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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
    Posts
    3,915

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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.


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