Waiver of Seller Stamp Duty

[teddybear]

Worth waiting forever if it is a Freehold, since time is on his/her side.

If not, situation will become like what has been reported here:
https://www.facebook.com/assi.ak.9

"Simeon Kong: Normally Gov will avoid questions what to do when the tenures expired for public housing.....but not in Singapore. My friend’s HDB is now finding it hard to sell even though it has a good location as it is a 45 years old flat."

Annual rent is 16,800 if monthly rent $1,400.

Interest paid annually should be about $6,780, offset against annual income, assuming 80% loan.

Minus agent fee of $750 per year rent.

Minus renovation $15,000 spread over 5-10 years depending on how they are counted. And other repair fees. Minus maintenance fees of $2,640.

Need to declare honestly that this really doesn’t increase your income very much. Not more than a few thousand annually. The game changes when the property mortgage is about all paid up.

I am sure you will make the wise decision.

[teddybear]

More about the problems with leasehold properties..........
https://singaporeanstocksinvestor.bl...trust-and.html

Don't care me hor.

Listen to John Lim better.

Who is John Lim? Who else?

In an interview, John Lim said there is an issue with the structure of the Singapore industrial property market. The land tenures are relatively short and valuations will fall because they are aligned to tenure.

Worth waiting forever if it is a Freehold, since time is on his/her side.

If not, situation will become like what has been reported here:
https://www.facebook.com/assi.ak.9

"Simeon Kong: Normally Gov will avoid questions what to do when the tenures expired for public housing.....but not in Singapore. My friend’s HDB is now finding it hard to sell even though it has a good location as it is a 45 years old flat."

[Kelonguni]

Different case leh, this one still has 90 years +- left.

Worth waiting forever if it is a Freehold, since time is on his/her side.

If not, situation will become like what has been reported here:
https://www.facebook.com/assi.ak.9

"Simeon Kong: Normally Gov will avoid questions what to do when the tenures expired for public housing.....but not in Singapore. My friend’s HDB is now finding it hard to sell even though it has a good location as it is a 45 years old flat."

[Kelonguni]

Industrial land starts at 30 years

More about the problems with leasehold properties..........
https://singaporeanstocksinvestor.bl...trust-and.html

Don't care me hor.

Listen to John Lim better.

Who is John Lim? Who else?

In an interview, John Lim said there is an issue with the structure of the Singapore industrial property market. The land tenures are relatively short and valuations will fall because they are aligned to tenure.

[tonymontana]

Actually i did my calculation. I dont need money urgently. I can rent just that i need to keep monitoring this asset on my hand for at least 4yrs more. Plus my bank loan there is a locked down period of 3yrs.

If i were to rent out the unit at 1.4k, understand from my agent is that i still need to pay for the maintenance which is app. $220 per month. Both Income & Property Tax will be higher since this additional income. So ended up i probably getting less than 1k? I understand it is still better than selling or leaving empty.. but isnt it kinda little for a 1 bedded condo?

Sounds like a not so good agent to me what is this. Lazy. People ask to find tenant kpkb tenant profile not match.

[Kelonguni]

Most agents prefer to deal with sellers than landlords. Hassle free and earn much more.

Sounds like a not so good agent to me what is this. Lazy. People ask to find tenant kpkb tenant profile not match.

[leafe]

Annual rent is 16,800 if monthly rent $1,400.

Interest paid annually should be about $6,780, offset against annual income, assuming 80% loan.

Minus agent fee of $750 per year rent.

Minus renovation $15,000 spread over 5-10 years depending on how they are counted. And other repair fees. Minus maintenance fees of $2,640.

Need to declare honestly that this really doesn’t increase your income very much. Not more than a few thousand annually. The game changes when the property mortgage is about all paid up.

I am sure you will make the wise decision.

Thanks for the advice. I calculated. Annual i only have an additional income of app. $5k! Not even enough to repay the bank loan. 😭

[leafe]

Most agents prefer to deal with sellers than landlords. Hassle free and earn much more.

Ya this is what she told me as well. She usually do selling cos just sell and disappear. But she is doing me a favour by helping me with my unit cos recommended by a mutual friend. So perhaps she is more stringent on tenant selection in order to avoid further trouble?

[tonymontana]

Most agents prefer to deal with sellers than landlords. Hassle free and earn much more.

Alright, fair enough. So how would u "motivate" your agent to serve you better? Any tips?

[Kelonguni]

Paying interest is also repaying bank loan as no loan will come without interests.

Net income of 5k based on your already vested deposit of about 120k plus downpayment and stamp duties plus reno of 15k is still 3.7% yields. Still better than most instruments in the market. Better than OA interest rates. New properties especially your type bought at absolute lows are unlikely to experience depreciation so it should be very safe to opt to hold past SSD.

Moreover, don't plan to go $1400 at first shot. Aim higher and try for a while then switch low if no takers. Keep in mind which type of tenants would be takers.

Thanks for the advice. I calculated. Annual i only have an additional income of app. $5k! Not even enough to repay the bank loan. 😭

[Kelonguni]

Best to have a few properties and give a few agents to handle (max 2-3 per property). Gauge how their performance and after sales service are and let the best agent handle all your properties.

