806161 - Affordable Homes

House Agent's Licence

No. AD041 - 07306B

Singapore Real Estate, Rent, Condos, condominium, Rooms, House, Affordable, expats, expatriates, Cheap housing, Asia USA Realty, asiahomes.com
Visit www.asiahomes.com

Focus: Finding affordable homes for expatriates

Asia USA Realty (Singapore) asiahomes.com Pte Ltd
Blk 1002, Toa Payoh Lorong 8, #01-1477, Republic of Singapore 319074

Owners renting to US/European companies: expatriates looking for affordable rentals,
tel: (65) 9668 6468, 254 2728, 254 7944, fax: (65) 256 0501,
email: drsing @asiahomes.com. Contact: Dr Sing Kong Yuen, BVMS (Glasgow),
MRCVS, Managing Director
See www.asiahomes.com for free services to expats, advices to newcomer Landlords/Realtors/Tenants.

Affordable Homes for Expatriates
Article No. 806161

Subject: Asia USA Research - Elizabeth Tower Condo for expats who want Orchard Road neighbourhood

Case study: The foreign Owner & absentee Landlord

An effective Exclusive marketing agent needs 1.5 months commission.

For Rent: June 16, 1998. Orchard condos: Elizabeth Towers 3+1, 2000 sq ft, $6K. Pin Tjoe Court, 4+1, 2,800 sq. ft, $8K, Parisian 4+1, 4,500 sq. ft $11K, Cuscaden Tower 4+1, 3766 sq. ft, $11K. The Claymore 3+1, 2700 sf, $14K, The Colonnade 3+1, 3,900 sq.ft $14K, UE Square 3+1, 1500 sq. ft $4.8K. Others: Tulip Gardens (Holland Rd) 5+1, 3400 sq. ft $6K. Costa Rhu (East Coast) 100% Waterfront 4+1, 2200 sq. ft $6.5K (9^th floor) & $5K (14^th floor). Woodlands terraces American School, $7K - $8.5K.

Elizabeth Towers Condo

Location: 12 & 14 Mount Elizabeth.

Total no. of units: 80

How old is condo? Around 18 years old but upgraded and looks as good as new.

3-bedroom: 182-186 sq m
Maisonette: 272-292 sq m
Penthouse: 417 sq m
Living/dining - marble tiles (in unit 14^th floor advertised here). Bedrooms: parquet.
Wardrobe and kitchen cabinet from Developer. No balcony in this unit but much bigger living and dining room. Every bedroom has attached baths.

Facilities: swimming pool, 24-hour security system, squash court, covered car park

Advantages:

5-minute walk to Orchard subway, yet quiet.

Door-step of the prime Orchard Road area / Takashimaya Shopping Centre/Lucky Plaza..

Good for expatriates who want to be near downtown and Orchard Road. At least 4 shopping malls and the American/Tanglin Clubs are within walking distance.

Established condo - high floor units seldom vacant. Tenant mix - international nationalities.

Disadvantages:

Not brand new but advertised unit has been remodelled and as good as new. Marble flooring and top grade white long baths and interior décor.

No gym or tennis court.

For Rent in June 1998: Details as follows:

1. Elizabeth Tower Condo, 14^th floor.

Expats who dislike crowded high density condos,
and want to be near Orchard Road

Location of home :14 Mt. Elizabeth Road, Tower A/high floor above 10 (near Mt. Elizabeth Hospital)
Near to subway : Orchard Road Station 5-minute walk.
Floor area : approx. 2,000 sq. ft.
No. of bedrooms : 3 bedrooms + 1 with private bathrooms on each room.
Rental asked : $6,000 p/f
Available date : June 1998.
Contact numbers : Asia USA (65) 9668 6468, 254 2728, 254 7944, 254 3326

Email: drsing@asiahomes.com

Preference : No Indian Nationals, Korean, Chinese Hongkong.

Remarks : All high quality marble floor, new white baths, bright kitchens. Unblocked view of city from living room.

2. Ref: 804087. New Houses Upper Bukit Timah Road, near Bukit Timah Shopping Centre/Clementi area. Terraces (around $6,000), semi-detached (around $7,500) and bungalow (over $14,000). Very near Australian/Canadian, Dutch/Swiss and other international schools. Good cheaper option for Americans who do not need to live in Woodlands, next door to the American School.

4. Ref: 804018 East Coast area. Costa Rhu 4+1, 2218 sq ft, $7,000 p/f. Livonia, D5 layout, facing 100% Kallang River. Panaromic water view and facing North. Good feng-shui. Call agent 9668 6468.

5. Ref: 804185 Leedon Heights Condo 3+1, 1600 sq ft $3,300 p/f. Unobstructed view of Farrer Road far away and city and has bay windows. Highly recommended by Asia USA: responsive landlady and prime expat value for money apartment. Very near Orchard Road (5 minutes by taxi), Botanic Gardens, Tanglin Mall, Holland Village and Australian/Canadian, Dutch/Swiss and other international schools. 50% Japanese, 30% Caucasian, 20% Singaporeans - a prime multi-millionaire residential location and expatriate enclave. Full Condo facilities.

6. Pandan Valley Maisonette 4+1, 2000 sq ft, $5,000. 90%renovated recently. New baths, new kitchen. 2--minute walk to Australian School. Call agent 9668 6468 now.

7. Pin Tjoe Court 4+1, 2800 sq ft, $8,000. Spacious but old looking. 5-minute walk to Orchard Road subway. Claymore Road area. Call agent 9668 6468 now.

