I followed up with viewings of similar one-bedders in the same condo. A low-floor unit was selling at $390,000 while another high-floor unit was asking for $420,000.
I called a few banks to ask for the valuation. Since it was a high floor unit, the value was around $450,000.
The last transactions of similar units on high floor units were between $420,000 to $520,000.
After a final check with the property agent on the mortgage bank’s expected range, I decided to offer at $360,000.
The next day my offer was accepted.
Since the unit was a mortgagee sale, it would be “sold as it is”. All the terms and conditions in the contract were fixed by the bank to the advantage of the seller. No wording could be amended by my lawyer.
I remember the agent checked my identity card and commented that I was very young. If he had known that I was young and with lesser means, would he help me to ask the bank for a better price?
He also asked me to name him as the referrer when applying for the housing loan. He would share half of the bank’s referral fee (half of 0.15% of the loan) with me.
(Now you know that you can put the name of your agent friend as your referrer, if you don’t need help from the respective property agent or any housing loan consulting firm.)
I arranged some renovation for the place, mainly in the kitchen and the bathroom.
Over the years, the unit was rented out between $1,900 to $2,500 per month, all above my targeted net rental return of 5%.
The property was finally sold end of last year. The buyer was my last tenant who wanted to buy the unit before the end of the tenancy.
Similar units in the condo were marketing at slightly above $800,000.
Nonetheless, I decided to let go at $790,000, considering the fact that the buyer had been paying rent for nearly 21 months. They also need to set aside a considerable amount to renovate the place.
Overall, I am satisfied with the 119% profit generated from this property.
Hi Property Soul,
Really appreciate u take time to share your precious experience which can help me to avoid pitfalls in my property investment. Same like you, I moved to Singapore at 25 and bought my first property-a HDB- at 27, now I just upgraded to a 5-room HDB flat and I want to invest in condo. Your sharing about cash rebate from bank loan is very interesting. i will do that next time since I just enaged a morgage broker.
Cheers,
Hung
Hi Property Soul,
Really appreciate u take time to share your precious experience which can help me to avoid pitfalls in my property investment. Same like you, I moved to Singapore at 25 and bought my first property-a HDB- at 27, now I just upgraded to a 5-room HDB flat and I want to invest in condo. Your sharing about cash rebate from bank loan is very interesting. i will do that next time since I just enaged a morgage broker.
Cheers,
Hung
Good to know that you find the posts useful. I will share more experiences in my coming entries.
When I first started buying properties in Singapore, I was not eligible to buy any HDB flat. As a single at that time, I could only buy when I reach 35 (which was a very long wait for me). So I decided to invest in condos, hoping to sell all of them for a profit by the age of 35!
Good to know that you find the posts useful. I will share more experiences in my coming entries.
When I first started buying properties in Singapore, I was not eligible to buy any HDB flat. As a single at that time, I could only buy when I reach 35 (which was a very long wait for me). So I decided to invest in condos, hoping to sell all of them for a profit by the age of 35!