Jump to content
MCF HangOut X Lexus – 9 May 2024, Lexus Boutique ×

Singapore Property Scene Discussion

therock

By therock,
in Property Buzz

 Share

Recommended Posts

Mkl22

Mkl22

Twincharged
(edited)
1 hour ago, therock said:

https://www.homeanddecor.com.sg/gallery/5-property-investment-trends-that-have-changed-this-year

"

Cash-flow positive properties are less of an expectation

In the property heydays of 2012 to 2013, it was more common for investors to seek out cash-flow positive properties.

That is, investors expected that they would still have rental income left over, once they’d covered the home loan repayments and maintenance fees.

Such situations are far less common in recent years:

Across the board, the average rental rate for a condo in 2022 is about $3.65 PSF. This is down by more than 10 per cent from a decade ago when landlords could expect around $3.90 PSF.

Do keep in mind that this is even with recent rental rates at a six-year high.

This isn’t to say you can’t find cash-flow positive properties; they’re definitely still out there.

It’s just that such finds are rare these days; most investors now see rental income as just a way to hopefully cover mortgage interest and maintenance fees, rather than expecting it to cover the entire home loan repayment, plus more.

As such, you may find that the latest property investment strategies tend to emphasise resale gains over rental."

 

As always, check that that property is truly an investment and not a liability.. if it can't even beat the CPF return of 2.5%, then it may not be worth it..

plus put CPF 2.5% is woon woon jiak bee hoon and dont even need to click even the mouse button.

rental properties can be a huge pain in the ass.

 

was Just doing some quick sums.

800sqft condo, lets say 1300psf buy price. so approx 1M

rental is $2800 based on $3.5psf

i assume 50% loan of 500k  @1.5% interest. 

1. with 20year loan approx $2400 mthly

2. with 25year loan approx $2000 mthly

not sure if rental of $2800 can cover the monthly loan of 20years @ 2.4k and maintenance and what not, without any cash outlay. I think will be tight.

so maybe 25year loan will be more comfy. given that rates will go up soon.

 

Instead of buying a property, leaving this 500k cash in CPF  will  get

1. 20years: 820k

2. 25years : 927k

meaning the apartment has to sell for 1.8M after 20years to break even.

 

my assumptions correct? i have not even added ABSD and stamp duties into the buying price.

Edited by Mkl22
↡ Advertisement
  • Praise 3
Link to post
Share on other sites
therock

therock

Supersonic
  • Author
1 hour ago, Mkl22 said:

plus put CPF 2.5% is woon woon jiak bee hoon and dont even need to click even the mouse button.

rental properties can be a huge pain in the ass.

 

was Just doing some quick sums.

800sqft condo, lets say 1300psf buy price. so approx 1M

rental is $2800 based on $3.5psf

i assume 50% loan of 500k  @1.5% interest. 

1. with 20year loan approx $2400 mthly

2. with 25year loan approx $2000 mthly

not sure if rental of $2800 can cover the monthly loan of 20years @ 2.4k and maintenance and what not, without any cash outlay. I think will be tight.

so maybe 25year loan will be more comfy. given that rates will go up soon.

 

Instead of buying a property, leaving this 500k cash in CPF  will  get

1. 20years: 820k

2. 25years : 927k

meaning the apartment has to sell for 1.8M after 20years to break even.

 

my assumptions correct? i have not even added ABSD and stamp duties into the buying price.

In order to make you gotta pay less

so those buying very expensive condo units have to calculate if the sums add up. Otherwise it’s a losing proposition and if one is staying there it’s not considered an investment 

not something many buyers have in their heads…

some of the best rentals are in the Serangoon area or HDB units in well connected areas

  • Praise 3
Link to post
Share on other sites
Mkl22

Mkl22

Twincharged
(edited)
1 hour ago, Mkl22 said:

plus put CPF 2.5% is woon woon jiak bee hoon and dont even need to click even the mouse button.

rental properties can be a huge pain in the ass.

 

was Just doing some quick sums.

800sqft condo, lets say 1300psf buy price. so approx 1M

rental is $2800 based on $3.5psf

i assume 50% loan of 500k  @1.5% interest. 

1. with 20year loan approx $2400 mthly

2. with 25year loan approx $2000 mthly

not sure if rental of $2800 can cover the monthly loan of 20years @ 2.4k and maintenance and what not, without any cash outlay. I think will be tight.

so maybe 25year loan will be more comfy. given that rates will go up soon.

 

Instead of buying a property, leaving this 500k cash in CPF  will  get

1. 20years: 820k

2. 25years : 927k

meaning the apartment has to sell for 1.8M after 20years to break even.

 

my assumptions correct? i have not even added ABSD and stamp duties into the buying price.

oops i added the 500k twice.

need to sell at 1.32M or 1.43M to break even.

