View Full Version : Is 4% yield consider good?
care to share the kind of %yield you have seen over the years in the property industry?? :D:D
care to share the kind of %yield you have seen over the years in the property industry?? :D:D
Depends on area, FH / LH etc? i see that for FH 3-4% is pretty decent
3.5 to 4.0% yield is still good now but may not be so great if interest rates rise.
For example, generally a CCR MM at >2000pfs has about 3.5% yield right now. Is itl good and worthwhile to go in right now?
its very good. at current selling price n rental. many are only 2%
its very good. at current selling price n rental. many are only 2%
what about RCR and OCR mms?
Industrial 60LH properties during early 2009 with 70% leverage were giving 25% to 30% cash-on-cash. Today that (with the same leverage) has dropped to 10% cash-on-cash.
care to share the kind of %yield you have seen over the years in the property industry?? :D:D
Very very good if after tax, maintenance, fees etc
ikan bilis
27-02-12, 13:19
if sibor hit 4% how??... can ask tenant to sign "sibor-pegged" rent or not??.. :scared-3: :ashamed1: :D :D
if sibor hit 4% how??... can ask tenant to sign "sibor-pegged" rent or not??.. :scared-3: :ashamed1: :D :D
Sibor pegged rental is a new good idea. May be the yearly rental should be Sibor Pegged + 4% with log in period of 3 years....
so is it fair to use the rental yield to determine how much a property worth? eg if a property can fetch rental of $4500/m. is it fair to say that property is worth $1.5m (achieving 3.6% yield)?
so is it fair to use the rental yield to determine how much a property worth? eg if a property can fetch rental of $4500/m. is it fair to say that property is worth $1.5m (achieving 3.6% yield)?
Really depends who is looking at it. If investor, yes. If own stay... Maybe they wont bother. Or they may look at potential capital gain instead
so is it fair to use the rental yield to determine how much a property worth? eg if a property can fetch rental of $4500/m. is it fair to say that property is worth $1.5m (achieving 3.6% yield)?
A bit too simple as there are many other factors in play, but yes - this should be one of the key contributors.
But it also depends on interest rate, location, fh vs lh, supply-demand.
Why must depend on area, FH/LH? I would think yield is yield.
Thanks
Depends on area, FH / LH etc? i see that for FH 3-4% is pretty decent
Why must depend on area, FH/LH? I would think yield is yield.
Thanks
yah... i will expect higher yield for LH when compared to FH.:)
hdb rental yield d best:D
before adding the costs to repair and make good after tenant left right? After adding in actually not that good after all?
hdb rental yield d best:D
In a sunny day, a bird was bathing itself happily in a pudding of water, after sometime it was so happy that it became oblivious of the surroundings and began singing louder and louder..unaware that it has inadvertently attracted the attention of a cat nearby which pounded on it and eat it up...:p now all the birds cannot enjoy it and have to fly somewhere else...:p
In a sunny day, a bird was bathing itself happily in a pudding of water, after sometime it was so happy that it became oblivious of the surroundings and began singing louder and louder..unaware that it has inadvertently attracted the attention of a cat nearby which pounded on it and eat it up...:p now all the birds cannot enjoy it and have to fly somewhere else...:p
Nice story to read in this nice weather... Especially i like cats and angry birds. But did someone post a fire sale here...? What is the relevance may i ask.
ikan bilis
28-02-12, 12:48
Nice story to read in this nice weather... Especially i like cats and angry birds. But did someone post a fire sale here...? What is the relevance may i ask.
haha... i guess he is saying radha08 kong-jiau-wei/talk-bird-language... asking govt to clamp down hdb renting.... :D
umm... not i say 1... :D
Yield is just 1 part, and not the most important part. Give you an analogy to stocks:
Stock A - Pay dividend of 4%.
Stock B - Pay 2% dividend.
Which will you buy? On the surface, buying Stock A is obvious.
But fast forward 10 years later, Stock A still pay 4% dividend, but price appreciation is ZERO.
Stock B still pay 2% dividend, but price appreciation is 100%.
Get the moral of the story? (If not, replace "Stock" by "Property" will do). :D
care to share the kind of %yield you have seen over the years in the property industry?? :D:D
Yield is just 1 part, and not the most important part. Give you an analogy to stocks:
Stock A - Pay dividend of 4%.
Stock B - Pay 2% dividend.
Which will you buy? On the surface, buying Stock A is obvious.
But fast forward 10 years later, Stock A still pay 4% dividend, but price appreciation is ZERO.
Stock B still pay 2% dividend, but price appreciation is 100%.
Get the moral of the story? (If not, replace "Stock" by "Property" will do). :D
Good analogy.
its like LH vs FH.
But a lot would have sold off their LH after pocketing enough "dividends"
Yield is just 1 part, and not the most important part. Give you an analogy to stocks:
Stock A - Pay dividend of 4%.
Stock B - Pay 2% dividend.
Which will you buy? On the surface, buying Stock A is obvious.
But fast forward 10 years later, Stock A still pay 4% dividend, but price appreciation is ZERO.
Stock B still pay 2% dividend, but price appreciation is 100%.
Get the moral of the story? (If not, replace "Stock" by "Property" will do). :D
Good post! :cheers5::cheers5:
haha... i guess he is saying radha08 kong-jiau-wei/talk-bird-language... asking govt to clamp down hdb renting.... :D
umm... not i say 1... :D
Orrrr i see the relevance now
haha... i guess he is saying radha08 kong-jiau-wei/talk-bird-language... asking govt to clamp down hdb renting.... :D
umm... not i say 1... :D
no need for me to say BIG brother got eyes to see....:scared-4:...they have all the data....we only tcss in forum....
