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Condo landlords - How has your investment/rental experience been so far?

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Old 11-02-2019, 10:18 PM   #16
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i must be living in different world.

the condos at the area i looking at no price change since 2013. here someone said bought in 2015, 15% appreciation.

The yield of those condos i looking at is 2.5% to 3%, here someone got 4.5%.

whats the secret???
I just quote few examples happened around me, very important to get the right property.
I have a friend bought commonwealth towers 2 bedders at 1.5k psf in 2015, his neighbours sold at 1.9k psf last year, ~20% gain.
My neighbours bought 2 bedroom dual key at 2015, back then was $1.05M, now he is rented out at $3.6k/mth, rental yield 4.1%.
So it depends u want capital appreciation or rental yield, then focus do some study and find the right property.
But it's true that if u buy resale property today, most of it only giving 3% rental yield only.

Last edited by Brown24; 11-02-2019 at 10:34 PM..
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Old 11-02-2019, 10:43 PM   #17
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Yeah. I guess comes down to 2 Ls: Location and Luck.
Another question: Do you guys try to pay off the mortgage fast, or just try to pay it off as slowly as possible?
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Old 15-02-2019, 03:21 PM   #18
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That's an excellent rental yield!
Which area is it?
Its in the West Coast / Pasir Panjang area... but honestly, after lessing off CPF accrued interest, Loan interest, maintenance fees, agent fees, property tax, income tax, renovation, upkeep.....

Its true that somebody is paying for your house though... so cant complain...
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Old 15-02-2019, 03:33 PM   #19
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Its in the West Coast / Pasir Panjang area...
I bought one there, but still long till TOP...

Not expecting the yield to be as good as those resale ones though...
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Old 15-02-2019, 04:15 PM   #20
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After netting taxes and maintenance, what is the yield?
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Old 15-02-2019, 04:25 PM   #21
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Actually, how should yield be calculated?

I choose to differ from the usual method.

For eg. A condo bought at $1m. I definitely did not cough out $1m cash to buy. Take it as 35% at most, which is $350k perhaps.

So, should the yield be calculated based on $1m, or $350k which increases over time with the repayment?
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Old 15-02-2019, 04:39 PM   #22
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Actually, how should yield be calculated?

I choose to differ from the usual method.

For eg. A condo bought at $1m. I definitely did not cough out $1m cash to buy. Take it as 35% at most, which is $350k perhaps.

So, should the yield be calculated based on $1m, or $350k which increases over time with the repayment?
what you are asking is COCR (Cash on cash return).
COCR = (net rental x 12)/cash invested
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Old 15-02-2019, 05:11 PM   #23
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Found this, hmm...
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Old 15-02-2019, 05:57 PM   #24
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Article few days back shows Jan 2019 rent up 2.1% for OCR. That’s good news for landlords!

Hopefully rent will continue the uptrend.

Last edited by 1993newbie; 15-02-2019 at 06:05 PM..
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Old 21-02-2019, 08:42 AM   #25
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Just got the SRX report. Both of my condos have pretty good capital appreciation, though rental is not looking as optimistic (even though I'm renting out at good rates still, till next year at least).

Dual key - so can actually X 2 to the rental.


Rental is down per SRX, but actual rental i'm getting is a few hundred higher than this (lease ends next year).


Feel free to share yours!
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Old 21-02-2019, 09:00 AM   #26
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I dont rent house. But property tax fory house and houses around my area keep going down these few years. This is a good indication of rental is not doing well.

Never use number from estate agent/company. Get the country official number for better understanding. Population is not growthing, even schools is reducing. Why people still think houses will keep increasing at a large number?
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Old 21-02-2019, 09:57 AM   #27
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i must be living in different world.

the condos at the area i looking at no price change since 2013. here someone said bought in 2015, 15% appreciation.

The yield of those condos i looking at is 2.5% to 3%, here someone got 4.5%.

whats the secret???
lol with current ABSD rates, you buy 2nd property for rental immediately lose 12% already. even if your property appreciate 15% after a few years also no use
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Old 21-02-2019, 10:22 AM   #28
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my 1 BR gross is about 4.5% yield.... bought in 2015.... value up only about 10%.....
tenancy ending soon... so now have to look for new tenant.... so far tenants all quite good.... however, rental has gone down in my area.... so prob cant hit the 4.5% anymore... but can still get about 4%..... so can't complain much....
4.5% gross yield is certainly a good investment.

What's the denominator used to arrive at 4.5%? To make comparison of yield, one need to use gross rent divided by current market value. Other than that, the yield is subjective.

If value of property appreciates, yield goes down if rental no change.
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Old 21-02-2019, 01:26 PM   #29
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Just receive mine! Increase 1.2% in price and 0% in rent.

Just got the SRX report. Both of my condos have pretty good capital appreciation, though rental is not looking as optimistic (even though I'm renting out at good rates still, till next year at least).

Dual key - so can actually X 2 to the rental.


Rental is down per SRX, but actual rental i'm getting is a few hundred higher than this (lease ends next year).


Feel free to share yours!
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Old 21-02-2019, 02:23 PM   #30
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4.5% gross yield is certainly a good investment.

What's the denominator used to arrive at 4.5%? To make comparison of yield, one need to use gross rent divided by current market value. Other than that, the yield is subjective.

If value of property appreciates, yield goes down if rental no change.
I used my original purchase price as calculation.... because that's my entry price.... if I calculate based on increased valuation (as per banker indicative), gross yield approximately 4%....
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