What a property investor shouldn't do in today's market condition.

[stl67]

Excellent analysis. I personally will never sell anything. Human explosion in sg is a certainty, no matter if the global economy is good or bad. No matter interest rate low or high.

Frankly if interest rate goes up by 1% , is it really that bad on our mortgage payment? i did a check, not so bad as what the analyst put it to be. Did I miss out anything?

[chestnut]

Tai Kor,
I must be younger than you... I confess that I am overleveraging......

Brudder, I am definitely older than you....

Leveraging is not an evil if you can tame it and know how to use it....

A knife is good if you know how to use it. use it wrongly and it turns against you.... This topic is too cheem for a forum lar.... One day when I super free, I will pen it down. Hahahahaha

[Simi]

Frankly if interest rate goes up by 1% , is it really that bad on our mortgage payment? i did a check, not so bad as what the analyst put it to be. Did I miss out anything?

If interest rate goes up to 1%

Be PREPARED for 2% to even 3% (momentum swing)

[mcmlxxvi]

note that int rate up by 2x doesnt mean ur mortgage monthly quantum oso up 2x. its much less than that esp if tenure is long.

bro nutnut... to ur qn i dunno leh. guess can total up all the property rental figures one by one from ura site? will take forever.

maybe www.squarefoot.com.sg might have some overall info. lemme explore...

[Simi]

A Big Thank you to Secretariat for starting this thread

Benefitted so much from all the sharing

[mcmlxxvi]

fyi all

http://sbr.com.sg/sites/default/file...investment.JPG

[stl67]

Dev and gov, what's the different? Nothing happen in sg without the approval of the gov planning committee. They are not about to crash the market. The gov are only making sure a group of people not hoarding all the properties, while the other group having none. That would be a political disaster.

this is what i always thought the gov is doing.. in a way, to give chance to the first timer... of course I would love to hoard all the properties, but cannot be so selfish right? so in the end, make a bit of money good liao, cannot be so greedy...

[mcmlxxvi]

http://sbr.com.sg/sites/default/file...orlaunches.JPG

anyone noticed any pattern?

[stl67]

A Big Thank you to Secretariat for starting this thread

Benefitted so much from all the sharing

yes thank you Secretariat... his posts and brohter Vic's (cbsh38584 ) always make me think...cannot be too complacent...
this forum now more interesting.. recently all very bored as not many news ana happening but many many quarrells...

[East Lover]

most new projects are in far far away land?

http://sbr.com.sg/sites/default/file...orlaunches.JPG

anyone noticed any pattern?

[mcmlxxvi]

most new projects are in far far away land?

Whenever a huge force strikes the center of the ocean... ripples and waves will spread outwards enlarging the impact. Until eventually the energy gets transferred and the ripples die off...

We are now witnessing the force on the outskirts.

[DC33_2008]

I beg to differ on rental demand falls on older condo. I have condos that have secured higher rental each time I renew and the time of vacancy is less than 3 weeks. It all boils down to location.

This is very common scenario if you own a property that is already more than 10 years old because rental demand for most older apartment will start to fall while cost of maintenance will start to rise. So there is always this thought of selling it to buy a newer apartment.

Leverage ratio sure confirm fall for owner with 2nd and 3rd property unless the property you sold is already more than 70% paid up.

And to achieve that ideal ratio, usually people will have to downsize their ambition to buy a smaller apartment, which explain why smaller quantum apartment are more popular these days.

[3C]

When is the sg gov ever build (or created) oversupply of anything at all? So many hotel build, now full. Such a big airport, now all full. So many hospitals, all full. So many schools, all full. So many taxi, all full.

Yes, you can call MBT to check. You know how's BTO comes about?

[Ringo33]

I beg to differ on rental demand falls on older condo. I have condos that have secured higher rental each time I renew and the time of vacancy is less than 3 weeks. It all boils down to location.

location doesnt change much over time, but the property that you bought 10 years ago on the same location will age over time.

While you might be happy saying that rental is up all the time but in terms of rental yield based on updated current valuation, is your yield rising?

[proud owner]

Now I also see why there could only be a soft landing and not a collapse if a Blackswan comes along. Wahhhh...this Ah Khaw also very smart hor.... Wonder if Tharman and Ah Khaw retire next time got people of same calibre to take over bo har ? They can really take on the US of A...SWEE !

bro

I do not know the ministers personally nor in depth ..

I always thought our ministers are just Spoke Person .. there are many smart people behind the scene who prepare everything for them ..to go to the press or public to announce ..

am I right or wrong ?

are Khaw and Tharman really good ? or are the people behind and working within their ministries that are smart ?

