View Full Version : Impact of New Measures Survey
Please give your views in this survey
It is more likely to stay still or having slight adjustment then it will go up until next recession.
Asking prices never drop for those areas I am watching, in fact, trending up still.
HDB - Down, as in COV will be reduced.
DBSS / EC - Up
Mass mkt Condo - flat until election
High end - :beats-me-man:
i hope prices will depress if not i think the govt will introduce more drastic measures to curb the runaway prpoerty prices...
As the govt had said, the increase in property prices must go hand in hand with the economic fundamentals.
Year 2010 is a bumper year. Next year's outlook is already at 4 - 5% gdp growth and this is baring unforseen circumstances.
And with the bumper supply coming on board from year 2012, i guess segments of the ppty market will experience price depression.
not bad. Seems like the sentiments are for prices to drop.
PR taken out of resale HDB. Resale COV will definitely be affected.
Like it or not,
prices puncture liao these few days..
prices puncture liao these few days..
These measures needs time.
Those who are still in dreamland will wake up disappointed.
Stage 1 - Respond mildly (lower asking slightly)
Stage 2 - Refuse to accept (lower offers)
Stage 3 - Reject less (lower offers)
Stage 4 - Resign to fate (lowest offers)
Not too sure if it has puncture. Looking at Dorsett Residence, Greenwich and NV, it seems rather resistance to recent measures. The low interest rates coupled with relative strong economics data in this region, strong shares, etc, have strengthened buyers' sentiment.
Not too sure if it has puncture. Looking at Dorsett Residence, Greenwich and NV, it seems rather resistance to recent measures. The low interest rates coupled with relative strong economics data in this region, strong shares, etc, have strengthened buyers' sentiment.
Too early to tell anyway.
If these measures don't work, more supply would work.
Beware and be informed.
I hope it will dampen and slow the growth too. Looking at the no. of HDB address owners buying multi-million developments in D1, 2, 9, 10 and 11 before the measures, garment must be keeping a close watch of this group of people.
Not too sure if it has puncture. Looking at Dorsett Residence, Greenwich and NV, it seems rather resistance to recent measures. The low interest rates coupled with relative strong economics data in this region, strong shares, etc, have strengthened buyers' sentiment.
buyers snapping up projects that are top in 2014.. 3-4yrs later,then pay the mortgages.
In anticipate for a market recovery,and sell along the way.
not surprising. if any developer going launch new project gonna top 30yrs later. It going to hit the mainpage. SELLOUT IN 5MINS!!!!
3-4 years are just too long. People are paying w/o returns. No worth the while. Too many uncertainties like, economy, job, interest, rental market, etc. Market is just too volatile these days over much shorter period of time.
HDB - Down, as in COV will be reduced.
DBSS / EC - Up
Mass mkt Condo - flat until election
High end - :beats-me-man:
Mass market, if new, asking very high(850-1200 psf), if resale, asking higher and higher by the month...once caveat lodged, next seller try to ask for a bit more.
Geylang OKT
11-09-10, 10:13
Ever heard of lemmings? They fall off a cliff willingly just because the others in front of them do the same :D
:doh:
Ever heard of lemmings? They fall off a cliff willingly just because the others in front of them do the same :D
Haha. Excellent comparison!
Fits the typical kiasu SIngaporean to a T!
:doh:
Haha. Excellent comparison!
Fits the typical kiasu SIngaporean to a T!
Unfortunately for buyers...the asking prices for mass market are not dropping leh...in fact, they are inching upwards, and NV Residences up prices by 1-2% last weekend...
Waiting for URA caveats lodged info for September...and see if transacted higher than Jul-Aug.
Mass market, if new, asking very high(850-1200 psf), if resale, asking higher and higher by the month...once caveat lodged, next seller try to ask for a bit more.
utterly unsustainable in the long run, if everyone asks for a bit more. then the question would be who's first in line in the food chain.
not that hdb helps when they start pricing new 5rm flats in sengkang at $400+k now. just 5 years back, you can get a new 5rm flat smacked in telok blangah, red hill or queenstown with the same amount of money.
Haven't you heard? You are expected to work with no formal retirement age. So there is no requirement to price it lower. Anyway, for 500k you only own the lease of the flat space - not the lease of the land title.
utterly unsustainable in the long run, if everyone asks for a bit more. then the question would be who's first in line in the food chain.
not that hdb helps when they start pricing new 5rm flats in sengkang at $400+k now. just 5 years back, you can get a new 5rm flat smacked in telok blangah, red hill or queenstown with the same amount of money.
