So you want to buy a Freehold condo?

[Cecil Lee]

Dear all,
1. In this write-up, for ease of reference; when I mention Freehold it should also include sites that are 999 years or given a Statutory grant.
2. In my opinion, there is a difference between buying a Freehold LANDED PROPERTY vs a Freehold CONDOMINIUM.
3. It is very important to understand past precedences:-
3.1 In the past, e.g. prior to 1970's there were very few condominiums. Often, many of these collective apartments are not higher than 6 or 8 storeys high and very spacious.
3.2 Many of them need renovations to the plumbing (sewerage/leaks) etc... And for such sites, an attractive alternative to selling individually is via `En bloc' sale.
4. For example, because of the poor state of these freehold apartments: many of the units, perhaps a unit could still say fetch a reasonable sum (depending on the location/size) of say $500K - in a good market condition. But, if it can be sold collectively, perhaps each owner could pocket e.g. $1 million each.
5. This could be true because: often, the government could increase the plot ratio and allow for higher than 8 storeys high. With allowance for basement car parks (instead of open car park); more space for more units.
6. What about the new FREEHOLD condo; that you want to purchase?
If you live on a landed Freehold property; often, it would seem attractive to anyone wanting to purchase it - IF the price is right.
Often, many who purchased such `old house' e.g. 30 or 40 years old would like to either renovate it or pull it down to built a new one.
7. How about that Freehold condo, that you are eyeing?
7.1 Nowadays, developers have already squeezed in to the maximum allowed ratio of apartments per site.
7.2 Even if the condo can be around for the next 30 to 50 years. There will always be people who never liked to live in old locations.
7.3 For such Freehold condos, it is not a simple matter of knocking down your unit and rebuilding it. It has to be the concensus of the entire `En bloc' residents for such a sale.
7.4 Even if we do sell it, many of the units already are not as big in space as those in the early 1970's.
7.5 Here "so what if it is freehold?" If Enbloc is unattractive and by the next 20 to 30 years, many of the residents are `aged' - they simply cannot afford to move out since they are stuck with such a property! It would end up literally as an `old' folks home!
7.6 What is worse is that, after 30 to 40 years, given that it is unattractive for an `En bloc' sale; then can we do an extensive renovation to spruce it up? Again, many who had retired, may perhaps no longer have the means to support their home.
8. Therefore, in my opinion, the above are some of the considerations to note if we want to purchase a freehold condo. If possible, even if we want to purchase one; are they any freehold developments that we feel is currently generous e.g. relatively lower units to plot size?
Warmest Regards,
Cecil

[Cecil Lee]

Further to what I mentioned:
1. No matter what house or apartment that we are buying, do more thorough financial planning for the future and perhaps seriously consider some form of insurance (hospitalisation)
2. Invest by procreating more little ones. Hope and pray that at least one or more of them shows filial piety:
2.1 As mentioned in some of my messages: TODAY, a higher success rate (in Singapore) are girls.
2.2 If not, pray that at least one of the boys become a billionaire! In Singapore, even a millionaire cannot afford some of the freehold landed properties.
3. Stay, pay up as much of the loan for the freehold condo and try to look for some landed property. A modest terrace freehold landed property is; in my opinion, much better than any freehold condos.
4. Again, pray hard that after your son's graduate or complete their highest education to the best of their ability: They do not `pester' you for money.
5. If any of the above does not sound attractive... perhaps, one may seriously consider migrating to e.g. Australia. Or even Canada (welfare state)!
6. What else? Pray hard, and cross your fingers!
Warmest Regards,
Cecil

[Cecil Lee]

Case Study of Oasis Garden freehold Apartment
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Purpose of this case study:
In examinations, we often review the past year questions. And see how best we can approach to maximize our answers.
This is an extract of the information put up by the Source and Credit:
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The Sole Marketing Agent, Sieow Teak Hwa of Teakhwa Real Estate PL at 9858 0900 or 67771008.
Email teakhwa@starhub.net.sg
Company Name: Teakhwa Real Estate Pte Ltd
Country: Singapore
Tel: 65 - 9858 0900
Fax: Nil
Contact Person: Sieow Teak Hwa
Email: teakhwa@starhub.net.sg
========================================
Collective Sale of Oasis Garden Freehold Residential Site
Message: Enbloc Sale of Oasis Garden - Best Investment Today!
* A sizable 77,509 sf development site
* Highly marketable near MRT station location
* Very competitive pricing.
Property Description:
Property Address: No. 30 to 48C Bunga Rampai Place
Land Area: 7,200.8 sm or 77,509.4 sf (approx)
Tenure: Freehold
Master Plan Zoning : Residential / Plot Ratio 2.1
Potential GFA: 162,769.8 sq feet
Potential Development: About 130 to 150 units Niche Highrise Condo Development project.
The site has the URA Outline Planning approval for a Highrise Condominium Development.
The Benefits:
1. Located in highly Sought-after and Marketable District 19 & 20 North Eastern area
2. Sandwiched between two proposed MRT stations along the new MRT Circle line
3. Near choice schools including Maris Stella Primary/ High School and Cedar Girls School
4. Convenient stores, shops and eating place are all within walking distance
5. Quiet and serenely located away from any major roads or MRT tracks
6. Surrounded by lowrise housings and shops in the vicinity, most of the units should enjoy unblocked breathtaking views of Paya Lebar & Serangoon area
7. Ideal size and shape for a Niche Condominium project
8. Have good economy of scale
Competitive Pricing:
The Subject Property is very attractively priced which allows the Prospective Developer to:
1. Have very low break-even price
2. Immediately market the ?Priced-to Sell? project to the mass upgrader market segment
3. Translate into a tidy margin for the potential developer
=== End of Notice placed by the Sole Marketing Agent ====
Cecil's comments:
A. If we read between the lines, I know that it is nearly impossible nowadays to find new freehold condominiums that has such an attractive redevelopment potential and high capital gains.
B. Nevertheless, many of the points under "The Benefits" are worth relating to; whenever we want to purchase any property.
C. Here, it is interesting to note that with a land area of 77,509.4 s.f.; the authorities has allowed for a potential built up of 162,768.9 s.f.
D. Some of you who had read this, may perhaps, hmm.. want to consider purchasing flats similar to this. But, one should only do so if one has spare money. Else, if such an en bloc sale never materialises, this may even be worse.
E. In the past; many graduates or those who had succeeded in their own business had several `upgrading' considerations:
Option 1
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Live in a HDB flat. Hope it appreciates; then sell it and either buy a bigger HDB flat or upgrade to a "condo" - 99 years or freehold depending on combined salary etc...
Option 2
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In the past, graduates, often rise in their career and the combined income can easily allow them to afford immediately `private property'. And, even progress to a landed property.
Nowadays, majority of the young couples; either go for 4 or 5 room new HDB apartments e.g. Sengkang, Woodlands etc... or go for Executive Condos, where they receive a special government subsidy. And... if they are realistic enough ... in the future upgrade further.
Ultimately, it is a fair chance to say that many Singaporeans, when they grow old would MOST likely downgrade to smaller or affordable apartments.
Therefore, I must again emphaise, Feng Shui is not the first priority. But rather: Location, location and location will ultimately make or break your `bank' (finance).
Warmest Regards,
Cecil