Newbie
I own a LH99 PC with current market value $1.2m which is close to MRT and facilities. I have bought another FH PC (larger unit) which will be TOP soon. I intend to shift to the FH PC when it is ready. I am servicing loan for both. My dilemma is whether to sell the LH99 PC or rent it out. Would greatly appreciate views of fellow forummers.
Newbie
How old's the 99yr PC? What's ur LTV of old n new based on current mkt values (not purchase price)? What's rent/mth or rental yield based on purchase px & current mkt value?
just myif less than 12yrs, both LTV at 60% and rental yield at least 4%, I'll keep both
Originally Posted by RSG
if you dont't own any property, you're short. take cover quickly
Newbie
No holding power then sell.
Newbie
The LH99 is <12yrs and LTV is exactly 60%. Not sure how to calc rental yield for this property. I definitely want to keep the FH PC for own stay.How old's the 99yr PC? What's ur LTV of old n new based on current mkt values (not purchase price)? What's rent/mth or rental yield based on purchase px & current mkt value?
just my
Newbie
Correction: LTV for LH99 is 40% and 52% for the FH PC which is BUC.
Junior
my personal view is anything LTV below 50% is healthy and can get the next ppty leow. any correction in ppty unlikely to be >50% from current valuation, and this concept in turn will support the rental to have a minimal price floor, so no matter how u look at it, that ppty is already self-generating.
Newbie
if me, will definitely keep n rent out for now
if you dont't own any property, you're short. take cover quickly
GOD good old days
Better question is: what to do with the money after selling?
So keep and collect rent.
Newbie
Yup agreed.
And it all depends on your long term plans. If you are about 30 years old then it probably doesn't matter but if you are over 40 then you need to think a bit about your long term goals. I would think it is prudent to keep both properties and create a passive income from the rental of one. Moreover good sentimental value mah, first property. Can show your kids this was your first home, and you can consider moving back there some day. As I said all depends on your age. If you are very young it wouldn't matter.
tweet @condoexchange
to quote a famous forummer - property is meant to be bought. not sold.
Newbie
Thanks very very much to all forummers' advice. This is the power of this website. Within a matter of 1 hour I get so many valuable advice. My gut feel is also to rent out but I worry about value of the LH in 2 to 3 yrs time when a glut in housing is expected. This is in case I have liquidate the property. For info., I am a retiree.
Property Newbie
you can rent it out
or you scare cannot find tenant?
I took the road less traveled by, and that has made all the difference.” - Robert Frost quotes (American poet, 1874-1963)
Junior
i would like to share from cashflow point of view. IF u keep it, it creates meaningful positive cashflow for u, bare min a few hundred dollars to $1k or more after loan replayment, i say keep it. A property is only an asset if it generate cash flow. For most pple its a liability as it take away $$$ from them from a cashflow point of view.
i would only say u be worried if your property is not within walking distance to transport nodes/malls in 2-3 years time if there is a housing glut. There will be a big premium and continue to be for those properties.
on the other hand, we dont know how long we have have on earth also.... if u have not really enjoy yourself , take profit and have some self gratification
Newbie
keep both for above reasons.
only sell if :
got plan to use the money, or
you think further upside at location is capped, then realise the profits and reinvest. take note of admin cost of swap ie stamp, absd if buy 3rd before sell, agent's fee...
soon even 90lh is better than 60lh, so no big issue with age of condo.
rental yield is better than sleepless nights, until you got better buffer.
Newbie
If it is already 10 yrs old, suggest to sell it and buy a newer and smaller FH PC (even if it is a studio) near MRT for rental for the same price. Remain invested in property unless you have better use for the money. Forget about the cycles if you have holding power.
Newbie
just saw the retiree part... Keep both until you want to cash out.
Newbie
I would suggest you keep and rent out one.
Retiree all the more would benefit from passive income.
Annuity type income much better than a lump sum cash saving in the bank.
All the best for your decision.
Newbie
The reason why you have so many responses is because many forummers also have the same question in their mind? Rent out or sell.
Amber
If your LH property is giving you nett positive cash flow each month, there is every reason to keep it.
However, if you are feeling uncomfortable with the LH property losing its value over time especially in the next 3 years, it does makes sense to liquidate the property when price is high and invest in some other mid-term assets which may still give you the same amount of cash flow if you have kept it (the rental less the loan repayment amount).
You will then be in a much healthier position to invest in a smaller FH property should the opportunity arises. Keeping the LH property means that you may not have this option.
Newbie
Thanks once again to all. I am very enlightened now and should be able to make a rationale decision after discussing with my wife.
Senior
If you can withstand a couple of months in a year with no rental, keep it.
Newbie
U should sell your lh99 and keep cash and buy gold
Senior
Office Boy
I hope this thread serves to answer many of these questions.
When in doubt, keep the property la!
You can only afford to ask this question when someone offers you 10% above valuation and ask you to sell !
Always keep cash generating properties.
Remember the Golden Goose ?
DKSG
tweet @condoexchange
golden goose lay golden eggs. but still dont keep all the eggs same basket
Senior
I think it really depends on what you are going to do with the money after selling it.
If supposed you are going to sell and then use the profit to pamper yourself and your wife, by all means go ahead as long as you have already set aside some retirement savings.
However if you are thinking of selling now and then buy later, you will have to do you own math and also be realistic about your ability to buy back. Since you are retiree, would you dare to make such huge commitment when market crash and would you be able to get a bank loan during bad times since you dont have income (I am assuming)
LH property in good location is really worth keeping as it will help to generate some passive income from rental. For LH property, I assume you should have no problem getting >3% rent per month and considering current interest rate, it should be able to generate 1 to 2K positive cash flow, assuming your gearing is <60%.
the other factor to consider is the selling and buying back cost. 3% stamp duty, 1% commission for selling, and 4 years SSD. And who knows, maybe KBW will say Singapore will have to pay ABSD for 2nd property etc.
Office Boy
We are talking about the eggs la! Not the goose.
But wait! Goose comes first or eggs comes first ?
Nevertheless, next time remember to buy my ground floor unit ok ?
DKSG
tweet @condoexchange
i orady hap my own grnd flrs
Junior
for LH property,if offer price is > 20% purchase price, sell!
(provided you have at least 2 investment properties)
Junior
10% above valuation also don't sell. Buy back at valuation still incur 10% cost.
LPPL
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