HWZ Forums

Login Register FAQ Mark Forums Read

PR soon, buying condo, advice needed

Like Tree41Likes
Reply
 
LinkBack Thread Tools
Old 12-02-2020, 08:52 PM   #16
Great Supremacy Member
 
Polar Bear King's Avatar
 
Join Date: Jun 2013
Posts: 52,560
singles don't need to buy a flat,certainly not a private flat
first priority is find a wife first
sgpropertyblog likes this.
__________________
命格有高低,行運有順逆。 Aunty polar bear’s and 3 cubs’ permanent slave.
Polar Bear King is offline   Reply With Quote
Old 12-02-2020, 09:57 PM   #17
Arch-Supremacy Member
 
drkcynic's Avatar
 
Join Date: Jan 2007
Posts: 18,590
Simplistically, assuming there is a 50% increase of property prices in 10 years, I am looking at an equivalent of 4% bank interest rates savings. See chart below.

I have not factored in wear and tear, and additional maintenance outlay obviously.



If I factor in the 3000 SGD rent that I am getting then it will additional 360K SGD I am getting assuming I continuously get rent, and the rent doesn't go up. Which neither is static.


We can cancel out the risk factor here, as there is savings that would otherwise go into share market or REITS.
Well if you have cash for 101k and 25% downpayment and STILL have additional cash for rainy day, you are sitting on at least 500k cash?

If you are able to have 500k by late 30s, you have done well for yourself even without delving into properties.

Then you need to ask yourself if you should continue doing what you have been doing or go into properties where you are down 101k before you even get started.

Anyway I don't think you need alot of help to be frank.
satomoto and sgpropertyblog like this.
drkcynic is offline   Reply With Quote
Old 12-02-2020, 09:57 PM   #18
Junior Member
 
Join Date: Aug 2017
Posts: 53
singles don't need to buy a flat,certainly not a private flat
first priority is find a wife first
Single life more fun
sgpropertyblog likes this.
satomoto is offline   Reply With Quote
Old 13-02-2020, 07:54 AM   #19
Senior Member
 
Join Date: Jun 2019
Posts: 815
I think as others have pointed out, 101k is what you need to come out with. I guess you have zero cpf now so the 25% down will be additional cash you need to get? That is opp costs lost there. Reno maybe sets you back 5k (or more) thereabout? Agent fees of 1 mth for 2 years. Agent fees of 2% if you eventually decide to sell your place. The interest on the loan you take up. Property tax. Maintenance fees. Other misc costs of renting out your place etc.

These are the additional costs you need to take into account. I estimate you need around 5 years of full rental to break even on all those outputs. If you fail to rent out at certain period your break even will drag out longer.

Your best bet is some capital gains on the property when you sell. That is an unknown considering the age of the property you are targeting and the high prices now. It depends on the pty and the price you go in.

You need to do your risk assessments. Ie lose job or whatever because you are single income for now. I personally will not take up the risk for little returns. At current prices, laws and taxes, it is no longer easy / risk free to be a consumer landlord in SG.
Agree with drkcynic, there are alot of other costs that u need to factor in if u wana break even.. having said that, a 15-20yrs old unit chances are, wont be able to do the job.. somethg tat can gives u the capital appreciation is more worth your time.. imagine 1 mth rental is 3k, 1 yr is 36k.. how many yrs u need to rent out in order to make profit for u( hvnt add in the reno/maintenance/property tax etc costs)... for more indepth sharing, feel free to PM me.. dont worry, i got nothing to sell to you cos i havent understand your needs yet..
satomoto likes this.
__________________
Iconic integrated development in the heart of Buangkok
https://bit.ly/sengkanggrandresidence
sgpropertyblog is offline   Reply With Quote
Old 13-02-2020, 07:55 AM   #20
Senior Member
 
Join Date: Jun 2019
Posts: 815
singles don't need to buy a flat,certainly not a private flat
first priority is find a wife first
Lolss... when u have the money, u will hv the honey.. 🤪
__________________
Iconic integrated development in the heart of Buangkok
https://bit.ly/sengkanggrandresidence
sgpropertyblog is offline   Reply With Quote
Old 13-02-2020, 08:01 AM   #21
Senior Member
 
Join Date: Sep 2017
Posts: 512
Hi guys,

I am a late 30s single, and am looking at getting a 2 room condo after I get my PR (fingers crossed), to avoid the ABSD. I still need to pay 5% ABSD, but not the 15% of a non PR.

