Rental sentiment

[Ringo33]

A drop of 20% is really drastic. I have just renewed mine with no drop in rent recently. It is in the city fringe and 5 min from mrt stn.

You mean your Emerald Garden has got not rent increase even with the opening of DTL station??

[DC33_2008]

Bro, you do not even know where is EG and you want to comment. EG is in D1. You only know JL Dream. Have more than EG. Remember properties are bought to be kept with 999LH and FH next to mrt stn.

You mean your Emerald Garden has got not rent increase even with the opening of DTL station??

[Ringo33]

Bro, you do not even know where is EG and you want to comment. EG is in D1. You only know JL Dream. Have more than EG. Remember properties are bought to be kept with 999LH and FH next to mrt stn.

How is that possible when I have already posted so many comment on emarald garden thread.

Perhaps the micro and macro enviroment issue in that area? LOL

[DC33_2008]

Bro, I said my city fringe unit has just renewed recently with no rental drop and you said it is EG. Now you are trying to change subject and said about macro and micro environment. BTW, my EG was renewed late last year with an increase of rental of 15%. Micro environment is great at EG with the opening of the Telok Ayer mrt stn. The demolition of the mechanized carpark near EG has increased demand of carpark. This is all good news for EG.

How is that possible when I have already posted so many comment on emarald garden thread.

Perhaps the micro and macro enviroment issue in that area? LOL

[henryhk]

Hi, by the way, u have how many units on rental? And the units fully paid up?

[DC33_2008]

Cannot say the number here otherwise someone will say I am bragging again. I can only respond to your 2nd question: Several of them have been fully paid up.

Hi, by the way, u have how many units on rental? And the units fully paid up?

[Ringo33]

Bro, I said my city fringe unit has just renewed recently with no rental drop and you said it is EG. Now you are trying to change subject and said about macro and micro environment. BTW, my EG was renewed late last year with an increase of rental of 15%. Micro environment is great at EG with the opening of the Telok Ayer mrt stn. The demolition of the mechanized carpark near EG has increased demand of carpark. This is all good news for EG.

This is classic
Opening of Mrt station demolish car park is good?

Jld got new mrt line new hospital new office tower new hotel and even hsr leh.

老王卖瓜，自卖自夸 lol

[DC33_2008]

Good for us with increase demand can raise parking rate to fund Maintenance fund. It so win-win here.

This is classic
Opening of Mrt station demolish car park is good?

Jld got new mrt line new hospital new office tower new hotel and even hsr leh.

老王卖瓜，自卖自夸 lol

[CondoWE]

Last July is very different from now. Had renewed rental of a CCR unit less than 100m away from mrt just last Nov with an increase of rent of 15%.

paiseh...my previous rental is higher than market rate so if calculate by market rate vs current rental then itis more than 15% liao...!

[Ringo33]

Good for us with increase demand can raise parking rate to fund Maintenance fund. It so win-win here.

So this is micro and macro environment?? LOL

[Reisor]

Bro DC, your property status is like an ideal state to me. Care to share some philosophy which brings you to this state. Personally managed to start with one back in 2010 but already finding duo mortgages a tough balance even with a slight positive cashflow and rental yield of 5-6 %. I have only 20 years of economically active work left. Any advice welcome.

Cannot say the number here otherwise someone will say I am bragging again. I can only respond to your 2nd question: Several of them have been fully paid up.

[Ringo33]

Bro DC, your property status is like an ideal state to me. Care to share some philosophy which brings you to this state. Personally managed to start with one back in 2010 but already finding duo mortgages a tough balance even with a slight positive cashflow and rental yield of 5-6 %. I have only 20 years of economically active work left. Any advice welcome.

when you can freeload at your parents house you have zero consumption cost.

[Jem]

when you can freeload at your parents house you have zero consumption cost.

I should have done this but I never did even though my previous room at my folks' is still vacant. I value my own space over convenience (no need to do housework, cook, fetch my gal up and down when she was younger etc etc) and $$. But agree if I have done this fwah I think I could have achieved a lot more.

