My journey as a novice property investor started before I even turned 27 years old.
After much research, exploring and consulting with experienced investors and agents, I made the decision to purchase my first investment property at Riverfront Residences.
It was a 1-bedder unit because to be honest – that was how much I can afford.
And when I did make an exit, the profit was not significant but it boosted my confidence as I know I was on the right track.
It has also inspired some clients to take the same action I did.
My experience attracted the attention of this young couple – Don & Carmen.
“This property is going to be our next home. Why should we sell?”
Don & Carmen bought a 1+study unit at Riverfront Residences back in Jun 2019.
The estimated TOP date is going to be in 2024 so that meant at 5 year wait before they could move into their home and start their matrimonial journey.
I shared with them my experience of selling my 1-bedder Riverfront Residences unit to secure a larger 2-bedder unit in the resale market.
The idea was to:
- sell a small uncompleted unit for a profit
- securing a bigger unit that allows for immediate move-in
On my end, I helped them to identify a 3-bedder unit at Riverbank at Fernvale at a very good deal.
The price of $1.13M was attractive and they were excited to secure the unit.
Unfortunately, they did have to pay the Seller Stamp Duty (SSD) as they were selling their Riverfront Residences unit before the 3-year mark was up.
But the SSD of 4% was considered a small price as the deal of a 3-bedder unit at Riverbank at Fernvale was too good to pass up.
Today similar units have an asking price of $1.2M and above.
Sold their Riverfront Residences unit within 3 days
In Dec 2021, I secured an exclusive listing to sell their Riverfront Residences unit.
Within 3 days, I secured a buyer for this unit that was still under construction.
Selling a subsale unit is a unique process as there are no “viewings”.
I usually tap into my network of fellow agents and colleagues to seek potential buyers immediately.
For this case, there was a ready buyer who has been wanting to purchase a unit at Riverfront Residences.
We then proceeded to purchase the 3-bedder unit at Riverbank immediately.
From a 1-bedder unit to a 3-bedder unit
They were able to move in within 3 months in 2022 instead of waiting all the way till 2024.
At the same time, they are starting out their marriage in a far larger home in greater comfort.
Selling Subsale Units Nearer To TOP Date
Riverfront Residences is a massive development that will add more than 1400 units to the property supply in the Hougang area.
As it nears the TOP date, more units will appear for sale and competing listings will start to show up.
When supply that is for available increases significantly, it also means that room for negotiation will become lesser as buyers will have plenty of alternatives available.
This should be one of your considerations to take into account if you are considering to sell your unit before the TOP date.
Conclusion
For this case, I helped them to sell their subsale unit and purchased a larger unit from the resale market.
It was possible because I was able to spot a good deal at Riverbank.
At the same time, I have to acknowledge their willingness to pay the SSD in order to secure their next home.
Not everyone is so willing and excited to proceed because of the increased costs.
But they did.
They were able to move in to not just a bigger home but also 2 years earlier than expected.
If you have questions about buying or selling a subsale unit, do let me know.
We can arrange a no-obligation discussion where we can discuss further.
