Thanks, will research on this.
Keep a look out for fire sales too.
where to look for fire sales?
Thanks, will research on this.
Keep a look out for fire sales too.
where to look for fire sales?
Now one bedroom around 500k ++ onwards Liao unless you looking for leasehold less than 50years.
where to look for fire sales?
Now one bedroom around 500k ++ onwards Liao unless you looking for leasehold less than 50 years.
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.
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?
Yes, agreed, you would be lucky to get that.Yields are not particularly high at the moment. After costs and taxes you would be lucky to get 2.5-3%.
And capital appreciation hasn’t 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 wouldn’t celebrate just yet.Interest costs are also projected to rise so the only way is capital appreciation.
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
Don't we all plan that?I plan to go for higher yield condo.
If you can get that same deal (an unusual one), maybe it makes sense to realize ~35% capital appreciation now.TOP in 2012, bought at $1,052 psf. URA (Oct 2017) listed similar unit sold at $1,450 psf.
That's not surprising/is typical, but...ouch.Rental went from $3,300 to current $2,200
What is a realistic average yield? Based on that, just aim a little higher?
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.
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.
If you can get that same deal (an unusual one), maybe it makes sense to realize ~35% capital appreciation now