[DC33_2008]

It is good that you have started in 2010 where there is a good correction after lethman crisis. It is easier when I first started in the 90s when private properties are more affordable, ie. compared to my income. Got married and more buying power with two incomes. However, kids arrived and have to be more cautious. I have gone through a few crisis since then but managed to clitch some good deals along the way during the dips until the last crisis. Rental was less competitive then but they have been helping me to pay for the home mortgage. That is how I got several properties fully paid up. I may have started earlier but it is never too late to invest. My investment strategies is to buy only 2 bedder and focus on locations in city fringe and CBD. It is easier to find tenants. I suppose that you are a fewer years younger than me. Remember properties are bought to be kept and not for sale especially FH, near mrt, in city fringe and CBD. FH landed is for own stay and should never be sold but to pass on to next generation.

Bro DC, your property status is like an ideal state to me. Care to share some philosophy which brings you to this state. Personally managed to start with one back in 2010 but already finding duo mortgages a tough balance even with a slight positive cash-flow and rental yield of 5-6 %. I have only 20 years of economically active work left. Any advice welcome.

[seasg]

2 more months to end the current lease. See many units looking for tenant in the area and some units already lower their asking to that price in propertyguru, in ura web site got 2-3 units accepted that price last month.

How long more to the end of your existing rental contract?Agent may just want to close the deal quickly with your existing tenants rather than the deal going to another agent. Engage 1-2 agents to market your unit asap.Exclusivity does not work in a lukewarm market. I know there will be one new development around potong pasir has applied for TOP but still pending. It may not get TOP soon if due to critical non-compliance. Sometimes people start dropping rental rate because of desperate owners.

[mm63]

I just negotiated my rent down 11% in Aug this year. Bukit Timah area

[DC33_2008]

It is still not too late to engage a few agents to source for tenants. You may want to try prompting your existing tenants earlier (3 months before) than 2 months prior to end of tenancy agreement for future leases if you encounter a quite market again. You will have more time to find another tenant. Can negotiate with your existing tenants. Meet halfway (10%) off as they will have to incur cost to move house if they have been nice tenants.

2 more months to end the current lease. See many units looking for tenant in the area and some units already lower their asking to that price in propertyguru, in ura web site got 2-3 units accepted that price last month.

[seasg]

Thanks DC for the advise! Nice day ahead!

[kellogs]

Cannot say the number here otherwise someone will say I am bragging again. I can only respond to your 2nd question: Several of them have been fully paid up.

Actually bro i am interested to know how many units you have for rental and how big are they ... if you mind posting them on public forum - please PM me ... i want to get inspired and pick up some tips

[DC33_2008]

All investment properties are 2/2+1 bedders with size between 950 and 1100sqft. I suppose this info is sufficient. This is part of my retirement planning with my spouse. Any mortgage loan should be covered. Have recently investment in a tool that have 3-4 times multpiler effect to pay for the outstanding loan if my spouse and I kick the bucket. We can at least sleep in peace and my children will be well taken care of.

Actually bro i am interested to know how many units you have for rental and how big are they ... if you mind posting them on public forum - please PM me ... i want to get inspired and pick up some tips :)

[august]

All investment properties are 2/2+1 bedders with size between 950 and 1100sqft. I suppose this info is sufficient. This is part of my retirement planning with my spouse.

You have kids?

[DC33_2008]

Yup. One boy and one girl.

You have kids?

[Ringo33]

Thanks DC for the advise! Nice day ahead!

Dont waste your time engaging more property agents because in a bear market where rent is falling, no amount of agent effort is going to reverse the trend.
On the other hand, if you waste too much time trying to play cats and mouse with your existing tenant, you will risk the possibility of your tenant start hunting around.
And trust me, every week that goes by, there will be more desperate landlord willing to reduce their rent and in the end, and as much as you believe you property is the best,
there are many apartment in the market will be better and cheaper. Its only a matter of looking harder.

So at the end of the day, you might end up

a) Losing your existing tenant which is willing to accept say 10% lower rent.
b) Stuck with a property without tenant for several months.
c) Have to spend thousand of dollars to repaint, service aircon, dry clean curtain, or even provide furniture.
d) You might get desperate during vacancy period, which will force your to make a big cut in rent to secure tenant (which could be a lousy tenant)
e) And you have to pay agent commission

Just ask yourself, is it worth it as compare to say counter your tenant with 10% reduction in rent.

