Arofanatics Fish Talk Forums  

Go Back   Arofanatics Fish Talk Forums > The Guildhouse > Chatterbox

Reply
 
Thread Tools Display Modes
Old 25-08-2017, 07:48 PM   #1
millenium
Senior Dragon
 
millenium's Avatar
 
Join Date: Mar 2002
Posts: 3,495
Default enbloc may not be a good deal

I know many rent and wait for price drop, when price go up after a few years they end up downgrade from condo to hdb.
millenium is offline   Reply With Quote
Old 25-08-2017, 08:04 PM   #2
Ong88

Prof SK Ong
 
Ong88's Avatar
 
Join Date: Jan 2009
Posts: 10,641
Default

Only good deal if not your residential home.
Selling private home in en bloc is zero sum game : unless downgrade (size/location) when new home.

SERS of hdb lagi worse.

Only lemmings think they huattt.
__________________



Just because it's a bad idea doesn't mean it won't be a good time.
Use imgur for your photos sharing
https://play.google.com/store/apps/d...m.imgur.mobile
Ong88 is offline   Reply With Quote
Old 25-08-2017, 08:24 PM   #3
millenium
Senior Dragon
 
millenium's Avatar
 
Join Date: Mar 2002
Posts: 3,495
Default

Quote:
Originally Posted by Ong88 View Post
Only good deal if not your residential home.
Selling private home in en bloc is zero sum game : unless downgrade (size/location) when new home.

SERS of hdb lagi worse.

Only lemmings think they huattt.
My ex boss used to own euno hudc, I think she get 2.2MIL. This case confirm earn.
millenium is offline   Reply With Quote
Old 25-08-2017, 09:32 PM   #4
Ong88

Prof SK Ong
 
Ong88's Avatar
 
Join Date: Jan 2009
Posts: 10,641
Default

Quote:
Originally Posted by millenium View Post
My ex boss used to own euno hudc, I think she get 2.2MIL. This case confirm earn.
Similar sized, 99 years leasehold replacement unit in same area, how much to buy as replacement home?
__________________



Just because it's a bad idea doesn't mean it won't be a good time.
Use imgur for your photos sharing
https://play.google.com/store/apps/d...m.imgur.mobile
Ong88 is offline   Reply With Quote
Old 26-08-2017, 01:09 AM   #5
AroHong

AFC Member
 
AroHong's Avatar
 
Join Date: Apr 2004
Posts: 769
Default

It's quite subjective.
Lets take Serangoon Ville as a case study.
Lease starts in March 1986 for 100 years, balance slightly above 68 years.
Units size averaged between 1600 sf to 1700 Sf.
The last transaction before enbloc was in November 2016 at $950k. Each unit got around $2,0xx k for the enbloc.
Let's do a simple calculation for comparison.
$2 Mil / 1,650 sf / 68 years = $17.xx
New development like Forrest Woods next to Nex, assume psf at $1,700.
$1,700 / 99 years = $17.xx.

By this comparison, enbloc has actually freed up the value of the property for current owners.

Last edited by AroHong; 26-08-2017 at 01:11 AM.
AroHong is offline   Reply With Quote
Old 26-08-2017, 05:35 AM   #6
millenium
Senior Dragon
 
millenium's Avatar
 
Join Date: Mar 2002
Posts: 3,495
Default

Quote:
Originally Posted by Ong88 View Post
Similar sized, 99 years leasehold replacement unit in same area, how much to buy as replacement home?
The unit is probably a standard masonitte and the valuation need to take into consideration the privatised space of the estate. $2.2 mil probably can buy at lease a 1500square feet freehold condo in that area. She is 70, so going buy a resale 3 room hdb at old airport road and retire.
millenium is offline   Reply With Quote
Old 26-08-2017, 05:38 AM   #7
millenium
Senior Dragon
 
millenium's Avatar
 
Join Date: Mar 2002
Posts: 3,495
Default

Quote:
Originally Posted by AroHong View Post
It's quite subjective.
Lets take Serangoon Ville as a case study.
Lease starts in March 1986 for 100 years, balance slightly above 68 years.
Units size averaged between 1600 sf to 1700 Sf.
The last transaction before enbloc was in November 2016 at $950k. Each unit got around $2,0xx k for the enbloc.
Let's do a simple calculation for comparison.
$2 Mil / 1,650 sf / 68 years = $17.xx
New development like Forrest Woods next to Nex, assume psf at $1,700.
$1,700 / 99 years = $17.xx.

By this comparison, enbloc has actually freed up the value of the property for current owners.
The location is not fantastic, not 1-2 bus stop from nex, more like 5 at least. Forrest wood is next to nex
millenium is offline   Reply With Quote
Old 26-08-2017, 06:57 AM   #8
hkh
Arofanatic
 
hkh's Avatar
 
Join Date: Jun 2003
Posts: 113
Default

Quote:
Originally Posted by millenium View Post
The unit is probably a standard masonitte and the valuation need to take into consideration the privatised space of the estate. $2.2 mil probably can buy at lease a 1500square feet freehold condo in that area. She is 70, so going buy a resale 3 room hdb at old airport road and retire.
Lucky for her to be able to cash out and retire.........
hkh is offline   Reply With Quote
Old 26-08-2017, 08:58 AM   #9
AroHong

AFC Member
 
AroHong's Avatar
 
Join Date: Apr 2004
Posts: 769
Default

Quote:
Originally Posted by millenium View Post
The location is not fantastic, not 1-2 bus stop from nex, more like 5 at least. Forrest wood is next to nex
You are right, the developer is willing to pay the same price for this location as Forrest Wood's current selling price.

What will the selling price per square feet be when they start to sell in 1 to 2 year''s time at this 'not so good' location?
AroHong is offline   Reply With Quote
Old 26-08-2017, 11:18 AM   #10
foxwagon
Dragon
 
foxwagon's Avatar
 
Join Date: Mar 2003
Posts: 1,181
Default

If u have a 2nd property to stay is good.
I know of an ex colleague, enbloc got $2m+.
But bought another new unit also $2m+.
So it was like even out. Never earn but go through a the hassle.
Only the lawyers n marketing agencies earned fees.
foxwagon is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT +9. The time now is 11:23 PM.


Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2024, vBulletin Solutions, Inc.
Copyright © 2000-2008 Arofanatics.com (Since 30th August 2000)