In The Money

Are older leasehold condo units a good investment?

In this fortnightly series, we address readers’ queries on investing issues. This week, we look at the value of older leasehold condo projects.

With an asking price psf of around $1,100, a 1,800 sq ft unit at Pine Grove can be had for around $2 million. PHOTO: ST FILE
Residents of the former Pearlbank Apartments – redeveloped into One Pearl Bank – had to endure constant lift breakdowns. ST PHOTO: LIM YAO HUI
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Q: My wife and I have sold our condo unit as we received a good offer and we are looking to buy another one. The prices of leasehold condos from the 1980s seem quite attractive. In addition to less chance of significant capital gains in the future, what other downsides should we be aware of? We are in our 50s and have two children in secondary school.

As you mull over the options for a new home, rents are on the rise. Urban Redevelopment Authority data shows that private home rents increased by 2.6 per cent in the fourth quarter of last year and 9.9 per cent for the entire year.

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