As more than 90% were sold, only 2 bedroom units were left. This is a peculiar phenomenon as usually 2 bedroom units were the 1st the be snapped up in any new launches. As this development is an EC, the main barrier is $10,000 household income. I was interested in a 3rd floor 2 bedroom unit.
The prices were really reasonable. A 2 bedroom 829 sq ft unit, morning sun with blocked afternoon sun and facing a garden, it costs $617k before CPF grant of $30k.
TOP is expected to be in 1st quarter 2014. PSF price works out to be $744.
I believe this is a good buy, stay invest unit for a couple of reasons.
1) 5 mins to Buangkok MRT
2) Low financing rates
Based on 20% downpayment (5% cash 15% CPF), loan amount required is $493,600
Monthly installment before TOP is in the range of $157-$659.
Interest rates are assumed to be 1.05%, 80% financing and 40 years loan tenure.
Upon TOP, monthly installment of $1023; after one year certified statutory completion (CSC), $12593) Good Investment potential
If one would want to take the chance to rent out the unit upon TOP (illegally), the expected rental is $2k (minimum) after taking into account the $180 monthly maintenance.
That works out to be a 4% yield based on purchase price. The leverage of 5x will mean yield to be 20% based on 20% downpayment.
Even if one stays for 5 years and sell in 2019, the expected price based on The Quartz selling price now is projected roughly to fetch about $750k-$800k, conservatively.
One can earn at least $130k in 10 years time, or an annually compounded return of more than 10% based on my downpayment!
4) Walking distance to 24 hours fair price and Kopitiam. All amenities has been set up, critical mass attained. More amenities will be available.
5) Land parcel near Esparina Residences is up for tender to private development. This would further support its price in the medium term.
Alas! If only I am eligible....