Buy Keep and Rent

[kellogs]

Hi Members,

What is your strategy in property investment?

Buy x number of units and exit the market when the price is right (achieved x number of percent)?

or Buy, Keep and Rent (assuming property prices are always going up higher in the long term)?

[minority]

Hi Members,

What is your strategy in property investment?

Buy x number of units and exit the market when the price is right (achieved x number of percent)?

or Buy, Keep and Rent (assuming property prices are always going up higher in the long term)?

Buy Keep Rent then flip. Ideally have a few units. 1-2 units are base unit 1-2 unit are flip units.. use the $ made from flipping to pay up the base unit.

Then eventually retire with 2 base units collect rent.

[kellogs]

Hi Minority,

Thanks for your reply.

So the goal is to use the flipped money to pay up base units and increase the holding of base units for rental?

and the endgame would be collecting rent from all the fully paid up base units?


Buy Keep Rent then flip. Ideally have a few units. 1-2 units are base unit 1-2 unit are flip units.. use the $ made from flipping to pay up the base unit.

Then eventually retire with 2 base units collect rent.

[minority]

Hi Minority,

Thanks for your reply.

So the goal is to use the flipped money to pay up base units and increase the holding of base units for rental?

and the endgame would be collecting rent from all the fully paid up base units?

when u retire u need to have min liability. Also when u retire u no job. Bank won't lend u $ plus u will be old. the duration won't be long too.

so ideally is to get at least 1 unit paid up and collect rent. u can use he paid up unit rent to fund a 2nd unit and collect rent on it. and have some cash flow.

Thats the ideal situation. IMHO

[radha08]

nowadays easier to dream than to execute:doh:in the property mkt:doh:

[kellogs]

Assuming I need SGD 20K a month to keep up my existing lifestyle ... I would need at least 5 paid up rental condos.

Lets say each condo on average is 1.5mio so total is 7.5mio

If with 7.5mio is it worth it to go with this strategy or you would play different type of game?

[Allthepies]

when u retire u need to have min liability. Also when u retire u no job. Bank won't lend u $ plus u will be old. the duration won't be long too.

so ideally is to get at least 1 unit paid up and collect rent. u can use he paid up unit rent to fund a 2nd unit and collect rent on it. and have some cash flow.

Thats the ideal situation. IMHO

this is a good strategy.. but was wondering whether the rental income will keep declining as the property ages and with new property to compete with you and hence your rental income will be decreasing while cost of living be increasing....

[CCR]

Assuming I need SGD 20K a month to keep up my existing lifestyle ... I would need at least 5 paid up rental condos.

Lets say each condo on average is 1.5mio so total is 7.5mio

If with 7.5mio is it worth it to go with this strategy or you would play different type of game?

yes sure can.... the problem is how to get 5 fully paid up condo ?

[玉格格]

yes sure can.... the problem is how to get 5 fully paid up condo ?

even if one can, I suppose one can reap more by changing one's portfolio into 10 partially paid up condo? :D

[indomie]

My strategy is buy 3 to pay up for 1 in 3 years.
Let's say I buy 3 property of similar value with 30% down payment. After 3 years of 30% appreciation each. I can sell 2 to fully pay up for the one unit. This strategy cannot be use in SG anynore. OZ market still can.

[CCR]

My strategy is buy 3 to pay up for 1 in 3 years.
Let's say I buy 3 property of similar value with 30% down payment. After 3 years of 30% appreciation each. I can sell 2 to fully pay up for the one unit. This strategy cannot be use in SG anynore. OZ market still can.

If you can buy three and fully pay up n 3 years, you dont need to worry about rental lol

[minority]

this is a good strategy.. but was wondering whether the rental income will keep declining as the property ages and with new property to compete with you and hence your rental income will be decreasing while cost of living be increasing....

u have to touch it up once a while. especially when u have new units competition. but old units have its advantage i.e. size

so be ready to park 1mth $$ aside for old unit to touch up. hopefully ur tenant stay 2 contracts then the touch up cost is worth it.

if u don't touch up yes then rental will get impacted. but frankly do touch up visual is important if u want to command and keep the rental at a resonable level.

