The Best Time to Plant a Tree was 20 Years Ago.
The Second Best Time is Now.
FIRE SALE @ Urban Vista!
Seize the opportunity to own a 2-bedroom right next to Tanah Merah MRT station for just $748,000!
Seller is selling below their original purchase cost for personal reason and the unit is currently tenanted at $2,000/month till Sep 2022.
For buyers looking for own stay, vacant possession can be arranged as tenant are open to relocating to another unit in Urban Vista.
This is a 549 sqft 2-bedroom with only 1 other unit on the same level and enjoys direct access to the carpark.
Developer has also provided a furniture deck in the study which could fit a queen size mattress so the effective space usage is just like a 2+study.
Show Me The Numbers
Property Price: $748,000
Downpayment (5% Cash): $37,400
Downpayment (20% Cash/CPF): $149,600
Buyer Stamp Duty (Cash/CPF): $17,040
Total Initial Outlay: $204,040
Loan Amount: $561,000
Monthly Instalment: $1,936 @ 1.5% over 30 years
Tenanted at $2,000 till Sep 2022 so effectively, tenant is servicing the entire mortgage.
The empty plot of land right next to Urban Vista has been recently awarded to MCC Land at $930 psf ppr with an estimated breakeven price of $1,512 psf.
Assuming developer add on a profit margin of 15%, the expected launch price will be $1,738.
At $748,000, you are buying at a 27% safety margin with the flexibility for immediate move-in or continue to receive rental income.
Assume Zero Capital Gain
Outstanding Loan (5 Years Later): $484,108
By selling at the same $748,000, the sale proceeds after repaying the loan is $263,892. This means that even if the property did not appreciate at all, you will still enjoy a profit of $59,852 simply because the tenant is the one paying off the loan for you.
Based on the initial outlay of $204,040, this translate to a return of almost 30% or 6% per annum. This is almost 8X more than what one could get by putting the same amount in a fixed deposit account for 5 years.
What are People Paying for $74X,000?
To give you a sense of what other buyers bought recently with $74x,000, refer to the list below.
Do note that all of them are 1-bedroom and not exactly near the train station.
Midwood is 440m to Hillview station, Treasure is 669m to Simei station, Riverfront is 834m to Hougang station and Urban Vista is 208m to Tanah Merah station.