Sunday, 30 September 2012

How i will evaluate a property and a good website to share!

I found an interesting website yesterday. Never knew it existed till someone show it to me.

I think Squarefoot Research was created with the user in mind and intuitively, you will be able to find the information which you may want to know for a particular development.

I think it contains a lot of good stuff which you cannot find through the URA website or other websites. Let's just use one of the examples which i have used previously, Citylights Condo, to show you the thought process behind evaluating a condo.

1. First you get a summary page on the condo.



There are many interesting statistics here. You can know the tenure, the completion date, the number of units, the implied yield and even the buyer profile! There is a also a map showing all the amenities around the condo. 

Questions to ask myself?
Is this a Freehold or Leasehold unit?  
Is the condo near to amenities such as shopping malls, MRT stations, Highways, Schools.
Is the condo typically owned by foreigners or Singaporeans and the profile of the buyers.

Right below you have the transactions for the last 6 months. I think if you subscribe to this website, you will have even more details.

2. Transactions in the last 6 months


I think what is missing from the URA website is the lack of details on the unit numbers! This makes it difficult for me in the past to make apple-to-apple comparison and i have to get those details from my property agent. All units are different in terms of layout, size, level etc. Thus to have more granular details like the unit number is pretty helpful. For example i know from the table above that on Sep 5, a unit on the 8th floor of 570 square foot transacted at $1,665 psf while a bigger unit of 1,841 sq ft on level 40 transacted in July at $1,440 psf. As such, if i am a buyer looking for a unit in this development, i will know whether the price which i am offering or selling for that particular size or level is "fair market value".

Questions to ask myself.
Am i buying or selling at market prices for condo around the same levels?
What is the current market price i am expected to pay if i want to buy one?

3. Price analysis and trend

If you are into technical analysis, you will love the chart below! It shows you the price trend since 2005! How i wish i have such information last time. The trend is your friend! haha.




Questions to ask myself
Will the price will continue its uptrend?
Am i buying at a good base or at a top? (This one hard to predict) ^_^

Lastly, you can see some profitable and losing transactions on this development together with the holding period etc. Wow! This is solid. haha.

4. Profit and loss!

So out of curiosity, i actually went to check out the properties which i have sold in the past and found that the condo which i sold in May 10 was resold again in August 12 for a profit of $172,483!  

5. Rental

If you are buying to 'rent out' or looking to rent a unit there, there is also a list of historical prices to let you know if you are renting at a which percentile. But of cos, there is less granular details here, so you wont know the difference between the rents on the 4th or the 40th floor. Another useful feature is that you know that if you want to stay along this road, what will be the range of rentals which you expect to receive.

Questions to ask myself
How much monthly income can i expect from this condo?
Will the rental income covers the interest and mortgage installment?
Will i be able to service the mortgage if i am unable to rent out for 6 months or if the rental psf drops?

6. Peer comparison

The site must have been designed by a stock analyst. It also have a comparison with the nearest condos within the vicinity! It helps to now that Southbank is the best seller, followed by City Lights then City Square but by rental wise, it is Citylights, Southbank and then CitySquare Residences.

 

Questions to ask myself
Which condo is offering the best value and yield based on the current market price?
Should i consider alternatives such as Southbank given both are similar in terms of location and rental potentials? 

Well this will be some of my thought process when i analyze a property. Hope you will find this site useful and help you with your thoughts process whenever you evaluate a property to stay or rent out.

Happy house hunting.

4 comments:

Beng Chee said...

Info is available from realis at a cost.

Mr. IPO said...

Yep but not so easily acessible and dissected.

Mr. IPO said...

Yep but not so easily acessible and dissected.

Sonic Master said...

Thanks for sharing this info, I am doing a research on how I will evaluate my unit's value at marina bay residences This is a big help for guys like me. Thanks :)

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