www.hardwarezone.com.sg


www.hardwarezone.com.sg (/)
-   HomeSeekers and HomeMakers (https://forums.hardwarezone.com.sg/homeseekers-homemakers-74/)
-   -   Condo landlords - How has your investment/rental experience been so far? (https://forums.hardwarezone.com.sg/homeseekers-homemakers-74/condo-landlords-how-has-your-investment-rental-experience-been-so-far-5990301.html)

minamikaze 11-02-2019 01:06 AM

Condo landlords - How has your investment/rental experience been so far?
 
Hi!
Just wondering how many condo landlords are here? What has your experience been so far, e.g. in terms of good/bad tenants, rental going up/down/same for X years, condo value fluctuations etc?

To share a bit about myself: We (wife and I) have 2 condos - 1st one was bought in 2015, 2nd one was bought in early 2018. According to SRX, both have appreciated about 15% so far. Rental has been pretty flat, but we're looking at a gross yield of about 3.5%. So far we've had good tenants but not sure how long that would last.

blessedvillain 11-02-2019 06:20 AM

What are your tenants’ profile?

1993newbie 11-02-2019 07:38 AM

I’m quite new in this Landlord thingy. Just purchase a shoebox condo which happens to be tenanted out. I let the tenant stay till tenancy ends coz I’m not rushing to move in yet.

Not bad le buying a unit with tenancy. Gross rental yield 3.6% with good tenants. They are NUS undergrad couple from mainland, now working in a company located few bus stops away from my condo. I bought the unit coz they keep it damn neat and tidy. Tenant and Landlord same age somemore :s13:

SRX value wise mine went up 3% within few months but that’s fine coz I’m buying it for own stay. Rental covers mortgage + maintenance fees + Property tax and got extra money too! Can’t wait to move in! Previous owner let go all furnitures too!! Not bad purchase , got rental income and got furnitures too!

Quote:

Originally Posted by minamikaze (Post 119117706)
Hi!
Just wondering how many condo landlords are here? What has your experience been so far, e.g. in terms of good/bad tenants, rental going up/down/same for X years, condo value fluctuations etc?

To share a bit about myself: We (wife and I) have 2 condos - 1st one was bought in 2015, 2nd one was bought in early 2018. According to SRX, both have appreciated about 15% so far. Rental has been pretty flat, but we're looking at a gross yield of about 3.5%. So far we've had good tenants but not sure how long that would last.


blessedvillain 11-02-2019 08:35 AM

Thatís good to hear that condo rental still can cover mortgage with 3.6% yield. Nowadays I hear from property agents that most new condo rental barely breakeven, ie. negative rental yield.

minamikaze 11-02-2019 09:39 AM

Quote:

Originally Posted by blessedvillain (Post 119118653)
What are your tenants’ profile?

Single working professionals. My 2nd condo is a dual key unit, so I have 3 tenants - 2 foreign, 1 local. Also bought both units with tenancy. With both rental holding steady and values going up (the 2nd one went up by 150K just months after we got it), so far so good, hoping it would last.
Anyone cares to share other good or (better yet) bad experiences so that we could learn?

pippo20 11-02-2019 10:06 AM

Mine is a one bedder in little india, easy to find tenants but the tenants will complain alot. Some even complain of the smell left behind by their countrymen..! Lucky got baking soda can solve this headache.

minamikaze 11-02-2019 10:07 AM

Quote:

Originally Posted by pippo20 (Post 119120825)
Mine is a one bedder in little india, easy to find tenants but the tenants will complain alot. Some even complain of the smell left behind by their countrymen..! Lucky got baking soda can solve this headache.

Thanks for your input! These are the comments that would be really useful to us. How's the gross rental yield though?

Brown24 11-02-2019 02:41 PM

My 3 bedders dual key (TOP in 2017) is fetching 3.5% gross rental yield if i were to rent out the whole unit, but we are staying at 2 bedders side and rent out the studio at $1.7k/mth to Japanese couple.
Another unit (under my wife's name) 2 bedders at D3 still under construction.

Wk7777 11-02-2019 03:17 PM

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....

minamikaze 11-02-2019 04:28 PM

Quote:

Originally Posted by Wk7777 (Post 119126017)
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....

That's an excellent rental yield!
Which area is it?

wind30 11-02-2019 05:40 PM

All gross yield. What is the actual yield after expenses like maintenance, commission, property tax?

Anything else to minus?

1993newbie 11-02-2019 06:13 PM

Still positive for me tho. Coz rental covers my Monthly mortgage , Maintenance fees and Prop tax. Got leftover too. Shoebox unit not bad afterall.

No Comm since my rent left a few months. Just hand over tenancy to me from previous owner.

Quote:

Originally Posted by wind30 (Post 119128839)
All gross yield. What is the actual yield after expenses like maintenance, commission, property tax?

Anything else to minus?


kiatme 11-02-2019 06:24 PM

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).

PostCountWarrior[+1] 11-02-2019 09:31 PM

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???

1993newbie 11-02-2019 09:40 PM

NEVER UNDERESTIMATE SHOEBOX CONDOS.

Most 1 bedder rental yield are higher due to lower quantum. Basically buy Low.

There’s still rental demand for Shoebox units even at Suburbs like Punggol/Woodlands/Bukit Panjang coz its affordable to rent. In some cases , similar price to renting a neighbouring HDB 3/4 room flat.

For some tenant, for the same price they rather stay in 1 bedroom condo than HDB. As an example, up north a one bedder rent cost around $1.4-$1.5k vs a 3 room HDB $1.5k. Compromise on that extra bedroom for the facilities.

Suburb shoebox are quite affordable too hence the high rental yield.There’s still some Resale suburbs shoebox below 550k. Rent it out for 1.5-1.7k still give u great yield.

Quote:

Originally Posted by PostCountWarrior[+1
;119132692]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???



All times are GMT +8. The time now is 03:35 PM.

Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2019, vBulletin Solutions, Inc.
Copyright © SPH Magazines Pte Ltd. All rights reserved.