to evaluate the viability of an investment property. Net Rental Yield Calculation Seems Confusing? Calculating net rental yield can be a complex task. While there are reliable methods to determine the potential rental yield for a project, it remains a topic of debate among seasoned investors, each with their own sophisticated calculation approach. For simplicity, let’s focus on the basic method of calculating net rental yield. Understanding this is crucial before investing in a Singapore property. To calculate rental yield, there are a few essential steps to follow. First, determine the probable rental income by consulting reliable sources such as 99.co, Edgeprop, SRX, and the URA website. It’s important to avoid solely relying on advertisements received in the mailbox as they may not provide a comprehensive assessment. Another crucial consideration is to track the rental trend rather than relying on a single highest transaction to estimate rental amounts. By doing so, you can ensure a more objective and accurate assessment. Also, consider the condition of the property and any potential renovation or maintenance costs in the long term. Ask yourself questions like when the last renovation was done (for resale properties), the wear and tear of the unit, and whether it will be rented out furnished or unfurnished. If the unit is already tenanted, evaluate the rental amount against the current market conditions. Additionally, consider the rental expiry date and forecast the market trend to assess its sustainability. Let’s take an example: if you’re interested in purchasing a three-bedroom condominium at Parkwood for $1,450,000, start by checking nearby transactions to determine the average rental rate (estimated at $4,500 per month). As Parkwood is a brand new TOP project, there is no immediate need for renovation, and the warranty for appliances is still valid, allowing flexibility in offering fully furnished or partially furnished options. Next, calculate the gross rental income (income before deducting expenses) for a 12-month period. If the monthly rental income is $4,500, the annual gross rental income would be $54,000. To

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Why Buying An EC Could Be Your Best Investment

Why Buying An EC Could Be Your Best Investment Perhaps you might recall the analogy stated by then National Development Minister Khaw Boon Wan in 2013; likening “buying Lexus cars at the price of a Toyota Corolla”. The gist of this saying was attesting to Singaporeans have the privileges to buy an EC at a lower entry price; and in due course, the prices will go above the level of a Lexus, ensuring continuity.So does this analogy actually applies in the current 2022 Property Market? Is buying an EC a well thought out and lucrative choice? The following reasons might help shed some light and bring clarity in your EC buying decisions. Greater Potential for Appreciation It’s no surprise that many Singaporeans believe that owning a property is a key to success; a vehicle to generate wealth. After all, on this tiny island city state nation, land is always premium; a precious commodity. Furthermore, Singapore’s status as an international business hub along with stable Government policies have boosted the growth in property prices. This explains why there’s always a focus on the appreciation of both ECs and condos alike, as a benchmark on how lucrative a property is. From the ERA Research team, the average percentage appreciation gain of ECs launched in the 2013 to 2015 timeframe has experienced a whooping 23-45%! Source: ERA Research As of the Price List dated 20 Jan 2021, in a sheer span of 9 months, the price of a 1206 sqft Parc Central Residences home has increased by $96,000 (or 6.8% growth). 29 months after launch day in July 2019, the price has shot up to $1,300 PSF in Dec 2021, which translates to an increase of $199,200 or 16% growth! Source: ERA Research Investment Opportunities For one to purchase an EC, it does require some eligibility requirements to be met – we’ll cover that in the upcoming blog. As such, with the restrictions of ownership for Singaporeans and Singaporean households only, it does point to lower entry price. In fact, purchasing an EC directly from the developers in the earlier phases does give you immediate price point advantages! After 5 years and meeting the MOP requirement, it becomes semi-restricted ownership at slightly below market price. And a further 5 more years essentially equates to your EC property becoming privatised with no restrictions for purchasing, and duh, selling at a sexy price to recoup all of your profits! In terms of price gap between Condos and ECs, the gap is the largest at launch; and the price gap starts to narrow when the EC is past the MOP and then after privatisation. This isn’t to say that you’re on the losing end when your EC becomes privatised; buying an EC at launch just makes the deal even so much sweeter! What are some investment options for EC investors? Overall, in the grand scheme of things, you can’t go wrong with buying an EC. There will also be a demand for resale ECs in the future as living in homes with balconies and condo-like facilities becomes the norm. EC has always been regarded as a stepping stone for Asset Progression and Wealth Creation. You can opt to sell your EC and buy 2 condos, or keep your current EC and buy another condo. Another option will be part purchase or decouple which applies for couples; one party would keep the EC, while the other party buys a condo. If you are at a crossroad or not so sure about your finances, reach out to us for a free planning consultation! For more updates on the Singapore Private Property market, follow us on Live A Home SG for in-depth reviews of ECs, new and resale condos, the whole spectrum!