[minority]

Assuming I need SGD 20K a month to keep up my existing lifestyle ... I would need at least 5 paid up rental condos.

Lets say each condo on average is 1.5mio so total is 7.5mio

If with 7.5mio is it worth it to go with this strategy or you would play different type of game?

well depends on wat u need. constant cash ( won't be 20K) 10K is doable. u want cash flow then u need to stay leverage. i.e. pay up 50% of investment prop.

it might make sense to have some leverage on investment prop if age permits. coz remember rental income u can net off interest so u have lower tax.


Well if u need 20K u can sell all ur prop away n encase it.. say u have 4 MM for example ~4M. assumed 50% paid. 2M profit when u sell. can last u 8.3yrs @20K a mth. u can still put it in some rights to collect divined of 5% a year.

[DC33_2008]

I have been adopting the buy, keep and rent strategy and have already fully paid up two investment properties from tenants' rental, the third one two-third paid up, fourth half paid up,. ....:)
Hi Members,

What is your strategy in property investment?

Buy x number of units and exit the market when the price is right (achieved x number of percent)?

or Buy, Keep and Rent (assuming property prices are always going up higher in the long term)?

[henryhk]

I have been adopting the buy, keep and rent strategy and have already fully paid up two investment properties from tenants' rental, the third one two-third paid up, fourth half paid up,. ....:)

Wah, tats great...may I know how old are u, I hope to be like u and follo your strategy, not sure I can achieve it or not !

[mcmlxxvi]

For shoeboxes,

1. If you can afford large units, buy multiple shoeboxes.
2. If capital gain is substantial, cash out.
3. If rental yield is high, keep and collect rent.
4. If collected rent can fully pay off one of the units after a few years and improve your cashflow, do it.
5. If sales proceeds of one of the unit can fully pay off your other unit, if you still have others outstanding, do it.

[DC33_2008]

MM shld be good moving forward but location must be good. I still prefer 2 bedder or 1000sqft units for investment. But not many of such these days with developers downsizing their new developments.
For shoeboxes,

1. If you can afford large units, buy multiple shoeboxes.
2. If capital gain is substantial, cash out.
3. If rental yield is high, keep and collect rent.
4. If collected rent can fully pay off one of the units after a few years and improve your cashflow, do it.
5. If sales proceeds of one of the unit can fully pay off your other unit, if you still have others outstanding, do it.

[DC33_2008]

Just following chestnut footstep and hope to retire soon.
Wah, tats great...may I know how old are u, I hope to be like u and follo your strategy, not sure I can achieve it or not !

[WhoAmI?]

Buy Keep Rent then flip. Ideally have a few units. 1-2 units are base unit 1-2 unit are flip units.. use the $ made from flipping to pay up the base unit.

Then eventually retire with 2 base units collect rent.


So easy meh?
If property price drop and interest rate go up. How?

[Mu]

I have been adopting the buy, keep and rent strategy and have already fully paid up two investment properties from tenants' rental, the third one two-third paid up, fourth half paid up,. ....:)

You are my idol:cheers6:

[VS]

this is a good strategy.. but was wondering whether the rental income will keep declining as the property ages and with new property to compete with you and hence your rental income will be decreasing while cost of living be increasing....

usually the new property in the similar location will cost more and thus they have to ask for more for rental. Likely the older ones can still maintain the rental rates. If the property is getting too old, then just continue to rent and wait for enbloc

[walkthetiger]

usually the new property in the similar location will cost more and thus they have to ask for more for rental. Likely the older ones can still maintain the rental rates. If the property is getting too old, then just continue to rent and wait for enbloc

If your new project is near to some old ones, then good luck, those old ones rental can go ridiculously below market as those could be purchased during the low.
The new project rental can never beat them.

[walkthetiger]

I have been adopting the buy, keep and rent strategy and have already fully paid up two investment properties from tenants' rental, the third one two-third paid up, fourth half paid up,. ....:)

Frankly, the many successful stories are because purchased during the low many years back, therefore easier full pay up.

If all are purchased at current market price, the story will be different surely; useless you have lot of cash, but most common folks don’t.

Govt here is correct to implement CMs, these people is too vulnerable to property risk, especially now seems not the right time to enter.

