How much buffer of savings will u hold?

[mermaid]

1. Say u bought a condo purely for investment. Initially, how many months of savings do u set aside to act as a buffer in case yr unit did not get rented out?


2. My friend told me even the lousiest unit can be rented out; it is only a matter of the rental amt. If u r willing to lower the amt below wat yr "peers" in tat region is getting, lousy unit oso hv no prob of getting tenants.
Wat's yr opinion on this?

[leesg123]

1. Say u bought a condo purely for investment. Initially, how many months of savings do u set aside to act as a buffer in case yr unit did not get rented out?


2. My friend told me even the lousiest unit can be rented out; it is only a matter of the rental amt. If u r willing to lower the amt below wat yr "peers" in tat region is getting, lousy unit oso hv no prob of getting tenants.
Wat's yr opinion on this?

1. Buffer is abt 1year of monthly mortgage. note tat mortgage is abt less than half of the rental.

2. true.

[thomastansb]

1. I will suggest 10% of purchase price in cash. Not only as a buffer but as ammo as well. Property can reach bottom in just 6 months !

2. Agree 100%. But you will be in serious trouble if your installment far exceed rental and you have no extra cash.

1. Say u bought a condo purely for investment. Initially, how many months of savings do u set aside to act as a buffer in case yr unit did not get rented out?


2. My friend told me even the lousiest unit can be rented out; it is only a matter of the rental amt. If u r willing to lower the amt below wat yr "peers" in tat region is getting, lousy unit oso hv no prob of getting tenants.
Wat's yr opinion on this?

[eng81157]

1. I will suggest 10% of purchase price in cash. Not only as a buffer but as ammo as well. Property can reach bottom in just 6 months !

2. Agree 100%. But you will be in serious trouble if your installment far exceed rental and you have no extra cash.

1. not everyone can accummulate $100k in cash, not to mention the temptation of spending it along the way.

2. better to get some rent than die with nothing

[azeoprop]

I am storing ammo for the next cycle. Hopefully will not be so soon.

[mcmlxxvi]

worse comes to worse, nego with the bank to service interest only for an agreed period.

they rather retain ur business than lose u as a customer should you be forced to sell it.

[lionhill]

I am storing ammo for the next cycle. Hopefully will not be so soon.

I am also accumulating cash for the next cycle to average down my current holding.

just curious, how do you store your ammo? fix deposit?

any master has better but relatively safe way?

[eng81157]

milo tin's da best

[DKSG]

There are times when a PC cannot get rented out for months and months.

What you say about sure can rent out just lower rental applies mainly to CCR PCs.

One year mortgage is certainly advisable.

DKSG

[radha08]

There are times when a PC cannot get rented out for months and months.

What you say about sure can rent out just lower rental applies mainly to CCR PCs.

One year mortgage is certainly advisable.

DKSG

market rate 3k u rent 2k i think sure can rent otherwise lower to 1k

[DKSG]

market rate 3k u rent 2k i think sure can rent otherwise lower to 1k

Not sure you have been through the periods in Sg property where there are lesser number of tenants compared to number of vacant units.

In such cases, there will certainly be units that perpetually cannot find rental. I leave it to your deduction what these units will be.

What I am saying is that it pays to be at the top of the chain when it comes to rental. For example, if someone offer an expat a unit at Orchard Scotts/Ion at the same price as Trilight in Newton, there is a very high chance the expat takes Ion ... right ?

These goes on and on until the last 10-20% of the vacant units is determined. Will this be in AMK, Pasir Ris or Tanah Merah, you have to determine lo!

DKSG
PS : Boss not around, Office is so much more relax, can post more things here ! Haha!

[狮子王]

You should keep at least 2 years mortgage savings to be on the safe side. I ever tried to rent out an apartment for over a year

[狮子王]

You should keep at least 2 years mortgage savings to be on the safe side. I ever tried to rent out an apartment for over a year

This savings do not necessary come from your salary. It could be from other investments like stock dividends. Just don't spend these extra cash lavishly without thoughts. Save the best for the last. It is the Best or Nothing.

[DKSG]

You should keep at least 2 years mortgage savings to be on the safe side. I ever tried to rent out an apartment for over a year

The King is indeed an experienced investor who has gone through a lot of Sg Property investment climate! I am beginning to think that he maybe as experienced as my mentor BJ.

DKSG

[star]

If WP takes over singapore all rental will suffer. What they say in blue paper remember? no population increase. So to me increase in food price $0.50, kopi $0.20, transport $0.30, erp $1 etc.... is insignificant compare to the rent u all collect now. Even those renting out hdb or studio are enjoying.
So u rather save on those $0.50, $1 under WP or make over ten of thousands rental under PAP.

Eg. Hdb 4room = $2400*12=$28800

[mermaid]

If WP takes over singapore all rental will suffer. What they say in blue paper remember? no population increase. So to me increase in food price $0.50, kopi $0.20, transport $0.30, erp $1 etc.... is insignificant compare to the rent u all collect now. Even those renting out hdb or studio are enjoying.
So u rather save on those $0.50, $1 under WP or make over ten of thousands rental under PAP.

