HWZ Forums

Login Register FAQ Mark Forums Read

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

Reply
 
LinkBack Thread Tools
Old 11-02-2019, 01:06 AM   #1
Senior Member
 
Join Date: Sep 2016
Posts: 555
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.
minamikaze is offline   Reply With Quote
Old 11-02-2019, 06:20 AM   #2
Junior Member
 
Join Date: Jan 2008
Posts: 99
What are your tenants’ profile?
blessedvillain is offline   Reply With Quote
Old 11-02-2019, 07:38 AM   #3
Member
 
Join Date: Jun 2018
Posts: 135
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

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.

Last edited by 1993newbie; 11-02-2019 at 08:49 AM..
1993newbie is online now   Reply With Quote
Old 11-02-2019, 08:35 AM   #4
Junior Member
 
Join Date: Jan 2008
Posts: 99
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.
blessedvillain is offline   Reply With Quote
Old 11-02-2019, 09:39 AM   #5
Senior Member
 
Join Date: Sep 2016
Posts: 555
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?
minamikaze is offline   Reply With Quote
Old 11-02-2019, 10:06 AM   #6
Member
 
Join Date: Oct 2018
Posts: 331
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.
pippo20 is online now   Reply With Quote
Old 11-02-2019, 10:07 AM   #7
Senior Member
 
Join Date: Sep 2016
Posts: 555
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?
minamikaze is offline   Reply With Quote
Old 11-02-2019, 02:41 PM   #8
Junior Member
 
Join Date: Aug 2018
Posts: 32
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.
Brown24 is offline   Reply With Quote
Old 11-02-2019, 03:17 PM   #9
Member
 
Join Date: Apr 2017
Posts: 150
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....
Wk7777 is offline   Reply With Quote
Old 11-02-2019, 04:28 PM   #10
Senior Member
 
Join Date: Sep 2016
Posts: 555
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?
minamikaze is offline   Reply With Quote
Old 11-02-2019, 05:40 PM   #11
Senior Member
 
Join Date: Dec 2000
Posts: 1,200
All gross yield. What is the actual yield after expenses like maintenance, commission, property tax?

Anything else to minus?
wind30 is offline   Reply With Quote
Old 11-02-2019, 06:13 PM   #12
Member
 
Join Date: Jun 2018
Posts: 135
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?
1993newbie is online now   Reply With Quote
Old 11-02-2019, 06:24 PM   #13
Senior Member
 
Join Date: Dec 2009
Posts: 559
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).
kiatme is offline   Reply With Quote
Old 11-02-2019, 09:31 PM   #14
Arch-Supremacy Member
 
PostCountWarrior[+1]'s Avatar
 
Join Date: Jul 2008
Posts: 21,869
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???
__________________
Bill Gates: "If youíre born poor, itís not your mistake. But if you die poor, itís your mistake."
PostCountWarrior[+1] is offline   Reply With Quote
Old 11-02-2019, 09:40 PM   #15
Member
 
Join Date: Jun 2018
Posts: 135
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.

;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???

Last edited by 1993newbie; 11-02-2019 at 10:22 PM..
1993newbie is online now   Reply With Quote
Reply
Important Forum Advisory Note
This forum is moderated by volunteer moderators who will react only to members' feedback on posts. Moderators are not employees or representatives of HWZ. Forum members and moderators are responsible for their own posts.

Please refer to our Terms of Service for more information.


Thread Tools

Posting Rules

Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are On