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If you are given 500k as start up fund for property investment, how would you approach it to generate maximum returns within ten years.
If you are given 500k as start up fund for property investment, how would you approach it to generate maximum returns within ten years.
buy a set of monopoly n start buying houses n collect rental :47:
buy a set of monopoly n start buying houses n collect rental :47:
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If you are given 500k as start up fund for property investment, how would you approach it to generate maximum returns within ten years.
I will use $400k to buy 3 new lanuch oversea property (2x JB , 1x Bangkok or Australia). Each worth $400k, and pay 30% down so that my monthly installment not so tight. $100k put aside as safety net and pay bank installment. Sell after 4 to 5 years if capital gain more than 30%.
After that divert my capital ($860k) back to Singapore property market in 2017 if the price have dropped about 20% or more. I will use $750k to Buy 3 Singapore property each worth about $1m. Pay 25% down and keep $110k for safety net and bank installment in case unable to rent out. Sell after 4 to 5 years if capital gain more than 30%. If asking price not good, keep renting out as Singapore Property sure appreciate in long term as Government said will increased population by another 1m in dont know how many years (about 10 years if i not wrong).
After that, with the $1.8m cash, repeat the same progress of buying more property in Singapore and Oversea but with more safety net.
Above are my own strategy and not sure if can work? :ashamed1:
If you are given 500k as start up fund for property investment, how would you approach it to generate maximum returns within ten years.
a place near hospitals & the home for professionals.
I will use $400k to buy 3 new lanuch oversea property (2x JB , 1x Bangkok or Australia). Each worth $400k, and pay 30% down so that my monthly installment not so tight. $100k put aside as safety net and pay bank installment. Sell after 4 to 5 years if capital gain more than 30%.
After that divert my capital ($860k) back to Singapore property market in 2017 if the price have dropped about 20% or more. I will use $750k to Buy 3 Singapore property each worth about $1m. Pay 25% down and keep $110k for safety net and bank installment in case unable to rent out. Sell after 4 to 5 years if capital gain more than 30%. If asking price not good, keep renting out as Singapore Property sure appreciate in long term as Government said will increased population by another 1m in dont know how many years (about 10 years if i not wrong).
After that, with the $1.8m cash, repeat the same progress of buying more property in Singapore and Oversea but with more safety net.
Above are my own strategy and not sure if can work? :ashamed1:
You could be right. Singapore property market is getting overly difficult to make money. But I am not so sure about JB potential.
What about commercial property in Singapore? I believe at the moment there are still no CMs in this segment of the market.
I will use $400k to buy 3 new lanuch oversea property (2x JB , 1x Bangkok or Australia). Each worth $400k, and pay 30% down so that my monthly installment not so tight. $100k put aside as safety net and pay bank installment. Sell after 4 to 5 years if capital gain more than 30%.
This is the 2nd case I have heard.
Just heard from my friend. He bought a "plantation land" in JB, 2 yrs later his "plantation land" appreciated double due to the development of the condo next to it. When he wanted to sell his land, the law changed, he was told that S'porean is not supposed to own the land, so he had to sell it to the Malaysian developer at cost to cost. But he still lost money because of the legal fees + interest he had paid over the years.:(
Allthepies
12-12-13, 07:36
If you are given 500k as start up fund for property investment, how would you approach it to generate maximum returns within ten years.
Im also facing the same problem, not sure how to invest in property now....
Im also facing the same problem, not sure how to invest in property now....
Do any of you guys have any constructive comments on investing via a Group or pooling of investors in property (residential or commercial)?
What are the pit-falls? Legal aspects? Issues?
Perhaps this can be a way to spread your risk and as Ringo 33 says invest in commercial segment where there is less restrictions.
CMs already control/limits/tapers most investments in the residential channel...other channels are left opened, Sg can still be considered open...
This is the 2nd case I have heard.
Just heard from my friend. He bought a "plantation land" in JB, 2 yrs later his "plantation land" appreciated double due to the development of the condo next to it. When he wanted to sell his land, the law changed, he was told that S'porean is not supposed to own the land, so he had to sell it to the Malaysian developer at cost to cost. But he still lost money because of the legal fees + interest he had paid over the years.:(
He should also hve lost $ from exchange rate also :beats-me-man:
If you have noticed many developers have recently started to venture into foreign properties and development. Perhaps it's a sign that Singapore has got little meat left to make money.
Countries which are unstable or with flip flip policy..(anyone still remember CLOB?) ...always carry high risk for retail investor...look at neighbouring country such as Thxxxxnd...each side is kettle calling a Pot black...
Countries which are unstable or with flip flip policy..(anyone still remember CLOB?) ...always carry high risk for retail investor...look at neighbouring country such as Thxxxxnd...each side is kettle calling a Pot black...
