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[Wolverine23]

When you buy a shorter lease e.g one which is TOP 13 years ago, you lost the opportunity for rental income for 13 years.

Buying the property with shorter lease compare with one with longer lease at the same price, you lose the rental income for the used lease.

On paper you can collect rental income but measure according to the lease you lose on the shorter lease property.

Given a choice which one will you buy and why. (for investment, capital appreciation and rental income)

A. The Bencoolen was completed 1998, 13 years ago TOP. selling for 1,180,000. (Rental = SGD 4000)

B. Southbank was completed 1 years ago TOP. selling for 1,330,000. (Rental = SGD 4000)

I choose Southbank for its potential future catalyst due to area redevelopment.

Very hard to compare 2 different locations. Also, rental will fluctuate depending on its size and future transformation of the surrounding area...

Each project has pros and cons. End of the day, if you have a long term (20 - 30 years) passive investment view, sure make regardless if it is 50 years or 90 years lease...

Any capital appreciation will be added bonus!

[smallant]

I buy what I can afford. . With tdsr etc... not easy to get loan. U wait.. u miss the boat lor...

[Wolverine23]

So? Keep buying and max out leverage now?

I buy what I can afford. . With tdsr etc... not easy to get loan. U wait.. u miss the boat lor...

[Arcachon]

So? Keep buying and max out leverage now?

What is max out leverage?

If a 44 k guy got 1.8 million dollar property loan is he max out.

[Wolverine23]

What is 44k guy? Annual income 44k?

In the first place, S44k per annum cannot borrow 1.8m...


Max out leverage: eg. Annual income $400+k per month = $33k.
Borrow till ppty loan instalment is $20k per month.
Then, rent the properties out at approximate $20k per month and borrow more loans and add on another $14k to monthly repayment. (as now total income increase by $20k per month. Banks will use 30% haircut...)

In the end, $36k ppty loan instalment and approximate $10.2m loan.

What is max out leverage?

If a 44 k guy got 1.8 million dollar property loan is he max out.