A quick recap, how many rounds of CMs and recessions we had gone through over the past two decades?
Not trying to be bullish and try to talk up the market even though I must admit there’s current oversupply in the market. The number of unsold units/data are the best proof, they don’t lie.
But one has to understand that property investment remains as an attractive form of asset class among the Asian and it is still in our DNA. That explains the high % of property ownership in Singapore, especially in our little red dot where land are scarce.
I do agree that with the CM, high price, and interest rate, all these are dampening the rental yield further. The era of high rental yield are truly OVER.
For me I must look at it a bit differently if I still want to play the property game. Mindset needs to be changed.
I would look at rentability in Long term rather than rental yield. In fact, if one is hoping for good rental yield, I suggest it would be better off for him/her to look elsewhere.
Rentability refers to the shortest time you can recoup from the total cost you have committed in your property. Let say u took 25 years of rental earnings to break even of what you had paid, the property could be sold after 25 years and the amount u get will be your net profit (even if you sell it at some losses of what u paid initially due to reduced lease or old/wear and tear issues).
In other words, if u buy a property that is harder to rent out, you may take a longer time to break even of what you had paid for. Then this may be deemed as poor investment cos your unit will always face the risk of being left vacant. Not forgetting the time and opportunity cost should also be factored in.
All these requires careful calculation, thorough research on locations with proven decent rental track records/transaction and careful enter and exit plan.
This is just a coarse concept of mine which Im too lazy to elaborate with figures. Those who get it will understand what I mean.
No success stories to back up my argument yet (as no one has the crystal ball to predict the future), just setting the context for more discussion here. Can agree to disagree.