Issue – Bank does not want to loan so much money, hence valuing the property lower than market price!!
• During the Peak, Sail is $1800psf City facing
• Bank can matched in 2007
• Now, bank matched $1400psf
• The Price now is $1450psf
• Size is 614sqft
• Peak is $1.1Mil, 20% = $220K (Based on $1800psf)
• Selling Price = $1450 * 614 = $890,300
• Bank Match = $1400 * 614 = $859,600
• COV = $30,700
• Loan ($1450) = $890,300 * 80% = $712,240
• Loan ($1400) = $859,600 * 80% = $687,680
• Cash Outlay + COV ($30,700) = $859,600 * 20% = $171,920 + 30,700
o = $202,620
Cash Outlay is even lower than the Peak
If Bank Matched at $1450psf, loan amount is higher, which is $712K instead of $688K
RISK is also higher and resulted in
Lower Rental Yield
Lower chances of Capital Appreciation compared to the peak
Loan Amount is higher
Higher Interest Rates means more payout
Business Opportunity
Are you the one?
