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

minamikaze

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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.
 

1993newbie

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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 3.9% 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!

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.
 
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That’s 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

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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

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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

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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

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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

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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....
 

minamikaze

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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....

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

wind30

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

Anything else to minus?
 

1993newbie

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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.

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

Anything else to minus?
 

kiatme

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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]

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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???
 

1993newbie

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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.

PostCountWarrior[+1 said:
;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???
 
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Brown24

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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.
 
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minamikaze

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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?
 

Wk7777

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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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