Say it until it comes true

[kellogs]

Since we are on this topic ... Lets say you have SGD5m which you could spread out to target 4% payout per annum, how would you structure it?

SGD3.5M on rental properties, SGD1M on Bonds and SGD500K on Stocks?

[nydeidith]

rental properties generally does not provide efficient returns....current prices and yield not attractive....anyways 4% payout target too low...i would do 4M short-term bonds and 1M dividend stocks...target 8% returns per annum

[kellogs]

rental properties generally does not provide efficient returns....current prices and yield not attractive....anyways 4% payout target too low...i would do 4M short-term bonds and 1M dividend stocks...target 8% returns per annum

I think the risk is much higher with the above allocation even though the return is attractive ... no?

[bargain hunter]

Since we are on this topic ... Lets say you have SGD5m which you could spread out to target 4% payout per annum, how would you structure it?

SGD3.5M on rental properties, SGD1M on Bonds and SGD500K on Stocks?

3.5m in rental ppties is unleveraged? some leverage should help to boost returns for rental ppties?

[nydeidith]

no need to be risky if you know what u are doing....
and rental property even more risky to me...plus its not liquid and lots of admin work..

[Kelonguni]

It depends on how one defines efficiency actually.

The kelong calculations (based on downpayment plus interests paid) % is much higher than the typical yield calculations (based on the full property value). 4% payout can be solid.

And if one can secure a good rental property in overseas markets, the yield pattern is also vastly different.

rental properties generally does not provide efficient returns....current prices and yield not attractive....anyways 4% payout target too low...i would do 4M short-term bonds and 1M dividend stocks...target 8% returns per annum