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Upcoming Property Tax Hike: Here’s What You Need To Know

Upcoming Property Tax Hike: Here’s What You Need To Know Should we be concerned about the impending property tax hike for residential properties? This sounds too surreal when the latest Singapore Budget 2002 talk announced higher tax rates for high end housing in two stages over 2023 and 2024. On 1st January 2023, for owner-occupied residential properties, the property tax rates for the portion of Annual Value (AV) in excess of $30k will be increased from the current 4% to 16% to 5% to 23%. One year later on 1st January 2024, they will be raised from 6% to 32%. The AV of a property is the estimated annual rent of the property; if it were to be rented out. The property tax rates for non-owner-occupied properties will be raised from the current rate of 10% to 20% to 11% to 27% starting in 2023, 12% to 36% thereafter on 1st January 2024. Against the price hikes and heightened inflationary pressures, the double whammy of introducing property tax hikes doesn’t sit well with most Singaporeans. Should this be something to be concerned about? Read on to find out more. Here’s a glimpse of some good news Ironically, the increase in the property tax seems to be over inflated, it actually would not be have a significant impact on the housing demand. This somewhat counter-intuitive on the back of the cooling measures and the push from the Singapore government to soften the property market. Here’s why. 1) The government didn’t introduce a new wealth tax Singapore government didn’t introduce a new type of wealth tax despite the anticipation from Singaporeans. If there’s a new type of wealth tax that’s linked to the individual’s ownership of real estate on top of the existing property tax, it would certainly increase the tax burden for homeowners. Needless to say, it would most likely curb and dampen real estate investment demand in Singapore, which isn’t good news for Singapore making a recovery post-pandemic. 2) Properties with higher Annual Value will feel the brunt The bulk of the increase of property tax will fall onto the more expensive properties with higher Annual Value (AV); which essentially makes up a smaller proportion of real estate stock in Singapore. Only about 7% of owner-occupied properties will be affected by the higher tax rates. These higher end properties are located in the Core Central Region (CCR) of Singapore are typically owned by the wealthy where the majority of them could afford the increase in property tax in the first place. The incremental amount of property tax isn’t as significant as compared to the increase in capital appreciation of these luxury properties. And of course the bragging rights associated with the ownership of such properties! 3) Property tax hike will not deter real estate investors The distinctive increase in the property tax rates for non-owner-occupied residential properties (eg. investment properties) isn’t large enough to deter investors from taking action. There are certainly bigger financial hurdles such as Additional Buyer’s Stamp Duty (ABSD) and the Total Debt Servicing Ratio (TDSR) that may sway investors from buying investment properties. In addition, other expenses incurred by property investors such as maintenance fees and commissions paid out to property agents to rent out the properties, would most likely outweigh the increase in property tax. In the grand scheme of things, ifproperty investors are willing to fork out the expenses and tax associated with investing in real estate, the incremental property taxes would also be something generally acceptable. It wouldn’t be the straw that breaks the camel’s back. 4) Strong culture of home ownership in Singapore The increase in property tax for owner-occupied homes won’t change the strong culture of home ownership in Singapore. Despite some homeowners needing to pay incremental sums ranging from tens of dollars to more than a thousand dollars in property tax annually, this wouldn’t discourage many from owning their homes. The Ministry of Finance has claimed that 93% of owner-occupied properties will not be affected by the higher property tax rates. These will include HDB flats, most condominiums, apartments and low-value landed property. Hence, the new tax rates wouldn’t affect the property prices. The not so good news In the longer term, the higher property tax rates are most likely here to stay. It is highly unlikely that the government will lower the property tax rates after raising them, as that might send the wrong message. The government could adjust the property tax for individual residential property by adjusting the annual value (AV) of the property. Therefore, the higher tax rate is only half the entire story about the property tax payable in the future. Currently, only 7% of owner-occupied homes will be affected by the higher tax rates. But this number could rise over time. In actuality, the higher property tax would potentially reduce the net rental yield for residential properties. As a result, investors would rely even more on capital appreciation when they invest in real estate. In order to capitalize on the price appreciation, investors would have to time the market to trade real estate. Ironically, the frequent trading of properties and speculation is what the government discourages with the various rounds of market cooling measures. The Takeaway The higher property tax rates will not discourage a large majority of people from buying residential properties – either for their own stay or for investment. The property tax hike is not a property cooling measure, rather, it’s another way for the government to fill its coffers. The government estimated that the increase in property tax rates could raise an additional $380 million in tax revenue each year. The objective of the new tax rates is to draw more milk from the cow, but not to kill to cow. For more updates on the ever changing Singapore Real Estate landscape, follow us on Live A Home SG for in-depth reviews and discussions of property news, new and resale properties alike, to help you make an informed decision on your property matters.

