About a month after buying a home for own stay, Jac strikes at another undervalued property in the East. Vibes@East Coast is a freehold property that has yet to be built, expected TOP date is 31 Dec 2015! That's like 4 years later!!! Anyway, TOP date should be around end 2013 to early 2014.
Well, since the last property cooling action in January 2011, buyers have to hold on to their newly bought properties for 4 years before selling, to avoid paying the hefty seller's stamp duty. It looks like a good time to buy new launches as they will need 3 to 4 years to build anyway.
Why is the unit that Jac bought was an undervalued one? These are the reasons:
1. It is less than $600,000.
2. It is freehold.
3. It is just one floor below the top floor.
4. It has 28 shops on the first floor.
5. It has a number of restaurants serving good food nearby.
6. It is within 1km from Tao Nan School and CHIJ Katong.
7. It is about 1km from East Coast Park.
8. It is within 1.5km from Parkway Parade.
9. The living room, study and the bedroom is unblocked for up to 500m.
10. The maintenance fee is only $180 per month. (The maintenance fee in Parc Bleu is $280.)
These are just some of the points that Jac, thinks the unit that he has bought is undervalued. It was a lucky opportunity that is not to be missed.
Jac's brought his wife and father-in-law to view some new showflats in Telok Kurau area. They enjoy doing it as a hobby. They viewed a unit at Parc Bleu, also a 4th storey unit, which is able to enjoy an unblocked view from the living room as well. The price? $618,000.
After viewing that, they just drove to Vibes@East Coast, just to take a look. When there, the 150 units apartment was left with less than 10 units. They were either in the second floor or facing another apartment. Hence, there were no 'good' units to buy.
Right on the next day, the agent who served the family, called to say that a unit was re-released as the buyer did not exercise the option due to bank's disapproval of the loan. Well, as Jac has already studied the floorplans and had done his homework on the surroundings, he already has in mind that this unit was one of the best units that can enjoy the unblocked view.
Immediately, he asked the agent to collect the cheque for the downpayment from his wife, as he was working. This unit was actually targeted by a few other agents' clients. They were lucky to have won the race and signed the option that night.
Buying this unit has saved Jac of about $20,000, compared to buying the Parc Bleu unit, and also able to get him a rental yield of at least 5% in the future. Whether the value of the project will rise in the future, there is no definite answer. Nobody will know if price will go up or go down.
It always pays very well to do your own homework, so that you can strike when the opportunity rises. Once you have that done, when opportunity knocks on the door, strike at it. You will never lose out and can only gain from it.
Have fun looking around for undervalued properties.