Ewe Boon Road.
10 units, 1 block of 3-bedroom 1800 sq. ft units.
Completed: Around Nov 1998. Cabled.


Quiet street, private reserved car parking lot

3-bedroom: 1850 sq. ft renting $4,500


Microwave & oven

Interiors:

Living/dining - light coloured marble around 36 feet x 13 feet, more spacious as there is no balcony.

A sideboard with four door cupboard and a marble shelving to put things and admire yourself at the wall mirror is useful. It separates the living from the dining.
Bedrooms - parquet.
The master bedroom has an 8-door wardrobe,


Bright master bedroom with 8 closets.  High windows, clothing closet.


Quality wooden floors and big windows in all rooms.



Spacious study room


The kitchen has a white dual basin sink


 


Modern kitchen appliances

Air conditioning system with concealed ducting in all rooms and cable TV points.

Built-in microwave and conventional oven. 

Washing machine and dryer. Cabled points to all rooms.  Good-sized utility area and maid's room.  Private lift.

Facilities:
Swimming pool (deep blue tiles, about 20 m), jacuzzi, assigned (reserved) covered car park lot, 24-hour security.
Audio visual intercom, concealed air conditioning piping and vent, private lift access card. 

Competitors: Palm Springs Condo (167 units),


Wing On Life Garden (left) & Palm Spring (foreground) seen from The Clayton's kitchen. 



The Princeton and Crystal Towers (right) seen from The Clayton's private lift lobby. 

Their 3-bedroom units and living area are smaller for the same rental, around 1300 - 1500 sq. ft.


Advantages:
Privacy  in low density.  One unit per floor. No immediate neighbours.


Bright spacious living and dining areas.

Spacious dining and
living areas, brightness.

A private lift to your apartment & assigned car parking lot.  A utility or maid's room with window.

Location near Orchard Road and Bukit Timah Road. 

10-15 min walk to Orchard Road via Stevens Road using short cuts  Many picturesque views of  apartments and trees.

You can  take buses to the American Club & Orchard Road in 3 minutes via Stevens Road. 

A 15-minute walk to the Newton subway. Many taxis ply these 2 roads.

Quality finishes.


White long bath and dual basin sink in master bathroom.

A shower stall and a big white long bath in the master bathroom and a shower stall in the common bathroom.

 
2nd bathroom is spacious. The common bathroom has a big shower stall and dual basin counter.
One corporate landlord providing excellent back up services.

See photos of
Spacious living, dining and master bedroom rarely found in new Singapore condos near downtown.

Dining area seen from the living area.


Master bedroom window

Disadvantages:  Pool only.  No gym or tennis court.  Not near to the subway. 

Case study:    Cash is king: $200,000 compensation to break lease.

"I was offered 10.5 months' rental compensation but I wanted 12 months," said Ms Q.

At $19,000/month, 10.5 months amount to a cash income of $199,500! The Tenant (a foreign bank) broke lease after 3 months' occupancy commencing August 1998 and had another 12 months of the lease before the "diplomatic clause" allowing it to break lease kicks in.

The Landlord could just sit pretty and get $19,000/month for 12 months, totaling $228,000. How would you advise the Landlord?

Much depends on the tax situation although $200,000 cash income will be taxed at the maximum rate.

In this case, the sole owner is a housewife. Assuming no other sources of income and that the detached was not rented prior to August 1998 and has been rented for 3 months.

Scenario 1. Rent received for the 3 months totaled $57,000. Cash compensation from the Tenant of $199,500 added to gross rent income of $256,500. Tax payable in 1994 (as an example as the 1997 figures were not available) for the first $200,000 at 25% tax rate will be $40,000 and $56,500 at 28% rate will be $15,820. Total tax payable amounts to $55,820. Net income to the Landlord will be $200,680.

Scenario 2. As above, but receiving $19,000/month from August 1998 to December 1998. The gross rent income will be $95,000. In this situation, tax payable will be $15,500 (rounding the rent to $100,000 at 22% rate. Net income to Landlord will be $79,500.

Which scenario would you advise?

Even without consideration of taxation, Scenario 1 will be advisable. The Landlord could rent the detached below market rate at, say $12,000 although she wanted $15,000. This adds $24,000 to gross rent income for November and December 1998. Total gross rent for the year will be $256,500 plus $24,000 or $280,500!

WHICH SCENARIO did the Landlord take?

Scenario 2. Reasons are unknown.  The husband is a Chairman of a private business and therefore would know what to do.  If the lease were rented to his company, the taxation rate may be 26% and therefore, he gets less.   The house was later sold with tenancy. 

Therefore, would it have been more profitable to take the compensation of $200,000 from the bank first, rent and then sell the house with tenancy? 

Bungalows in the Swettenham, Pierce, Ridout Road area are usually bought for owner occupation rather than as investments as they cost over $6 million and the rental return is less than 2% of purchase price.  As at April 2, 2000, new bungalows of around 15,000 sq. ft with inground pool rent around S$20,000 - $30,000 but those without pools are not getting top rents.