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Singapore’s Changing Financial Landscape: Mastering the Art of Risk Assessment Management

Singapore’s Changing Financial Landscape: Mastering the Art of Risk Assessment Management There’s no denying it, folks, we Singaporeans are certainly feeling the sizzle. With rising interest rates, soaring GST, and cooling measures being introduced, our financial climate is undeniably heating up. The real estate market and homeowners, in particular, may be left feeling particularly toasty. This is why it’s more crucial than ever to stay plugged into the latest updates about interest rate shifts and their potential impact. Plus, working hand-in-hand with finance experts to manage your budget and debt is a prudent move. But, here’s the kicker: amidst these financial swings, having a detailed Risk Assessment Management (RAM) strategy can be your knight in shining armour. Not only does it help you map out your affordability, but the RAM is your guiding compass, leading you to the most optimal path – be it HDB, private property, or new launches – highly tailored to your unique needs. Snippets of The RAM To Break Down The Affordability Of Each Individual By Showcasing The TDSR & MSR Unlock the Power of Risk Assessment Management (RAM) Let’s deep dive into some of the salient advantages of RAM, and why it’s a must-have in your financial toolkit: MAS Compliant Financial Assessment: RAM allows you to gauge how much you can loan based on Monetary Authority of Singapore’s (MAS) rulings for Mortgage Servicing Ratio (MSR) and Total Debt Servicing Ratio (TDSR). You’ll be clear about your estimated borrowing power before taking the property plunge. Consolidated Funding Overview: It helps you take stock of your total funding, and assess if liquidating investments for property is a feasible option for you. Bird’s Eye View of Options: RAM gives you a panoramic snapshot of various property choices, whether it’s resale HDB, condo, new launches, and the financial commitments for each type. Preparedness for Rising Interest Rates: With RAM, you can plan ahead for fluctuating interest rates. You’ll be mentally prepped if the rates ascend, ensuring no unpleasant surprises. Rental Revenue Consideration: RAM takes into account rental revenue, enabling a clear understanding of your monthly mortgage payment and assessing if it’s a comfortable setting for you. Emergency Funding Plan: And the cherry on top, RAM’s most powerful benefit is its ability to plan for emergency funding. Perfect for those aspiring to become entrepreneurs or those seeking a safety net should they lose their job. This offers a sense of security, knowing you don’t exhaust all your resources into a single property, while still capitalising on the market. It’s all about finding that sweet spot – acquiring a good property while maintaining a safety net. So there you have it! The financial landscape may be evolving, but with Risk Assessment Management, you can not only weather the storm but also find opportunities amidst the challenges. Let’s embrace RAM and stride confidently into the future of property ownership. Am I Ready to Buy Or Invest in Property Right Now? There’s no time like the present. The property market isn’t waiting, and neither should you. Now is the time to equip yourself with a tool that gives you the edge, a tool that helps you navigate through this maze of financial decisions with clarity and confidence. So, why wait for the storm to hit when you can plan ahead? It’s a small step that can make a world of difference. These decisions are never easy, and what works for others may not be the best choice for you. So, At Live A Home SG, we can incoporate the Risk Assessment Management (RAM) tool to customize your safe asset progression strategy as according to your unique circumstances. We’re not just here to give advice; we’re here to be your confidant, your guide, and your ally. Through our logical, safe, and analytical approach, combined with our wealth of practical experience, we aim to bring clarity and peace of mind to your situation. We’re here to hold your hand every step of the way. How can we assist you? By offering you Heart-Centered, Strategic, and Safe Asset Progression Property Advice tailored to your needs. By devising a clear, objective, and safe roadmap for your property journey that truly aligns with your goals. Don’t let the uncertainty and lack of clarity overwhelm you. Let’s navigate this together. Get in touch with us today and take the first step towards building your family’s future!

