Monday, January 12, 2009
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What is you opinion on FH property in Gelyang Loring 28? I heard banks will not give loan for such properties. What are the risk on investment returns on such properties?
Smart Buyer replied:
I've viewed some of the freehold properties there: greatest attraction is cheap. But they are not cheap for no reason. You'd probably have problem getting a bank loan. If you are thinking of staying there, take note that it's generally unsuitable for family-people. If you are thinking of buying a rental property, you may be dealing with certain category of tenants. The greatest risk is of course the difficulty of selling such a property.
Do consider carefully.
Original post: Property buyers lost? Buy or Don't Buy?
Chinamoon said:
I am man of modest means and cannot afford to spend too much on property.
Here are my thoughts:
PROS: (no pun intended)
1. Cheap because of rampant prostitution and gangland activities
2. Near town
3. Good yield as principal low
4. Possible redevelopment although this will be many years in future if it does happen
CONS:
1. Hard to take loan, banks unwilling to finance because of poor resale prospects, finance companies will provide but percentage of valuation not high
2. Prostitution and gangland violence everywhere, so very noisy and unsafe, not suitable for family
3. High maintenance as most property are rented out and tenants heck care the property
What are those I may have left out?
Anonymous replied:
no need to buy Geylang properties. People are backing off from options. Wait, there will be cheaper properties as Singapore enter into its worst ever recessions in history. Dont be fool by hypes of Sport Hubts, MRTs, near city, etc.
SmallTimer replied:
I have no experience buying propety in geylang area but would like to add a few points
1) the area tends to attract low life so when u rent aren't u afriad u will get one of them that would not only not pay rent on time but use your property to break the law?
2) even if your property is a few streets away from the vice activities there is no way to know if they will ever setup "shop" at your door step. all it takes is a few girls to decide to stand around there to parade their service or a popular massage place / nightclub to open nearby. or worst a cheapo hotel.
i would stay away from this area if i were u.
Extracted from the Singapore Property Forum
May also want to read:
99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data
Spore Property History 1960-2008
Property Investment Tip: Don't put all your eggs in one basket
HDB Resale Price Index 1990-2008: Graph & Chart
Buying Freehold Properties in Geylang: Pros and Cons Discussion
Seng asked:What is you opinion on FH property in Gelyang Loring 28? I heard banks will not give loan for such properties. What are the risk on investment returns on such properties?
Smart Buyer replied:
I've viewed some of the freehold properties there: greatest attraction is cheap. But they are not cheap for no reason. You'd probably have problem getting a bank loan. If you are thinking of staying there, take note that it's generally unsuitable for family-people. If you are thinking of buying a rental property, you may be dealing with certain category of tenants. The greatest risk is of course the difficulty of selling such a property.
Do consider carefully.
Original post: Property buyers lost? Buy or Don't Buy?
Chinamoon said:
I am man of modest means and cannot afford to spend too much on property.
Here are my thoughts:
PROS: (no pun intended)
1. Cheap because of rampant prostitution and gangland activities
2. Near town
3. Good yield as principal low
4. Possible redevelopment although this will be many years in future if it does happen
CONS:
1. Hard to take loan, banks unwilling to finance because of poor resale prospects, finance companies will provide but percentage of valuation not high
2. Prostitution and gangland violence everywhere, so very noisy and unsafe, not suitable for family
3. High maintenance as most property are rented out and tenants heck care the property
What are those I may have left out?
Anonymous replied:
no need to buy Geylang properties. People are backing off from options. Wait, there will be cheaper properties as Singapore enter into its worst ever recessions in history. Dont be fool by hypes of Sport Hubts, MRTs, near city, etc.
SmallTimer replied:
I have no experience buying propety in geylang area but would like to add a few points
1) the area tends to attract low life so when u rent aren't u afriad u will get one of them that would not only not pay rent on time but use your property to break the law?
2) even if your property is a few streets away from the vice activities there is no way to know if they will ever setup "shop" at your door step. all it takes is a few girls to decide to stand around there to parade their service or a popular massage place / nightclub to open nearby. or worst a cheapo hotel.
i would stay away from this area if i were u.
