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Which type of small condo is the best for rental yield?

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Old 12-01-2018, 01:35 PM   #16
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This article (July, 2017) discusses mortgage financing issues in the heart of Geylang. In summary, there has been slow but steady improvement in mortgage lending options.
Thanks for sharing. I think I need to do some research on this.
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Old 12-01-2018, 02:01 PM   #17
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Even number geylang Lorong hard to get loan.
Especially those with number less than 20

Place of property will play a part in the loan too?

Sorry TS to interrupt, I am too looking for one to hold.
Any reco?
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Old 12-01-2018, 02:46 PM   #18
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Yes need to. She is a PR.

I think 1 bedder or 1 + 1 is the best, any project you have in mind?
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Old 12-01-2018, 02:52 PM   #19
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Thanks, will research on this.

Keep a look out for fire sales too.

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Old 12-01-2018, 03:17 PM   #20
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Thanks!! I will go through the article!
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Old 13-01-2018, 08:22 AM   #21
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Thanks, will research on this.

Keep a look out for fire sales too.
where to look for fire sales?
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Old 13-01-2018, 04:50 PM   #22
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where to look for fire sales?

I remember those small condos used to be around 450 to 550 K only, now all rise to around 520 K onwards already.
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Old 13-01-2018, 05:07 PM   #23
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Now one bedroom around 500k ++ onwards Liao unless you looking for leasehold less than 50years.
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Old 14-01-2018, 01:58 PM   #24
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Yeah last time so many analysts said this kind of small condo lack of demand, really a hard slap on their face.

Now one bedroom around 500k ++ onwards Liao unless you looking for leasehold less than 50years.
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Old 14-01-2018, 08:30 PM   #25
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where to look for fire sales?
Actually Fire sales lobangs are around.

Like need to sell due to divorce, distribution of inheritance, debts settlement etc etc.

The problems are most fire sales are swept away by "insiders" before they hit the market.
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Old 14-01-2018, 08:42 PM   #26
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Now one bedroom around 500k ++ onwards Liao unless you looking for leasehold less than 50 years.
Actually if the property is used as purely investment and not own stay I find those with shorter lifespan lease will have good yields. Sellers are willing to let go at a cheaper price as afraid of getting zero when lease runs out.

As my capital oulay is much lower I can undercut the competition and rent it below market rate. No matter how bad the market is I have still have net income.

From an investor point of view we are just like leasing a piece of land or factory to do business for a long time frame. Just take it the chance of lease renewal is only 1%. And if luckily tio en bloc you will strike windfall.

If I have extra funds I will make such a play. Best is lease balance 20 years and at desirable locations.

This is the same strategy some ride sharing drivers are using. Buy those cars with COE balance 1-2 years. Low capital injection.

Actually Fire sales lobangs are around.

Like need to sell due to divorce, distribution of inheritance, debts settlement etc etc.

The problems are most fire sales are swept away by "insiders" before they hit the market.
As these are distressed properties they will want to do a quick sale. You must be cash ready for such bargain bin deals. Wait for loan approval maybe some other folks snatch liao.
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Old 14-01-2018, 09:51 PM   #27
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Even if you bought a fire sale property (say 10% below valuation), you better pay Iras BSD based at valuation price otherwise Iras will come after you even few years later.

I have a friend he bought a property at Novena area at about 20% below valuation. Happily paid BSD at sale price. 9 months later kenna called up by Iras and he has to pay penalty plus the balance BSD.

Now he is trying to blame his lawyer.

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Old 14-01-2018, 10:05 PM   #28
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Even if you bought a fire sale property (say 10% below valuation), you better pay Iras BSD based at valuation price otherwise Iras will come after you even few years later.

I have a friend he bought a property at Novena area at about 20% below valuation. Happily paid BSD at sale price. 9 months later kenna called up by Iras and he has to pay penalty plus the balance BSD.

Now he is trying to blame his lawyer.
So in the eyes of the law the BSD is based on property valuation price. Not the OTP price between buyer/seller?

If so this is a good detail to take note. Anything that has black and white sure cannot run away in Singapore. Better to do it right one time and save the agony and extra losses.

Cheers.
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Old 14-01-2018, 10:09 PM   #29
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So in the eyes of the law the BSD is based on property valuation price. Not the OTP price between buyer/seller?
Whichever is higher.
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Old 15-01-2018, 07:09 AM   #30
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Yields are not particularly high at the moment. After costs and taxes you would be lucky to get 2.5-3%. With leverage you can perhaps get higher, but still nowhere near the yields you can get in the past. Interest costs are also projected to rise so the only way is capital appreciation.
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