Eg. Hdb 4room = $2400*12=$28800

I dunno y u sidetracked fm my original qn but u spoke my mind.

Most likely I will support them in 2016 too, not because they hv done well/improved. Neither am I happy with their performance. Im always the 1st to criticise the deficiencies whenever they came up with some new policies.
I will support them purely becos of my selfish intention; to safeguard my investments

[CondoWE]

market rate 3k u rent 2k i think sure can rent otherwise lower to 1k

After deducted the monthly maintenance fee, there will be not much left over to cover the monthly mortgage if rental is only 1k nia !

[3C]

Not sure you have been through the periods in Sg property where there are lesser number of tenants compared to number of vacant units.

In such cases, there will certainly be units that perpetually cannot find rental. I leave it to your deduction what these units will be.

What I am saying is that it pays to be at the top of the chain when it comes to rental. For example, if someone offer an expat a unit at Orchard Scotts/Ion at the same price as Trilight in Newton, there is a very high chance the expat takes Ion ... right ?

These goes on and on until the last 10-20% of the vacant units is determined. Will this be in AMK, Pasir Ris or Tanah Merah, you have to determine lo!

DKSG
PS : Boss not around, Office is so much more relax, can post more things here ! Haha!

Sorry a bit selfish..

Can only afford OCR area, hopefully the trend is changing.
Rental has some bearing on the profile of people coming in.

Went to Orchard area last saturday, the crowd is so so, for tanglin side
is almost like ghost town at 9pm. It seems to me tampiness mall, vivio city, toa payoh hub easily equal if not more vibrant. Lots of middle level staff here. I rented out my unit at OCR on the first viewing. No chance even to see 2nd potential tenants.

[yowetan]

Hi...today the stock market is crashing.

My clients are all cashing out. Incidentally, my clients are foreigners.

[heehee]

1. Depends on your risk appetite. Medium 1 year, low 2 years.
2. True only for CCR condos, not true for OCR.

1. Say u bought a condo purely for investment. Initially, how many months of savings do u set aside to act as a buffer in case yr unit did not get rented out?


2. My friend told me even the lousiest unit can be rented out; it is only a matter of the rental amt. If u r willing to lower the amt below wat yr "peers" in tat region is getting, lousy unit oso hv no prob of getting tenants.
Wat's yr opinion on this?

[dtrax]

sibei ki see one, down 30 to 40% and 5yrs-10yrs buffer will be my ideal. N just in case got crash, can use that buffer to hoot more. So if keep 5yrs buffer for X properties, crash comes use that buffer cash and to retain a min of 2-3 yrs for existing properties

[heehee]

You are too young & inexperience, you ain't experience that yet then you know.

Sorry a bit selfish..

Can only afford OCR area, hopefully the trend is changing.
Rental has some bearing on the profile of people coming in.

Went to Orchard area last saturday, the crowd is so so, for tanglin side
is almost like ghost town at 9pm. It seems to me tampiness mall, vivio city, toa payoh hub easily equal if not more vibrant. Lots of middle level staff here. I rented out my unit at OCR on the first viewing. No chance even to see 2nd potential tenants.

[BenziT]

Hi...today the stock market is crashing.

My clients are all cashing out. Incidentally, my clients are foreigners.

why today drop so much ?

[3C]

You are too young & inexperience, you ain't experience that yet then you know.

Yup, I am really inexperience. Nice to meet "Lao Jiao" like you. Hope can learn more from you. Hehe

[lionhill]

why today drop so much ?

also puzzled. searched the bloomberg. one explanation is that Chinese
economy is not expanding, and people interpreted Ben's talk in a cautious way. not convincing at all.

[BenziT]

also puzzled. searched the bloomberg. one explanation is that Chinese
economy is not expanding, and people interpreted Ben's talk in a cautious way. not convincing at all.

Is it because Japan drop almost 7 % ? So, where are we now economically ? Recovery ? still recession ? or god knows what is happening ?

[thomastansb]

Only rental suffer? That is optimistic but I don't want to go further. Here got 2 camps of fierce supporters. One pro PAP and one pro Opp. It can go on forever one

If WP takes over singapore all rental will suffer. What they say in blue paper remember? no population increase. So to me increase in food price $0.50, kopi $0.20, transport $0.30, erp $1 etc.... is insignificant compare to the rent u all collect now. Even those renting out hdb or studio are enjoying.
So u rather save on those $0.50, $1 under WP or make over ten of thousands rental under PAP.

Eg. Hdb 4room = $2400*12=$28800

[chiaberry]

why today drop so much ?

tsk tsk we follow US down.

The markets didn't like the "tapering" word used by Mr. Ben.

http://www.reuters.com/article/2013/...88901C20130522

[yowetan]

Hi all...the crash I longed for has finally arrive; the interest rate will going up.

First sign - Car interest rate.
Second sign - stock market knee jerk reaction.
Third sign - Singapore export import index poor.
Fourth sign - Nikkei stock crash >1000 points.
Fifth sign - China PMI fares poor.

I am raring for my Mt Sinai!

[PV Excit]

what good does a crash do (except for some "cheap" property deals)?

If really hit with crash, the economy suffers, all the people (except the super rich) suffers, people loses jobs, some maybe even lives!