Extracted from the Singapore Property Forum
May also want to read:
99 Leasehold Property: Calculation of Depreciation Rate based on Singapore Land Authority Data
Spore Property History 1960-2008
Property Investment Tip: Don't put all your eggs in one basket
HDB Resale Price Index 1990-2008: Graph & Chart
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9 comments:
Hi,
Do you subscribe to URA Realis? I would like to have more information on caveats such as unit number and transactions dated as far back as 5 yrs ago to do some analysis. I know URA Realis provides such information but subscription is $80/day or 1800/yr which is far too expensive. Is there any cheaper way get that information?
But the beef horfun is damn shiok
No, I don't subscribe to URA Realis. Can't be of help there.
Best wishes
Danny,
You can buy the hor fun but the property is totally another question :)
finally i made it to this famous blog. i love this blog man.
Tulipz,
i pay $80 for 24 hours access to Realis and download as much as i can for future reference. I think if you are banking of investing in property worth hundreds of thousands or millions, $80 is indeed a very smart investment.
smalltimer
Take a drive in the evening and in the weekend there. Do you want to live in this type of environment? Look at the kitchen and toilets and the patrons of these restaurants(pros and dirty old men, possibly with VDs or AIDs). You would want to vomit. They are sharing the same plates and kitchen utensils with you! if you can avoid, never buy a property in this area. WAIT, my friend, just wait. The adverse impact on property prices in Singapore cannot be so light and minimal. You may have a better choice elsewhere.My honest view.
it depends whether you are smart. Look at Dakota area or some private developments near to City Plaza where there are some major new private projects there, one project is a short walking distance to the red light district yet it was selling exceptionally well in 2008. The Singapore buying crowd at that time was choking the showflat and they ignored the red light area and the hawkers center which you can see scantily dress ladies pretend to eat or eating there but are soliciting. The developer and agent were advertising and advertising all over and almost everyday with all the hypes of a nice Geylang or Kallang River, Paya Lebar Regional Center and development, 5 mins and a few minutes here and there to Singapore Eye, IR, Global City, Sport Hub, MRT. Extremely impressive marketing skills but i am no fool. Prices are high yet it was selling like hot cakes as Singapore buyers said it was cheap, cheap, good location and great place to live.I was around there and saw cars, after cars and people were flocking all the way to grab them, pushing and chionging. The developer(s) is now laughing all the way,giggling with large cash balances in the bank at this time and BIG thank you to these good Singaporeans and buyers. Here the seller(s) is smarter than the buyers. So it depends who is smarter. i am not smart and not speculatively rich. Many buyers want to flip from from these developments (some 99 years). But i doubt with that high prices. I dont bother to advise if you are rich and would not advise you but because you said you are a modest guy and i live around there during my childhood (not so complicated many years ago before Singapore open up to FT), i would advise that you avoid Geylang and around that area for a peace of mind. Flee from evil, sweet talk and deception from whoever. BEWARE!!!!
I think for men whom like to visit Geylang, it would definitely be a good idea to buy a property there and rent it out.
You can always tell your wife that you are going to Geylang to collect rent... and because the tenant is bad... you have to go again and again and again...
That's the only reason I can think of for pros in buying a property in Geylang... otherwise there are many other options in other good areas...
How about Potong Pasir...? My friend told me that Mr Chiam might not make it to the next election... Once that area falls back into PAP, property value will shoot sky high. True or bullshit?
Leroy is telling you to sin and lie.
Dont listen to him on first part but i agree with him on Potong Pasir. The opposition wards are actually good buy. Because of keen competition between PAP and the opposition, much of them are well kept and are better taken care than some in PAP wards such as AngMoKio or Aljunied GRCs. The PAP has successfuly proved to Singaporeans that Mr Chiam and Mr LTK are effective. I totally agreed with the Government that they are ineffective and waste of public funds to keep them in Parliament as i dont know what they are doing. They are just so quiet and not making any suggestions and contributions. So good to buy into these two single wards and it is very likely the people will kick them out.
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The blogger here has been affectionately named by close allies as "Smart Buyer" but really, he's not smart. Smart Buyer just believes that being prudent is smart. That's the essence of the message of this blog and Smart Buyer hopes it'll benefit other property buyers.
Smart Buyer :)