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Thread: Should I sell my D9 FH property if I can nett a million profit.

  1. #31
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    I’m closer to the last category than anything else. One part of me wanted very much to take risk at some point and cash out on a “meaningful” profit if it comes along instead of being sentimental over the property (my first purchase!). Precisely so I don’t “end up holding on to this single unit for the next 20 years”. The latest cm sort of burst my bubble.... sort of.. let’s see how this pans out next year.


    Quote Originally Posted by Amber Woods View Post
    If you are very rich and this property is meant for your children, than keep it.

    If you are rich, and want to be richer, and believe that a major price correction is in the waiting (for economic reasons or whatever your research suggested), than sell and invest your profits in bonds etc. You can re-enter the market and maybe with the profits you can buy two instead of still holding to this single unit.

    However, if you believe that prices can only go up in the long term (like all property agents are advocating) and willing to forgo mid term price correction, and miss the opportunity to add more, than do not sell.

    If you are not so rich and hoping to be rich, you may need to take some calculated risk here. You either end up holding to this single unit for the next 20 years or you can add more by taking some risk.

  2. #32
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    nary a chance in the mid term. Unless next master plan revision lifts plot ratio of the area

    Quote Originally Posted by azeoprop View Post
    Hold till enbloc next time.

  3. #33
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    property is no longer a good investment class in view of yield is getting lower and lower with upside is rather limited. How many foreigners wanting to buy now with this ABSD. On top, democratic profile in Singapore with dropping birth rate and control of working permit, the vacancy rate is going to stay around 8-10% or even higher if recession hits.

    There are so many asset classes giving u very good return without the needs to please the tenants and maintain the properties. One just need to broaden the horizon of investment, don't just confine with property, then the picture is very clear.

  4. #34
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    Laguna, can you list down two or three of your asset class that is better than property? Thank you.

  5. #35
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    On the contrary, yields are about to go up with vacancy dropping below historical average.

    There are many asset classes but no one gives me such good and and stable yield as property. Some people are more suited than others to be landlord I feel.


    Quote Originally Posted by Laguna View Post
    property is no longer a good investment class in view of yield is getting lower and lower with upside is rather limited. How many foreigners wanting to buy now with this ABSD. On top, democratic profile in Singapore with dropping birth rate and control of working permit, the vacancy rate is going to stay around 8-10% or even higher if recession hits.

    There are so many asset classes giving u very good return without the needs to please the tenants and maintain the properties. One just need to broaden the horizon of investment, don't just confine with property, then the picture is very clear.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

  6. #36
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    Quote Originally Posted by tonymontana View Post
    Laguna, can you list down two or three of your asset class that is better than property? Thank you.
    1. floater bond... about 5.5% pa
    2. pick up some good equity over many markets
    3. Lately I get into forward redemption in FX

  7. #37
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    Quote Originally Posted by Kelonguni View Post
    On the contrary, yields are about to go up with vacancy dropping below historical average.

    There are many asset classes but no one gives me such good and and stable yield as property. Some people are more suited than others to be landlord I feel.
    Net yield will not go up in view of rates hike and higher maintenance. I have high doubt on vacancy rate (now about 6.8%) is going to improve in the near term. All my properties rental are still not going up at all, just maintaining. Those above $5,000 rental is rather difficult now to find tenants.

    My investment asset class
    1. Bond - a good varities - about 20%, I moved in quite heavily into floater (5.5%)
    2. Equity - about 10% now increasing to 30%, need cherry picking (buy now, selling in Dec)
    3. Properties - around 40% of total, these are not for selling already.
    4. Spare : 10%

    Property is the worst in term of liquidity. If you don't prepare your asset class for crisis or downturn, then you won't understand why I don't encourage people to investment in properties now.

    The new generation, if they are caught in recession, job loss... stuck in properties, with no more dry powder, then that will be end of their journey to be rich.
    Last edited by Laguna; 08-07-18 at 21:44.

  8. #38
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    6.8% vacancy has been a marked improvement from a few quarters back when it was 8.4%. The numbers will continue to improve due to sustained slowdown in TOP developments over the next year.

    $5,000 rental is above my belt and not the type suitable for investment in current climate due to the occupational type and income of those who rent. Even that may improve a little due to people who need to rent short term (3 months to 6 months or longer) to beat the financing requirements of moving or upgrading. Suddenly, it made sense why they would shorten the minimum rental period to 3 months just a few months back.

    Just my own experience.

