View Full Version : How much buffer of savings will u hold?
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. 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
23-05-13, 10:11
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?
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
I am storing ammo for the next cycle. Hopefully will not be so soon. :D
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.
I am storing ammo for the next cycle. Hopefully will not be so soon. :D
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?
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
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:scared-1::D
market rate 3k u rent 2k i think sure can rent otherwise lower to 1k:scared-1::D
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!
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 :scared-4:
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 :scared-4:
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.
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 :scared-4:
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
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
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 :p 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 :banghead:
market rate 3k u rent 2k i think sure can rent otherwise lower to 1k:scared-1::D
After deducted the monthly maintenance fee, there will be not much left over to cover the monthly mortgage if rental is only 1k nia :doh: !
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. :D
Hi...today the stock market is crashing.
My clients are all cashing out. Incidentally, my clients are foreigners.
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?
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
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. :D
Hi...today the stock market is crashing.
My clients are all cashing out. Incidentally, my clients are foreigners.
why today drop so much ?
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
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.
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
23-05-13, 15:22
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 :D
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
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/2013/05/22/us-markets-global-idUSBRE88901C20130522
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!
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! :doh:
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!
Sixth sign - I just received bank notice. My home loan interest drops from 1.06002% to 1.01805%. Can help check why?
Sixth sign - I just received bank notice. My home loan interest drops from 1.06002% to 1.01805%. Can help check why?
Hi...The reaction starts last night. Your letter was printed 2 weeks before the mailing department dispatch out.
Hi...The reaction starts last night. Your letter was printed 2 weeks before the mailing department dispatch out.
Ok, thanks. Mr Tan.
Will trust you this time to whet another one but if not true and crash never come, I will whet.......:D
Ok, thanks. Mr Tan.
Will trust you this time to whet another one but if not true and crash never come, I will whet.......:D
Hi...you are welcome.
I am ready to collect my Mt Sinai key if the meltdown continues after Vesak day.
thomastansb
23-05-13, 17:02
Wow, that is low. I changed to variable package at 1.1% no lock in but 1.01% is fantastic ! Yours should be SOR I guess? SOR interest is dropping - contrary to someone's comment :D
Sixth sign - I just received bank notice. My home loan interest drops from 1.06002% to 1.01805%. Can help check why?
Hi...you are welcome.
I am ready to collect my Mt Sinai key if the meltdown continues after Vesak day.
Hi, aren't you sure that the meltdown will continue?
phantom_opera
23-05-13, 17:23
about 1/3 to half of total debt
Actually stock market drop is not a bad news, interest rate likely to remain low. If market every time chiong up i am quite worry. The best is up, down, down, up maintain this for 10yrs or even longer.
Nikkei moved up from 8,000 points until now ... 12,000 ?
Thats 50% increase !
Of course need to take a breather, let people take profits, then find a direction again.
For the Mt Sinai condo, since u say until now, went up at least 30% already even if it drops 10% (I say 10% because many in my Office will grab at 10% discount from currently prices), you still dont stand to gain/afford.
Anyway, we see how it goes after Vesak Day, if it rebounds, please do yourself a favor and post how is the rebound looking like.
Stock Market can be fun sometimes to hear these people talk about how high how low they think it will be.
DKSG
panda_bear
23-05-13, 19:52
I am guessing the MTBs would eventually be right in "predicting" the decline of the market. After all, a broken clock is right twice a day.
Just not today.
:sleep:
Nikkei moved up from 8,000 points until now ... 12,000 ?
Thats 50% increase !
Of course need to take a breather, let people take profits, then find a direction again.
For the Mt Sinai condo, since u say until now, went up at least 30% already even if it drops 10% (I say 10% because many in my Office will grab at 10% discount from currently prices), you still dont stand to gain/afford.
Anyway, we see how it goes after Vesak Day, if it rebounds, please do yourself a favor and post how is the rebound looking like.
Stock Market can be fun sometimes to hear these people talk about how high how low they think it will be.
DKSG
I like your word..."we see how it goes after Vesak Day"...:cheers5: :cheers4: :cheers4: !
Hi...you are welcome.
I am ready to collect my Mt Sinai key if the meltdown continues after Vesak day.
I think you will be the first to lose your job. Then banks won't give you facilities. You can continue to dream.
You have missed the boat. Please do yourself a favour. Buy iskandar. Stop whining like a baby.
Ghandi warned that there are 7 dangers to human virtues:
Among them:
1. Wealth without work....like hoping for crash and hop in to profit
2. Business without ethic......never mind if many people lose money due to your wish for a crash just chiong and huat
3. Knowledge without character....like no compassion knowing how others would suffer, and yet not troubled by it
4.Pleasure without conscience......enjoy at the expense of others misfortune
5. Religion without sacrifice.......pray for crash, as long as do not affect yourself ....wish unto others but not yourselves....
6. Science without humanity......making use of good human nature based on kinship to manipulate them to fulfill your goal (psychology)
7. Politics without Principles......evident all over the world.....
jonathann80
24-05-13, 08:38
Ghandi warned that there are 7 dangers to human virtues:
Among them:
1. Wealth without work....like hoping for crash and hop in to profit
2. Business without ethic......never mind if many people lose money due to your wish for a crash just chiong and huat
3. Knowledge without character....like no compassion knowing how others would suffer, and yet not troubled by it
4.Pleasure without conscience......enjoy at the expense of others misfortune
5. Religion without sacrifice.......pray for crash, as long as do not affect yourself ....wish unto others but not yourselves....
6. Science without humanity......making use of good human nature based on kinship to manipulate them to fulfill your goal (psychology)
7. Politics without Principles......evident all over the world.....
Seems like someone met all 7 "qualities".
I think you will be the first to lose your job. Then banks won't give you facilities. You can continue to dream.
You have missed the boat. Please do yourself a favour. Buy iskandar. Stop whining like a baby.
He is just a troll. Don't be affected by what he says.
CondoInterested
24-05-13, 18:21
Seems like someone met all 7 "qualities".WHO? *look left look right look up look down*
Hi...you are welcome.
I am ready to collect my Mt Sinai key if the meltdown continues after Vesak day.
1 week after Vesak day liao...where is the meltdown har :D ?
1 week after Vesak day liao...where is the meltdown har :D ?
Yowetan... everyone is looking for you.
Hi...I am here.
What can I do for you?
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