“Why I Bought My Property Even Though I Might Lose Money” Singaporean Homeowners Share Their Stories

Is your property a way to make money, or just a roof over your head? Well, the most honest answer from most Singaporeans is “Why not both?” But every now and again, we encounter true owner-occupiers; genuine home buyers as rare as unicorns, who have zero concern over rental yield, resale gains, or any such issues. And contrary to popular belief, they’re not all rich people who “don’t have to care.” This week, some of these homeowners shared why they bought properties which – in all likelihood – won’t be making them any money:

1. Buying over a home from the landlady

YC has a rather unusual story. She has resided in an old condo in Bedok South since 2009, and for the first four years (2009 to 2013), she was only a tenant. At the time, she was recently widowed and stayed there with her son, who only came back on weekends because he was in NS.

“I didn’t do any research, I am not good with these property things. I liked it because it was referred by a church friend, and the landlady also came to the same church with me. It was also very close to our former house, at Lucky Heights. Although it’s not the most convenient, I find it’s bigger than most newer condos, and there’s space for gardening. I thought I wouldn’t have a chance to do that after I moved out of our landed.“

YC says her landlady at the time was also a friend:

“There was no property agent or anything, I just signed the lease with her. I was good friends with her also; we went to the same church. Eventually she wanted to sell the place, to move back with her children in Malaysia. But I didn’t want to leave the place as I had many memories living there. So when she told me she wanted to sell it, I said sell it to me, I will buy it.”

Surpirsingly, the landlady gave YC the opposite of a sales pitch. She warned YC that the lease for the condo had begun in 1982. On top of that, there wasn’t – and still isn’t – any MRT, mall, or major amenity nearby. The typical property investor would frown at that combination of factors, but YC shrugged it off.

“I am already so old, 40-years lease is already more than enough for me. My son’s girlfriend has her own flat, they are planning to live there. I already have all my things here, I can’t find a place so big anymore. I have friends nearby, we go to the coffee shop across the road every Friday evening. And I am not the gallivanting type, I don’t go shopping or to restaurants. So I am quite happy to live out my life here.”

YC’s condo currently has resale transactions that are lower than $990 psf, making it one of the cheapest properties in the district; and this is likely to decrease as the lease decay progresses. While YC won’t disclose how much she paid, she does agree that – in theory – selling the Bedok property might not even be enough to buy an equal-sized replacement. But she’s happy with her home, and considers the purchase one of her best decisions.

One of the key factors for her was not having to deal with further unknowns:

“The difference is that I lived there for four whole years before I bought. I think that is more research than most buyers will ever do, so I was very sure in what I was buying. At my age I want this certainty above all.”

2. An unattractive and ageing, but convenient walk-up apartment

When Aaron told his family his plan to buy a walk-up apartment along Changi Road, the response was a lot of eye-rolling, warnings, and complaints:

“My mother was the loudest protestor, and she made a lot of good points. She said it looks like one of those badly maintained dorms for foreign workers, which is true from the outside. She also thought it would be a problem going up the stairs to the third floor, because I have a bad knee; I’ve had an operation before. And she was especially unhappy that the shop downstairs is a pawn shop, which she considers to be very ‘suay’ because its where desperate people go to pawn their things.”

Aaron also consulted with a friend who was a realtor, saying that “her face also fell when she saw the place.” Despite being on a 999-year lease (effectively freehold), the building dates back to the late 1970s, and maintenance is a concern. Aaron’s realtor friend also said that the businesses downstairs – a motorbike accessories shop and a very old coffee shop, besides the pawn shop – would be off-putting to some buyers. She also noted that the few transactions for the area had been stagnant, staying at around $1,100 psf or under for many years.

“I chose to go ahead anyway, because even if I don’t make money, it’s worth the convenience to me over the next few years. I can walk to Eunos MRT station from here, and I have my own business in Paya Lebar. It’s late by the time I close up, so I want to live close by. My girlfriend lives in PLQ, so we’re close to each others’ places. And this place is over 1,200 sq.ft. with two bathrooms, so it’s spacious enough if we settle down together.”

Aaron also said that, despite the building’s age, the renovations by the previous owner were less than five years old. The air-conditioning had also been completely replaced, about three years before he moved in. In total, Aaron spent only around $40,000 on renovations.

Aaron’s business also requires him to keep a lot of inventory; so by having a larger unit – even though he technically lives alone – he saves a significant sum on storage. Plus, the cheap coffee shop downstairs is a useful amenity as he doesn’t cook.

He’s hoping that when the time comes, perhaps 10+ years down the road, he can sell the unit at close to what he bought it for: “I am okay so long as I don’t make a loss. If I don’t see any return, I’ll just consider that the cost of being able to live conveniently for so many years.”

3. Buying to support an ageing parent

KH knowingly overpaid for his resale flat. Although he won’t disclose the amount, he says that the Cash Over Valuation (COV) for the ageing flat (built in 1984) was around $70,000. It was, upon the advice of his property agent, far too expensive:

“My agent is my own cousin, and she was very against it. She asked me: are you trying to break the record for highest transaction? The flat is already very old some more.”

But KH has his reasons for purchasing the old executive flat, which went beyond its size. The main reason was to move in with his ageing father, who had always expressed a desire to live near his second daughter. While KH had a flat of his own, and was willing to take in his father, his home was all the way in Boon Lay, whereas his sister lived in Bedok. In addition, KH’s son, his daughter-in-law, and their child were also living under the same roof at the time, and his 5-room flat in Boon Lay was getting crowded.

“We found this place in Bedok which is just a few minutes from my sister’s place, so she can come and see my dad anytime. Also, we found out my dad’s old school classmate and army buddy lives just one bus stop away; he’s been by to hang out with my dad almost every day. The place is much closer to my office, so it was perfect on so many levels.”

While things turned out great, the seller at the time wanted a much higher price than the surrounding flats. But the seller’s was the only listing that KH considered large enough. He also adds that his father is almost completely wheelchair-bound, and the family would soon get a domestic helper to assist. This intensified the need for space.

“I felt from the first moment that this flat was right, it was a blessing for my family that was in the right place at the right time; so against the advice of my cousin, I told her please go ahead and let’s do the deal. I know I am overpaying, I know to some people this may not make sense, but not everything in life is about money.”

KH also feels its fitting repayment: he says when he was in his mid-twenties, his father had given KH a substantial amount to buy his first home. This was not a loan, and was given with no strings attached. As such, KH feels it’s only right that, in his father’s old age, he repays the favour. If that means having to overpay for an older flat, he’s willing to accept the outcome.

Even so, KH does check the flat’s value from time to time, more from curiosity than anything. While he prefers not to disclose the details, he does say that – even with the surge in resale flat prices after Covid – he would make “very little” net profit from selling the flat today. Besides its age, he had to undertake significant renovations, so it could even be a net loss.

“I don’t feel any pain though,” KH says, “I went into it with my eyes open, and it’s totally worth it to make my dad’s final years happy ones. Also, now I sleep all the way until 7.30 am, go out and eat a relaxed breakfast, and I’m still in the office on time; it’s so close.”

Do you know of anyone who willingly bought a property, even if it’s unlikely to provide a return? Let us know the story, and you can follow us for more homeowner experiences on Stacked.