Edited by Mkl22
Link to post
Share on other sites
Throttle2

Throttle2

Supersonic
On 2/19/2022 at 9:08 PM, Wt_know said:

lai liao ... RENTAL for non-occupied will skyrocket ... huat ah!

sheep fur grow on sheep ... [sly] 

2022-02-19_210732.png

Hahhaa, no tenants means no tenants lah…..

doesnt matter what price you call for rent.  
muayhahhahahahha

  • Praise 1
Link to post
Share on other sites
Throttle2

Throttle2

Supersonic
3 hours ago, Mkl22 said:

plus put CPF 2.5% is woon woon jiak bee hoon and dont even need to click even the mouse button.

rental properties can be a huge pain in the ass.

 

was Just doing some quick sums.

800sqft condo, lets say 1300psf buy price. so approx 1M

rental is $2800 based on $3.5psf

i assume 50% loan of 500k  @1.5% interest. 

1. with 20year loan approx $2400 mthly

2. with 25year loan approx $2000 mthly

not sure if rental of $2800 can cover the monthly loan of 20years @ 2.4k and maintenance and what not, without any cash outlay. I think will be tight.

so maybe 25year loan will be more comfy. given that rates will go up soon.

 

Instead of buying a property, leaving this 500k cash in CPF  will  get

1. 20years: 820k

2. 25years : 927k

meaning the apartment has to sell for 1.8M after 20years to break even.

 

my assumptions correct? i have not even added ABSD and stamp duties into the buying price.

Can lah, properties double every three years isnt it? 
muayhahahahaha.  

  • Haha! 1
Link to post
Share on other sites
Volvobrick

Volvobrick

Supersonic
(edited)
1 hour ago, therock said:

https://www.todayonline.com/commentary/budget-2022-commentary-why-taxing-wealth-based-ones-address-can-be-bit-rich-1823651
a different opinion and pretty well written 

This guy 生在福中不知福 - 3 gen under one roof. How many cars that don't need to pay for carpark? Just 2 cars would be worth perhaps 3K a year. Trash generated by so many people also paying same disposal fees as their neighbours who may be only one couple. 

If the house is modest, the property tax a year would be 1k or 2k at most. And no need to pay town council too. And the sales proceeds from his mother's flat? 

Please lah, such articles only reflect human greed. 

 

PS if so unhappy, cash out and move to HDBee to enjoy all the handouts. 

Edited by Volvobrick
  • Praise 1
Link to post
Share on other sites
Throttle2

Throttle2

Supersonic
1 hour ago, Mkl22 said:

oops i added the 500k twice.

need to sell at 1.32M or 1.43M to break even.

No need to go through so much calculation.  
at the end of the day, can you truly afford it (with your life, time, effort, stress etc)

Link to post
Share on other sites
Throttle2

Throttle2

Supersonic
5 minutes ago, Volvobrick said:

This guy 生在福中不知福 - 3 gen under one roof. How many cars that don't need to pay for carpark? Just 2 cars would be worth perhaps 3K a year. Trash generated by so many people also paying same disposal fees as their neighbours who may be only one couple. 

If the house is modest, the property tax a year would be 1k or 2k at most. And no need to pay town council too. And the sales proceeds from his mother's flat? 

Please lah, such articles only reflect human greed. 

 

PS if so unhappy, cash out and move to HDBee to enjoy all the handouts. 

I fully agree.

just like how some old folks expect others to fund their fully paid private property by giving them handouts.

if no money, sell the property and cash out.

 

it is the only fair thing.

Link to post
Share on other sites
Wt_know

Wt_know

Supersonic
(edited)

rich but not comfortable or comfortable but not rich

which is which? can they get their mind set ... :grin:

2022-02-23_132445.png

c794126d0952464be5bc28a32fcc30ed.png

Edited by Wt_know
  • Haha! 1
Link to post
Share on other sites
Wt_know

Wt_know

Supersonic
(edited)

where are all the property guru and sifu and sage in youtube huh?

last time every video i view in youtube sure got pop up ads

now all gone case liao ar?

2022-03-09_195322.png

Edited by Wt_know
Link to post
Share on other sites
Throttle2

Throttle2

Supersonic
On 3/6/2022 at 1:00 PM, therock said:

Someone whacks back:

Sell la

https://www.straitstimes.com/opinion/forum/letter-of-the-week-retirees-should-consider-selling-private-property-if-unable-to-pay-taxes

Thats the way it should be since day one.

why should anyone pay for anyone else to hold their assets especially in the form of a private property?

no money? Retired? 
sell the f**king property and downgrade.  KNN.  Chey!

Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share
Go to topic listing
×
×
  • Create New...