I wrote about “The story of buying my first property (part I, II & III)” in January. Sorry it takes so long before I post the story of my second purchase.
With the positive rental return from my 1st property, very soon I had enough savings to buy my second one.
In between I kept looking for good buys, again with the following criteria:
1) Good location and layout;
2) Minimum 5% net rental return; and
3) At least 15% below last transacted price.
I read in the paper about a one-bedder close to 1,200 sq ft going for bank sale. I knew that the condo is within walking distance to an MRT station in the east, and ECP is just a stone’s throw away.
I called to enquire more. It was a mortgagee sale. The owner stopped paying installments to the mortgage bank and the property was confiscated by the latter.
The unit was auctioned a few times before but with no taker. When the mortgage bank finally gave up selling it at auctions, it was given to two or three property agents to sell at the open market.
It was asking for $380,000 only! I immediately arranged for a viewing.
Although the condo was 18-year-old, it was maintained reasonably well. Built on top of a slope, the development was a built in a large site with much greenery and full facilities.
All units had a huge front yard for gardening and keeping pets.
There was a big balcony in both the living room and the bedroom, overseeing an unblocked breathtaking seaview.
The place looked like it had been left vacant for some time. Renovation was quite original.
I went there twice during day and night time. Every time I was the only one coming for viewing.
It was just after the SARS outbreak in 2003. Nobody had the mood for flat viewing. The market was dead quiet.
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