Haven't you heard? You are expected to work with no formal retirement age. So there is no requirement to price it lower. Anyway, for 500k you only own the lease of the flat space - not the lease of the land title.
Buy from HDB at $400K.
5 yrs later, sell at $600K.
Buy condo at $900000.
Sell condo at $1.2million...
Ingredients of the Great Singapore Dream...
Buy from HDB at $400K.
5 yrs later, sell at $600K.
Buy condo at $900000.
Sell condo at $1.2million...
Ingredients of the Great Singapore Dream...
eh, then if all of us wait another 10 years?
new HDB = $700k, Resale = $1m?
how many newly weds, young and new in the workforce, can afford a $500-700k HDB flat?
eh, then if all of us wait another 10 years?
new HDB = $700k, Resale = $1m?
how many newly weds, young and new in the workforce, can afford a $500-700k HDB flat?
yea lor..blame who? inflation and FT lor...:D :D
eh, then if all of us wait another 10 years?
new HDB = $700k, Resale = $1m?
how many newly weds, young and new in the workforce, can afford a $500-700k HDB flat?
Next time, mortgage is passed to children to service.
And if not enough, grandchildren can take over...
Next time, mortgage is passed to children to service.
And if not enough, grandchildren can take over...
wow xiong at that time...:D
so let's all buy landed bungalow and get our descendants to pay for it??:scared-4:
Buy from HDB at $400K.
5 yrs later, sell at $600K.
Buy condo at $900000.
Sell condo at $1.2million...
Ingredients of the Great Singapore Dream...
This is a trick: upgrading from smaller to bigger flats, from HDBs to condos, from condos to landed properties ...
On the surface, your social status looks higher, but so does the debt level under your name. Until the market goes south and you will find that you cannot afford all these in the first place.
Many people are adding burdens through properties rather than accummulating wealth through properties.
Next time, mortgage is passed to children to service.
And if not enough, grandchildren can take over...
this has been done before in Japan ..
the two-generation 100 years mortgage! viva la exuberance! :eek:
http://www.independent.co.uk/money/mortgages/the-mortgage-gift-your-kids-wont-thank-you-for-413344.html
rattydrama
15-09-10, 23:25
wow xiong at that time...:D
Over the last 2 decades, the family size has been reduced to just 1-3 kids. Well, parents from the older generations worked thru their life, trim and save for rainy days. Most of them know little about investment and assets enhancement.
I am not surprised that many parents now actually help up on the down payments. It is difficult for a 20 something to swallow the down payment.
This trends will continue - buy, buy, buy.
30 Aug cooling measures can proof one point - the harder to get, the more it make people wanting to get it at all costs.
Developers are laughing all the way to the bank.
http://www.todayonline.com/Commentary/EDC100831-0000065/Finally,-some-cooling-measures-with-bite
Finally, some cooling measures with bite
by Colin Tan
05:55 AM Aug 31, 2010
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The much-awaited third round of cooling measures were finally announced yesterday but with a big difference - the current set have a lot more bite than the earlier ones, which were largely symbolic.
Of the measures, the 70-per-cent cap on loan-to-property-value for second mortgages is the most significant as it addresses for the first time the problem of excessive liquidity in the market. Helping to soak up some of the liquidity to a lesser extent, is the increase in minimum cash payment from 5 per cent to 10 per cent of valuation.
The earlier cooling measures had addressed the problem of speculation which was not a serious problem in the current bull run. As a result, the effectiveness of the measures were more cosmetic than real.
Much of the push towards higher and higher benchmark prices achieved in new private housing launches in recent months had come from investors with much higher risk profiles. For this group of investors, where previously they were able to buy three similar-priced properties, they can now only afford two. So, you can say demand from this group of investors is effectively down by a third.
Even demand from novice investor buyers with lower risk profiles will be affected as I expect the majority to have at least one outstanding mortgage. This effectively means the huge upside potential for "speculative" projects such as those with many small apartments and those close to MRT stations will be severely crimped. I am not saying that there will be no profit-making opportunity, but that it will be considerably less.
But the impact to the long-term investment potential of private property investments comes not from the cap on loans but from the current measures introduced in the public housing sector.
