View Full Version : The Oversea Properties discussion thread
On Sat newspaper can see countless full page ads on properties from Aust, London even New Zealand.
Anyone diversify into such properties and what are your though?
On Sat newspaper can see countless full page ads on properties from Aust, London even New Zealand.
Anyone diversify into such properties and what are your though?
If they can sell to the local, they don't need to come to Singapore to sell.
They didn't throw in free tour like FEO. :p
ahahah maybe they thinking singaporeans damn rich!
Still quite skeptical with overseas properties. Anyone here has been given guaranteed rental yield when actual yield is less than promise?
devilplate
22-10-11, 17:52
Still quite skeptical with overseas properties. Anyone here has been given guaranteed rental yield when actual yield is less than promise?
i heard zero yield.....let u go sue them....LOL
Still quite skeptical with overseas properties. Anyone here has been given guaranteed rental yield when actual yield is less than promise?
Guarantee 6% but all priced in.
What does it include?
Guarantee 6% but all priced in.
What does it include?
Applies to some countries. Need to pay comm for agent to handle ur rental, pay ID to furnish it etc, after this left with crumbs. Who knows they may rent it out for 3-4% & developer just top the difference. After guarantee period over, owner suck thumb :doh:
Labour cost in some countries like UK and Australia can be really expensive. So renovation can be ex.:(
Applies to some countries. Need to pay comm for agent to handle ur rental, pay ID to furnish it etc, after this left with crumbs. Who knows they may rent it out for 3-4% & developer just top the difference. After guarantee period over, owner suck thumb :doh:
I own two in Australia.
Yes rental guarantee is true. Why developers offer this? Reason:
Developer still has to serve bank borrowing interest (~6-7%) to the bank upon completion for those unsold units. SO it is better that they get rid of the unsold units by guarantee rental ( usually 2-3 yrs ). Rental return now about 5-6% and very easy to find tenants. Worst case is to accept lower rental and compensate the difference. It is still better than holding on to the unsold units and serve interest.
Many Spore buyers are buying for their children to stay when studying in OZ Uni. It makes sense, instead of paying rental of about A$500/600 a week or A$2500 a month or A$30k a yr or A$90K for 3 yrs. Why not buy a A$350K Studio ( >500 sqft ). Thereafter rent out for 6% yield ( nett yield is about 4% after various fees ) or sell it.
As most new units are completed with high standard workmanship so very little renovation required. Just get furniture and appliances from Ikea will do.
Moreover OZ banks offer interest only loan ( multi-currency ) + you practically pay no tax on rent collected ( yr agent knows how to do it ) + ..
If I hv money, I would buy more:)
I own two in Australia.
.......
sorry, can ask you how many years the rental guarantee is?
How many years have you been holding the properties?
from another post:
some of you may have encountered tenants from hell in Singapore, and it is a pain to kick them out even though Singapore is landlord friendly and the owner is on home ground,
now if you are a foreign landlord (chinese somemore) trying to kick a white Aussie out of your studio in HIS homeground, because of nonpayment of rent, damage to property, etc. what are the chances of you succeeding? Legal cost involved?
from www.globalpropertyguide.com, it takes average of 44 days to evict a tenant......
Is it worth the time and effort to buy a single properties?
or investing overseas worth it only for many properties in a single locality.
from www.globalpropertyguide.com (http://www.globalpropertyguide.com), it takes average of 44 days to evict a tenant......
from the same site, it takes average of 60 days to evict a tenant in Singapore for non-payment of rent :scared-5:. Thats like the 2 months security deposit...
spoke to an agent abt a london prop launch with 5% nett yield..
Enjoy 5% Net Income for 4 years!!! Free Furniture Pack is included as well!!!
The net income is net of service charge, ground rent and void periods and on top of it there is no letting and management fees to be payable!! All units come furnished so there is nothing else to pay and only the purchase price with immediate income for 4 years upon completion!!!
