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Thread: Would there be Negative Yield Eventually or Soon?

  1. #66

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  2. #67
    Join Date
    Aug 2009
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    3,911

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    She is talking without knowing enbloc process.
    Developers buying enbloc is paying the sellers upfront, and no way to wait for the launch. (5:53)...

    give up listening...


  3. #68

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    Quote Originally Posted by stalingrad View Post
    We have a condo at west coast. The gross rental yield is 2.5% (based on current market values). But if you take into considerable the period between tenants (we one time went without a tenant for 6 months), the gross yield goes down to 1.8-2%. That doesn't sound like a good return. Considering the expenses and income taxes, we are looking at less than 1%.
    I sold my unit at the Infiniti, though I drive. I still find inconvenient. Not sure if yours is just nearby


  4. #69
    Join Date
    May 2012
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    Quote Originally Posted by stalingrad View Post
    We have a condo at west coast. The gross rental yield is 2.5% (based on current market values). But if you take into considerable the period between tenants (we one time went without a tenant for 6 months), the gross yield goes down to 1.8-2%. That doesn't sound like a good return. Considering the expenses and income taxes, we are looking at less than 1%.
    Yes, I am aware of your condo. It is a good buy for store of value and appreciation (due to its implied land price and ultra-long lease), but not so much for rental yield. The location at the moment is not too ideal. With West Coast MRT coming up, it might have a stronger rental demand.

    This is also why calculating yields based on current market price is unwise and risky.

    1. Price might be really high due to the land and lease price. This causes yield to appear depressed.

    2. Price might be psychologically inflated due to "market value" which may or may not be real. I.e. the last done price might not be a real price you can achieve even as a sincere buyer.

    3. The price can also go steadily down in poor market conditions and raise your yields! But does this bode well for holding this particular property?

    Seriously, if you think badly of your yield and believe there are better yielding instruments, why don't you sell?
    The three laws of Kelonguni:

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


  5. #70
    Join Date
    May 2012
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    3,915

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    Pt 2 should read sincere seller. Typo.
    The three laws of Kelonguni:

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


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