The increased opportunities for lateral upgrading via DBSS and EC projects and the greater BTO supply have raised the risks of investing in private housing to a new level. To restore the upgrading dreams of heartlanders which have been quashed by the rapid rise in private property prices, the authorities are now providing new opportunities for them to fulfil their housing aspirations.
In place of mass-market private housing units, there will be more DBSS units and EC units in more varied locations than simply in the more remote areas such as Punggol and Sengkang. For first-timers, there will be many more BTO units put up for booking this year and the next. This has prompted some to ask whether there will be a glut in the public housing sector. The answer is no because the occupants will still be there.
However, with many owners trying to sell them at about the same time - they would reach their minimum occupation period together - would mean that there will be little upside for HDB resale prices in the future. The lower resale values will definitely impact the ability of HDB occupants to upgrade to a private property.
In the meantime, the upgrader market for the next few years is being creamed off by the larger numbers of DBSS and EC projects in the future.
What we are seeing is the gradual erosion of market support - both now and in the near future - for the lower end of the private housing market. If there is to be a housing glut, it will happen in this segment. The glut will persist until price levels come down sufficiently low for the two markets to link up again and for the upgrading stream to resume once again.
Will this be the final set of cooling off measures? I would not bet on it. The liquidity monster is hard to tame.
The exuberance in the market may calm down for the time being - sale volumes may come down and the price rise may stall for the moment - but the problem will rear its head once again. As it is, one avenue for the monies to flow into - namely the safe haven market of HDB resale flats - has now been effectively closed to investors. The liquidity problem is a global one. In Singapore, we are only starting to tackle this problem.
Believe me. This is just the beginning. Just ask the Chinese authorities.
The writer is head of research and consultancy at Chesterton Suntec International.
Quite balanced views
Thanks everyone for taking the survey.
General views now are all for prices to go down. I conclude that it must be for HDB's COV.
Mass Market perhaps is at remained unchange. BTO, DBSS, EC and Mass Market Condo.
Top premium projects to continue to go up.
All these can exist together. Just need to know which is which. Which Asset Class. :cool:
Thanks everyone for taking the survey.
General views now are all for prices to go down. I conclude that it must be for HDB's COV.
Mass Market perhaps is at remained unchange. BTO, DBSS, EC and Mass Market Condo.
Top premium projects to continue to go up.
All these can exist together. Just need to know which is which. Which Asset Class. :cool:
Good Point!
Just come back from NV residences showflat. It was quite crowded. A lot of units are booked. Very good response for a 99 LH at pasir ris. Quite hard to believe prices would come down significantly...
Wild Falcon
19-09-10, 20:25
I always believe where is the real demand? Prices in the segment with real demand will remain relatively strong.
Speculative areas dependent on foreign funds and solely on sentiments and iffy ideas like "F1" and "IR", better avoid.
From my own experience, I have a RCR unit for sale and surprising, I've been getting decent offers, just marginally lower (5%) than my ask price. So, I was pleasantly surprised as I thought buyers will low-ball a number after the cooling measures. Many viewers are PRs - and PRs were sharing with me that they decided to go private directly instead of HDB market. I suspect demand will be relatively strong in reasonably priced developments. Those that charge huge premium for no reason other than "F1" and "IR" will be hard hit. Foreign Investors and speculators no longer see Singapore property as an attractive market as upside is capped and rental yields in one of the worst in the world. Even Indonesians and Malaysians find their property in their homeland more attractive.
Some of these PRs are now having this wait and see attitude - so rentals will remain very strong in HDB and suburban areas. And after waiting for say a year and paying off $30k in rental, the PRs will be actively buying again. Imagine paying $30k in rental and price of property did not drop significantly. Also rental must come out from the pocket, while instalments can be via CPF. For many of these PRs, the best option is still to buy instead of renting forever. So if they're don't want to be stuck in HDB flat for 5 years, private is the way to go.
Just come back from NV residences showflat. It was quite crowded. A lot of units are booked. Very good response for a 99 LH at pasir ris. Quite hard to believe prices would come down significantly...
Ya. I was there on Saturday. The showflat was packed like "sardine". It was total madness. But the 3D video clip was impressive.
Let's pray for those committed a unit there... Especially those brought the one bedroom.
devilplate
19-09-10, 22:43
wah...really so power ar??:scared-3:
slowly buy leh:doh:
Those highlighted in BOLD & RED refers to Marina & Sentosa? :o
Real demand also from Indonesians, Malaysians, Chinese, Indians washing money here leh (can't say foreign funds means speculative) :cheers1:
I always believe where is the real demand? Prices in the segment with real demand will remain relatively strong.
