Property Investment Thread

[henrylbh]

Few years ago, I had an offer of $4800 to rent my terrace which I bought at $1.1 mil..that would give a rental yield of 5.24%....had another offer though much lower at $4200 6 months ago, which gives yield of 4.6%...so landed can actually give better yield than condo!

Good yield if you are referring to sg property. But yield also depends on whether you take origi al cost or current market value as the base.

 

[OngHuatHuat]

Cannot compare like that. Sg rental went up a lot since 2005 I think. Peaked in 2013, then went down, consistent with government policy to restrict foreign workers since 2012(2011 loss of grc a huge blow to pap).

When you bought your landed at 1.1 m, my this condo was only 700 plus k if I am not wrong. Can share your year of purchase?

Thereafter landed price increase outweighs condo price increase but rental for condo is always higher in terms of %.

Few years ago, I had an offer of $4800 to rent my terrace which I bought at $1.1 mil..that would give a rental yield of 5.24%....had another offer though much lower at $4200 6 months ago, which gives yield of 4.6%...so landed can actually give better yield than condo!

 

[mummy1234]

Good yield if you are referring to sg property. But yield also depends on whether you take origi al cost or current market value as the base.

Yes, referring to Sg terrace and I take original cost when calculating yield...

 

[mummy1234]

Cannot compare like that. Sg rental went up a lot since 2005 I think. Peaked in 2013, then went down, consistent with government policy to restrict foreign workers since 2012(2011 loss of grc a huge blow to pap).

When you bought your landed at 1.1 m, my this condo was only 700 plus k if I am not wrong. Can share your year of purchase?

Thereafter landed price increase outweighs condo price increase but rental for condo is always higher in terms of %.

I bought my Sg terrace in 2010...

 

[OngHuatHuat]

Cannot compare like that. Malaysia loan rate is 4.55 % whereas sg loan rate is only 2 %.
Need to compare with loan rate.

Rental yield for some Malaysia condo can be as high as 5 %.

Like my JB semiD also rental yield at 3.16%...so it isn't that bad a yield then if your Sg property also around there....

Do you guys think I should keep my MM condo at Sims Ave opposite Aljunied mrt or sell? What do you think of HDB studio and 2 bedders impact on MMs?

 

[mummy1234]

Cannot compare like that. Malaysia loan rate is 4.55 % whereas sg loan rate is only 2 %.
Need to compare with loan rate.

Rental yield for some Malaysia condo can be as high as 5 %.

But mine is 100% Sg equity loan at less than 2%, not Malaysian loan at 4.55%.

 

[OngHuatHuat]

Normally people take less mortgage interest + management fee + property tax + income tax + agent fee + repair.

Repair actually not a lot. Agent fee only paid once 3400, management fee around 320 per month last time, property tax around 2 k per year. Interest expenses around 1.2k per month last time(now higher). Nett I think around 20 k per year.

Did you cal your nett yield?

Less mortgage
Less mgt fee
Lee property tax
Less agent fee
Less repairs and redecoration
Etc

 

[dork32]

What about factoring supply outgrowing demand. And alot would depend on foreigners and Malaysians working here absorbing them. There is not enough johoreans and even worst if certain race is discounted from the pool.

what i am tokking about is actual income. i am not tokking if there is supply or demand. i am concern about real money, which is money from rental and money from value of property.

yes supply and demand affects the property value and rental rate. but i not smart to predict how it will behave. I evaluate based on current numbers.

 

[OngHuatHuat]

Personally I think taking Malaysia loan at a higher interest rate is a better choice if you wanna stretch over a period of 20 to 30 years.

Your timing in property market is so good that even you made this mistake, your gain almost unaffected. No need to care so much actually.

If I am you, I will rent out landed, then move into small but more convenient condo. Landed can take capital gain + rental, then condo can self stay for the convenience. I dunno why this never come across your mind before.

But mine is 100% Sg equity loan at less than 2%, not Malaysian loan at 4.55%.

 

[dork32]

Cannot compare like that. Malaysia loan rate is 4.55 % whereas sg loan rate is only 2 %.
Need to compare with loan rate.

