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By Stella Thng
Savvy investors have long been clued in on this fact: Just as Singaporean homeowners like buying a property near a good school, many expats with school-going kids prefer a home near an international educational institution, too. Schools form a vital part of a foreign community’s backbone, especially for those arriving in a strange new land with little ones.
Besides appreciating the convenience of shorter travelling times to school, especially during morning peak hours, expats also find it easier to meet and bond with other families from the same community, with kids who attend the same educational institutions.
Interestingly, most local investors don’t consider proximity to an international school a top priority. Traditionally, investors prefer to buy near MRT stations and good amenities to cater to a wider expat crowd. However, real estate agents agree that being close to international schools is certainly a plus if you want to attract expat families with a bigger budget. Here’s what you need to know.
EXPATS WITH FAMILIES ARE WILLING TO PAY – FOR THE RIGHT HOME
It’s true that many expats are hired on local terms or given a smaller housing allowance these days. However, those who can afford to uproot their family and relocate to Singapore usually hold more senior posts and thus have bigger budgets. Some are on a corporate lease, which is often more generous than a personal lease, says Richard Choke, a consultant from expat specialist Citiprop Property Management. He recently helped a British family look for a suitable house in Portsdown Road. “Their key criteria is to stay close to Tanglin Trust School,” says Richard, who worked with a budget of $10,000 to $12,000 per month.
Eric Leow, a corporate accounts director with Meyzer Properties, has eight years’ experience working with expats. He says: “As long as there is a good and reliable school bus service to and from school for the kids, seasoned expats value other factors just as much – community support in an expat neighbourhood, amenities that cater to their lifestyle, and convenient public transport including taxis and the MRT.”
EXPAT FAMILIES PREFER HOMES WITH AT LEAST TWO BEDROOMS
Leave the shoebox units to the swinging single or yuppie couple. “Most expat families with one or two children rent condominium apartments with at least two bedrooms, unless their accommodation allowance is generous enough for a house,” shares Richard. “Many also want a spare room as a guestroom for visiting family and friends, or a study or play room for their children.”
Case in point: The British family he works with is currently staying in a condominium. After two years there, they’re now looking for a four-bedroom landed property with a pool and garden so the family of five, their large pet dog and domestic helper can all enjoy more space.
LEASEHOLD OR FREEHOLD MAKES NO DIFFERENCE TO THE TENANT
A 999-year or freehold property usually fetches a premium over its 99-year counterpart when you are buying or selling. But for the expat tenant, that doesn’t make any difference, points out Richard. What expat families look for are convenience and the facilities your condo offers. Got a tight budget? If you are investing primarily for rental yield, it may make more sense to stretch your dollar with at least a two-bedroom unit in a 99-year project with a nice pool, playground, barbecue pits and gym, rather than a freehold walkup apartment without any facilities.
REMEMBER THAT KIDS COME WITH THE PACKAGE
Some landlords are fussy about keeping their hardwood floor unscratched or their walls pristine, and may prefer not to rent to families with young children. If you are targeting expat families, this may be part of the deal. “The good news is that families tend to make more loyal tenants,” says Richard, who knows of several clients who have renewed their lease as they were comfortable with their home, neighbourhood and landlord.
They are also more willing to pay a reasonable increase in rent, unlike single or coupled expats who may shop around more for cheaper deals. Shernice Gow, marketing director of Century 21 Alliancz Real Estate, notes: “If they’re happy and comfortable, expats with families would rather pay a bit more than spend time and money looking for another apartment and hiring a mover.”
KNOW THE PROS AND CONS OF RENTING TO STUDENTS
If you have a condo apartment near tertiary institutions such as NUS and NTU, you may attract foreign students who prefer to pool their funds and rent a nicer place instead of living in a hostel. However, some landlord worries include loud noise (which might annoy the neighbours) and poor maintenance.
Others are wary that the students may secretly sublet to friends so as to split the rent between more people. More people means more wear and tear, too. On the plus side, if you are willing to rent to students, you will always have a steady stream of tenants as long as the school doesn’t move location. Chances are they’ll also be somewhat less picky about the condition of your property.