[kellogs]

All investment properties are 2/2+1 bedders with size between 950 and 1100sqft. I suppose this info is sufficient. This is part of my retirement planning with my spouse. Any mortgage loan should be covered. Have recently investment in a tool that have 3-4 times multpiler effect to pay for the outstanding loan if my spouse and I kick the bucket. We can at least sleep in peace and my children will be well taken care of.

Thanks for the info bro DC. I guess the tool which you mentioned here is the Mortgage Insurance or?

I have 2 kids as well and they are pretty young 8 and 6 ... I am mid 30...

[MortgageGuru]

This is a really good insights from most bros here especially DC bro.Been a great read up. Thumbs up for you bro!

[DC33_2008]

I have stopped the mortgage insurance and replaced them with this one as mortgage insurance are decreasing term and not worth it. This has both multiplying and leveraging effects. You are much younger and will have time to work on your early retirement plan. I am like you with two kids 2 years apart. My spouse and I have more free time now as they are independent now and do not want to go out with us anymore.

Thanks for the info bro DC. I guess the tool which you mentioned here is the Mortgage Insurance or?

I have 2 kids as well and they are pretty young 8 and 6 ... I am mid 30...

[Ringo33]

Thanks for the info bro DC. I guess the tool which you mentioned here is the Mortgage Insurance or?

I have 2 kids as well and they are pretty young 8 and 6 ... I am mid 30...

You will need at least 3 mortgaged properties to generation positive cash flow. ie. 2 to rent and 1 to live.
However things might actually change if interest rate rises.

Rental market play is about supply and demand and its different from region to region. Within city area, one to 2 bedder is popular, in suburban area near international schools, 3 bedders is more popular. And you must avoid investing in luxury condo or big unit if you want to generate cash flow because going forward you will see lesser expat with housing allowance.

[Ringo33]

Remember properties are bought to be kept and not for sale especially FH, near mrt, in city fringe and CBD. FH landed is for own stay and should never be sold but to pass on to next generation.

Remember property cannot be kept forever even if its FH. When the property becomes old, it will eventually have to go.
And thats the reason why Emerald Garden needs to sell parking space help fund its maintenance cost.

http://www.straitstimes.com/news/bus...ender-20141022
http://www.straitstimes.com/news/bus...ocked-20141023

[DC33_2008]

Bro, it depends who is more desperate. Tenants are also testing the market. It has to be a sincere offer.

Dont waste your time engaging more property agents because in a bear market where rent is falling, no amount of agent effort is going to reverse the trend.
On the other hand, if you waste too much time trying to play cats and mouse with your existing tenant, you will risk the possibility of your tenant start hunting around.
And trust me, every week that goes by, there will be more desperate landlord willing to reduce their rent and in the end, and as much as you believe you property is the best,
there are many apartment in the market will be better and cheaper. Its only a matter of looking harder.

So at the end of the day, you might end up

a) Losing your existing tenant which is willing to accept say 10% lower rent.
b) Stuck with a property without tenant for several months.
c) Have to spend thousand of dollars to repaint, service aircon, dry clean curtain, or even provide furniture.
d) You might get desperate during vacancy period, which will force your to make a big cut in rent to secure tenant (which could be a lousy tenant)
e) And you have to pay agent commission

Just ask yourself, is it worth it as compare to say counter your tenant with 10% reduction in rent.

[DC33_2008]

Bro, I have land to rebuilt my place if I do not like it anymore. People are happy at EG to lease carparks lots for a tidy sum of return every month without compromising on security. URA has decided to cut down on the no. of carpark lots in Shenton Way area. EG will be more valuable. Anyway, it is far from the expiry of the 999 years lease.

Remember property cannot be kept forever even if its FH. When the property becomes old, it will eventually have to go.
And thats the reason why Emerald Garden needs to sell parking space help fund its maintenance cost.

http://www.straitstimes.com/news/bus...ender-20141022
http://www.straitstimes.com/news/bus...ocked-20141023