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Thread: Would there be Negative Yield Eventually or Soon?

  1. #21

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    Quote Originally Posted by Laguna View Post
    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.
    Of course, it is just common sense.

  2. #22
    Join Date
    May 2012
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    3,945

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    But you sell gotta pay even more to buy back (15-18% more leh).

    Quote Originally Posted by stalingrad View Post
    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.

  3. #23

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    That is not the issue we are talking about, right? The issue is what is the correct way to calculate yield. Whether you are going to buy them back or not is another issue.

  4. #24

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    Quote Originally Posted by Kelonguni View Post
    But you sell gotta pay even more to buy back (15-18% more leh).
    I got walk in who tell me he should have bought Poiz Residences because it look cheap compare to The Garden Residences. I told him he will look back again and said he should have bought The Garden Residences. Buying is not the deciding factor you profit or lost, selling is.

  5. #25

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    https://www.scmp.com/business/articl...id-levels-home

    Actress Shu Qi splashes out US$16.2 million for luxury Mid-Levels home

    May be she did calculate about yield before she buy.

  6. #26
    Join Date
    Aug 2009
    Posts
    3,911

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    Quote Originally Posted by stalingrad View Post
    Of course, it is just common sense.

  7. #27
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    Aug 2009
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    Quote Originally Posted by Arcachon View Post
    I got walk in who tell me he should have bought Poiz Residences because it look cheap compare to The Garden Residences. I told him he will look back again and said he should have bought The Garden Residences. Buying is not the deciding factor you profit or lost, selling is.
    Buying is the deciding factor as the cost of maintaining kick in and holding power counts.
    Be professional in your advice please. Both buying and selling, holding power etc are counted.

  8. #28

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    Quote Originally Posted by Laguna View Post
    Buying is the deciding factor as the cost of maintaining kick in and holding power counts.
    Be professional in your advice please. Both buying and selling, holding power etc are counted.
    You must have hear a lot of professional advise, sometime it is good to take your shoe out and wear the other party shoe to understand what is going on. The Glass of water is half fill or half empty depends on who look at it, same goes to the professional getting professional advise.

  9. #29

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    Quote Originally Posted by Laguna View Post
    Buying is the deciding factor as the cost of maintaining kick in and holding power counts.
    Be professional in your advice please. Both buying and selling, holding power etc are counted.
    Quote Originally Posted by Arcachon View Post
    You must have hear a lot of professional advise, sometime it is good to take your shoe out and wear the other party shoe to understand what is going on. The Glass of water is half fill or half empty depends on who look at it, same goes to the professional getting professional advise.
    You started your property journey in 2006 at the low of the previous property cycle. You were either savvy or lucky when your entry point was low and hence between 2006 to 2016 (10 years), you was able to ride into the next cycle and benefited.

    Imagine if you started your journey in 2011, do you think you can achieve what you had achieved by 2021? The entry point in 2011 would have been rather high and we can see what it will be like in 2021 after 10 years. And you are going to say that how many 10 years one can have? You do it right the first 10 years, is better than you ended up trying to fix yourself and catching up with the market for the next 20 years.

  10. #30

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    Quote Originally Posted by Amber Woods View Post
    You started your property journey in 2006 at the low of the previous property cycle. You were either savvy or lucky when your entry point was low and hence between 2006 to 2016 (10 years), you was able to ride into the next cycle and benefited.

    Imagine if you started your journey in 2011, do you think you can achieve what you had achieved by 2021? The entry point in 2011 would have been rather high and we can see what it will be like in 2021 after 10 years. And you are going to say that how many 10 years one can have? You do it right the first 10 years, is better than you ended up trying to fix yourself and catching up with the market for the next 20 years.
    No one knows what the future will become, but history do give us a small window to what the future will be.

    When one know Bank is allow to print money and MAS control the flow, money become smaller and smaller.

    When one know GLS is not going to sell cheaper than the previous sale, land price can only go up not down.

    When one know Singapore cannot be like America and Europe where they can just move out of a Town and build another Town, property price got only one direction.

    Any person who can buy property in Singapore need to jump over 9 Control Measure if he or she still alive and still don't buy can only join the MTB.

    Feel sad for those who can buy and did not buy, they just need to pay 5% more.

    I need to work for 8 years without spending a single cents just to pay the stamp duty if I buy now to be what I am.

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