For me there is an advantage cos I have relatives and good friends who are agents.

The other way is to ask for recommendations from others to find a keen and reliable agent.

Once found, try to continue to award them the annual renewal fees. The payment lowers the income tax from rent and helps maintain solid relationship with the agents.

Alright, fair enough. So how would u "motivate" your agent to serve you better? Any tips?

[Arcachon]

Best to have a few properties and give a few agents to handle (max 2-3 per property). Gauge how their performance and after sales service are and let the best agent handle all your properties.

For me there is an advantage cos I have relatives and good friends who are agents.

The other way is to ask for recommendations from others to find a keen and reliable agent.

Once found, try to continue to award them the annual renewal fees. The payment lowers the income tax from rent and helps maintain solid relationship with the agents.

Not many will understand or do it, most chose to gain small lost big.

I share more to those who like my sharing other just noise in the air.

[leafe]

Paying interest is also repaying bank loan as no loan will come without interests.

Net income of 5k based on your already vested deposit of about 120k plus downpayment and stamp duties plus reno of 15k is still 3.7% yields. Still better than most instruments in the market. Better than OA interest rates. New properties especially your type bought at absolute lows are unlikely to experience depreciation so it should be very safe to opt to hold past SSD.

Moreover, don't plan to go $1400 at first shot. Aim higher and try for a while then switch low if no takers. Keep in mind which type of tenants would be takers.

Im setting at $1.7k in order to have the buffer for negotiations. Plus my agent gave a idea to throw in a bi-weekly or monthly housekeeping which i can upkeep the unit and also to ensure tenant wont do funny things. She told me commission will be 2 mths worth of rental. Not earning much after all the deduction, but really better than bank interest.

[Kelonguni]

I think your agent ka you. This is the highest I have heard before.

Make him / her in charge of all the cleaning schedule.

Im setting at $1.7k in order to have the buffer for negotiations. Plus my agent gave a idea to throw in a bi-weekly or monthly housekeeping which i can upkeep the unit and also to ensure tenant wont do funny things. She told me commission will be 2 mths worth of rental. Not earning much after all the deduction, but really better than bank interest.

[tonymontana]

Im setting at $1.7k in order to have the buffer for negotiations. Plus my agent gave a idea to throw in a bi-weekly or monthly housekeeping which i can upkeep the unit and also to ensure tenant wont do funny things. She told me commission will be 2 mths worth of rental. Not earning much after all the deduction, but really better than bank interest.

2 months commission?? For what? I said it alrd, lousy agent. Fire her pronto.

[leafe]

2 months commission?? For what? I said it alrd, lousy agent. Fire her pronto.

https://www.99.co/blog/singapore/com...operty-agents/

just read up, at the most 1 month rental for 2 years lease. hmmm... where can i find more reliable agents? empty unit = losing money..

[teddybear]

commission = 0.5 month rental for each year of lease is the norm, but obviously this refers to the typical family unit of higher rental.
If your unit's rental is too low, good agents are typically not interested because they will be spending same time to rent out a unit but only getting so low agent fee.
If you don't believe, you can ask Arachon here about this and see whether he will spend all his time to help you to find a tenant for your unit?
I would bet most agents will take "opportunistic" approach to properties with low rental - i.e. they just sit back and wait for tenants to come instead of seeking out tenants pro-actively (the latter they will be doing for those units with high rental per month).

If I am the agent I will also actively only work for those units with rental >$5k p.m. and 1 month I just need at least 1 contract of 2 years lease can liao! the rest of the income can come from selling properties, 1 unit of >$3M every 2 months also good enough liao! I won't bother with those whose rental is <$4k p.m. or those property price <$2.5M. Less work and more pay!

https://www.99.co/blog/singapore/com...operty-agents/

just read up, at the most 1 month rental for 2 years lease. hmmm... where can i find more reliable agents? empty unit = losing money..

[proud owner]

commission = 0.5 month rental for each year of lease is the norm, but obviously this refers to the typical family unit of higher rental.
If your unit's rental is too low, good agents are typically not interested because they will be spending same time to rent out a unit but only getting so low agent fee.
If you don't believe, you can ask Arachon here about this and see whether he will spend all his time to help you to find a tenant for your unit?
I would bet most agents will take "opportunistic" approach to properties with low rental - i.e. they just sit back and wait for tenants to come instead of seeking out tenants pro-actively (the latter they will be doing for those units with high rental per month).

If I am the agent I will also actively only work for those units with rental >$5k p.m. and 1 month I just need at least 1 contract of 2 years lease can liao! the rest of the income can come from selling properties, 1 unit of >$3M every 2 months also good enough liao! I won't bother with those whose rental is <$4k p.m. or those property price <$2.5M. Less work and more pay!

It is quite true that most agents, for that matter, EVERYONE of us.. do the same.

If company A pays $10k salary, and company B pays $8k for the same job, same scope of work, same environment, perks etc ... which would you choose?

majority, if not all will choose to work for company A.

