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Old 12-02-2020, 03:48 PM   #14
drkcynic
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Thanks @drkcynic, I am unlikely to have my company foot the bill for monthly installment / rent. Hence I am simply exploring the option of buying one and staying in the other company rented apartment. With the possibility of moving into my own apartment in a few years time.
I think as others have pointed out, 101k is what you need to come out with. I guess you have zero cpf now so the 25% down will be additional cash you need to get? That is opp costs lost there. Reno maybe sets you back 5k (or more) thereabout? Agent fees of 1 mth for 2 years. Agent fees of 2% if you eventually decide to sell your place. The interest on the loan you take up. Property tax. Maintenance fees. Other misc costs of renting out your place etc.

These are the additional costs you need to take into account. I estimate you need around 5 years of full rental to break even on all those outputs. If you fail to rent out at certain period your break even will drag out longer.

Your best bet is some capital gains on the property when you sell. That is an unknown considering the age of the property you are targeting and the high prices now. It depends on the pty and the price you go in.

You need to do your risk assessments. Ie lose job or whatever because you are single income for now. I personally will not take up the risk for little returns. At current prices, laws and taxes, it is no longer easy / risk free to be a consumer landlord in SG.

Last edited by drkcynic; 12-02-2020 at 03:56 PM..
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