Mon, Feb 16, 2009 - my paper
Mr Raymond Ng
THIS recession might be a good time for condominium owners to review their expenditure on the maintenance of communal areas and come up with creative strategies to save money.
Big-ticket items like the appointment of a management company could cost up to $200,000 or more annually. Round-the-clock security services may cost another $200,000 or more for larger condominiums.
Expenses on lifts and other electrical and mechanical systems can also be high, and should be reviewed with the help of a qualified auditor where possible.
There are other cost components, such as the maintenance of swimming pools, tennis courts, saunas, gyms and playgrounds, which could also be reviewed based on their rates of utilisation, taking into account yearly expenditure on utility bills.
Condo owners could consider employing a property officer who is directly under their payroll instead of having to pay variousmiddlemen to procure different services.
In Australia, condos located along the Gold Coast make use of management rights to certify an owner-occupier to manage the communal area of the condo in which he is residing. If implemented prudently, this model could be a good strategy as the resident manager would have a greater stake in the estate versus an employee of a third-party company, and longer- term cost savings could also be a result.
Other strategies could include the increased use of security gadgets, re-routing of traffic flow, restricting visitors to parking near entrances and the training of a neighbourhood-watch team, which could rotate their duties with a neighbourhood police post.
Condo owners could also consider installing solar panels and other energy-saving devices to cut costs.
In short, every dollar spent should add value to the condominium. A well-managed condo with a healthy financial balance sheet will always have a better resale value than one which suffers from poor management and maintenance.
Read More
Monday, February 16, 2009
Wednesday, January 21, 2009
Japanese firm wants apartment block near MRT
Jan 21, 2009 - The Straits Times
Joyce Teo
A JAPANESE firm operating here is trying to take advantage of a weakening property market by offering to buy an entire block of flats next to an MRT station - and it has up to $100 million to spend.
Tokio Property Services, which usually finds flats for Japanese expats here, is working for a Japanese client that thinks fire-sale bargains will soon be hitting the market. The strong yen also makes it a good time for bargain hunters from Japan.
Mr Toru Takano, who set up Tokio Property Services seven years ago after living here for about eight years, told The Straits Times: 'Prices are going down and some small developers may need to sell their assets.' He added that it would be pointless to wait two to three years for prices to drop if the yen were also to decrease.
Mr Takano placed an advertisement in The Business Times yesterday asking for a block of apartments, as it would be too much trouble calling up the many developers here to locate a seller.
He is looking for a high-yield residential property for investment returns, rather than capital gains for his Japanese client - a well-known firm.
It is possible to find high-yield properties with returns of more than 5 per cent to as much as 8 per cent in a downturn, he said. 'Instead of freehold, I will get a 99-year leasehold (property) that is near an MRT station.' The MRT location will make the flats attractive to tenants who do not drive.
Mr Takano is confident that he will find Japanese tenants easily enough, as there is a large group here. 'Japanese companies do not lay off so many people...even in recession times,' he said.
His plan is to fill the property with Japanese tenants who are happy to pay a premium. He said most rental units here are owned by individual owners and there are many unreasonable landlords who do not take care of their units. 'If the owner is a famous Japanese company, the tenants will feel relaxed and they will not mind paying a little bit more, maybe 10 per cent to 20 per cent higher than the market rate,' added Mr Takano.
His advertisement has attracted a few responses from sellers such as small developers and building owners but none of the offers stood out, he said.
Joyce Teo
A JAPANESE firm operating here is trying to take advantage of a weakening property market by offering to buy an entire block of flats next to an MRT station - and it has up to $100 million to spend.
Tokio Property Services, which usually finds flats for Japanese expats here, is working for a Japanese client that thinks fire-sale bargains will soon be hitting the market. The strong yen also makes it a good time for bargain hunters from Japan.
Mr Toru Takano, who set up Tokio Property Services seven years ago after living here for about eight years, told The Straits Times: 'Prices are going down and some small developers may need to sell their assets.' He added that it would be pointless to wait two to three years for prices to drop if the yen were also to decrease.
Mr Takano placed an advertisement in The Business Times yesterday asking for a block of apartments, as it would be too much trouble calling up the many developers here to locate a seller.
He is looking for a high-yield residential property for investment returns, rather than capital gains for his Japanese client - a well-known firm.
It is possible to find high-yield properties with returns of more than 5 per cent to as much as 8 per cent in a downturn, he said. 'Instead of freehold, I will get a 99-year leasehold (property) that is near an MRT station.' The MRT location will make the flats attractive to tenants who do not drive.
Mr Takano is confident that he will find Japanese tenants easily enough, as there is a large group here. 'Japanese companies do not lay off so many people...even in recession times,' he said.
His plan is to fill the property with Japanese tenants who are happy to pay a premium. He said most rental units here are owned by individual owners and there are many unreasonable landlords who do not take care of their units. 'If the owner is a famous Japanese company, the tenants will feel relaxed and they will not mind paying a little bit more, maybe 10 per cent to 20 per cent higher than the market rate,' added Mr Takano.
His advertisement has attracted a few responses from sellers such as small developers and building owners but none of the offers stood out, he said.
Sunday, January 11, 2009
Considerations when selling your property
Successfully selling your Property depends on various consideration: the right price to market, timeframe, required processes etc.
More than simply advertising and signing a legal agreement, most seller do not realize that it is in fact a strategic process.
Strategic Elements
Price (see below)
Presentation
Competition
Timing
Condition of current market
Value adding to your property
The right Agent
Determine the right price for your property
It is important to price correctly for the market. This will involve statistical science; as well as emotions and psychology.
Science - dollars per square foot, numbers and facts, days on the market, list price percentage vs sales price etc
Psychology - buyers feel at home, they are drawn to the property, they are willing to accept a higher price.
More than simply advertising and signing a legal agreement, most seller do not realize that it is in fact a strategic process.
Strategic Elements
Price (see below)
Presentation
Competition
Timing
Condition of current market
Value adding to your property
The right Agent
Determine the right price for your property
It is important to price correctly for the market. This will involve statistical science; as well as emotions and psychology.
Science - dollars per square foot, numbers and facts, days on the market, list price percentage vs sales price etc
Psychology - buyers feel at home, they are drawn to the property, they are willing to accept a higher price.
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