Speculative areas dependent on foreign funds and solely on sentiments and iffy ideas like "F1" and "IR", better avoid.
From my own experience, I have a RCR unit for sale and surprising, I've been getting decent offers, just marginally lower (5%) than my ask price. So, I was pleasantly surprised as I thought buyers will low-ball a number after the cooling measures. Many viewers are PRs - and PRs were sharing with me that they decided to go private directly instead of HDB market. I suspect demand will be relatively strong in reasonably priced developments. Those that charge huge premium for no reason other than "F1" and "IR" will be hard hit. Foreign Investors and speculators no longer see Singapore property as an attractive market as upside is capped and rental yields in one of the worst in the world. Even Indonesians and Malaysians find their property in their homeland more attractive.
Some of these PRs are now having this wait and see attitude - so rentals will remain very strong in HDB and suburban areas. And after waiting for say a year and paying off $30k in rental, the PRs will be actively buying again. Imagine paying $30k in rental and price of property did not drop significantly. Also rental must come out from the pocket, while instalments can be via CPF. For many of these PRs, the best option is still to buy instead of renting forever. So if they're don't want to be stuck in HDB flat for 5 years, private is the way to go.
Those highlighted in BOLD & RED refers to Marina & Sentosa? :o
Real demand also from Indonesians, Malaysians, Chinese, Indians washing money here leh (can't say foreign funds means speculative) :cheers1:
Lol... You should avoid using taboo words in open forum. May get caught and put in jail.
Wild Falcon
20-09-10, 12:48
I think teddybear brings in an interesting point about foreigners like Indonesians and Malaysians with illegal money need to wash their funds in high-end property in SG. SG is very laxed in such things. But for those Malaysians and Indonesians that earn a legitimate living and pay their taxes, their homeland (Malaysia and Indonesia) property is actually better investments than Singapore. But nowadays even those dirty money got many places to go - their options is no longer tied to SG property alone.
Remind me of Michael Backman's book "Asia Future Shock" written in 2008, a senior fund manager said,
"Singapore has truly become the global center for parking ill-gotten gains ... Russians, mainland Chinese, and Indonesians are pouring money into Singapore. High-end property has risen 30-50% in the last 18 months or so."
Read page 165 of the e-book and you will know how this is being done.
http://books.google.com.sg/books?id=tX0PFMtUE9QC&printsec=frontcover#v=onepage&q&f=false
rattydrama
20-09-10, 16:49
I think teddybear brings in an interesting point about foreigners like Indonesians and Malaysians with illegal money need to wash their funds in high-end property in SG. SG is very laxed in such things. But for those Malaysians and Indonesians that earn a legitimate living and pay their taxes, their homeland (Malaysia and Indonesia) property is actually better investments than Singapore. But nowadays even those dirty money got many places to go - their options is no longer tied to SG property alone.
Its not really true for Malaysia properties unless it is in KL & maybe Klang areas. (Penang? Read from Straits Times yesterday) Malaysia housing property is for own stay and not for rental income or investment – even in the long term of say 20 years imo.
My siblings bought all their houses with good locations but the capital appreciation is very slow. Simply, when there is demand, the developers just build and build over at adjacent land with cheap construction labour from Indonesia. The price up abit recently due to the increase in construction materials but generally it is still low. You can get a freehold single storey terrace house for as low as RM150 in some part of Johor.
There is no proper master planning from the federal or local governments even if there is only for certain areas and it is not as details as compared to Singapore. There is no control over how many houses to be built per year unlike Singapore. Typical XYZ Taman (garden) becomes very rundown after 10 years. For each Taman, it bound to have few unoccupied units waiting for rental for as low as RM700 or for sale at 30% below developer’s price. So far, never come across capital appreciation.
People just buy new house from developer to save the hassle of renovating it. Renovation also needs to have upfront cash. Buying from developer can put all under bank loan. You can own a house with almost 100% bank loan with a decent income.
In addition, developer absorbs stamp duty and gives away free legal subsidy for S&P agreement and from bank - free loan agreement.
After tracking property in Malaysia for over 10 years, still don’t see any upside at all. Well, it could be better if you buy industrial land or shop house or put money in the bank to earn interest – the return is better than buying residential property.
Its not really true for Malaysia properties unless it is in KL & maybe Klang areas. (Penang? Read from Straits Times yesterday) Malaysia housing property is for own stay and not for rental income or investment – even in the long term of say 20 years imo.