Rental yield for some Malaysia condo can be as high as 5 %.

this is what i am saying.

3% rental return in sg is not bad.
3% rental return is my is quite bad.

 

[OngHuatHuat]

In Malaysia, I prefer to stay landed, coz easy to own and maintain car, parking also convenient.
In Singapore, I prefer to stay condo coz of the convenience. Small easier to tidy up also.

 

[OngHuatHuat]

You forget to take into account property segment as well.

Landed in Malaysia is highly sought after, especially huge semi d, that's why capital gain >>> rental yield.
Landed normally go for capital gain, cannot compare like that one.

this is what i am saying.

3% rental return in sg is not bad.
3% rental return is my is quite bad.

 

[OngHuatHuat]

Malaysians working here increase living cost in jb a lot.

I foresee in the future, sg government will make house ownership harder for foreigners. So this demand will definitely flow over to jb.

Kl properties mostly owned by locals. Even I am not kl local, I din wanna sell my landed in the near future. Kl property market is well supported by people working in kl or pj, not realy by foreigners.

What about factoring supply outgrowing demand. And alot would depend on foreigners and Malaysians working here absorbing them. There is not enough johoreans and even worst if certain race is discounted from the pool.

 

[dork32]

You forget to take into account property segment as well.

Landed in Malaysia is highly sought after, especially huge semi d, that's why capital gain >>> rental yield.
Landed normally go for capital gain, cannot compare like that one.

i did mention the appreciation of property prices as well.

 

[mummy1234]

Personally I think taking Malaysia loan at a higher interest rate is a better choice if you wanna stretch over a period of 20 to 30 years.

Your timing in property market is so good that even you made this mistake, your gain almost unaffected. No need to care so much actually.

If I am you, I will rent out landed, then move into small but more convenient condo. Landed can take capital gain + rental, then condo can self stay for the convenience. I dunno why this never come across your mind before.

Actually, it did...thinking of renting a JB condo since my semiD is rented out, if I do semiretire there now...

 

[OngHuatHuat]

I mean you just have to rent out your landed and take back your sg condo for self stay.
Sell car. Train kids take public transport.

You calculate and you will know what I said make sense.

2 houses in sg can do a lot of tricks. If only one hard.

Actually, it did...thinking of renting a JB condo since my semiD is rented out, if I do semiretire there now...

 

[shareholder]

Buying property is always good, because in the long run the property price goes up compared to fiat currency. However if need to take a loan from the bank to buy a property, then it may no longer be a good purchase. When taking a loan from the bank, one is at the mercy of the rich who deposits with the bank. When the rich withdraws the cash, the bank can call back the loan immediately or raise interest rate to attract other rich depositor. Problem is when the rich withdraws the cash, it is because they have found a better investment elsewhere. So the bank will not be able to attract cash unless they can beat the other investments with better rates. Normally that will be too drastic an increase for the debtor to bear.

 

[mummy1234]

I mean you just have to rent out your landed and take back your sg condo for self stay.
Sell car. Train kids take public transport.

You calculate and you will know what I said make sense.

2 houses in sg can do a lot of tricks. If only one hard.

It did cross our mind but it is a 452sq ft MM, a bit too small compared to our 1700sq landed now...latter is much more comfortable to stay in...we dun need to scrimp and save to that extent lah...

 

[OngHuatHuat]

I thought yours is a 2 bedder.
Then I think it din work Liao.

Coz when I thought of that strategy, I was thinking yours is a 2 bedder or 3 bedder.

It did cross our mind but it is a 452sq ft MM, a bit too small compared to our 1700sq landed now...latter is much more comfortable to stay in...we dun need to scrimp and save to that extent lah...

 

[Seannie]

Just received a letter from
Uob informing me there is a rise in sibor.

Luckily already do the conversion last week.

Wah ahwin jin sakti. Made the conversion just before uob raise sibor rate. Now they raise to how much alry? 2.5% interest? While yurs fixed at 1.88% for 2 yrs. Wow. Loss for words at yur brilliance.