We all work for $$ ...

At the end of the day, like one of you mentioned, it boils down to relationship (with your agent).

Sometimes it is the Landlords that spoilt the practice. Many choose to Cut the agent out as soon as he secures a tenant.

I always pay my agent comm on renewal. i have properties that are tenanted at $10k a month for the last 10 years. and i use the same agent. He works like "COW AND HORSE" for me.. he deserves the comm..

Many landlords choose not to pay comm on renewal...it is true that renewal is very easy...same client after all. So why should landlord pay agent again?

But landlords never think... agents also need to survive siah ???

Agent can always recommend the tenant another unit ... and walah..... you lose your rental income straight away ... if unlucky, no tenant for the next 6 months...

the Loss is so much greater than the comm....

so a good relationship with agent is very important.

[2824]

Perhaps u want to try to find a “resident” agent or agent who specialise in the condo if not in the area. The cost for such agents are low but they do serve a number of owners.

[leafe]

It is quite true that most agents, for that matter, EVERYONE of us.. do the same.

If company A pays $10k salary, and company B pays $8k for the same job, same scope of work, same environment, perks etc ... which would you choose?

majority, if not all will choose to work for company A.

We all work for $$ ...

At the end of the day, like one of you mentioned, it boils down to relationship (with your agent).

Sometimes it is the Landlords that spoilt the practice. Many choose to Cut the agent out as soon as he secures a tenant.

I always pay my agent comm on renewal. i have properties that are tenanted at $10k a month for the last 10 years. and i use the same agent. He works like "COW AND HORSE" for me.. he deserves the comm..

Many landlords choose not to pay comm on renewal...it is true that renewal is very easy...same client after all. So why should landlord pay agent again?

But landlords never think... agents also need to survive siah ???

Agent can always recommend the tenant another unit ... and walah..... you lose your rental income straight away ... if unlucky, no tenant for the next 6 months...

the Loss is so much greater than the comm....

so a good relationship with agent is very important.

this is true. also depending on the responsibility of the agent. cos *touch wood*, the tenant chu pattern, the agent will need to settle no matter what. this is what he/she being paid for. for this, if the commission is reasonable, i'm willing to pay cos afterall they work for money. this is what my agent told me for the 2 mths commission. She said if anything, she will be the one to settle, no need to trouble me.

[leafe]

Perhaps u want to try to find a “resident” agent or agent who specialise in the condo if not in the area. The cost for such agents are low but they do serve a number of owners.

ya, i tend to receive all these flyers inside my condo letterbox. but seems like supply > demand... i can see a few units trying to sell/rent since 6mths ago.. some even trying to sell a yr ago! i never realised it is so challenging to get it rented..

[xtreme_46]

your condo parc rosewood?

[prashantnative]

SSD is payable on all residential properties and residential lands that are bought on or after 20 Feb 2010 and sold within the holding period.

[leafe]

your condo parc rosewood?

yup

[leafe]

yea! i finally able to rent out the unit at 1.6k (including all furniture and MCST fee). now i have another headache is how to declare for the income tax. anyone can advice? trying to lower the amount taxable.

[Kelonguni]

Not bad leh. Rent out in 1 month. Market still steady.

My turn over was only a few days gap before next Tenant came in.

Check my previous post on income tax reduction. Namely interest, agent fees, maintenance fees, and furnishings spread (or concentrated) over the year(s) of use.

yea! i finally able to rent out the unit at 1.6k (including all furniture and MCST fee). now i have another headache is how to declare for the income tax. anyone can advice? trying to lower the amount taxable.

[buyer_east]

yea! i finally able to rent out the unit at 1.6k (including all furniture and MCST fee). now i have another headache is how to declare for the income tax. anyone can advice? trying to lower the amount taxable.

Parc rosewood rental yield is high at 3.5+%.

[buyer_east]

Not bad leh. Rent out in 1 month. Market still steady.

My turn over was only a few days gap before next Tenant came in.

Check my previous post on income tax reduction. Namely interest, agent fees, maintenance fees, and furnishings spread (or concentrated) over the year(s) of use.

Where is the thread?
Can cost of a rental condo be depreciated for income tax advantages?
It's like 20% tax for a rental condo, 4~7~11% marginal income tax for rental and 10% of property tax.

[Kelonguni]

Where is the thread?
Can cost of a rental condo be depreciated for income tax advantages?
It's like 20% tax for a rental condo, 4~7~11% marginal income tax for rental and 10% of property tax.

One of the earlier pages in this thread. I calculated that about $7,000 was interest paid. Property tax maybe another 1,000. Agent fee about 900.

Property tax can claim as expenditure. Reno and maintenance also.

Minus off all these, the taxable income base should not exceed 10,000. Even max tax rate it’s probably 2K+, unless Govt changes tax rules this year.

[Kelonguni]

In any case, if really need to offset those rental amount (high income earner), can deposit into SRS account about 15,000. Provided the tax laws do not change, this is still very viable. 0 tax chargeable.

But do also note that your rental income in 2018 will only incur income tax you pay in 2019.