$103,838
For the table above, we restricted our findings to units of 600 sq. ft. or below; units of this size would be considered a one-bedder today. We are looking at size because the term “one-bedder” has changed over time; for old condos there are even 900+ sq. ft. units that are labelled “one-bedders”.
We have also kept to transactions dated Jan 14, 2011 or later. This is when the Sellers Stamp Duty (SSD) was imposed. Transactions before this date could have been sub-sales (e.g., buying and selling the unit before it’s even completed), which would distort the view of potential returns.
The given rental yields are approximations based on available rental data; the given yield corresponds to the year of the sale.
1. Issues of instability or corruption
Not every property investment overseas is going to be plagued by corruption, require bribes, involve unlicensed real estate sales, etc. Most mature states, like Japan or the UK, have well-enforced laws. Perhaps a useful reference here is the Corruption Perceptions Index, which is updated annually.
A loose rule of thumb is to stick to countries within the top half of the list (e.g., only countries that rank 89 or above), although some investors may have more stringent standards .
As with buying property in Singapore, you can scrutinise the development team as an added safety measure. It’s a fairly safe bet that proven international developers, like Australia-based Lendlease, or the UK-based Berkeley Group, would not attempt to build properties in corrupt or unstable states. Some of these large developers have local projects that you can visit (Lendlease, for instance, is behind the development of Paya Lebar Quarter).
April 25, 2021
Stackedhomes
En-bloc sales aren’t always a pot of gold. For investors or homeowners who are well-prepared, it can be a smooth process; but homeowners, especially those who never intended to move, can find it an inconvenient headache.
One of the main timing issues involves the sale proceeds: it could be a while before you receive the money from the en-bloc, and in that time, you still need a new home.
We spoke to Mortgage Master , who are home loans specialists, about the key financing issues to address:
What’s the main financing issue when an en-bloc sale happens?
13 top rental-yielding condominiums near grade A office hubs asiaone.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from asiaone.com Daily Mail and Mail on Sunday newspapers.
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Special shoutout to the Sun Rosier deal as the owner made 101per cent even after factoring the SSD in 6 months.
As you can see, it’s possible to profit off an en-bloc sale, even taking into account the SSD. This was why, in 2017 or prior, it wasn’t uncommon for investors to show interest even in very old properties (or sometimes, interest because the property was old).
However, we should note that 2017 was an exceptional year, and there have been many changes since
In 2017, local and foreign developers were both competing to build their land banks. This resulted in an en-bloc fever, with unusually high land prices. For example, Sun Rosier, in the above transactions, was bought at a total cost of $271 million.