I think the best bet now is sydney. Sydney now is still priced similar to other oz cities, but in the future it will break away. I take into account the quality of the people, which are very cosmopolitan in nature.
those invest in Australia what type of gain are they gg for usually?
I'm sure alot of us are in similar situation with quite substantial cashflow avail.
I'm also looking into good projects that has the potential ... so far, Auz and BKK seems promising especially for appreciation and rental .. bkk properties has stayed down for the longest time regardless of issues like recent.
The good thing about both is you can buy multiple units at 70-80% loan due to self-sustaining rent.
SG still have some good projects, like duo, clermont .. but dough will be spread thin.
Its still very hard for me to convince myself of JB ... which I think KL / Cyberjaya would have been a safer bet ... the constant policy flip flops are just too high risk .. for msia its safer to go where local rich would buy or expats would rent
Median house prices up:
Sydney 4.2% to $722,718
Melbourne 7.3% to $590,000
Brisbane 0.2% to $442,125
Hobart 1.4% to $352,000
Median house prices down:
Adelaide 0.7% to $397,000
Perth 3.8% to $505,000
Canberra 0.1% to $510,000
Darwin 1.1% to $605,000
As oz is moving away from commodities into trades and services, there is a tendency that money will get centralised. If you are buying a 500k apartment, you are better off buying a sydney apartment (which has a median house price of $722,718) than let's say melbourne (median of $590,000). This way I see that sydney apartment is actually undervalue, because it is surrounded by expensive properties.
Allthepies
12-12-13, 09:42
But I heard australian property can only be resold to locals, will this post a problem?
I'm sure alot of us are in similar situation with quite substantial cashflow avail.
I'm also looking into good projects that has the potential ... so far, Auz and BKK seems promising especially for appreciation and rental .. bkk properties has stayed down for the longest time regardless of issues like recent.
The good thing about both is you can buy multiple units at 70-80% loan due to self-sustaining rent.
SG still have some good projects, like duo, clermont .. but dough will be spread thin.
Its still very hard for me to convince myself of JB ... which I think KL / Cyberjaya would have been a safer bet ... the constant policy flip flops are just too high risk .. for msia its safer to go where local rich would buy or expats would rent
I agree that KL would be a safer bet, most of my friends consider JB properties as their second home or retirement home. KL has much more business activities and rent could be self-sustained, plus, unlike JB, KL land is scarce, in a long run it's more promising
But I heard australian property can only be resold to locals, will this post a problem?
This is what I am talking about. Only buy where the local can afford it. Sydney with the highest price median is where the local purchasing power the strongest.
This is the 2nd case I have heard.
Just heard from my friend. He bought a "plantation land" in JB, 2 yrs later his "plantation land" appreciated double due to the development of the condo next to it. When he wanted to sell his land, the law changed, he was told that S'porean is not supposed to own the land, so he had to sell it to the Malaysian developer at cost to cost. But he still lost money because of the legal fees + interest he had paid over the years.:(
With the rapid increase in Johor land prices, sad to say, your friend is v naïve to have sold the land cheaply.
My Singaporean boss is still holding on to his land, and is v v happy with it. Of cos, being a millionaire, he's under no pressure to sell his land at the wrong price.
Allthepies
12-12-13, 11:38
This is what I am talking about. Only buy where the local can afford it. Sydney with the highest price median is where the local purchasing power the strongest.
I get what you mean now, thanks for sharing.:)
Sydney now is like 2010.in sg. Cbd severe shortage of apt.
Sydney now is like 2010.in sg. Cbd severe shortage of apt.
With the 2nd casino planned.... Sydney is the only oz city with 2 casinos. It will attract rich chinese and their appetite for properties.
This is what I am talking about. Only buy where the local can afford it. Sydney with the highest price median is where the local purchasing power the strongest.
local will pay $500k for a landed outside the city. They won't buy your small mm in the city for $700k
Chinese insurers view commercial market
BEN WILMOT
THE AUSTRALIAN
DECEMBER 05, 2013 12:00AM
CHINESE insurance companies have met top Australian property executives as they look to get into the Australian commercial property market.
The Asia Pacific Real Estate Association last week hosted five major Chinese insurance companies in an initiative to forge close ties with local members.
The move was designed to give the local players an opportunity to capture a slice of the more than $US10 billion ($11.1bn) the insurers are slated to invest in overseas real estate markets.
Senior executives of companies including China Pacific Insurance Company, New China Life, Sunshine Insurance Group and Taikang Asset Management toured Sydney to discuss Australian real estate investment opportunities.
The move comes in the wake of China's sovereign wealth fund, the $US500bn Chinese Investment Corporation, entering Australia's direct property market by buying into Sydney's three-tower Centennial Plaza complex in Elizabeth Street in a $305 million play.
Chinese groups are yet to really make their presence felt more broadly in core office markets. Their aggressive buying has transformed the market for residential development sites in major cities and they have also been buying smaller shopping centres.
