711242 - Tips On buyers & sellers

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PROMPT REPLIES TO INTERNET QUERIES ON SINGAPORE HOUSING
Ref: 711242

December 7, 1997 4.16 a.m. Replies in red.
Date: Sat, 06 Dec 1997 12:55:35 +0800
From: .....<..........@post1.com>
To: drsing@pacific.net.sg
Subject: 66, Harbourlights #XX-XX Rental of 2 rm apt

Hello Dr Sing,
Thank you for your 2 emails.

In one you mentioned that the Australian couple liked the unit with upscale leather furniture. Actually, the reason I have not furnished my apt yet is that I thought that way, I could furnish to the requirement of the tenant. You had actually told the Australian couple that when they were in my unit. It is a pity that we may have lost them. If I had known, I would have tried to match their furnishings.

There may be other better offers from other Owners beside Harbourlights Condo. Also, the apartment with the upscale furniture is on a higher floor and has beautiful views of the pool and greenery from the living and master bedrooms. Obviously, the Owner maximizes its assets but then he would not settle for less than $4,000 rental and demands long leases.

By the way, what do you mean by "upscale leather furniture"?

All leather furniture, well designed and fits the apartment. Not half leather on top and vinyl below. Somehow, many Owners seem to buy them in bright yellow colours for 2-bedroom apartments! Buy a 2 seater and 2 matching single seaters will do for your apartment.

Definitely not those bulky 3+2 sofa sets commonly seen in many HDB and some private apartments selling for around $700. Upscale sofa sets can cost a bomb!

I have been looking around for furniture but have not brought any because beside you, another agent, had also advised me against furnishing now. If there is any advantage in furnish the apt now, I really would prefer to. Any advise?

There is an advantage but if you go for cheap stuff or a mix of new and old (common practice amongst non-investment minded first-time Owners, then it would be a disadvantage as prospects would have been exposed to other apartments with brand new stuff.

The above mentioned Owner with upscale furniture threw in an old washing machine - just penny wise pound foolish. He did stack the dryer above the washing machine as advised by me and therefore, the machine may not be obvious.

Flexibility is the word. The Owner of the Harbourlights Condo who rented to my client (American Single) for $2,600 partially furnished had to take back his brand new queen sized bed said to be Australia’s No. 1 brand, worth $1,400. He wants to sell at $1,000; please contact me if you are interested. Also his living set. Luckily, the Tenant pays $100/month more for his new refrigerator, washing machine and bed in study room.

Thanks for your suggestion on putting a mirror in the living room. I am aware that it creates an illusion of space and it is a common feature in most showflats. However, I always have a reservation about the maintenance of mirror. I have the feeling that after a while there may

be spots on the mirror that may mar its appearance. Showflats are there for only a few months. You have visited may condos and apartments of owners. Do they put mirrors? How about the old apartments/condos with mirros that you may have visited? Do mirrors last?

99% do not and that is why those who do have the upper hand in attracting tenants. It used to cost $10/sq. ft 10 years ago and Owners probably feel children may damage the mirrors.

99% of Singapore housing do not have walled mirrors and those with mirrors appear all right to me. But then Owners may have installed new ones. Only in one case did I see a mirror with black spots in the centre and that was an old owner occupied apartment.

I have one in my dining room area since the Gulf War and it is as new as ever in 99% of its surface with 2-4 black spots at the edges. The previous Owner had paid for quality mirror and workmanship which means high prices.

If your experience is that mirrors can last, I would consider putting up a mirror.

Do get a quality mirror and use cane-coloured strips as borders for mirrors rather than brown ones. Yes, mirrors do last over 5 years and I have one of them. It is more unique in that it has 2 vertical halves. Each half has vertical and horizontal strips of over 8 inches wide as borders. This means more edges and open spaces between strips to allow moisture to enter and tarnish the mirror. Air in Yio Chu Kang may be fresher, away from the sea and heavy industries and this may be why I have no problem. Please check with mirror experts.

As it is now, I would rather pay more for up-market furnishings than to install a mirror. Of course, my other reservation about paying for expensive furnishings is that I may still end up getting tenant with low rental. Any advice/comments?

Japanese tenants will love fully furnished but most of them looking for 2-bedroom apartments have a budget of <$3,000.

Since we had spoken for some time, please forgive me for being frank. Your unit does not have those features that will make prospective expatriate prospects jump into the bed with you at the rental price of S$3,500 you have asked. You wanted $4,000 fully furnished and that might have frightened the Australian couple since they are looking for $/sq. ft or value for money.

For 2-bedroom Harbourlights Condos I do not know whether you will get your targeted $3,500 rental. November/December is the off-peak season for rentals and your Condo has only 8 occupants as at end November 1997 from my checks and I presume most are owners.

UE Square 2-bedroom Condos are getting tenants at $4,300, $4,750 or lower; there are more closings up even though the Owners got their keys 2 weeks ago. 90% of the Owners are still not getting their keys yet. There will be under-cutting in January 1998, you can be sure of that as the Developers have the service apartments next door too and can offer short leases to prospects such as the Australian couple!

Many Owners are now prepared to accept one-year personal leases but there are still some die-hards who insist on corporate leases and 2-year minimum and take fully furnished. Agents will just have to by-pass them as they are not in tune with what the customer wants.

Hope to hear some advice, comments or news from you.

UE Square Condos, next to Boat and Clarke Quays, walking distance to Raffles Place and adjoining a big shopping complex and supermarket are now asking $4,000 negotiable and that will be the main competitor. It has several hundred units and though some expatriates like the Australian couple, like low density condos, yours do not have the full condo facilities for the $3,500 prices you and the others are asking.

After a while, housing agents have to go somewhere because they cannot close unless they want to show what an "expensive’ apartment looks like. I have given up on 19 Shelford Condos because the Owners there in general are asking high rentals which do not compensate for the inconvenience of being far away from public transport, amongst other things.

I really don’t know what rental amount you should accept because this is an extremely sensitive issue with most first-time Owners and rental market has gone downhill.

Many Owners have had scolded me for getting prospects below their rental expectations thinking that I am looking after my own interest. Others are investment minded and appreciative. Agents earnings are performance based based and all look forward to the highest rental.

I can only say that if you offer between $2,000 - $2,500 fully furnished with ordinary furniture, you will get single/bachelor Tenants immediately because I have a long list! Unfortunately, these singles have low budgets. Early occupancy and less expenses on furnishing gives you a higher net rental income/year than getting high rentals but 6 months’ vacancy period.

Will bring a prospect with a budget of $3,500 - $4,000 on Tuesday, December 9 at around 3.30 p.m and let us hope for the best.

Thank you.

Best regards