Recession proof rental property

[Poloclub]

Is there such thing as a recession proof rental property?

Will properties around university and hospital provide a good safety net for rental property?

[hopeful]

Is there such thing as a recession proof rental property?

Will properties around university and hospital provide a good safety net for rental property?

u have something there.

when people are retrenched, they will use their retrenchment money to upgrade their skills or take another degree to prepare for the next boom. more lecturers are needed and there will be demand for rental properties near university

when people are retrenched, they are stressed. Stressed people tends to fall sick easily. More people fall sick, more doctors/nurses needed. So there will be demand for rental properties near hospital.

so best place for rental is near NUS/NUH. have both university and hospital. double protection

[Poloclub]

u have something there.

when people are retrenched, they will use their retrenchment money to upgrade their skills or take another degree to prepare for the next boom. more lecturers are needed and there will be demand for rental properties near university

when people are retrenched, they are stressed. Stressed people tends to fall sick easily. More people fall sick, more doctors/nurses needed. So there will be demand for rental properties near hospital.

so best place for rental is near NUS/NUH. have both university and hospital. double protection

Beside what's mentioned, I also think that universities and hospitals are employing more and more foreign doctors to cope with the rising and aging population so there will always be demand for rental property around those area.

[Allthepies]

the only i can think of is dormitory for construct workers. 100% recession proof but u need millions to build and own it.

[howgozit]

HDB rental is recession-proof.

No matter what the economy is like, there is always a market for HDB.

[Komo]

u have something there.

when people are retrenched, they will use their retrenchment money to upgrade their skills or take another degree to prepare for the next boom. more lecturers are needed and there will be demand for rental properties near university

when people are retrenched, they are stressed. Stressed people tends to fall sick easily. More people fall sick, more doctors/nurses needed. So there will be demand for rental properties near hospital.

so best place for rental is near NUS/NUH. have both university and hospital. double protection

i have the same conclusion but more because the jobs at uni and hospi are recession proof...so demand for housing by these people shouldn't change significantly..and like u said demand is actually growing

[felicia_sg]

Don't think upper income people go NUH.
You go Mt Eliz or you go NUH?
Mt E doctors higher income than NUH generally because more experience.

University housing allowance quite low ones generally. Otherwise condos all around NUH & NUS won't be commending $3+ psf pm only.

u have something there.

when people are retrenched, they will use their retrenchment money to upgrade their skills or take another degree to prepare for the next boom. more lecturers are needed and there will be demand for rental properties near university

when people are retrenched, they are stressed. Stressed people tends to fall sick easily. More people fall sick, more doctors/nurses needed. So there will be demand for rental properties near hospital.

so best place for rental is near NUS/NUH. have both university and hospital. double protection

[sh]

I would say small downtown apartments next to mrt stations. As long as there are renters, these will fill up first. It's only a matter of at what price during a downturn.

[Allthepies]

HDB rental is recession-proof.

No matter what the economy is like, there is always a market for HDB.

Hdb should be the worst hit at the bottom of the food chain.

[Allthepies]

Another recession proof property is hospital. Again u need millions of funds to own it.

[howgozit]

Worst hit? Well, I have never seen an empty HDB.... there is always a market.

Post '97, there were scores of empty uptown upscale condos.

Hdb should be the worst hit at the bottom of the food chain.

[Trapping-bird]

Beside what's mentioned, I also think that universities and hospitals are employing more and more foreign doctors to cope with the rising and aging population so there will always be demand for rental property around those area.

Now not only doctors foreign, everything in Singapore are foreign.. Doctors, nurses, manager, geylang girls, etcetc.. 40% now all foreign....

[howgozit]

I am not sure how many doctors you know, but of those you know, how many actually stay near the hospital? (within 1km).

And among those who don't stay near the hospital, how many desire to stay near a hospital? I would be surprised if there are any....

As for the foreign nurses, general duties staff...etc because of their lower pay, their criteria for rental is a bit different... so what is their rental residence of choice? ...HDB

i have the same conclusion but more because the jobs at uni and hospi are recession proof...so demand for housing by these people shouldn't change significantly..and like u said demand is actually growing

[Kelonguni]

Hdb should be the worst hit at the bottom of the food chain.

Worst hit can mean being hit the most badly or not really hit at all (least hit).

I think HDB can adjust rent down easily.

[Ringo33]

Don't think upper income people go NUH.
You go Mt Eliz or you go NUH?
Mt E doctors higher income than NUH generally because more experience.

University housing allowance quite low ones generally. Otherwise condos all around NUH & NUS won't be commending $3+ psf pm only.

I think rental demand are more driven by people working in hospital, not patients.

University income low, cost of housing around NTU and NUS also relatively low/

[thomastansb]

Properties are not recession proof. In fact, they are quite bad bets. Near NUS or NUH doesn't matter. Actually, nothing is recession proof. Recession resilient yes. Recession proof is a dream. Go for Casino or F&B or Medical industry if you want to weather recession better. But recession resilient industry often have lower yields and slower growth since during upturn, they have nothing much to grow.

[radha08]

HDB rental is recession-proof.

No matter what the economy is like, there is always a market for HDB.

[minority]

Is there such thing as a recession proof rental property?

