Introduction
This is a preview of how a real estate investor would use real estate investing formulas and calculations to decide if buying a 3 bedroom at Bartley Vue is a real estate investment or not. At this point, there is not much information given out by the developers. Everything I have to date (4th July 2021) will be given out here for your reference. If you are interested to find out more, fill up the contact form at the end of the post or Whatsapp me at the bottom right corner, I will keep you updated whenever I receive any latest news about Bartley Vue.
| Project Name | Bartley Vue |
|---|---|
| Developer | Wee Hur (Bartley) Pte Ltd |
| General Description | PROPOSED RESIDENTIAL FLAT DEVELOPMENT COMPRISING 2 BLOCKS OF 16-STOREY BUILDING (TOTAL 115 UNITS) WITH 2 LEVELS OF BASEMENT CARPARKS, SWIMMING POOL AND COMMUNAL FACILITIES WITH INTEGRATED DRAINAGE RESERVE ON LOT 10613W MK 24 AT JALAN BUNGA RAMPAI (TOA PAYOH PLANNING AREA) |
| Location – Address | 6 Jalan Bunga Rampai Singapore 538310 8 Jalan Bunga Rampai Singapore 538311 |
| Plot Ratio | 2.1 |
| No. of Storeys | 16 |
| Total No. of Units | 115 |
| Site Area | 4666.6 sqm |
| Tenure | 99 years lease commencing on 13 April 2020 |
| Estimated TOP | 13 January 2026 |
| Estimated Date of Legal Completion | 13 January 2029 |
| No. of Parking Lots | 95 |
| No. of Lifts | 5 |
| Facilities | Arrival Court Concierge Playground Oasis Children’s Pool Gym Fitness Corner Playground Haven Function room Rejuvenating Pavilion Entertainment Court 30M Lap Pool BBQ Pavilion Guard House Management Office Vehicular Entrance & Exit Pedestrian Entrance Side Gate Service Gate Car Park Entrance & Exit |
For the real estate investing calculations, I will assume that I am purchasing a mid to high floor 3 Bedroom (947 sqft) at Bartley Vue and will calculate and compare with the nearest condo called Bartley Ridge.
| Name | Bartley Ridge | Bartley Vue |
|---|---|---|
| District | 13 | 19 |
| Tenure | 99-Year Leasehold | 99-Year Leasehold |
| TOP | 2016 | 2026 |
| Address (Multiple) | Mount Vernon Road, 368055 | 6 Jalan Bunga Rampai 538310 8 Jalan Bunga Rampai 538311 |
| Number of Units | 868 | 115 |
| Bedroom(s) Type | 1 – 4 Bedrooms | 2 – 4 Bedrooms |
Things to note of
As mentioned, we do not have many variables which are confirmed on the Bartley Vue side. So there are many assumptions we have to take. Here are the major ones
- The Bartley Ridge consist of 868 units whereas the upcoming Bartley Vue consists of 115 units.
- The Bartley Ridge is located in District 13 while the Bartley Vue is located in District 19 although they are at a straight line distance for 200m only.
- The sizes of the 3 bedrooms for Bartley Ridge and Bartley Vue are not much different but still worth noting. 980 sqft for Bartley Ridge and 947 sqft for Bartley Vue
Calculations
As mentioned above, we are assuming that I am interested to buy a mid-floor, 947sqft, 3 bedrooms Bartley Vue and will use real estate investing formulas to calculate and see if it’s a real estate investment or not.
This calculation is done by comparing it with a similar 3 bedroom unit at Bartley Ridge which is located at a straight line distance of 200m away.
Bartley Ridge Transaction
| Bartley Ridge | #13-XX |
|---|---|
| Unit Bought | 26 August 2013 at S$1,200,900 |
| Unit Sold | 3rd June 2021 at S$1,345,000 |
| Number of Months | 93 |
| Growth Rate | 1.46% |
Calculation of Growth Rate (Central Region)
The annual growth rate for the North East region based on SRX Property Index from May 2011 to May 2021 is 2.82%
Let’s just take this at face value. There are many ways we can discuss if we meet why the growth rate should be higher or lower.
Real Estate Investing Formulas used
Before we begin, note that these formulas are usually used for properties which are already existing, similar in age and size. Bartley Vue is only due to be completed in 2026 and will be 10 years newer than Bartley Ridge by then. See more in the conclusion section.
