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Thread: Would there be Negative Yield Eventually or Soon?

  1. #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.


  2. #17
    Join Date
    May 2012
    Posts
    3,915

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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.


  3. #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?


  4. #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.


  5. #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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