Will properties around university and hospital provide a good safety net for rental property?

KOPI TIAM is recession proof

[danntbt]

IMH, Funeral Home.......changi beach

[Poloclub]

Properties are not recession proof. In fact, they are quite bad bets. Near NUS or NUH doesn't matter. Actually, nothing is recession proof. Recession resilient yes. Recession proof is a dream. Go for Casino or F&B or Medical industry if you want to weather recession better. But recession resilient industry often have lower yields and slower growth since during upturn, they have nothing much to grow.

Publicly funded education and healthcare industry are actually recession proof, during good time or bad times, government will still pump in money into the industry and people will still need to go school or see a doctor if they are ill.

In fact most of the time during recession, government will actually increase their budget to promote skill upgrading. And with aging population, demand for public healthcare can only go up and never come down.

So why would property near university or hospital be a bad bet like you said?

I think you are confusing stock yield to rental demand.

[ysyap]

Hdb should be the worst hit at the bottom of the food chain.

Actually I beg to differ. HDB should be the most protected coz its at the bottom of the chain, not food chain though. Well, when CCR properties are asking $5k/mth rental, people gladly pay during boom times. However, they'll probably only pay $3k/mth when the going gets tough. That leaves them with HDB. However, if you argue that CCR property owners will lower to $3k/mth, nothing is stopping HDB owners to lower to $1.5k/mth. I am beginning to see not just Chinese and Indian families moving into HDB but Eurasian families too, a sight never conceived 10 years ago...

[Allthepies]

Worst hit can mean being hit the most badly or not really hit at all (least hit).

I think HDB can adjust rent down easily.

both can adjust rent down easily, however maximum rent of hdb is always cap by minimum rent of condo.

hdb rental always take command from condo rental. condo rental price at 1k/mth, all hdb unit wanting to lease out will be vacant.. get wat i mean? all tenants will just grab the condo units first, those leftover tenants will then go for hdb.

(based on assumptions that Singapore is going into many years of recession, so die die rent out get some $$$ rather than leave it vacant )

[howgozit]

We can learn from the '97 Asian financial crisis.

In good times when rents are high, people who usually rent condos downgrade to HDB. This is the case now...

In bad times, those who are already renting HDB will stay put.... those who are in Condos may even downgrade to HDB...why? because if times are bad, people are tight-fisted and will seek to economise.

So regardless of good or bad times, there is always a demand for HDB.

Post '97, many condos were left vacant bcoz there was just too much choice available. All the expats with their big housing allowance just left. I remember my condo was vacant for nearly 8mths despite slashing the rental.... agent said hardly anybody even calling to enquire.

Meanwhile HDB rental was still brisk... its all about the quantum, the HDB rentals are so low that anybody can afford.... around 2003, HDB rentals were so in demand that HDB landlords were starting to up their rentals. It reached a point that tenants were starting to find more value in renting condos... this in turn helped push the condo rentals up.

both can adjust rent down easily, however maximum rent of hdb is always cap by minimum rent of condo.

hdb rental always take command from condo rental. condo rental price at 1k/mth, all hdb unit wanting to lease out will be vacant.. get wat i mean? all tenants will just grab the condo units first, those leftover tenants will then go for hdb.

(based on assumptions that Singapore is going into many years of recession, so die die rent out get some $$$ rather than leave it vacant )

[thomastansb]

I am confused. You are talking about property rental near hospital? Or stock dividend from hospital?

Publicly funded education and healthcare industry are actually recession proof, during good time or bad times, government will still pump in money into the industry and people will still need to go school or see a doctor if they are ill.

In fact most of the time during recession, government will actually increase their budget to promote skill upgrading. And with aging population, demand for public healthcare can only go up and never come down.

So why would property near university or hospital be a bad bet like you said?

I think you are confusing stock yield to rental demand.

[BV]

Try HDB shops/shophouses, especially those in areas with good traffic and selling basic necessities or doing typical heartland-centric trades.

Almost totally unaffected by recession. In fact business might thrive during hard times as more people cut back on spending at malls and high-end shops, and choose to get their stuff done at these cheaper alternative locations instead.

[sh]

It comes to location, location, location at the end of the day, private or HDB. HDB in say, Tanjong Pagar will be easier to lease out than an condo in Ponggol in a recession..... assuming that rentals drop to meet diminishing demand.

[howgozit]

Correct... that's the bottom line. Location, location, location

It comes to location, location, location at the end of the day, private or HDB. HDB in say, Tanjong Pagar will be easier to lease out than an condo in Ponggol in a recession..... assuming that rentals drop to meet diminishing demand.

[hyenergix]

HDB is the best. I have a feeling that in a few years' time when the demand is actually met with the TOP of BTOs, government will make renting out of HDB more restrictive, as it will have its own stock of unsold flats to rent out to.

[Shoeboxsupporter]

I beg different, MM is the most recession proof, for those rich suddenly become poor , stay at MM is a good choice instead of HDB- lost face.......

[hyenergix]

I beg different, MM is the most recession proof, for those rich suddenly become poor , stay at MM is a good choice instead of HDB- lost face.......

MM in recession is not proven. In fact I don't think most MMs have undergone recession. HDBs have withstood the test of time and several recessions, but let's not have recessions to test your theory.