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Old 11-02-2019, 06:24 PM   #13
kiatme
Senior Member
 
Join Date: Dec 2009
Posts: 559
you are talking about gross rental yield...
if you are not cash rich and have to borrow max loan from bank, the principal interest itself will kill you.
1M condo
750k loan
mortgage interest close to 1.4k-1.5k (Assuming mortgage interest 2.4%, did not add principal amount into calculation)
so monthly 1.4k + maintenance 250 + tax 250 = 1.9k already
assuming you rent out 2.2k, take into consideration other costs (i divide by 12 for monthly calculation)
- agent fee : 0.5 * 2200 / 12 = 92
- 1-3 months not being able to rent out : 2200 / 12 = 183 (assuming one month)
- repair/request from tenant = 500 / 12 = 42

1900 + 42 + 92 + 183 = 2217, thats how much money you are paying out to everybody every month, dont think there's even any actual yield, in fact you are making a loss (i did some aga-ration and rounded down some figures).
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