"This week has been a terrific example of major collaboration between Australia and China in the real estate sector and we expect an inflow of Chinese investment as a direct result of these meetings with our members," APREA chief executive Peter Mitchell said.
"There is now a greater understanding of what the Australian market has to offer as well as what the Chinese insurance companies are seeking."
In March, The Australian reported that APREA led a delegation including China's $48bn state-owned investment holding company, the State Development Investment Corporation, to Australia to meet top property players.
The Chinese groups met executives from UBS, Propertylink and other top firms. Real estate firm Savills said investment by Chinese firms in overseas real estate had grown at a torrid rate over the past three years. It has grown from $US900m in 2010 to $US5.6bn last year.
Savills divisional director, capital transactions, Ian Hetherington, said Chinese groups had only just started to have an impact in local markets.
UBS Enters Australian Property With A$10 Billion Plan (1)
December 12, 2013 12:04 AM EST
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UBS AG (UBSN), Switzerland’s biggest bank, is entering Australia’s property market to invest as much as A$10 billion ($9 billion) over the next five years through a joint venture with a local developer.
The bank, which now only holds property shares in the country, is partnering with Australia’s largest closely held builder Grocon Pty to beat a rush of global capital that’s seeking a home in its real estate market, said Trevor Cooke, Sydney-based head of Asia-Pacific real estate at UBS.
“There’s significant competition in Australia from pools of capital for access to investment-grade stock,” Cooke said by telephone today. “The best way to offer our clients realistic solutions is to partner with an originator. The Asia Pacific as a whole is a strategic priority and Australia is one of the most attractive markets in the region.”
Investor demand for Australian property is climbing, driven by relatively higher yields, and as home prices in the nation’s biggest cities reach records each month. Australia was among the three most active Asia-Pacific markets for commercial property transactions in the three months to Sept. 30, after Japan and China, data from CBRE Group Inc. show. Home prices across the nation’s biggest cities jumped 8.3 percent this year to Nov. 30, according to the RP Data-Rismark home value index.
UBS manages $8 billion of retail and industrial property in Japan through a joint venture with Mitsubishi Corp., and partners with Chinese developer Gemdale Corp. in a residential development fund on the mainland, Cooke said today.
local will pay $500k for a landed outside the city. They won't buy your small mm in the city for $700k
Same thing they say about 1 million HDB flat in sg.
With the 2nd casino planned.... Sydney is the only oz city with 2 casinos. It will attract rich chinese and their appetite for properties.
It's approved.
local will pay $500k for a landed outside the city. They won't buy your small mm in the city for $700k
Follow recent auction news. Locals are paying 300k cov for terrace house. Locals are buying central park, York and George.
How about Philippines? More and more people buying into central Makati. Have heard agents pitching $125k 1 bed can get $800-1k rental/month. Yield seems pretty good if true, plus capital potential.
How about Philippines? More and more people buying into central Makati. Have heard agents pitching $125k 1 bed can get $800-1k rental/month. Yield seems pretty good if true, plus capital potential.
Their interest rates High?
How about Philippines? More and more people buying into central Makati. Have heard agents pitching $125k 1 bed can get $800-1k rental/month. Yield seems pretty good if true, plus capital potential.
"agents says" is a very dangerous piece of advice.
Their interest rates High?
High but seldom ppl take loan. Developers allow 5 year interest free repayment scheme.
Their interest rates High?
For that quantum mostly no loan required. So any views on makati?
Anybody here familiar with commercial office space?
a) Whats the financing arrangement like? TDSR apply?
b) Do you need to engage specialized agent to find tenant for commercial offices?
c) What is the idea office space size for suburban offices?
a) Whats the financing arrangement like? TDSR apply?
Yes TDSR apply. GST as well for individual. If u buy under company, u can claim back the GST. 80% LTV for own use and 70% LTV for investment.
b) Do you need to engage specialized agent to find tenant for commercial offices?
Similar to residential, every agent has their niche market. It depends on location and type as well, retail or office etc?
c) What is the idea office space size for suburban offices?[/QUOTE]
Again, it depends on type, industrial office, commercial office etc. office cannot be too mm like condo or else very difficult to find tenant.
Do any of you guys have any constructive comments on investing via a Group or pooling of investors in property (residential or commercial)?
What are the pit-falls? Legal aspects? Issues?
Perhaps this can be a way to spread your risk and as Ringo 33 says invest in commercial segment where there is less restrictions.
But heard from others who tried this method, that the more people involved the more problems there will be, because not everyone is with same intention or views... seems risky?
Do you know how much interest does Philippines banks charge for interest?
How about Philippines? More and more people buying into central Makati. Have heard agents pitching $125k 1 bed can get $800-1k rental/month. Yield seems pretty good if true, plus capital potential.
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