Is 4% yield consider good?

[roly8]

care to share the kind of %yield you have seen over the years in the property industry??

[price]

care to share the kind of %yield you have seen over the years in the property industry??

Depends on area, FH / LH etc? i see that for FH 3-4% is pretty decent

[CCR]

very good liao....

[ekl2ekl2]

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?

[minority]

its very good. at current selling price n rental. many are only 2%

[price]

its very good. at current selling price n rental. many are only 2%

what about RCR and OCR mms?

[samsara]

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??

[mcmlxxvi]

Very very good if after tax, maintenance, fees etc

[ikan bilis]

if sibor hit 4% how??... can ask tenant to sign "sibor-pegged" rent or not??..

[espeyap]

if sibor hit 4% how??... can ask tenant to sign "sibor-pegged" rent or not??..

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....

[ay123]

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)?

[mcmlxxvi]

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

[EBD]

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.

[yjcai]

Make it 5% at least.

[howgozit]

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

[sh]

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.

[radha08]

hdb rental yield d best

[teddybear]

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

[peterng8]

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... now all the birds cannot enjoy it and have to fly somewhere else...

[mcmlxxvi]

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... now all the birds cannot enjoy it and have to fly somewhere else...

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]

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....

umm... not i say 1...

[teddybear]

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).

care to share the kind of %yield you have seen over the years in the property industry??

[ekl2ekl2]

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).

Good analogy.
its like LH vs FH.
But a lot would have sold off their LH after pocketing enough "dividends"

[amk]

AAPL, 0 dividends.

[roly8]

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).

Good post!

[mcmlxxvi]

haha... i guess he is saying radha08 kong-jiau-wei/talk-bird-language... asking govt to clamp down hdb renting....

umm... not i say 1...

Orrrr i see the relevance now

[radha08]

haha... i guess he is saying radha08 kong-jiau-wei/talk-bird-language... asking govt to clamp down hdb renting....

umm... not i say 1...

no need for me to say BIG brother got eyes to see.......they have all the data....we only tcss in forum....

[ay123]

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).

so which is better?
1. HDB rental of $2000 with yield of > 10%
OR
2. Condo rental of $4000 with yield of 5%

[price]

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.

[ikan bilis]

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 !!....