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Property Dilemma: New Launch Or Resale?

Property Dilemma: New Launch Or Resale? As Singaporeans, we all share common concerns when it comes to the property market. High prices, economic uncertainties, and the dilemma between new launches and resale properties weigh heavily on our minds. Fear not, though! With the right guidance and understanding, you can navigate this maze with confidence. Let’s dive into a practical case study to make this more relatable. A Tale of Property Investment: Jo’s Journey Meet Jo, a single lady with a keen eye for property investment. Recently, she was in the market for a $1.5 million property. As most of us would, Jo wondered whether to go for a new launch one-bedder or a two-bedder resale. We often overlook some significant cost factors in this debate. Let’s dive into the financial comparison that helped Jo make her choice. Resale Property: Hidden Costs For a resale property with a buying price of $1.4 million and a loan size of $600,000 at a 4.5% interest rate, two significant costs can slip under the radar: Renovation cost: This could be as high as $10,000 if you opt for a done-up unit. Interest paid: Over a four-year span, you could pay around $101,000 in interest, given that your mortgage kicks in immediately upon legal completion. So, over four years, you could be out of pocket by $111,000 – and that’s before accounting for maintenance fees! Interest Payment Comparison New Launch: Upfront Savings On the other hand, a new launch property with a $1.5 million purchase price and the same loan size, but at a 4% interest rate, offers different financial dynamics: Renovation cost: As the building is under construction, there are typically no additional renovation costs. Interest paid: The loan only starts towards the end of the construction period, which means no interest lost during this waiting period. So, in essence, buying a resale could incur additional costs of around $100,000 or more over a similar four-year span. If you plan to sell the resale property, ensure that it can fetch a price above your total expenditure. Jo’s Decision After understanding these implications and the effectiveness of a Loan Tenure Conversion Plan, Jo chose a new launch. She didn’t mind waiting for the construction period and found the financial breakdowns favourable. Resale Condo vs New Launch: Mortgage Implications In the case of a resale property, the full-fledged monthly mortgage payout kicks in immediately. If you need the property for immediate occupancy or rental income, this might work for you. A new launch, however, offers progressive mortgage disbursement. This gradual easing into the mortgage payment can seem more manageable to many. Plus, you might accumulate CPF contributions since it will less likely be exhausted from the first year’s mortgage. Interest Payment Comparison Food for Thought Resale Property Buyers: If you bought a resale property, be aware that its value may not appreciate as fast as the previous owner’s, who could have gained 20-30% from reselling to you. Remember your original intention for buying a resale – whether it was rental income or personal use – and manage your expectations.New Launch Buyers: If your primary aim is capital gains, a new launch is your best bet, given the general trend of positive growth over a five-year holding period. Most of these profitable transactions are due to Government Land Sales (GLS), which typically boost new launch prices. Profits Of The Panorama & High Park Residence Sold In 2023 The Property Market: Interest Rates, Prices, and Resilience Singapore’s property market has grown resilient over the years. Despite the Singapore Overnight Rate Average (SORA) going down in 2007, property sentiments were still on the rise. From 2009 to 2013, property prices soared by 62.2%, even with historically low interest rates. From 2015 to 2018, several rounds of interest rate hikes stabilized the market. As of 2020, despite all-time low interest rates, the property market trended upwards. The rapid growth in property prices has led to increased interest rates to ensure price stability and protect our property values. This along with the cooling measures ensures a regulated and less speculated property market. The Final Verdict Our property market will continue to rise, regardless of high or low interest rates. The key is to exercise prudence when buying property and align your goals with building capital instead of making profits. Whether you buy a resale property or a new launch, understanding the market and your financial implications is vital. Remember, the capital you build while living in your property will contribute to your net worth when you turn 65. Resale or New Launch? Or is it even a good time to consider a private property now? Feel free to reach out for detailed breakdowns and advice that could potentially save you a lot of money and meet your property financing expectations. How can we assist you? By offering you Heart-Centered, Strategic, and Safe Asset Progression Property Advice tailored to your needs. By devising a clear, objective, and safe roadmap for your property journey that truly aligns with your goals. Don’t let the uncertainty and lack of clarity overwhelm you. Let’s navigate this together. Get in touch with us today and take the first step towards building your family’s future!