My siblings bought all their houses with good locations but the capital appreciation is very slow. Simply, when there is demand, the developers just build and build over at adjacent land with cheap construction labour from Indonesia. The price up abit recently due to the increase in construction materials but generally it is still low. You can get a freehold single storey terrace house for as low as RM150 in some part of Johor.
There is no proper master planning from the federal or local governments even if there is only for certain areas and it is not as details as compared to Singapore. There is no control over how many houses to be built per year unlike Singapore. Typical XYZ Taman (garden) becomes very rundown after 10 years. For each Taman, it bound to have few unoccupied units waiting for rental for as low as RM700 or for sale at 30% below developer’s price. So far, never come across capital appreciation.
People just buy new house from developer to save the hassle of renovating it. Renovation also needs to have upfront cash. Buying from developer can put all under bank loan. You can own a house with almost 100% bank loan with a decent income.
In addition, developer absorbs stamp duty and gives away free legal subsidy for S&P agreement and from bank - free loan agreement.
After tracking property in Malaysia for over 10 years, still don’t see any upside at all. Well, it could be better if you buy industrial land or shop house or put money in the bank to earn interest – the return is better than buying residential property.
I agree. Had friends doing that, invested more than 10 years.. see very little capital appreciation and even capital loss. Not to mention the exchange rate lost and the opportunity cost lost. A similar priced property in Singapore will appreciate much much more than a "flat value" over there. Not interested over there at all. Heard that you can only sell to another "foreigner there and not to locals" Like that how?
I always believe where is the real demand? Prices in the segment with real demand will remain relatively strong.
Speculative areas dependent on foreign funds and solely on sentiments and iffy ideas like "F1" and "IR", better avoid.
From my own experience, I have a RCR unit for sale and surprising, I've been getting decent offers, just marginally lower (5%) than my ask price. So, I was pleasantly surprised as I thought buyers will low-ball a number after the cooling measures. Many viewers are PRs - and PRs were sharing with me that they decided to go private directly instead of HDB market. I suspect demand will be relatively strong in reasonably priced developments. Those that charge huge premium for no reason other than "F1" and "IR" will be hard hit. Foreign Investors and speculators no longer see Singapore property as an attractive market as upside is capped and rental yields in one of the worst in the world. Even Indonesians and Malaysians find their property in their homeland more attractive.
Some of these PRs are now having this wait and see attitude - so rentals will remain very strong in HDB and suburban areas. And after waiting for say a year and paying off $30k in rental, the PRs will be actively buying again. Imagine paying $30k in rental and price of property did not drop significantly. Also rental must come out from the pocket, while instalments can be via CPF. For many of these PRs, the best option is still to buy instead of renting forever. So if they're don't want to be stuck in HDB flat for 5 years, private is the way to go.
With hdb resale price targeted to drop. rental from 30k plunge to 22-25k.
PRs may find rental is still affordable comparing buying..
ps: would u rather buy or rent if you are posted overseas,which u are unfamiliar with properties appreciation or deppreciation.
-----------------------------------------------------------------
* i would rather buy a hse in my homeland and rent out.
Overseas rental hse can be paid either by my company or my OWNLAND house rental.
With hdb resale price targeted to drop. rental from 30k plunge to 22-25k.
PRs may find rental is still affordable comparing buying..
ps: would u rather buy or rent if you are posted overseas,which u are unfamiliar with properties appreciation or deppreciation.
-----------------------------------------------------------------
* i would rather buy a hse in my homeland and rent out.
Overseas rental hse can be paid either by my company or my OWNLAND house rental.
When prices are increasing... everyone started chasing the prices. Just grab and sometimes wont think too much about affordability. Can be screwed big time.
When prices are falling... everyone started to wait, wait and wait. Just wait until the prices become attractive again. Nothing to lose waiting right? Buy only when right.
That's consumer behaviour for you. The no 2nd property rule for HDB is really just a twist. More in policy and less in enforcement. Have to wait until that first case or two before I am convinced that they mean it.
Wild Falcon
21-09-10, 13:59
Never use the past to project the future. At today's market environment with SG govt clamping down on prices increases and Najib at Malaysia's helm, I think Malaysia property market now presents better opportunities than SG. If I were a Malaysian, I will not buy a HDB and jeopardise my position in partaking on the upside that Malaysia now presents. To each his own.