8. Woodland's Pinewood Grove houses near American School. Brand new, 3 storey. Terraces at $7,000 -$8,500 for corner terraces. 10-minute walk to the American School. Woodlands.. Call agent 9668 6468 now.

Case study: The foreign Owner & absentee Landlord

Foreign Owners: How to rent your apartment faster than others if you have no time yourself?

Use the 1.5 months' commission strategy and pay for your own newspaper advertisements

June 16, 1998

Be realistic. Many foreign owners have older condos which are not "rentable" unless it has special characteristics such as value for money, size and location.

For the past 12 months, there is an average of one new condo available/month. Older condos (over 3 years old) are no more in favour and if your unit is NOT renovated, it will be extremely difficult to rent it unless it has certain advantages e.g. next to the Dutch/German School. Even then, the expatriates do not need to live next to the school as new condos offer a much higher quality of fitxtures and furnishings as well as spanking facilities.

For such Owners, our best advice is:

Plan ahead and get viewing before expiry of tenancy. This is provided you have good realtions with the incumbent Tenant.

Appoint a managing agent. A rental housing type of realtor (or friend who is active in real estate) as a managing agent and offer 1.5 month's agency commission on closing within a time frame.

Appoint the managing agent as an exclusive marketing agent with 1.5 month's agency commission payable on success. Do not try to save money. If the managing agent closes without the need to co-broke, give the 1.5 months. We know most Owners are uncomfortable with this advice and would rather adopt the common practice of 1 month's commission for 2-year lease. What you need is to "stand above the crowd". By trying to save money and adopting the common practices, your unit will not get the attention or priority of the realtor or co-broking agents.

A big real estate firm will have too many exclusives and your unit will be one of them. Their realtors usually have very little commission (being employees with guaranteed salaries monthly and usually they don't work during weekends, unless they have special incentives from the firm). A small realty which is active in rental housing may be a better choice if your condo does not have very attractive features such as location and being brand new.

However, agents nowadays have to work even harder just to encourage viewing of your unit from anybody and cannot be too fussy about time and qualifications of prospects, just to produce to you the difficult to get "Letter of Intent" from a prospective Tenant.

Pay for Straits Times Advertisement and advertise as "Owner" twice a week, offering full commission to realtors. Many foreign Owners and Singaporeans who are absentee landlords (working overseas) are unaware of this need to pay for the advertisements and do not want to spend money doing so. A 3-line advert in the Singapore Straits Times cost around S$30. "Three times a week" advert is recommended.

Assuming 2 adverts/week, the monthly cost will be around S$240. There is a real risk of no response but since you advertise as "Owner", you will get many calls till you are weary of the ringing.

Owners who do not appoint exclusive marketing realtors may find this advice useful. If your friend is the marketing agent, do pay for the advertisements as you will need lots more adverts in a declining rental market since he/she will not spend much and will probably be inexperienced in the marketing of rental properties.

Unfortunately, this advice is seldom adopted as Owners try to reduce costs. Vacancy rate increases and in the end, the loss of rental revenue is much greater than the S$240 loss/month assuming your unit is renting at S$3,000.

Enlarge your promotional efforts besides Straits Times and sending direct mail to the International Schools and multi-national companies (most of which will be arrowed into the waste paper basket). Such entities either have their company-retained realtors or their favourite persons but you can always try since you need only one Tenant to rent your place (assuming you are not the multiple property type of foreign Owner).

Asiahomes Internet, under Asia USA Realty provides an affordable global on-line property advertisement for Singapore landlords and tenants. S$13.50/40 words/3 months will be value for money since the www.asiahomes.com is presently the only Singapore rental housing website, devoted nearly 100% to rental housing for expatriates in Singapore and has repeat visitors.

Asia USA Realty does not work or have any shares in the Straits Times nor any revenue from this monopoly and our recommendation is based on our field research that Owners who advertise directly usually have a higher probability of success. This is provided they are available at any time to show the unit. Many Owners do not respond to paging - one wonders why they bother to advertise?

Realtors who own investment properties adopt the "full commission to realtors" and pay for the advertisements themselves. In the past, they will advertise under their realty and co-broke with the realtor with the Tenant.

These professionals are aware of the immense difficulties of attracting the realtor with "Tenant clients" if they continue with the old "co-broking" practice. Closing will be even much harder if their properties are not brand new or attractive. In many cases we know and these are new condos like the Makena and UE Square, such realtors close within 1-4 weeks advertising "full commission" and get the revenue in to pay for the mortgages.

As a foreign Owner, you really have no time to waste, especially if you have an older unit. You may experience similar successes advertising as "Owner". Try to economise and your property will be sidelined even if it has the special characteristics such as location and being brand new. This is because the rental market is choked with a large supply of brand new condos and remodelled older ones. The Tenant-base is shrinking and this makes older unrenovated condos and housing a pariah.

Luck and timing do play a great role nowadays but we still advise Owners' advertisement in the Straits Times and other media such as the Internet and their managing agent/friend/representative be available at all times. You may have many calls but they need to suit your convenience. That need to have prior appointment (esp. if unit is still tenanted) is detrimental to success as the realtor with the Tenants just switch to another Landlord who can accommodate.

If you are uncomfortable in giving exclusives and in paying for the Straits Times advert fees, the best option may be to offer the 1.5 month's agency commission to all realtors in Singapore. Write/fax to all rental realtors - telephone and remind them every week. This method will be the most cost-effective advertisement for foreign Owners and absentee landlords. Nobody does it better than you.

Your representative still need to be available at all times, especially last-minute viewing and during weekends.

We hope this article is useful and will be glad to receive any feedback or advices from readers.

Ann Brocklebank