Buying a house/apartment with tenancy

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Buying a house/apartment with tenancy

Postby loner » Thu Sep 23, 2010 6:01 pm

Anybody has any experience in buying a house/apartment with tenancy? The seller's agent happened to be the tenant himself and b'cos of that I'm afraid the tenancy agreement will be a biased one. Am I able to get my own agent to prepare a new piece of contract or my represented lawyer will be able to ensure the rental contract is a fair one ?

loner
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Re: Buying a house/apartment with tenancy

Postby CMF » Thu Sep 23, 2010 6:23 pm

loner wrote:Anybody has any experience in buying a house/apartment with tenancy? The seller's agent happened to be the tenant himself and b'cos of that I'm afraid the tenancy agreement will be a biased one. Am I able to get my own agent to prepare a new piece of contract or my represented lawyer will be able to ensure the rental contract is a fair one ?


Since you are buying the property with tenancy, typically the existing tenancy agreement will be novated / assigned to new owner. As such you are entitled to review the said tenancy agreement prior to signing the option or completion. Your own lawyer handling the property transaction should review and advise whether there are any onerous terms not typically in an arms-length tenancy agreement.

You may wish to note amongst other clauses; what the inventory list covers, what is term and rental of tenancy, whether there is a renewal clause at prevailing market rates, what is notice required should there be an en-bloc, is there interest chargeable on late rental, is there a right for
tenant to exercise any early termination, what's the minimum amount tenant should bear for defects, and what defects are covered, eg. air condition servicing, chemical cleaning of air-condition units etc

Above are just some clauses to look out for, but you should definitely have your lawyer review the agreement, especially since the agent has a vested interest in the property.

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Re: Buying a house/apartment with tenancy

Postby loner » Fri Sep 24, 2010 8:26 am

CMF:


:thankyou:







Above are just some clauses to look out for, but you should definitely have your lawyer review the agreement, especially since the agent has a vested interest in the property.[/quote]

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Re: Buying a house/apartment with tenancy

Postby cherrygal » Fri Sep 24, 2010 3:29 pm

loner wrote:Anybody has any experience in buying a house/apartment with tenancy? The seller's agent happened to be the tenant himself and b'cos of that I'm afraid the tenancy agreement will be a biased one. Am I able to get my own agent to prepare a new piece of contract or my represented lawyer will be able to ensure the rental contract is a fair one ?


Loner,
You decided to buy an apt instead? Not buying the sports car?
Or buying both? :moneyflies:

I also want to buy an apt with tenancy. Yes, you should get a new contract under your own agent.

I find that tenancy agreements in Singapore do not protect the landlord that well. I used to rent an apt in Australia and those agreements are biased towards the landlords, which I think is very good. Tenants should not be allowed to play punk with other people's property.

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Re: Buying a house/apartment with tenancy

Postby loner » Fri Sep 24, 2010 3:57 pm

cherrygal,

Bought a Merc 180 already. Spotted a house which DH and me quite like, but its selling with tenancy. Thus not sure is worth investing as the rental is only $5.5k and its asking price is 1.7mil... :?
Hoping the market will drop further... Anybody has any clue what will be the private property trend like for the next few months?

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Re: Buying a house/apartment with tenancy

Postby verykiasu2010 » Fri Sep 24, 2010 4:11 pm

loner wrote:cherrygal,

Bought a Merc 180 already. Spotted a house which DH and me quite like, but its selling with tenancy. Thus not sure is worth investing as the rental is only $5.5k and its asking price is 1.7mil... :?
Hoping the market will drop further... Anybody has any clue what will be the private property trend like for the next few months?


which Merc 180 huh ? (kaypoh me!)

5.5k rental on $1.7m is very low return leh, after deducting tax and loan interest and depending on your capital amount...but if you are not using any loan, the rate of return is even worse, purely on investment point of view without considering capital appreciation (it could go up or go down)....of course if you are more or less sure there is only upside no matter what, it is a possible investment case, provided there is some gearing, to lower your cost of capital

what size is the ppty ? freehold ? district 10 ? landed ?
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Postby cherrygal » Fri Sep 24, 2010 4:33 pm

woohoo... flashy car and new house!

A financial adviser once advised, for better rental yield, you should get old apt, 99yrs lease. 2-bdrm will be best. Don't buy a new condo and rent out coz it is very "sim-tia" when pple spoil your things.

For long-term investment, freehold landed is still the way to go. Landed will never get very good rental yields. It's more for self-stay and overall appreciation.

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Re: Buying a house/apartment with tenancy

Postby loner » Fri Sep 24, 2010 4:41 pm

[verykiasu2010:

Just a 2nd hand car lah!

Understand the returns are not attractive but b'cos the unit (freehold) has quite a good layout and is located near amenities thus wonder is better to lock into the pricing now or sit back to wait and see what's next...

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Re: Buying a house/apartment with tenancy

Postby duriz » Mon Sep 27, 2010 9:50 am

loner wrote:cherrygal,

Bought a Merc 180 already. Spotted a house which DH and me quite like, but its selling with tenancy. Thus not sure is worth investing as the rental is only $5.5k and its asking price is 1.7mil... :?
Hoping the market will drop further... Anybody has any clue what will be the private property trend like for the next few months?


Wow, double congratulations to you loner :D

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Re: Buying a house/apartment with tenancy

Postby loner » Mon Sep 27, 2010 10:27 am

Thanks duriz ! Blessed by Lord.... :pray:

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