MM Yields in 2012 - High or Low?

[carbuncle]

Price 600k
Annual Value 20k
Rent 2.3k pm
Maintenance 250 pm
Agent Commission 1.2k pa
Property Tax 2k pa
Income Tax negligible
Actual Net Yield 3.6% and never the 5-6% some agents hyped up. In today context, is 3.6% good enough to beat inflation?

[dtrax]

Price 600k
Annual Value 20k
Rent 2.3k pm
Maintenance 250 pm
Agent Commission 1.2k pa
Property Tax 2k pa
Income Tax negligible
Actual Net Yield 3.6% and never the 5-6% some agents hyped up. In today context, is 3.6% good enough to beat inflation?

I guess it is the same for all other non-MM as well. Usually for agaration, I just take 1% off the gross rental yield

[carbuncle]

Not to forget first year need to spend on furnishing, white goods etc easily another 2 to 3k.

[ekl2ekl2]

Price 600k
Annual Value 20k
Rent 2.3k pm
Maintenance 250 pm
Agent Commission 1.2k pa
Property Tax 2k pa
Income Tax negligible
Actual Net Yield 3.6% and never the 5-6% some agents hyped up. In today context, is 3.6% good enough to beat inflation?

around 3% considered decent at present.

Vacancy period and interest rate need to be taken into consideration

[ikan bilis]

go re-calculate the "net geared yield" lah!!... now is in some crazy world of leverage...

if your net yield is 3.6%, assuming interest rate at 2%, 75% loan...

quick guestimation...
~= 3.6% + (3.6%-2%) + (3.6%-2%) + (3.6%-2%) = 8.4%...

[carbuncle]

Oh ya. Every take loan 60%.... Then after taking out mortgage interest... Super high yield!!!!!

[phantom_opera]

dun forget potential for capital appreciation e.g. if MRT is upcoming or announced to be near your MM

[carbuncle]

dun forget potential for capital appreciation e.g. if MRT is upcoming or announced to be near your MM

For current MM in market at today pricing... Limited upside I reckon. Except maybe River Isle wakakaka

[maisonjai]

Talking about AV for mm, I find it rather high compared to 2~3 bedders.
Those holding 1bedder, what's ur AV like?

[carbuncle]

Talking about AV for mm, I find it rather high compared to 2~3 bedders.
Those holding 1bedder, what's ur AV like?

As I put in my case study, average 20k for mine....

[maisonjai]

Mine was 29k D9, while D3 2bed is 28k. wtf..ish

[price]

Not to forget first year need to spend on furnishing, white goods etc easily another 2 to 3k.

white goods?

[carbuncle]

white goods?

Woops goes to show my age. Commonly refers to fridge, washer, cooker hob, oven etc electronic household goods typically in white color....

[price]

Woops goes to show my age. Commonly refers to fridge, washer, cooker hob, oven etc electronic household goods typically in white color....

ah huh.. thanks! these days they come in all sorts of colours! mainly steel or black

Black goods sounds better

[hyenergix]

Our MM seem to have reached the Hong Kong MM psf levels, overhead from my friend's maid from Hong Kong... Is she correct?

[Laguna]

Our MM seem to have reached the Hong Kong MM psf levels, overhead from my friend's maid from Hong Kong... Is she correct?

No, depends on the location
in general, HK is far more expensive

[DC33_2008]

Spore MM is their norm housing.

No, depends on the location
in general, HK is far more expensive

[hyenergix]

Yeah, she said Singapore was still cheap n e best!

[carbuncle]

ah huh.. thanks! these days they come in all sorts of colours! mainly steel or black

Black goods sounds better

Black market goods?? No good, boy....

[richwang]

I sense the rental peak for MM has passed.

Let's see what that means for price ...

Thanks,
Richard

[TheOnlyGayInTheVillage]

I sense the rental peak for MM has passed.

Let's see what that means for price ...

Thanks,
Richard

Just rent out one at 7% yield, and its OCR. Thx

[AK47]

My MM investment in CBD has brought me $100,000 in net rent over a period of 5 years.

After deducting tax, fees, comm, int etc.

Over the same period, capital value has increase by $300,000.

[TheOnlyGayInTheVillage]

MM, like the $10 10-minute haircut, will never be out of fashion.

[yjcai]

My MM investment in CBD has brought me $100,000 in net rent over a period of 5 years.

After deducting tax, fees, comm, int etc.

Over the same period, capital value has increase by $300,000.

which development ehem?

[AK47]

Icon Studio. Was bought with a 20% down. With lower interest rates, reduced principle and higher rent. Expecting 120-150k net rent for the next 5 yrs.

[graveyard]

Icon Studio. Was bought with a 20% down. With lower interest rates, reduced principle and higher rent. Expecting 120-150k net rent for the next 5 yrs.

GOD-FATHER !!!!!!!

[dtrax]

GOD-FATHER !!!!!!!

I SCREAM ICE-CREAM!