    Quote Originally Posted by Laguna View Post
    Net yield will not go up in view of rates hike and higher maintenance. I have high doubt on vacancy rate (now about 6.8%) is going to improve in the near term. All my properties rental are still not going up at all, just maintaining. Those above $5,000 rental is rather difficult now to find tenants.

    My investment asset class
    1. Bond - a good varities - about 20%, I moved in quite heavily into floater (5.5%)
    2. Equity - about 10% now increasing to 30%, need cherry picking (buy now, selling in Dec)
    3. Properties - around 40% of total, these are not for selling already.
    4. Spare : 10%

    Property is the worst in term of liquidity. If you don't prepare your asset class for crisis or downturn, then you won't understand why I don't encourage people to investment in properties now.

    The new generation, if they are caught in recession, job loss... stuck in properties, with no more dry powder, then that will be end of their journey to be rich.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

  9. #39
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    Quote Originally Posted by Kelonguni View Post
    6.8% vacancy has been a marked improvement from a few quarters back when it was 8.4%. The numbers will continue to improve due to sustained slowdown in TOP developments over the next year.

    $5,000 rental is above my belt and not the type suitable for investment in current climate due to the occupational type and income of those who rent. Even that may improve a little due to people who need to rent short term (3 months to 6 months or longer) to beat the financing requirements of moving or upgrading. Suddenly, it made sense why they would shorten the minimum rental period to 3 months just a few months back.

    Just my own experience.
    The picture look clearer now.

  10. #40
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    Now got two main routes for people who need to buy another property and move while selling the old property (assuming only own 1 property - the vast huge majority).

    1. Buy the next property, move over then sell the old - Upfront 25% downpayment if current property fully paid up(or more), 12% ABSD, 4%- BSD. Plus renovation costs. 40+% plus renovations. Even if the intent is for ABSD remission within half year.

    2. Sell and move out (rent), proceeds in, then buy - if proceeds from previous property can cope with the 25% downpayment, 4%- BSD and renovations, minimum cash outlay required.

    Makes sense?
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

  11. #41
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    Laguna, what's a *floater* bond? Thanks

    Quote Originally Posted by Laguna View Post
    1. floater bond... about 5.5% pa
    2. pick up some good equity over many markets
    3. Lately I get into forward redemption in FX

  12. #42
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    Quote Originally Posted by starrynight View Post
    Laguna, what's a *floater* bond? Thanks
    PM

  13. #43
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    Quote Originally Posted by Laguna View Post
    1. floater bond... about 5.5% pa
    2. pick up some good equity over many markets
    3. Lately I get into forward redemption in FX
    Thank you.

    How about the risks involved? I see property as having low risk. I do dabble (invest) in stocks for years. Although I did reasonably well in it, but I find property is still the best, and safest. As I get older, I don't really care for all that volatility.

  14. #44
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    Quote Originally Posted by tonymontana View Post
    Thank you.

    How about the risks involved? I see property as having low risk. I do dabble (invest) in stocks for years. Although I did reasonably well in it, but I find property is still the best, and safest. As I get older, I don't really care for all that volatility.
    All asset classes come with risk. I remembered during Lehman time, we did not even dare to talk about the paper losses we had from properties. The amount was far beyond we could take. We were very very highly leveraged then.
    Only you been through crisis, at least once, better twice, then you would understand the importance of a balanced portfolio especially when you are getting older, cannot take any more heart attacks.

    Property is the worst class in term of liquidity. If you believe in economy cycle, then a balanced portfolio is very critical. Hold only good quality property, stay liquid and capitalise on crisis to grow retirement eggs.

  15. #45
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    Quote Originally Posted by Laguna View Post
    All asset classes come with risk. I remembered during Lehman time, we did not even dare to talk about the paper losses we had from properties. The amount was far beyond we could take. We were very very highly leveraged then.
    Only you been through crisis, at least once, better twice, then you would understand the importance of a balanced portfolio especially when you are getting older, cannot take any more heart attacks.

    Property is the worst class in term of liquidity. If you believe in economy cycle, then a balanced portfolio is very critical. Hold only good quality property, stay liquid and capitalise on crisis to grow retirement eggs.
    Some truths there as well.

    But actually equity term loan can enhance one's liquidity if required. The cheapest personal loan one can access. Let's say 1.6% interest rate, then invest in some of the higher growth instrument or hold for opportunities.

    Small FH properties easier to do this I realised.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

  16. #46
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    well, if the market reading of interest rate movement comes true, then in late 2019, we might see negative yield for investment assets (yield based on market value of the property and not the historical cost of purchase which could be very lower)

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