My newly discovered haunt lies somewhere along Changi Rd, in an inconspicuous noodle house whose original owner still waits and serves customers after more than 30 years in the business. I personally have always liked fish maw - the springy texture and raw fishy taste is just irresistable. Be it expensive restaurants or road side stalls, none of those I've ever tasted matched neither the quality nor the quantity of the Fish Maw soup based noodles served by this noodle house. I've seen much better presentation and color of this dish in the past, but the true value and wonderful aroma of this Changi Rd shop chef's creation is truly bar none.
Since I'm on the topic of presentation and value, it occurred to me that shopping for a house for the main purpose of investment is not that much different.
There is this ultra modern and super luxuriously finished smallish (sub 500sf) apartment right smack in District 09, just 2 mins stroll to Somerset MRT, going for 2000psf. That is a cool $1 million. However, realistically, it can only be leased out for about $2500 max.
Then there's this shabby looking walkup apartment over 30 years of age, no where really near any MRT station, along a busy main road in East Coast, all 1200 square feet of it in original condition asking only $500K or 416psf. Surprisingly (or not), it is fetching the same amount of rental - $2500. How so? Well, it's got 5 bedrooms and each has been leased to individuals for $500 each.
There you have it. At half the price, you get the exact same rental revenue. Not only that, you mitigate your risk (lessen by 5 times) as your lease income is spread across 5 parties vs just 1. Imagine if your ultra-lux condo tenant bails out all of a sudden - you'd be left with $0 rental income until you find a replacement tenant, whereas it is quite unlikely all 5 tenants in your shabby walkup bail out at the same time.
You may say the capital gain is higher for ultra-lux Orchard apartments. Yes, for sure, but don't forget the possibility of your 30-year-old walkup being purchased en bloc. That is substantial capital gain opportunity for you.
So as they say, same for people, don't judge a dish by its mere presentation - the same goes for investment properties.
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