Hi, I’m back with sharing my property buying stories.
Right after the completion of my 2nd purchase, I resumed my flat viewing routine.
Again my criteria of purchase were:
1) Good location and layout;
2) Minimum 5% net rental return; and
3) At least 15% below last transacted price.
I remember it was Christmas in 2003.
The property market was very quiet. Bad market sentiment was a major reason. Above all, everybody was simply too busy preparing for parties and vacations that no one bothered about properties.
(Lesson learnt: Festive seasons like Christmas and Chinese New Year are perfect times to look for good deals.)
A one-bedroom unit in a prestigious condo near Clarke Quay was going for sale.
It was TOP in 2000 and launched during the time when Far East Organization wanted to clean up its poor image by building a series of high quality condos.
(By the way, my 4th purchase is also one of these FEO products. I’ll tell you more next time.)
The development came with a resort feel — low rise, few blocks, green landscaping and tranquil environment.
The fittings were nice, with excellent carpentry work for wardrobes and cabinets; high-tech security cards to access main/side gate and your unit’s door …
The place was rented to a Caucasian lady for a year and had been left vacant since.
Honestly, it looked brand-new to me.
The owner had financial difficulties and decided to sell the flat to raise money.
In fact, she had migrated overseas for years. Relatives bought the property on her behalf.
She had never seen the unit before. I assumed that she would be unlikely to be emotionally attached to the property — a good sign for potential buyers.
It was bought at close to $800,000 but now asking for $560,000 only. The last transacted price of a similar unit was $625,000.
After some bargaining, my last offer of $525,000 was finally accepted by the owner (by the way, I am a terrific negotiator!).
It’s easier said than done.
As people say, “true love never runs smooth”. The same also applies to a real good deal.
Let me share the hiccups with you in my next post.
Thanks for the sharing. Next please 😉 Will there be opportunity to buy good bargain in this year?
Thanks for the sharing. Next please 😉 Will there be opportunity to buy good bargain in this year?
Sorry, I am working on it now …
I think you can find good buys in any market. The question is how easy to locate them. To save time and efforts, I prefer to wait for the buyers’ market.
Also, I don’t think that one has to be “fully invested” all the time.
Thank you PS. Yes, the question is how to find good buy.
Sorry, I am working on it now …
I think you can find good buys in any market. The question is how easy to locate them. To save time and efforts, I prefer to wait for the buyers’ market.
Also, I don’t think that one has to be “fully invested” all the time.
Thank you PS. Yes, the question is how to find good buy.
Hi PS
can you please explain “Good location” as mentioned in your purchases?
To me, it’s near amenities like MRT, shopping mall etc but it’ll be very expensive.
So how can we strike a good deal?
I see good location as a development where my potential tenants will find it ideal, e.g. near to restaurants/pubs they visit, shops they patronize, etc.
During good times, even properties in bad locations are overpriced, aren’t they?
Hi PS
can you please explain “Good location” as mentioned in your purchases?
To me, it’s near amenities like MRT, shopping mall etc but it’ll be very expensive.
So how can we strike a good deal?
I see good location as a development where my potential tenants will find it ideal, e.g. near to restaurants/pubs they visit, shops they patronize, etc.
During good times, even properties in bad locations are overpriced, aren’t they?