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

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Old 15-01-2018, 09:39 AM   #31
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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%.
Yes, agreed, you would be lucky to get that.

As a fascinating point of comparison, the 30 year government bond (NA16100H), with about 28 years to maturity, is coming up for auction again next month (February, 2018). It should yield high 2.X%. Thatís a AAA rated government bond, the absolute lowest risk Singapore dollar denominated investment. Amazing.

At the very least itís fair to say that itís not rational to invest the majority of your wealth in real estate. The real estate market in Singapore is simply not compensating you enough for the risk at this point in time.

Interest costs are also projected to rise so the only way is capital appreciation.
And capital appreciation hasnít been happening since 2012 (depreciation has), unless you want to crack open the champagne to celebrate the past two quarters of tiny plus signs. I wouldnít celebrate just yet.

Donít overweight real estate is my advice. If youíre past 20% of your portfolio in real estate (and counting your owner-occupied home in that), thatís plenty.
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Old 15-01-2018, 10:58 AM   #32
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I can share actual numbers.

D20, freehold, next to MRT, 1-bedroom.

TOP in 2012, bought at $1,052 psf. URA (Oct 2017) listed similar unit sold at $1,450 psf.

Rental in the past 5 years yield around 2.5% based on amount of cash I have invested.

What to note is this:

1. Rental went from $3,300 to current $2,200
2. Maintenance went from $750/qtr to $825/qtr
3. Sinking fund remained unchanged
4. Property tax has gone down
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Old 15-01-2018, 11:00 AM   #33
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I can share actual numbers.

D20, freehold, next to MRT, 1-bedroom.

TOP in 2012, bought at $1,052 psf. URA (Oct 2017) listed similar unit sold at $1,450 psf.

Rental in the past 5 years yield around 2.5% based on amount of cash I have invested.

What to note is this:

1. Rental went from $3,300 to current $2,200
2. Maintenance went from $750/qtr to $825/qtr
3. Sinking fund remained unchanged
4. Property tax has gone down
Thanks for sharing.
I plan to go for higher yield condo.
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Old 15-01-2018, 11:06 AM   #34
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I plan to go for higher yield condo.
Don't we all plan that?
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Old 15-01-2018, 11:13 AM   #35
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What is a realistic average yield? Based on that, just aim a little higher?
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Old 15-01-2018, 11:14 AM   #36
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TOP in 2012, bought at $1,052 psf. URA (Oct 2017) listed similar unit sold at $1,450 psf.
If you can get that same deal (an unusual one), maybe it makes sense to realize ~35% capital appreciation now.

Rental went from $3,300 to current $2,200
That's not surprising/is typical, but...ouch.
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Old 15-01-2018, 11:18 AM   #37
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What is a realistic average yield? Based on that, just aim a little higher?
This kind of small condo price keep going higher and higher, especially those freehold condos. Rental keep going down but price keep going up.

They used to cost around 400 plus K only.
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Old 15-01-2018, 11:19 AM   #38
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If you can get that same deal (an unusual one), maybe it makes sense to realize ~35% capital appreciation now.


That's not surprising/is typical, but...ouch.
The asking price and transacted price all went up already.
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Old 15-01-2018, 11:20 AM   #39
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This kind of small condo price keep going higher and higher, especially those freehold condos. Rental keep going down but price keep going up.

They used to cost around 400 plus K only.
Use to be able to afford...
Now really is barely can afford. And agree on the yield and capital gain part.
Like got disconnect... Too many people prefer buying than renting.
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Old 15-01-2018, 11:21 AM   #40
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If you can get that same deal (an unusual one), maybe it makes sense to realize ~35% capital appreciation now
I've been tracking the transacted prices very closely. It has been moving up steadily.

I'm also inclined to cash out but have not straighten out my thoughts on what to do with the cash. It's another discussion altogether. I shall not go off topic.
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Old 15-01-2018, 11:23 AM   #41
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I've been tracking the transacted prices very closely. It has been moving up steadily.

I'm also inclined to cash out but have not straighten out my thoughts on what to do with the cash. It's another discussion altogether. I shall not go off topic.
This is what I observe too.
Will help my wife get one after i settle my stock problems.
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Old 15-01-2018, 11:47 AM   #42
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I can share actual numbers.

D20, freehold, next to MRT, 1-bedroom.

TOP in 2012, bought at $1,052 psf. URA (Oct 2017) listed similar unit sold at $1,450 psf.

Rental in the past 5 years yield around 2.5% based on amount of cash I have invested.

What to note is this:

1. Rental went from $3,300 to current $2,200
2. Maintenance went from $750/qtr to $825/qtr
3. Sinking fund remained unchanged
4. Property tax has gone down
Is it Thomson V Two? Not much freehold 1 bedder in D20 that TOP aro 2012.
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Old 15-01-2018, 11:52 AM   #43
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I'm also inclined to cash out but have not straighten out my thoughts on what to do with the cash.
Well, the government will be offering 2.X% (where X is a high digit) on its AAA rated 28 year bond next month (February, 2018). That's one particularly interesting point of comparison since that's the lowest risk long-term yield available on unrestricted funds in this economy. It's the baseline "sanity check."
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Old 15-01-2018, 12:14 PM   #44
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Look around River Valley area.
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Old 15-01-2018, 12:17 PM   #45
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Well, the government will be offering 2.X% (where X is a high digit) on its AAA rated 28 year bond next month (February, 2018). That's one particularly interesting point of comparison since that's the lowest risk long-term yield available on unrestricted funds in this economy. It's the baseline "sanity check."

Is this the SSB you are referring to?
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