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Dear Gurus, im intending to purchase a B1 industrial properties for own usage

Came across some property with the sizing that we required. However its has left 26 years balance lease outta 60 years leasehold

Would it be worthwhile to buy such property? What would happen after the 26 years, would the property be returned to state or developer without returning our capital paid throughout the 26 years?

Or would the property still be saleable say after 10-20 years?

Thanks for the advice
Advinc
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3 Answers

Hi Advinc,

Perhaps we could schedule a meet up so that I can take the opportunity to understand your objectives and expected returns to chart out some figures and illustrate accordingly the sales transaction analysis to help in the decision making. Being guided and walked step by step by a professional realtor will definitely put you in an advantage; as you're in a better holding position with negotiation power as well as are equipt with the data and tools we have on hands to ensure you're getting a good deal. Furthermore, there is no agent fees involved. Hence my consultation and assistance rendered comes at no cost, yet your welfare is protected. Thanks!

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  • WV
    Hi Mr Kumar, please see if you can address to my questions first before we make contact for further disussion.

    We are ending our current lease only next year Oct, hence still have time ahead.

    Thanks
    Advinc
Hi Advinc,

It is advisable to consider newer projects if you are considering exit plans in general. Usually it is not because of the balance tenure of a property that reduce the attractiveness of purchasing the property but the available financing options which are restrictive. For properties with short balance tenure, the banks are less likely to disburse full loan amount usually given to newer developments, which means more cash needs to be pumped in for the purchase. In business sense, the lock up in cash is highly unattractive therefore does not make business sense.

Nevertheless, if your plans are long term in utilising the business space, it makes perfect sense to acquire such a property as they usually come cheaper than the newer projects and makes it a worthwhile investment over time.

As with other properties with expiring lease, there will be no returns of the capital input towards this property and the only hope for such projects is for collective sale to happen prior to lease expiry.

Are you referring to Sindo Building?

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Hi,

Regard to your question. Why not you just drop me an email at ot1984pierre@gmail.com or Contact me @ +65 8 2 7 9 8 3 2 7

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