Basic Details of Development:
District 22 (West Region)
Tenure: 99 Year Leasehold
Total Number of Units: 610
Highest Floor: #16
TOP: 2009
This unit is to be sold with tenancy. The tenancy agreement will run till April 2012 at a monthly rental of $3800/month. The tenant is an expat working in Biopolis and he had been very punctual with the rental payment for the last 10 months.
This unit is priced at $1.15m by the owner for sale and the bank indicative of the unit is at $1.15m as well. Whilst the pricing is at bank's indicative valuation, the selling price of the unit is negotiable.
This unit is priced at $1.15m by the owner for sale and the bank indicative of the unit is at $1.15m as well. Whilst the pricing is at bank's indicative valuation, the selling price of the unit is negotiable.
Working on the rental yield of the property, with $3,800/month, the analysis is as follows:
Buyers without Outstanding Mortgage Loans - 80% Loan with DBS PROMO 3 Year Fixed 3M Sibor Package With MyProtector Mortgage (3 Year Lock-In):
1st Year Mortgage Payment: $3078.89
2nd Year Mortgage Payment: $3255.18
3rd Year Mortgage Payment: $3391.31
The rental of $3,800 would have covered almost all the mortgage payments for the unit and it is a self-servicing loan with slight top-up per month. On the most simple calculation of rental yield, ignoring property tax and interest on mortgage, the annual rental cashflow of $45,600 vis-a-vis the initial capital outlay of $230,000 for the 20% downpayment would have a simple yield of 19.82%. To get a better calculation, do contact me and I can work it out for you subsequently.
Buyers with Outstanding Mortgage Loans - 60% Loan with DBS PROMO 3 Year Fixed 3M Sibor Package With MyProtector Mortgage (3 Year Lock-In):
Buyers with Outstanding Mortgage Loans - 60% Loan with DBS PROMO 3 Year Fixed 3M Sibor Package With MyProtector Mortgage (3 Year Lock-In):
1st Year Mortgage Payment: $2309.17
2nd Year Mortgage Payment: $2441.38
3rd Year Mortgage Payment: $2543.48
The biggest consideration for buyers with outstanding loan would be the initial capital outlay which is 40% of the purchase price. Assuming that the purchase price is $1.15m, the initial capital outlay is $460,000. While the rental of $3,800 would have covered all the mortgage payments for the unit and generating a positive cashflow of $1300-1500 per month, the rental yield would have to be calculated accurately.
The biggest consideration for buyers with outstanding loan would be the initial capital outlay which is 40% of the purchase price. Assuming that the purchase price is $1.15m, the initial capital outlay is $460,000. While the rental of $3,800 would have covered all the mortgage payments for the unit and generating a positive cashflow of $1300-1500 per month, the rental yield would have to be calculated accurately.
On the most simple calculation of rental yield, ignoring property tax and interest on mortgage, the annual rental cashflow of $45,600 vis-a-vis the initial capital outlay of $460,000 for the 40% downpayment would have a simple yield of 9.91%. To get a better calculation, do contact me and I can work it out for you subsequently.
The most recent transaction for the development is in Jan 2011 and the transaction price is $900k for the 937sqft unit. The average psf for units selling in the development is $961psf and the pricing of this unit is at $1022psf, which is slightly negotiable. With the high floor listing of this unit, its pricing is expected to be 0.69% higher for each floor, hence the selling price of $981psf is the minimum expected. At 981psf, the selling price would be at least approximately $1,104,000. Any offer higher than $1.1m will be put forth to the owner for him to decide.
I hope that with this review, I had provided a good analysis of the pricing of the unit and if you have further queries for me, please feel free to contact me.
Lovely Regards,
Lynn ONG (王丽英)
Lynn ONG (王丽英)
District Manager
ECG Property Novena District
ECG Property Novena District
L3009759F / R014-395F
BSc. Real Estate (NUS)
Mobile: (+65) 8479 3149
BSc. Real Estate (NUS)
Mobile: (+65) 8479 3149
Email: lynn.lovelyhomes@gmail.com
Website: http://www.LYNNONG.net/
Blog: http://www.lynnlovelyhomes.blogspot.com/
[Blogging on Analysis of Listings and Real Estate News]
[Blogging on Analysis of Listings and Real Estate News]
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