Conversion Of Bungalow To A Pair Of Semi-detached Houses

[airman 1]

Hi!

I purchased a 99 leasehold bungalow with balance of 67 years and plan to tear it down and build a pair of semi-detached houses.

The land area is about 8,800 sq ft.

My questions are:

a) Is it worthwhile to spend $1.5 million to build a pair of semi-detached houses that is about 3.5 storey high? Is $1.5 million too high a price?

b) What is the chance of getting approval to top up the lease to 99 years? What is the cost involved?

c) Is it better to remain as bungalow or convert to a pair of semi-detached houses?

Any advice or information is greatly appreciated.

Thanks!!!

[therat 18]

hmm..

I think you need to have BCA approval first

[blueocean 0]

Most of your questions can be answered by URA.

1. Construction cost varies with materials, architect chosen. It is usually in the range of $300 psf upwards for construction cost excluding fees etc. There is also a risk of construction delay, problems with construction and obtaining TOP. So, you need to be prepared to have time to deal with various things that crops up ...

2. 67 years of lease left ? Hmm ... Not many years left. It will be harder to re-sell the place as time goes on. Also, you may not be granted an extension of the lease.

3. Converting it to semi-detached ? What's the purpose ? Rental ? Capital appreciation (will be limited by your remaining lease though) ? What's the location of your property ?

Hi!

I purchased a 99 leasehold bungalow with balance of 67 years and plan to tear it down and build a pair of semi-detached houses.

The land area is about 8,800 sq ft.

My questions are:

a) Is it worthwhile to spend $1.5 million to build a pair of semi-detached houses that is about 3.5 storey high? Is $1.5 million too high a price?

b) What is the chance of getting approval to top up the lease to 99 years? What is the cost involved?

c) Is it better to remain as bungalow or convert to a pair of semi-detached houses?

Any advice or information is greatly appreciated.

Thanks!!!

[pantieileen 2]

Most of your questions can be answered by URA.

1. Construction cost varies with materials, architect chosen. It is usually in the range of $300 psf upwards for construction cost excluding fees etc. There is also a risk of construction delay, problems with construction and obtaining TOP. So, you need to be prepared to have time to deal with various things that crops up ...

2. 67 years of lease left ? Hmm ... Not many years left. It will be harder to re-sell the place as time goes on. Also, you may not be granted an extension of the lease.

3. Converting it to semi-detached ? What's the purpose ? Rental ? Capital appreciation (will be limited by your remaining lease though) ? What's the location of your property ?

Estimated cost of erecting new SD = 750k ~ 1M. Perhaps erecting 2 units together will be cheaper say 500-600k, excluding furnishing

Not sure where he bought it but depending on location, maybe can rent 4-5k at least unless super duper awful like jalan kayu (near roti prata place)

But still doesn't make sense left right center...perhaps he remodel the bungalow and rent it out whole unit since tenants usually don't bother about 99yr or FH but still will be less than 10k since most prime areas won't be 99

[leechaorui 2]

Hi!

I purchased a 99 leasehold bungalow with balance of 67 years and plan to tear it down and build a pair of semi-detached houses.

The land area is about 8,800 sq ft.

My questions are:

a) Is it worthwhile to spend $1.5 million to build a pair of semi-detached houses that is about 3.5 storey high? Is $1.5 million too high a price?

b) What is the chance of getting approval to top up the lease to 99 years? What is the cost involved?

c) Is it better to remain as bungalow or convert to a pair of semi-detached houses?

Any advice or information is greatly appreciated.

Thanks!!!

Hi Airman,

a) I think whether worth it to spend the $1.5 million to build a pair of semi detached houses is dependent on the returns you can get from this investment. It depends on interests rate, rental yield (if you plan to rent instead of sell), etc.. If you plan to sell, it will have to take into account your purchase price, interest, returns expected, cost of construction & fees payable to the authorities which will include development charge and the price that you can possibly sell the semi detached.

b) There is no certainty in getting lease top up. You will need to top up the lease by another 32 years. I think you can check with URA for the formula of your specific location through making an appointment with the officer in charge.

c) Depends on (a) and (b) above.

[airman 1]

Hi Airman,

a) I think whether worth it to spend the $1.5 million to build a pair of semi detached houses is dependent on the returns you can get from this investment. It depends on interests rate, rental yield (if you plan to rent instead of sell), etc.. If you plan to sell, it will have to take into account your purchase price, interest, returns expected, cost of construction & fees payable to the authorities which will include development charge and the price that you can possibly sell the semi detached.

b) There is no certainty in getting lease top up. You will need to top up the lease by another 32 years. I think you can check with URA for the formula of your specific location through making an appointment with the officer in charge.

c) Depends on (a) and (b) above.

Thanks for all the advice received.

The bungalow is near Pasir Ris Beach Park and if built at 3.5 storey will have a seaview.

My intention is to stay for a few years and sell one or both when the price is right.