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SG’s Private Condo Resale Market: The Rise and Fall of 2022-2023

SG’s Private Condo Resale Market: The Rise and Fall of 2022-2023 Navigating Singapore’s Property Market in 2023 As we enter 2023, families in Singapore are facing a challenging property market. The private resale volume has declined significantly, and resale prices of private condominiums dropped for the first time in 28 months in January 2023. This has left many families wondering how to navigate the market and plan for their property asset progression and legacy. Strategies for Families Here are some key strategies that families can consider to make the most of the current property market: Keep an eye on the resale HDB market: With the recent Singapore Budget move to increase housing grants for first-time buyers for HDB, the demand for resale HDB may be pumped up. This could propel second-time homebuyers to look at resale condos instead! Families can consider this option and look for suitable HDB units to upgrade their living space. Consider rental income: With the price gap between sellers and buyers remaining wide, sellers may face some price pressures when more homes are completed in the coming months. Some homeowners may also be inclined to keep their units for rental income, as rents remain firm. Families can consider this option to supplement their income and build a long-term asset. Look for good deals: While the overall private resale volume declined by an average of 32% in 2022, families can still find good deals in the market. With condo resale volumes falling for four months, sellers may be more willing to negotiate prices. Families can take advantage of this and look for suitable properties at a lower price. Keep an eye on market trends: It’s important for families to stay updated on the latest market trends and developments. For example, with the loosening of restrictions for foreigners entering Singapore and the strength of the Singapore dollar against foreign currencies, higher resale activity could be seen in the private resale market in the coming months. Families can use this information to make informed decisions about their property investments. Plan for legacy: Legacy planning is an important consideration for families when it comes to property asset progression. Families should consider the long-term value of their properties and how they can be passed on to future generations. This may involve setting up a trust or other legal arrangements to ensure that the property is managed and distributed according to their wishes. Property Asset Progression For Families In conclusion, families in Singapore can still make the most of the current property market by considering the aforementioned strategies. It’s important to stay informed, keep an open mind, and plan for the long-term to build a strong property asset portfolio and legacy.We want to help you create a lasting legacy for yourself and your loved ones by employing safe property investment strategies. With our help, you can achieve financial security and peace of mind for years to come. Contact us at Live A Home SG today to get started on your journey to success! You can also follow us for the latest property news and updates, including topics related to asset progression & legacy planning for families!

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Only One Bid For Marina View Site; Are GLS Sites In The CBD Currently Worth Waiting For?