Yield is just 1 part, and not the most important part. Give you an analogy to stocks:
Stock A - Pay dividend of 4%.
Stock B - Pay 2% dividend.
Which will you buy? On the surface, buying Stock A is obvious.
But fast forward 10 years later, Stock A still pay 4% dividend, but price appreciation is ZERO.
Stock B still pay 2% dividend, but price appreciation is 100%.
Get the moral of the story? (If not, replace "Stock" by "Property" will do). :D
so which is better?
1. HDB rental of $2000 with yield of > 10%
OR
2. Condo rental of $4000 with yield of 5%
so which is better?
1. HDB rental of $2000 with yield of > 10%
OR
2. Condo rental of $4000 with yield of 5%
Obviously the yield of 10% is better but how many HDB can u own and rent out? You are asking the obvious. :doh:
ikan bilis
02-03-12, 08:41
so which is better?
1. HDB rental of $2000 with yield of > 10%
OR
2. Condo rental of $4000 with yield of 5%
try remove all restrictions on resale hdb, and see if market will buy until yield crashed to 5% or not !!.... ;) :D
Obviously the yield of 10% is better but how many HDB can u own and rent out? You are asking the obvious. :doh:
my point is should we look at higher cash inflow which can cover much of mortgage.
if a person has 1 pte plus 1 hdb and he want to sell one of them to fund another purchase. which is a better option:-
keep condo that has lower 5% yield so he will have $6000 (rental + CPF) to fund the mortgage
keep HDB with 10% yield, he will have only $4000 to fund the mortgage
am looking at cashflow perspective
ikan bilis
02-03-12, 09:02
sell hdb and buy condo... most people will have enough 20% downpayment cpf/cash... :D
keep hdb and buy condo... need 40% downpayment cash, and also cpf/cash stuck in hdb... :scared-3: :scared-3:
my point is should we look at higher cash inflow which can cover much of mortgage.
if a person has 1 pte plus 1 hdb and he want to sell one of them to fund another purchase. which is a better option:-
keep condo that has lower 5% yield so he will have $6000 (rental + CPF) to fund the mortgage
keep HDB with 10% yield, he will have only $4000 to fund the mortgage
am looking at cashflow perspective
If you need to stretch so much, using rental income etc to fund another purchase maybe you should recalculate?
If you need to stretch so much, using rental income etc to fund another purchase maybe you should recalculate?
am just asking in such scenario, yield or cash inflow is more important? what teddybear pointed out is quite true, a high yield stock might not be good if the price did not go up. so giving up high yield HDB may not be bad choice becos chances of condo to appreciate is definitely higher than HDB
am just asking in such scenario, yield or cash inflow is more important? what teddybear pointed out is quite true, a high yield stock might not be good if the price did not go up. so giving up high yield HDB may not be bad choice becos chances of condo to appreciate is definitely higher than HDB
Yep agree :cheers5:
i believe both scenarios are valid for investors with different risk appetite. if you believe a bird in hand is worth two in the bush, then generating cashflow or immediate returns through a high yield asset would be your pick. afterall, capital appreciation is probable, rather than an absolute.
devilplate
02-03-12, 10:44
with all these cooling measure, cap gain for pte ppty may not be as gd as hdb hor
i will definitely keep hdb if i hf one
Keep and regret 8 years later when the dam (MOP) allow the flood water to be released! :beats-me-man:
with all these cooling measure, cap gain for pte ppty may not be as gd as hdb hor
i will definitely keep hdb if i hf one
devilplate
02-03-12, 18:52
Keep and regret 8 years later when the dam (MOP) allow the flood water to be released! :beats-me-man:
hdb small quantum....better den keep expensive ccr and no foreigner to sell to?
When Iran war starts, more rich Middle-Easterns will start to stream to Singapore again.... :p
hdb small quantum....better den keep expensive ccr and no foreigner to sell to?
Don't forget, they now have to keep HDB affordable for somebody with just $1k pm income! If new 2 BRs sell only $40k, what do you expect resale 2BRs to be able to sell? What do you expect resale 5 BRs to be able to sell when the dam (MOP) is opended after water has been full (full capacity built)? :beats-me-man:
with all these cooling measure, cap gain for pte ppty may not be as gd as hdb hor
i will definitely keep hdb if i hf one
ikan bilis
03-03-12, 08:58
heya...
under booming economy condition,
- keep/hold high end properties... i.e. luxury, ccr, large floor area condo
- price will shoot to sky bcoz very speculative...
- you will be seeing recording breaking price everyday (not once a year)
- forget about rental yield, bet on the big big capital gain...
but, under stagflation condition like now....
- better hold on to all the low end junk properties... hdb, small ocr condo, factory
- these are the very basic necessities... people/biz need some roof
- easy to rent out, easy to offload...
- any price crash also less extend in ratio, less painful/risky, highest yield...
- assets value still get pushed up by inflation (but no speculative factor to push up price)
:rolleyes: :D
felicia_sg
03-03-12, 09:04
Under stagflation conditions, many families try to hold on to their HDB flats even when they don't use it physically (all rented out)! :(
Fortunately things will change once all the printed money get into circulation in the very first sign of global economic recovery.
heya...
under booming economy condition,
- keep/hold high end properties... i.e. luxury, ccr
- price will shoot to sky bcoz very speculative...
- you will be seeing recording breaking price everyday (not once a year)
- forget about rental yield, bet on the big big capital gain...
but, under stagflation condition like now....
- better hold on to all the low end junk properties...
- these are the very basic necessities... people/biz need some roof
- easy to rent out, easy to offload...
- any price crash also less extend in ratio, less painful/risky, highest yield...
- assets value still get pushed up by inflation (but no speculative factor to push up price)
:rolleyes: :D
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