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Thread: for rental investment purpose

  1. #1
    Newbie

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    Default for rental investment purpose

    quick check...
    for rental investment purpose...is it better and more logical to buy an old project, completed, since tenants tend to do some damage to the propety, instead of a brand new one.
    Also, a completed project can give rental income fast, intead of a project building in progress.

    any view from the forumer...

  2. #2
    Senior

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    I suppose you should look at the rental yield is within your expectation and capital gain potential, if any given the CM.

  3. #3
    Senior

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    For rental, always buy completed projects, no point listening to those agents who tell you to buy new projects to get a higher rental when top and wait 3 years or more coz we never know what the market will be like years from now. Buy a resale condo with a decent yield of at least 4% and start collecting rental immediately after you get the keys

  4. #4
    Junior

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    i think 4% rental yield quite hard to find these days...

  5. #5
    mutant powerpuff

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    Quote Originally Posted by Regulators
    For rental, always buy completed projects, no point listening to those agents who tell you to buy new projects to get a higher rental when top and wait 3 years or more coz we never know what the market will be like years from now. Buy a resale condo with a decent yield of at least 4% and start collecting rental immediately after you get the keys
    Totally agree with you.
    Buy TOP-ed property.
    However do not buy too old one, cos may have internal problem which require you to repair here and there.

  6. #6
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    Thanks to all for the reply, appreciate it v much

  7. #7
    Junior

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    Quote Originally Posted by august
    i think 4% rental yield quite hard to find these days...
    Agree that 4% is hard to find... especially if you want FH for better future appreciation. Chances are, the properties with better returns are the following ones:-

    1) newer ones (not brand new as there's a price premium for newness).
    2) smaller ones (MMs give better return for now.... nobody knows if the rentals will hold up with new supply)
    3) 99LH. Tenants don't care if it FH. (but will accept a lower rental return for FH)


  8. #8
    Junior

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    Older properties already have some benchmark rental pricing. Less guesswork, you roughly know what to expect based on what your neighbours are renting.

    Also when a project TOPs, you have a few hundred units TOP together, all competition for you.

  9. #9
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    Buy SOUTHBANK NORTH BRIDGE ROAD Apartment 1 1,385,000 958 Strata 1,446 Apr-11
    40% 1,385,000 = $554,000
    Stamp duty $36,150.00
    http://www.iras.gov.sg/irasHome/page.aspx?id=1832

    Rental $4500 x 12 = $54,000.

    Rental yield = $54,000/$1385000 = 0.0389

    Loan 100 %



    Loan 60 %


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