The place I am looking at is listing 1,300,000 SGD sales price. How much do you reckon that after all ABSD, stamp duty etc all in will cost me?

I am currently renting the exact same type in the condo (not same unit) and I am fetching a rental of 2500 SGD (and propertyguru is advertising 3000 to 3500). I might rent out the condo I bought since the current one I am renting is provided by my company. And only move into to my own condo in 2 - 3 years time.

Investment-wise, do you guys think it's worth it? Advice appreciated.
I met a malaysian couple recently at my workplace.

Both worked here few years.

Husband took up citizenship recently because they want to buy a condo. Wife remained PR.

Told me save a lot of money.
sgpropertyblog likes this.
greentiger is offline   Reply With Quote
Old 13-02-2020, 08:59 AM   #22
Great Supremacy Member
 
Polar Bear King's Avatar
 
Join Date: Jun 2013
Posts: 52,560
Lolss... when u have the money, u will hv the honey.. 🤪
no wor
is each has own luck
some even rich will die single and/or childless in the end including our famous uncle "Slim"
sgpropertyblog likes this.
__________________
命格有高低,行運有順逆。 Aunty polar bear’s and 3 cubs’ permanent slave.
Polar Bear King is offline   Reply With Quote
Old 13-02-2020, 09:13 AM   #23
Junior Member
 
Join Date: Aug 2017
Posts: 53
Well if you have cash for 101k and 25% downpayment and STILL have additional cash for rainy day, you are sitting on at least 500k cash?

If you are able to have 500k by late 30s, you have done well for yourself even without delving into properties.

Then you need to ask yourself if you should continue doing what you have been doing or go into properties where you are down 101k before you even get started.

Anyway I don't think you need alot of help to be frank.
My line of work involves technical expertise, continued income generation does not involve putting in more capital. I hope to deploy my current capital, and since I really like Singapore, buying properties is something that I am considering. The baseline is that the property itself should generate reasonable return to be worth buying.

The other options is to go into REITS, shares, etc. But I feel that there will be a stock market crash in a year or two, or three - REITS and shares will go down.

I do need more opinions and help.
sgpropertyblog likes this.

Last edited by satomoto; 13-02-2020 at 09:21 AM..
satomoto is offline   Reply With Quote
Old 13-02-2020, 09:21 AM   #24
Senior Member
 
Join Date: Jun 2019
Posts: 815
no wor
is each has own luck
some even rich will die single and/or childless in the end including our famous uncle "Slim"
I think its very individual.. if im rich, I think I wana remain single oso ..scared ppl con my money..hahaha..
Polar Bear King likes this.
__________________
Iconic integrated development in the heart of Buangkok
https://bit.ly/sengkanggrandresidence
sgpropertyblog is offline   Reply With Quote
Old 13-02-2020, 10:14 AM   #25
Arch-Supremacy Member
 
drkcynic's Avatar
 
Join Date: Jan 2007
Posts: 18,590
My line of work involves technical expertise, continued income generation does not involve putting in more capital. I hope to deploy my current capital, and since I really like Singapore, buying properties is something that I am considering. The baseline is that the property itself should generate reasonable return to be worth buying.

The other options is to go into REITS, shares, etc. But I feel that there will be a stock market crash in a year or two, or three - REITS and shares will go down.

I do need more opinions and help.
Ok, so what have your 500k been doing up till now? Or you just got a windfall or something?