Only One Bid For Marina View Site; Are GLS Sites In The CBD Currently Worth Waiting For? The public tender for the Marina View plum site (i.e. allowing for a range of property uses) closed in September 2021 with only just ONE BID. This site was released under the reserve list of the first-half 2021 Government Land Sales (GLS) programme, which was eventually classified as a white site. Intended for use as a mixed-use development with residential, hotel, commercial and/or serviced apartments, yielding 905 private homes, 2,000 sq m in gross floor area of commercial space, and 540 hotel rooms. Why is having only One Bid a big deal? Developers are certainly tightening their belts and turning cautious due to hefty and surging land and development costs. As Singapore starts to open up her borders and easing restrictions, there’s a fair share of uncertainty over office and hotel sectors in the Central Business District (CBD) region. The hollowing out and decreased hype over CBD commercial property due to slow and interrupted return to CBD offices, have certainly dampened the confidence among developers. The lone bid for the Marina View site indicates lacklustre interest, stemming from competition from unsold residential units in the CBD and potential new supply from redevelopment in the vicinity. What you should know about this site’s bid and IOI Properties Group Boulevard View development, which is an entity linked to IOI Properties Group is the most likely culprit that triggered the release for the sale of Marina View site. Boulevard View put in a bid price of $1,508,000,101, just $101 above the $1.508 billion minimum price that triggered the tender launch. That works out to $1,379 per sq ft per plot ratio (psf ppr). Needless to say, this is alarmingly on the “low side” especially in District 01. The bid from Boulevard View is lower than the most recent Government Land Sales residential sites sold in the CBD. In September 2019, One Bernam’s site in Tanjong Pagar received four bids, with a top bid of $1,462 psf ppr. Furthermore, Midtown Modern’s site in Tan Quee Lan Street received two bids, with a top bid of $1,535 psf ppr. As mentioned by Ms Tricia Song, head of research for Southeast Asia at CBRE, Marina View’s lone bid is “stark contrast to the competitive bidding in five suburban or city fringe residential sites” so far this year. Furthermore, she highlighted that the sites in Lentor Central, Tampines Street 62, Tengah Garden EC (executive condominium), Ang Mo Kio Avenue 1 and Northumberland each garnered seven to 15 bids, and the bid prices were above expectations. Potential reasons The tender could have been affected by very high total development costs, which could pose significant risks to the developer. While the economy is recovering, the pandemic still poses uncertainties, Mr Ong Teck Hui, senior director of research and consultancy at JLL had indicated. Developer participation was “below expectation”, due in part to uncertainty over the resumption of global travel and the ongoing manpower crunch in the construction sector. As quoted by Mr Calvin Li, head of transaction advisory services, hotels and hospitality at JLL Asia-Pacific – the absence of more bidders suggests that most investors continue to be cautious about potentially high development costs associated with an upscale or luxury hotel. Will this development be worth waiting for? Prices of prime Core Central Region (CCR) properties which were lagging behind fringe region counterparts (as indicated above) in 2021, are showing signs of an uptick in demand. There’s a growing demand for luxury homes in 2021, as clearly evident by the jaw-dropping transaction at $5786 psf, or $35 million at Les Maison Nassim in August 2021. With new launches for Canninghill Piers and Perfect 10 played out in 2021, it’s no surprise that there’s still pent up demand amongst buyers for the CCR area. With borders and travel restrictions eased, along with the desire to be back to pre-pandemic normalcy, there is certainly an influx of foreign buyers, especially from Hong Kong. With the current COVID outbreak and Hong Kong’s continued grit in “zero COVID” policy, added with the political unrest, many foreigners and expats alike are looking at relocation options to move to the red dot. The biggest sign are clear for all to see – 16% of purchases in the CCR were from foreigners in July-August 2021, doubling the 8% seen in Q2 2021. If you’re interested to get a piece of this gem, contact us at Live A Home SG. You can follow us for the latest property news and updates, as well as property reviews in Singapore’s real estate scene.

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Is Singapore Still A Hotbed For Foreign Property Investors?