Gross Rent Multiplier
The Gross Rent Multiplier Formula for Bartley Ridge for a 3 bedrooms unit at 980 sqft are as follows
| Bartley Ridge | #13-XX |
|---|---|
| Sales Price | S$1,345,000 |
| Annual Rent | S$33,600 |
| Gross Rent Multiplier | 40.0298 |
With the following assumptions taken
- Assumption of the monthly rent of 2,800 SGD based on the worst-case scenario to lower the risk (No stats are given for the floor level, lowest was 2,800 SGD/ Month on 1st February 2021 and highest was 3,700 SGD/Month on 1st May 2021.
Income Capitalisation Method (Modified)
Using the Income Capitalisation Method Formula, the Cap Rate for Bartley Ridge is calculated as follows
| Bartley Ridge | #13-XX |
|---|---|
| Annual Net Operating Income | S$18,688 |
| Market Value | S$1,345,000 |
| Cap Rate | 0.0139 |
= (Rent Income – Property Tax – Property Insurance – Annual Maintenance Fees – expected Maintenance and Repair – Vacancies Loss) / Market Value
Assuming the following
- Expected Maintenance and Repair is 0
- The maintenance fee for Bartley Ridge is assumed to be 480 SGD
Calculation for Bartley Vue using Cap Rate and Gross Rent Multiplier
Using Gross Rent Multiplier for Bartley Vue
For the assumption of rent for Bartley Vue, we assume to be S$2,705.71 as the 3 bedroom units for Bartley Vue are at 947 sqft.
Using the average GRM of 40.0298 to find the sales price for Bartley Vue
Sales Price = 40.0298 * (2,705.71 * 12)
= S$1,299,709.18 SGD (Rounded to whole number)
Using Income Capitalisation Method for Bartley Vue
Market Value for Bartley Vue = Net Operating Income / Cap Rate
= (Rent Income – Property Tax – Property Insurance – Annual Maintenance Fees – expected Maintenance and Repair – Vacancies Loss)
= S$17,880.91/ 0.0139
= S$1,286,912.99 SGD (Rounded to whole number)
Where the following assumptions are made
- The maintenance fee is 480 SGD (Assumed)
- Expected Maintenance and Repair to be 0
Using the Time Value of Money Formula
To show you how I use the Time Value of Money Formula to calculate the price per square feet we should be looking to pay for a 3 bedrooms 947 sqft mid to high floor unit in 2021, do contact me via Whatsapp or at the contact form below so I can share with you my findings or you can wait for the review to come out for a more accurate number. Do note, I will only publish reviews for new launches that will pass the real estate investing formulas worst-case scenario.
Conclusion
Congratulations! If you’ve read to this point, you are probably really looking at buying Bartley Vue for your future residential property for investment or for your homestay. If I’m right, I would like to be considered as your representative real estate agent to purchase your next home.
There are several advantages when I represent you in buying a residential property (Resale or New Launch)
- No commission required to be paid by you for Private Properties (Resale or New Launch). Probably the biggest advantage. If I represent you, either the developer or the owner pays me the commission, not you.
- A free real estate investing report with calculations on your preferred unit will be done for you upon meetup. For new launches, I will also pass you all the floor plans, e-brochures, pricing and launch price discounts (if any).
- If you are looking to buy a unit for investment, I will research the best unit type this condo has to offer to provide you with the maximum returns from your investment money.
- If you are looking to buy for your own stay, I will research and let you know the best floor level and direction facing and layout type within your budget to maximise your future sales price. If the calculations are not favourable, at least you will know how much extra you will be paying for. Then you will know whether or not it is worth it to purchase.
My obligation is only to you and the real estate investing formulas I use are not some secret formulas that only I possess. These real estate investing formulas are widely available and used by real estate investors all over the world and are taught at the world’s top universities teaching real estate investing. You can check out a post on how I use these formulas on previously launched condo developments and how they can show that the condo you are buying is an investment or not.
You can look for me for truthful and honest advice for anything real estate related, any time and any day. I don’t work for anyone else and have no obligation to sell this development for them and therefore, I have no need to pressure you to buy anything. If you want to buy, buy, otherwise, we move on and will look out for another unit that is more suited for your needs.
I am part of a team that is very strong in financial calculations. If you are really looking to buy, my team will find different ways and different means to make sure you will be able to afford it. Throw us questions and problems you are currently facing and which your previous agents are unable to answer, let us impress you with what we can do to get you your next home.
Buying a condominium (especially for a new launch) for anyone is most probably one of the biggest ticket purchases in their lifetime
Think of me as your friendly and knowledgeable real estate investor friend who’s doing you a favour to make sure the purchase of your new condo is really something worthwhile to purchase or at the very least, something that won’t lose you money in the future.
What are you waiting for? Let me know how I can help you
Disclaimer
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