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Thread: Would there be Negative Yield Eventually or Soon?

  1. #11

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    Quote Originally Posted by oldfreehold View Post
    Archron bought his southbank in 2005 or 2006? Totally different from now, I don't see any value in those new projects.
    I see another 2006 coming because they cannot stop printing.

    Ever wonder where they get the money for all the infrastructure in Singapore.

    2006 -- $558 psf --958 sqft --$535,000 RCR D7 99yrs

    SOUTHBANK NORTH BRIDGE ROAD Apartment 07 RCR 99 yrs lease commencing from 2006 Resale 1 1,480,000 - 958 Strata 26 to 30 1,545 Mar-18

    2011 -- $899 psf 1453 sqft $1,305,800 OCR D19 99yrs

    TERRASSE TERRASSE LANE Condominium 19 OCR 99 yrs lease commencing from 2010 Resale 1 1,525,000 - 1,453 Strata 01 to 05 1,049 Feb-18

    2018 - $1523 psf 969 sqft $1,475,300 OCR D19 99yrs

    THE GARDEN RESIDENCES SERANGOON NORTH VIEW Apartment 19 OCR 99 years leasehold New Sale 1 1,475,300 - 969 Strata 01 to 05 1,523 Jun-18
    Last edited by Arcachon; 10th July 2018 at 01:01 PM.

  2. #12

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    Quote Originally Posted by Kelonguni View Post
    Mine all relatively new properties. No problem for me sourcing and renewing tenancy.

    All non central.
    Yes, you still can find tenants, but what is the rental yield now? Normally we play property game by leveraging, if you have paid up in full of coz rental yield don't bother you. This time round I am lucky, the old apartment went through successfully. With so many maintenance problems , these old apartments can not attract any good tenants. If you rent to those bad profile ones, it will bring you more problems. I can't imagine those out skirt condos, what is the rental yield looks like now.

  3. #13

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    Quote Originally Posted by Laguna View Post
    Only those been through will understand what I meant. Congrats on your enbloc

    For investment properties :
    Your property in Sub-location : cannot find tenant
    Your property in Prime Location : cannot meet price expectation

    I just lower my rental today to catch the tenant
    For investment properties :
    Your property in Sub-location : cannot find tenant
    Your property in Prime Location : cannot meet price expectation

    Totally agree, unless you bought the properties before 2007 or went through the en bloc in 2017-2018.
    Agents will always ask you to buy, once you commit, you will understand. Those buying 1 or 2 bedders in District 19, good luck to you.

  4. #14
    Join Date
    May 2012
    Posts
    3,945

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    Average yield for 3 properties based on current prices is 4.3%.

    Actually I don’t understand why must based on current prices if I have zero intention of selling. It’s not even the amount you put in and take loan for. The only rationale I can see is it’s based on current prices because you can loan it out again via equity term loan.

    Quote Originally Posted by oldfreehold View Post
    Yes, you still can find tenants, but what is the rental yield now? Normally we play property game by leveraging, if you have paid up in full of coz rental yield don't bother you. This time round I am lucky, the old apartment went through successfully. With so many maintenance problems , these old apartments can not attract any good tenants. If you rent to those bad profile ones, it will bring you more problems. I can't imagine those out skirt condos, what is the rental yield looks like now.
    The three laws of Kelonguni:

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

  5. #15

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    Quote Originally Posted by Kelonguni View Post
    Average yield for 3 properties based on current prices is 4.3%.

    Actually I donít understand why must based on current prices if I have zero intention of selling. Itís not even the amount you put in and take loan for. The only rationale I can see is itís based on current prices because you can loan it out again via equity term loan.
    You need to use current prices to tell yourself it is not a good buy, then you wait and wait and wait until the prices is right.

    I only know if I can buy, Bank can loan just buy.

    Rental will sure cover your interest, just use it as a saving plan then wait for lucky draw.

  6. #16

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    Quote Originally Posted by oldfreehold View Post
    For investment properties :
    Your property in Sub-location : cannot find tenant
    Your property in Prime Location : cannot meet price expectation

    Totally agree, unless you bought the properties before 2007 or went through the en bloc in 2017-2018.
    Agents will always ask you to buy, once you commit, you will understand. Those buying 1 or 2 bedders in District 19, good luck to you.
    In short buy within town,outskirts town area city fringe.

  7. #17
    Join Date
    May 2012
    Posts
    3,945

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    Did you have to pay SSD or the collective sales Paid for it?

    Quote Originally Posted by oldfreehold View Post
    Then how about 50 years left? Bought 2 old freehold in 2016 and enbloced in 2018. The maintenance issues can really kill you. So many problems, almost every month will receive call from tenants. And now the rental market is very very very bad. Consider the prime location, it takes one month to rent one room out.
    The three laws of Kelonguni:

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

  8. #18
    Join Date
    Aug 2009
    Posts
    3,911

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    Quote Originally Posted by Kelonguni View Post
    Did you have to pay SSD or the collective sales Paid for it?
    SSD is paid by the seller, the collective sale will not pay.
    What is the end date of enbloc for the purpose of SSD, date of completion? or approval by Strata Board?

  9. #19
    Join Date
    Aug 2009
    Posts
    3,911

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    Quote Originally Posted by Kelonguni View Post

    Actually I donít understand why must based on current prices if I have zero intention of selling. Itís not even the amount you put in and take loan for. The only rationale I can see is itís based on current prices because you can loan it out again via equity term loan.
    I just share :
    in the same project
    Investor 1 bought it 15 years ago at $500,000,
    Investor 2 bought it now at $1,500,000
    Both are more or less identical and rented out at a gross rental of $3,000pm
    Gross Yield : Property 1 : 36,000/500,000 = 7.2%
    Property 2 : 36,000/1,500,000 = 2.4%

    If I am a potential buyer, which is the right number I will want to know? It is based on today's market price.

    You cannot have a project with yield that is out of syn from market.

  10. #20

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    Quote Originally Posted by Kelonguni View Post
    Average yield for 3 properties based on current prices is 4.3%.

    Actually I donít understand why must based on current prices if I have zero intention of selling. Itís not even the amount you put in and take loan for. The only rationale I can see is itís based on current prices because you can loan it out again via equity term loan.
    Must be based on current prices, because those are the current value of the properties which you can extract if you were to sell it and deploy the capital elsewhere. If you still use the prices prevailing 10, 20 years ago, you are comparing oranges with apples. Say you bought a home 50 years ago, your rental yield would probably approach 100%. That is just wrong.

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