Is Singapore Still A Hotbed For Foreign Property Investors? Let’s talk about Hong Kong – even before COVID pandemic in 2019, the exodus of Hong Kong residents and expats alike have been trickling out of the former British colony. With having to contend with on-going street protests and the implementation of the controversial extradition bill, needless to say, this can be felt here at home with an increase of relocation enquiries from Hong Kong. Fast forward to now, there has been a net 71,000 folks have left Hong Kong in Feb 2022, the largest exodus since the pandemic started. Certainly, the COVID restrictions (in the pursuit of zero COVID policy) and lengthy school shutdowns have exacerbated this.With that said, if you’re a landlord in Singapore looking to rent out your home to expats, are you in a good position right now? With the borders fully open in Singapore sans COVID testing, will prices be inherently be pushed up? Increase in interest might not correlate to actual relocations Albeit the increase in enquiries from folks in Hong Kong looking to buy or rent with the goal of moving to Singapore in the near future, it does not necessarily mean that the resident’s plan to migrate to Singapore would succeed or have materialized. Historically, Singapore isn’t the first choice for Hong Kongers seeking migration (unlike the UK and Canada), however, there has been a shift for Hong Kong residents to move to Singapore temporarily to avoid the stringent COVID restrictions. It’s very much possible that many of them have adopted the “rent first settle down later” approach, which is evident in the recent unabating rental market. There hasn’t been a significant increase in buyers from Hong Kong in the past few months, nevertheless, there could be purchases and caveats logged under “China” or “foreign (unspecified)”. Furthermore, it might not be so straightforward for most to secure a loan in Singapore, unless they sell off their Hong Kong property first in order to finance their purchase here. Size is always a top and foremost consideration – most definitely want a floor plan much larger than their Hong Kong home. Challenges in securing visas and employment passes A Bloomberg report in April shared another reason why foreigners intending to move from Hong Kong to Singapore had to do a U-turn (or look elsewhere).While it seems that Singapore should be the obvious choice for Asia’s top finance hub besides Hong Kong, strict visa requirements and hiring restrictions have hampered the influx of bankers intending to move here. As Singapore continues to push for its ‘hire local’ policy, it will also be making it progressively stricter for foreign talent when it comes to having their visas or employment passes approved. Upon moving to Singapore, most would need to have a job offer in place first in order for an Employment Pass, S-Pass or Work Permit to be issued. With many Hong Kongers looking to relocate, the utmost priority is to secure and the likelihood to clinch Permanent Residency here. It’s not surprising that most will likely to wait until they get their Singapore PR status before buying a property in Singapore. It’s highly possible that many Hong Kong residents while inquiring about or renting in Singapore, are actually waiting for the right time or circumstances to be cast in stone before making these life-changing decisions. Rise in stamp duty due to the latest ABSD measures The latest Additional Buyer’s Stamp Duty (ABSD) meant that foreigners pay 30% Additional Buyers’ Stamp Duty (ABSD) for any property purchase (including their first). Singaporeans and PRs pay 0% and 5% ABSD respectively for their first Singapore-based property. The 10% jump in December 2021 when the cooling measures were announced and enacted was twice as high as the previous rounds of cooling measures. As local Singaporeans, it can be tough to relate and thus underestimate the impact of the December 2021 cooling measures. Hence, it’s expected for a slowdown, and no more undermining the effects of the increased ABSD for foreigners. Buying for luxury and own stay rather than for investing With the profound increase in ABSD rates for foreigners, the foreign buyer would be put off by the stamp duty if they’re buying for the sake of investing. The surge in ABSD would eat into the potential gains and yields – the financial numbers wouldn’t work.Nevertheless, this doesn’t indicate a crash in the demand amongst foreign buyers. There’s a current shift for foreigners to be buying their dream luxurious properties for their own stay – a place to live and enjoy. For this group of buyers, the rental yields, gains and cash-on-cash returns wouldn’t create a dent in their quest to purchase a property for indulgence rather than for investment. After all, Singapore has always been favored for her political stability, sound governance, safety, strong infrastructure, and ease of doing business, etc. If you’re looking to rent out your home or require any relocation help, contact us at Live A Home . You can follow us for the latest property news and updates, as well as property reviews in Singapore’s real estate scene.

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Is Investing In ECs The Way Forward? Here Are Some Pros & Cons To Consider

