Huge 99yr landed Vs Small old Freehold landed

With rising costs and increased learning needs, financing our children's education is no longer a simple walk in the park. Discuss with other parents about how they are managing their finances to cope with their expenses.

Huge 99yr landed Vs Small old Freehold landed

Postby cherrygal » Fri Feb 18, 2011 1:26 am

Thinking of buying a place near a school. Due to budget, should I get a huge 3-storey 99yr landed (cluster with facilities and already 10yrs old) or a small and original freehold landed?

Or should I just get a freehold condo?

Which option has better potential and what is the difference in asset growth?

The last resort would be to rent a HDB near the school and rent out my own property. Can't buy HDB now as I own private property and it's such a waste to sell it to buy the HDB, and get locked in for 5 years.

:?:

cherrygal
KiasuGrandMaster
KiasuGrandMaster
 
Posts: 2886
Joined: Thu Aug 06, 2009 1:01 am
Total Likes: 13


Postby verykiasu2010 » Fri Feb 18, 2011 8:42 am

in terms of short- to mid-term investment returns, with gearing, 99-yrs leasehold would give higher return for a well maintained property

in longer term perspective, freehold provides better capital appreciation, better bank-ability ....... unless the banking industry / MAS change the borrowing cap on leasehold property....

but of course, whether leasehold or freehold, still can en bloc lah....and most important thing about property is : never be sentimental with a property because it clouds your investment judgement

the ultimate principle is still "location" : Marina Bay or Sentosa 99-years leasehold is still better than freehold in timbuktoo
verykiasu2010
KiasuGrandMaster
KiasuGrandMaster
 
Posts: 11696
Joined: Mon Jan 04, 2010 11:06 pm
Total Likes: 2


Postby cherrygal » Fri Feb 18, 2011 3:18 pm

Thanks Verykiasu! Can always count on you for sound financial advice. :D

My current property is also in a great location, in fact better than the one nearer the school, and I bought it at a very low price. That's why I feel it's such a waste.

What would you do?

cherrygal
KiasuGrandMaster
KiasuGrandMaster
 
Posts: 2886
Joined: Thu Aug 06, 2009 1:01 am
Total Likes: 13


Postby verykiasu2010 » Fri Feb 18, 2011 4:44 pm

cherrygal wrote:Thanks Verykiasu! Can always count on you for sound financial advice. :D

My current property is also in a great location, in fact better than the one nearer the school, and I bought it at a very low price. That's why I feel it's such a waste.

What would you do?


why a waste ?
verykiasu2010
KiasuGrandMaster
KiasuGrandMaster
 
Posts: 11696
Joined: Mon Jan 04, 2010 11:06 pm
Total Likes: 2


Postby cherrygal » Sat Feb 19, 2011 9:37 pm

It's a waste to sell my current home coz the loan is very low for the place. And I also don't feel like selling it to buy a HDB. I won't be able to sell the HDB or invest in private property within 5 years. I could miss future opportunities.

It was an oversight on my part lah... procrastinate too much. I should have bought the additional HDB flat near that school before the govt introduced the measures. I had wanted to do it but DH was a drag and we thought we'd do that when the kid is older.

cherrygal
KiasuGrandMaster
KiasuGrandMaster
 
Posts: 2886
Joined: Thu Aug 06, 2009 1:01 am
Total Likes: 13



Postby WeiHan » Tue Mar 08, 2011 6:26 pm

I thought 99 years landed porperty is always the worse type of property to get? 99 years condo is ok but 99 years landed is a nono.

WeiHan
KiasuGrandMaster
KiasuGrandMaster
 
Posts: 1944
Joined: Wed Jan 07, 2009 4:18 pm
Total Likes: 22


Postby cherrygal » Wed Mar 09, 2011 12:12 am

WeiHan wrote:I thought 99 years landed porperty is always the worse type of property to get? 99 years condo is ok but 99 years landed is a nono.


Why so? Can explain in detail? Why landed no-no? How about 99yr landed cluster with condo facilities?

cherrygal
KiasuGrandMaster
KiasuGrandMaster
 
Posts: 2886
Joined: Thu Aug 06, 2009 1:01 am
Total Likes: 13


Postby ghostz » Wed Mar 09, 2011 3:37 am

Subjective and criteria varies from person to person. For me, first thing is location, and then whatever I can afford in that location. If to stay maybe all the way, LH is fine with me. If to stay with the intention to sell, then FH might be more important.

99LH cluster, I not too sure. I'm also thinking of 99LH cluster

ghostz
OrangeBelt
OrangeBelt
 
Posts: 69
Joined: Fri Apr 03, 2009 10:56 pm
Total Likes: 0


Postby WeiHan » Wed Mar 09, 2011 1:31 pm

cherrygal wrote:
WeiHan wrote:I thought 99 years landed porperty is always the worse type of property to get? 99 years condo is ok but 99 years landed is a nono.


Why so? Can explain in detail? Why landed no-no? How about 99yr landed cluster with condo facilities?


99 years condo can be en bloc for redevelopment. The developers will top up the lease back to 99 years. For small pieces of 99 years land, developers are usually not too keen. Then you will be left holding a hot potato that keeps depreciating in remaining land lease year and no developers are keen in taking it back. Astute buyers who know this fact won't be too keen to get at a good price from you too. Then as times goes by, you are still holding your potato.

99 years cluster may be better but I am not too sure. I don't think it is good also. Will a developers like this kind of land for clusters buy it back 20-30 years later?

WeiHan
KiasuGrandMaster
KiasuGrandMaster
 
Posts: 1944
Joined: Wed Jan 07, 2009 4:18 pm
Total Likes: 22


Postby carebear » Wed Mar 09, 2011 6:21 pm

WeiHan wrote:I thought 99 years landed porperty is always the worse type of property to get? 99 years condo is ok but 99 years landed is a nono.


I agree with you, weihan.
Landed property better to get 999 or freehold.
99y landed property has low resale value.

carebear
KiasuGrandMaster
KiasuGrandMaster
 
Posts: 1034
Joined: Sat Nov 22, 2008 10:38 pm
Total Likes: 0


Next

Return to Money Matters