Developments and Masterplans in Geylang Vicinity

With the developments coming up in Paya Lebar Business and Commercial Hub, as well as Kallang Riverside developements as unveiled in URA Masterplan. Geylang Area Properties are sitting on a good run for future upside potential, in my own opinion. Based on per square foot pricing for the properties there currently, with a huge bulk of the properties still transacting in the $700psf to $900psf price range for the existing completed properties in the resale market, i believe the upside potential is there.

Link from URA
http://www.ura.gov.sg/skyline/skyline08/skyline08-03/text/08.htm

Paya Lebar Future Business and Commercial Hub

Kallang Riverside Masterplan Developments

Sims Green Condo 2bedroom, 958sqft for Sale $860K

Sims Green Condo 2bedroom, 958sqft, 

Price – Asking $860K negotiable
Expected Rental – $3.2K Full furnished condition
Living room – Faces West with Balcony
Main Door – Faces South
Type – Vacant Possession



Development Name:
Sims Green
Property Type:
Apartment
Developer:
Hoi Hup Development Pte Ltd
Tenure:
99-year Leasehold
Completion Year:
2004
# of Floors:
8
# of Units:
108
Sims Green is a 99-years leasehold development located at 7 Lorong 27A Geylang, Singapore 388133, in District 14, 5mins walk from Aljunied MRT Station. Completed in 2004, this apartment development comprises 108 units. The Kallang Riverside Park and Upcoming Paya Lebar Business Hub are within the vicinity. Facilities at Sims Green include swimming pool, BBQ pits, gym, fitness corner, tennis court, and playground. 
Several feeder bus services are available close to Sims Green. Good schools, such as Tanjong Katong Girls’ School and Chung Cheng High School, are located just a short ride away. 
Numerous eateries are sprawled across the area and within a short walk away. Residents can buy their necessities at the Sims Place Market and Food Centre located just a short walk away or, alternatively, head down to the aforementioned Sims Avenue Centre for more amenities. 

Calculating Rental Yields, 2 Approaches

Method 1: Basic Rental Yield calculation

Illustration
Monthly rental received – $3500
Purchase price of property (Eg. a 3 bedroom unit in Sunny Spring – $900k)
Annual Rental received – $3500 x 12 = $42000

Basic rental yield will be – 42000/900k x 100% = 4.6% per annum


Method 2: Rental Yield based on leveraging calculation after rental expenses (A more accurate approach in my opinion, in short ROI, Return on investment approach)

Monthly rental received – $3500
Purchase price of property (Eg. a 3 bedroom unit in Sunny Spring – $900k)
Annual Rental received – $3500 x 12 = $42000
Downpayment on property(Based on 80% loan and 20% downpayment)
20% downpayment of $900K = $180K
– Stamp Duty – $21,600
 – Legal Fees – $2500
Monthly instalment for 30 years based on 1% for 1st year = $2315/mth
Passive income per month = $3500 – $2315 = $1185.

Total Investment Outlay = $204,100

Expenses of investing for the purpose of renting out the property
 – Maintenance and Sinking Fund – Assume $300 per month, 1 year = $3600
 – Property Tax – 10% per annum of annual rental income = $4200
 – Agent’s commission (Eg. 1/2 month comm for 1 year lease = $1750)
 – Cost of furnishings and repairs = Eg. $1500 per year
 – Cost of interest payments for Property for 1st year – $7100(Based on 1% interest rate for 1st year Fixed)

Total expenses = $18150

Net Surplus(Annual Rental income minus expenses) = $23850

ROI (Return on investments) = ($23850)/($204,100) x 100% = 11.68% per annum






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