Is Investing In ECs The Way Forward? Here Are Some Pros & Cons To Consider For HDB upgraders, gone are the days where the focal point was on the next new development in the most coveted location. Executive condominiums have gained the badge of honour and carrying as much prestige. Besides the aspiration of being a private property owner, it makes a lot more financial sense to consider an EC these days with the rising interest rates and heightened macroeconomic uncertainty. Data doesn’t lie, as it’s truly evidenced by the robust take-up of the 639-unit Copen Grand in Tengah and the 618-unit Tenet in Tampines at their launch dates. Needless to say, this isn’t surprising at all with private condominiums starting at $2000 PSF in the OCR area currently. Most Singaporeans certainly feel the brunt, hence ECs would be an excellent head start for upgraders to live & own in an appreciating asset. With the recent launch of Tenet in Tampines, 93% of the units are sold with a launch price of $13xx PSF indicating the robust uptake of ECs. Also, the gap between the prices of new ECs and new condominiums has also widened to an average of $700 psf which further explains the strong interest for ECs. Furthermore, the resilient and unwavering demand for ECs is substantiated by the high capital gains observed in the transactions made from Y2Y 2018 – 2022. The units that have just recently met the Minimum Occupation Period (MOP) units reported experiencing the most healthy increase of 36.4% in average PSF prices from 2018 – 2022. Source: Condo Versus EC Price Difference Y2Y 208-2022. 99.co What Are The Pros Of Buying An EC As indicated above, the entry price of an EC is a lot more manageable for a younger home buyer or a younger family. This tends to fit the demographics for most HDB upgraders whose units just hit the MOP.In terms of asset appreciation, the EC is similar to a Build-to-Order (BTO) where there’s a higher probability for capital gains in due time, thanks to the early mover advantage.As with most new developments, most of the renovations and fixtures in an EC are brand new. Kitchen, bathrooms, tiling, air conditioners, and wardrobes are brand spanking new upon TOP as well. This certainly helps to defray a lot of upfront costs when acquiring the new home and less hassle or stress except to install lights!With “condo-like” facilities and amenities, young couples with kids will enjoy an enclosed and safe environment for their children to play in. When parents are at work, it’s reassuring to know that their children have access to a playground, waterplay, swimming pool, or a lawn area for pets and other activities.ECs are a hybrid of private and public housing built by private developers, but sold at lower prices compared with private condos. As such, ECs appeal as a great entry point for most couples who are keen to invest in low risk and potentially high returns asset in a relatively short time frame (i.e. approximately 5-10 years upon TOP).Flexible payment schemes such as Progressive Payment Scheme and Deferred Payment Scheme are readily available to cater for buyers who might need some flexibility in making their payments. Also for those opting for the latter, they can also avoid the current high interest rate environment. Last but not least, HDB upgraders need not pay the Additional Buyer’s Stamp Duty (ABSD) upfront, thus, this avoids the need to sell their flat and look for another place to stay. This is indeed a major plus point! What Are The Cons Of Buying An EC As the aforementioned highlighted the many perks of buying an EC, there are some cons that potential buyers might want to take note of. Buying an EC is an excellent stepping stone for most HDB upgraders, but there are definitely some downsides to it as well. In the grand scheme of things, the investment timeline for ECs is a lot longer than the private property market. There’s a long waiting period involved due to balloting and the construction. The MOP of 5 years needs to be fulfilled before it can be resold in the open market as Partial Privatized. Furthermore, in order for it to be sold as fully privatized, one needs to wait for 10 years from TOP. Some folks may find that the building materials and construction might be subpar and shoddy, so it could be susceptible to wear and tear faster. Despite the various payment schemes available, an EC buyer does need to make a downpayment of 20%. This can be hefty for first time home buyers as most don’t have sufficient cash. For most young couples who just started working, they may not have adequate CPF monies stashed away. For most, this is a very stressful decision, as the majority would need to exhaust all of their savings to make this biggest purchase of their lives. EC launches are few and far between – typically only once or twice a year. Therefore, the selection is limited without a lot of availability as well. Most EC buyers would also need to consider a unit in a not so desired location, or a location far from their current home/parents/work place. Due to the lack of selection or availability, some ECs may be facing major expressways or other HDB blocks which contributes to noise and lack of privacy, which might even affect future resale value as well. However, due to the high demand and low supply of ECs, many EC buyers may feel the brunt of “FOMO” pressure to buy whatever that’s available fast. This can potentially result in impulse buying, which is never a good thing when it comes to buying your property. Source: URA, ERA Research & Consultancy (Business Times Design) An EC Is Not A One Size Fits All Option When it comes to Asset Progression, buying an EC is a safe, appealing and low risk option for upgrading. It’s still a robust and practical asset to invest for a

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