I agree. Had friends doing that, invested more than 10 years.. see very little capital appreciation and even capital loss. Not to mention the exchange rate lost and the opportunity cost lost. A similar priced property in Singapore will appreciate much much more than a "flat value" over there. Not interested over there at all. Heard that you can only sell to another "foreigner there and not to locals" Like that how?
I didn't say illegal money hor........ :scared-1:
Another thing, Majority (99.9%) who work for a living in Malaysia & Indonesia won't be able to afford properties overseas (they can only afford their property over their head in their own country). We can forget about them investing in Singapore. :o
I think teddybear brings in an interesting point about foreigners like Indonesians and Malaysians with illegal money need to wash their funds in high-end property in SG. SG is very laxed in such things. But for those Malaysians and Indonesians that earn a legitimate living and pay their taxes, their homeland (Malaysia and Indonesia) property is actually better investments than Singapore. But nowadays even those dirty money got many places to go - their options is no longer tied to SG property alone.
Rules in Malaysia keep changing. At 1 moment, foreigners can only buy property costing >RM500k. Then, changed to foreigners can only buy property costing >RM250k, then back to >RM500k again. Who knows, then change to >RM1m? Once you buy an expensive properties you have no foreigners to sell to at higher prices when rule changes! (and you are forced to sell at much lower prices since locals won't pay so much!) :banghead:
Also, their properties never seem to appreciate. Every top cycle prices almost the same (only adjusted for inflation). :banghead: That is why rich Malaysians and Indonesians rather invest in Singapore! (you think they so stupid not to invest at home if can lots of money? If they so stupid can be so rich?) :p
Another thing: If you say yield is poor in Singapore, go see how much yield you can get in Malaysia? Their mortgage loan interest rate is like 6-8% while yield only 3-4%! You lose money every month renting out (not including the damages to properties which you can't recover!). Compare this Singapore: Yield 3-5% while mortgage loan interest rate only 1-1.5% nia! :cheers1:
I think teddybear brings in an interesting point about foreigners like Indonesians and Malaysians with illegal money need to wash their funds in high-end property in SG. SG is very laxed in such things. But for those Malaysians and Indonesians that earn a legitimate living and pay their taxes, their homeland (Malaysia and Indonesia) property is actually better investments than Singapore. But nowadays even those dirty money got many places to go - their options is no longer tied to SG property alone.
What is the "taboo words"? :confused:
Lol... You should avoid using taboo words in open forum. May get caught and put in jail.
Rules in Malaysia keep changing. At 1 moment, foreigners can only buy property costing >RM500k. Then, changed to foreigners can only buy property costing >RM250k, then back to >RM500k again. Who knows, then change to >RM1m? Once you buy an expensive properties you have no foreigners to sell to at higher prices when rule changes! (and you are forced to sell at much lower prices since locals won't pay so much!) :banghead:
Also, their properties never seem to appreciate. Every top cycle prices almost the same (only adjusted for inflation). :banghead: That is why rich Malaysians and Indonesians rather invest in Singapore! (you think they so stupid not to invest at home if can lots of money? If they so stupid can be so rich?) :p
Another thing: If you say yield is poor in Singapore, go see how much yield you can get in Malaysia? Their mortgage loan interest rate is like 6-8% while yield only 3-4%! You lose money every month renting out (not including the damages to properties which you can't recover!). Compare this Singapore: Yield 3-5% while mortgage loan interest rate only 1-1.5% nia! :cheers1:
Also AU. High mortgage rates (6%-8% current) and can expect to go up to double digits yet gross yield can be anywhere from 3.5%-8% (of course there are also some with exceptional yields) . Mean yield around 5%. You can check the Australia ppty magazine (Property Investor) available at Border.
For my one bed room unit at Sydney, gross yield is 6% but after deduction of council rate, water rate, insurance, admin fess, tax (which are quite a lot), net yield only 4%. The only good thing for me is I borrow in US$, pay low rate (for now) and "make profit" from FX (that comes with risk).
rattydrama
21-09-10, 17:44
Never use the past to project the future. At today's market environment with SG govt clamping down on prices increases and Najib at Malaysia's helm, I think Malaysia property market now presents better opportunities than SG. If I were a Malaysian, I will not buy a HDB and jeopardise my position in partaking on the upside that Malaysia now presents. To each his own.
You need to know Malaysia market well in order to play Malaysia Property else can be screwed big time. Maybe can share which part and which ara got upside?? Iskandar?
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