Anyway I am a property bear for now for reasons i have mentioned before. I dont believe in paying 100k just for taxes alone. With 500k cash i can generate alot more with other investments than the 2-2.5% returns you get on property rental.

So good luck.
satomoto likes this.
drkcynic is offline   Reply With Quote
Old 14-02-2020, 07:59 AM   #26
Junior Member
 
Join Date: Aug 2017
Posts: 53
Ok, so what have your 500k been doing up till now? Or you just got a windfall or something?

Anyway I am a property bear for now for reasons i have mentioned before. I dont believe in paying 100k just for taxes alone. With 500k cash i can generate alot more with other investments than the 2-2.5% returns you get on property rental.

So good luck.
Thanks drkcynic, I want to deploy my idle capital into something that is more recession resistant, knowing that there is nothing fully resistant. REITS and Singapore equity took 50% downfall during the last 2008 recession, and I am already quite exposed in those ares. Singapore property market on the other hand "only" had a 25% downfall in the last recession, which amongst other asset class is consider relatively resistant, as shown on image.


img src:https://www.ceicdata.com/en/indicato...-prices-growth

Note: as a foreigner I might not know the clearest picture. I really appreciate the constructive criticism.
sgpropertyblog likes this.

Last edited by satomoto; 14-02-2020 at 11:25 AM..
satomoto is offline   Reply With Quote
Old 14-02-2020, 10:41 AM   #27
Junior Member
 
Join Date: Mar 2018
Posts: 17
The ones I am looking for has about 1995 - 2000 TOP, so it's about 20 years old now, if I buy now and stay/rent another 20-30 years, that would be 40-50 years of usage. Would that be detrimental to price gain, especially given that there is a 99 year leasehold for it.
PM me if u r interested in the above
pryder is offline   Reply With Quote
Old 14-02-2020, 12:31 PM   #28
Arch-Supremacy Member
 
drkcynic's Avatar
 
Join Date: Jan 2007
Posts: 18,590
Thanks drkcynic, I want to deploy my idle capital into something that is more recession resistant, knowing that there is nothing fully resistant. REITS and Singapore equity took 50% downfall during the last 2008 recession, and I am already quite exposed in those ares. Singapore property market on the other hand "only" had a 25% downfall in the last recession, which amongst other asset class is consider relatively resistant, as shown on image.


img src:https://www.ceicdata.com/en/indicato...-prices-growth

Note: as a foreigner I might not know the clearest picture. I really appreciate the constructive criticism.
Rental keeps coming down, maintenance fees keep going up. Prices of new launches are to the sky. Resale market is in limbo and it is very quiet. Add to the virus situation which looks to be worsening.

This is the situation I know now.

If you really want to buy, buy a unit that is near an mrt. It used to be critical, now it's even more critical considering there are alot more mrt stations sprouting up. It means loads more condos are near to an mrt. If you buy one that is way off an mrt, you have no chance of getting a premium imo.
satomoto and sgpropertyblog like this.
drkcynic is offline   Reply With Quote
Old 15-02-2020, 01:49 AM   #29
SBC
Arch-Supremacy Member
 
Join Date: Mar 2001
Posts: 11,707
Good choice, TS

Long run sure make $$.
SBC is offline   Reply With Quote
Old 15-02-2020, 10:22 AM   #30
Junior Member
 
Join Date: Aug 2017
Posts: 53
Rental keeps coming down, maintenance fees keep going up. Prices of new launches are to the sky. Resale market is in limbo and it is very quiet. Add to the virus situation which looks to be worsening.

This is the situation I know now.

If you really want to buy, buy a unit that is near an mrt. It used to be critical, now it's even more critical considering there are alot more mrt stations sprouting up. It means loads more condos are near to an mrt. If you buy one that is way off an mrt, you have no chance of getting a premium imo.
Thanks, really appreciate you sharing the observed sentiment.
satomoto is offline   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