Galliard Homes is pleased to present The Distillery Apartments, in the Royal Borough of Greenwich (The Borough will be conferred with the title "Royal" in Year 2012).
here's the cashflow analysis.. any thoughts?
https://docs.google.com/open?id=0BzNDlP7a8JofYzIyYmVhZDQtNzRiNS00YmQ1LTk5NmYtNzBmZGIzNWI3MWM2
spoke to an agent abt a london prop launch with 5% nett yield..
Enjoy 5% Net Income for 4 years!!! Free Furniture Pack is included as well!!!
The net income is net of service charge, ground rent and void periods and on top of it there is no letting and management fees to be payable!! All units come furnished so there is nothing else to pay and only the purchase price with immediate income for 4 years upon completion!!!
Galliard Homes is pleased to present The Distillery Apartments, in the Royal Borough of Greenwich (The Borough will be conferred with the title "Royal" in Year 2012).
here's the cashflow analysis.. any thoughts?
https://docs.google.com/open?id=0BzNDlP7a8JofYzIyYmVhZDQtNzRiNS00YmQ1LTk5NmYtNzBmZGIzNWI3MWM2
looks interesting.
so what happens after 4 years?
letting and management fee 12% > gross rental yield?
the presentation a bit funny.
The figure for Free Letting and Management fee (12%) is actually the gross rental. they conveniently "forgot" to add the row for management fees of 12%.
agent may try to misrepresent the facts.
1) you pay 30% cash outlay
2) net rental yield 5% for 4 years = 20%.
3) so in 4 years time, you recovered 20/30 = 66% of your initial outlay. on cash-to-cash basis, the yield is 16.5% so very attractive investment.
for Studio:
Monthly P+I repayment = 875
interest portion = 509
principal portion = 366
Your free cash per month is only = 1042-875 = 167 and not the nett rental income figure stated of 533 (which is inflated by the principal portion 366). IMO, a slight mispresentation here. :2cents:
I thought So too. Will clarify before judging it
devilplate
12-11-11, 10:46
Buy overseas ppty cannot be lazy.....book a air tix n fly over there....treat it as a 1-2wks holiday and ppty hunting mission
If the deal is so good, the locals, agents or big funds would have bought the units. The grass is always greener on the other side.
has anyone bought properties in Canada before? Any experience to share?
would like to share my limited experience on overseas properties:
1. Rental return : all priced in, and most of the time, it is below their borrowing cost
2. Mark up : around 30-40% of the price, when they sell here. There was a case, where I showed the agent the same property over the net, it was 40% lower than the price they quote
3. Most of the time, particularly US properties, the quantum is around US$40,000, and if anything happens, they know u will not fly there, so they will chop u arm and legs in maintenance repairs etc
4. Some bot in bulk from developers with fat discount and sell u at retail price...
5. some packaged the properties till so complicated that u dun know what ur buying
6. some hide the cash flow from u, and pay u one or two year of rental, then u hv to pay them for lots of things...
7. of course, lot of taxes and foreign ownership issues, u need to check in details
this is definitely 5% nett yield (5% * purchase price), and worked backwards to 7% gross yield.
looks interesting.
so what happens after 4 years?
letting and management fee 12% > gross rental yield?
the presentation a bit funny.
The figure for Free Letting and Management fee (12%) is actually the gross rental. they conveniently "forgot" to add the row for management fees of 12%.
agent may try to misrepresent the facts.
1) you pay 30% cash outlay
2) net rental yield 5% for 4 years = 20%.
3) so in 4 years time, you recovered 20/30 = 66% of your initial outlay. on cash-to-cash basis, the yield is 16.5% so very attractive investment.
for Studio:
Monthly P+I repayment = 875
interest portion = 509
principal portion = 366
Your free cash per month is only = 1042-875 = 167 and not the nett rental income figure stated of 533 (which is inflated by the principal portion 366). IMO, a slight mispresentation here. :2cents:
Oversea properties investment have hidden cost involve, high yield may have big different with nett yield!!!
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