[DC33_2008]

Last purchase was nearer the end of lethman crisis period.
Frankly, the many successful stories are because purchased during the low many years back, therefore easier full pay up.

If all are purchased at current market price, the story will be different surely; useless you have lot of cash, but most common folks don’t.

Govt here is correct to implement CMs, these people is too vulnerable to property risk, especially now seems not the right time to enter.

[walkthetiger]

Last purchase was nearer the end of lethman crisis period.

haha....Imagine if I buy a new project and it happened in the same street with any of your 3 other properties(now fully paid) purchased years back. My rental can never beat yours.

Just so common sense, common folk should understand.

[Allthepies]

haha....Imagine if I buy a new project and it happened in the same street with any of your 3 other properties(now fully paid) purchased years back. My rental can never beat yours.

Just so common sense, common folk should understand.

What about you make a pile of gold from other area and use the profit to fully paid up the new project?

[Singleton]

haha....Imagine if I buy a new project and it happened in the same street with any of your 3 other properties(now fully paid) purchased years back. My rental can never beat yours.

Just so common sense, common folk should understand.

This applies to any property buying whether during good or bad times. They are always people who will buy with no loan or little loan in good or bad times.

But granted that if buy at peak with little backup and if most of "competitors" for rentals bought at bottom, it is tough to compete if amount of rental is a concern during bad times.

[DC33_2008]

That is why location, potential, and understanding of the immediate surrounding developments become critical criteria for investment property. It is not about the lowest price. Micro analysis is very critical. :)
This applies to any property buying whether during good or bad times. They are always people who will buy with no loan or little loan in good or bad times.

But granted that if buy at peak with little backup and if most of "competitors" for rentals bought at bottom, it is tough to compete if amount of rental is a concern during bad times.

[DC33_2008]

The person will not pay in full into a new project but will leverage and yet still keep the balance liquid in case if interest moves north.
What about you make a pile of gold from other area and use the profit to fully paid up the new project?

[kellogs]

Hi DC33_2008,

That is exactly my position right now. If the interest rates goes up, I would redeem the loan or make a substantial capital payment.

I also agreed with you that knowing the location, potential, and understanding of the immediate surrounding developments become critical criteria for investment property.

I have just started with property investment and based on those criterias I have bought 2 small units at DUO (1 bedder and 2 bedder).

Hopefully when there is a good opportunity, I would like to buy a landed property for investment. Based on your experience, what is the criteria for landed investment property?

Thanks much :)


The person will not pay in full into a new project but will leverage and yet still keep the balance liquid in case if interest moves north.

[DC33_2008]

IMO, only GCB is a good investment landed property now. All the other types are for own stay as rental yield is relatively low as the price has gone up a lot and so much competition from new condos for rental. Landed has to be 999LH or FH and if possible near CBD. I still prefer to go for older landed with a sizeable land rather than new landed with a 4-storey and a partial basement. It is just too small and most of your space has gone to cirulation space (ie. staircase or even internal lift). The effective useful space is rather small. Cluster or town house is out of my radar as they are on strata title. Just go to a country club if you need the facilities, especially those with jacuzzi or own mini dip-pool.:)
Hi DC33_2008,

That is exactly my position right now. If the interest rates goes up, I would redeem the loan or make a substantial capital payment.

I also agreed with you that knowing the location, potential, and understanding of the immediate surrounding developments become critical criteria for investment property.

I have just started with property investment and based on those criterias I have bought 2 small units at DUO (1 bedder and 2 bedder).

Hopefully when there is a good opportunity, I would like to buy a landed property for investment. Based on your experience, what is the criteria for landed investment property?

Thanks much :)

[walkthetiger]

IMO, only GCB is a good investment landed property now. All the other types are for own stay as rental yield is relatively low as the price has gone up a lot and so much competition from new condos for rental. Landed has to be 999LH or FH and if possible near CBD. I still prefer to go for older landed with a sizeable land rather than new landed with a 4-storey and a partial basement. It is just too small and most of your space has gone to cirulation space (ie. staircase or even internal lift). The effective useful space is rather small. Cluster or town house is out of my radar as they are on strata title. Just go to a country club if you need the facilities, especially those with jacuzzi or own mini dip-pool.:)

Agreed....