I knew last time got one minister of Education ... knn his English damn poor .. pronunciation all wrong ..


also .. these 2 were around when MBT was the chief .. how come PAP didn't put khaw there earlier if he was the real genius ?

or why didn't khaw give MTB some advice last time ?

[DC33_2008]

Rental yield by % term may have dropped but your capital appreciation would hae gone up by 50%, one fold or more. Tenants are helping you to pay for your dream homes with good leverage on OPM (banks). Imagine the lost if you would have put your money in the bank 10 years ago instead of in a property that gives both capital appreciation and net passive income. Note: 10 years ago is when SARs hit Singapore. Too bad if you sold off during lemon times. Enbloc even better.

location doesnt change much over time, but the property that you bought 10 years ago on the same location will age over time.

While you might be happy saying that rental is up all the time but in terms of rental yield based on updated current valuation, is your yield rising?

[indomie]

Yes, you can call MBT to check. You know how's BTO comes about?

BTO is the reason why the whole young sg population is not moving overseas. If the minister suddenly say we don't have enough BTO, all the young people will move to australia. Off course the gov have to say there will be more than enough. BTO is the stepping stone for young people aspire to own a PC. In this way, HDB resale will always be strong.

[Ringo33]

Rental yield by % term may have dropped but your capital appreciation would hae gone up by 50%, one fold or more. Tenants are helping you to pay for your dream homes with good leverage on OPM (banks). Imagine the lost if you would have put your money in the bank 10 years ago instead of in a property that gives both capital appreciation and net passive income. Note: 10 years ago is when SARs hit Singapore. Too bad if you sold off during lemon times. Enbloc even better.

Please dont just read my post, but read what my post is replying to so that you understand what we talking about.

We are not talking about owning property or keep cash. We are talking about selling one to buy one.

Scenario:

After reviewing the state of development where his investment property is located, the profile of his tenants over the year, an invetsor thought that he should sell the unit and buy another unit with the sale proceed.

[DC33_2008]

Brudder, I am responding to your comment:

Originally Posted by Ringo33
location doesnt change much over time, but the property that you bought 10 years ago on the same location will age over time.

While you might be happy saying that rental is up all the time but in terms of rental yield based on updated current valuation, is your yield rising?

Cannot find the link to SELLING one to buy one.

Please dont just read my post, but read what my post is replying to so that you understand what we talking about.

We are not talking about owning property or keep cash. We are talking about selling one to buy one.

[Ringo33]

Brudder, I am responding to your comment:

Originally Posted by Ringo33
location doesnt change much over time, but the property that you bought 10 years ago on the same location will age over time.

While you might be happy saying that rental is up all the time but in terms of rental yield based on updated current valuation, is your yield rising?

Cannot find the link to SELLING one to buy one.

you might want to scroll back to page 14 post #139 to see what exactly I am commenting on, and then look at how you slowing pulling the discussion away from the "scenario" (look up meaning in dictionary) and start talking about how wise to own property and not put money in the bank.

Like i said

"Please dont just read my post, but read what my post is replying to"

[Regulators]

His agenda is to promote new condos over buying old condos just because he just bought a one bedder at j gateway, falsely claiming old condos hv falling rental demand. He has no evidence to to prove his claim.

I wouldn't even bother listening to a person who has that "investment sense" to pay $1700psf for 20% of wasted space in a 44sm dog box n rely on price trend during the financial crisis to justify his later investment.

Brudder, I am responding to your comment:

Originally Posted by Ringo33
location doesnt change much over time, but the property that you bought 10 years ago on the same location will age over time.

While you might be happy saying that rental is up all the time but in terms of rental yield based on updated current valuation, is your yield rising?

Cannot find the link to SELLING one to buy one.

[DKSG]

Office Boy is BACK!

Office Boy got one simple Dont to contribute to this discussion.

DONT EVER buy at record prices!

The only small little exception is when surrounding are all selling at prices much higher than the one you eyeing. Then you will need an expert eye to know if what you are buying is just a temporary laggard, or a permanent impairment.

When the surrounding are all selling at $1,800, then got this new launch selling at $2,400 ---> Dont touch it!

Sometimes I maybe wrong, but since we here can only buy that number of properties, why risk it ?

Ok! Thats all I gott contribute.

Happy investing - Huat BIG BIG !

DKSG

[mcmlxxvi]

bro nutnut

I did some tabulation from URA non landed stamped rental contracts period Jun 2012 to May 2013 (i chose one year as avg since contracts get made and renewed or terminated in no particular pattern trend).

7,717 (D1-5)
13,050 (D6-10)
12,267 (D11-15)
6,282 (D16-20)
5,890 (D21-26)
448 (D27-28)
=45,654 in total

out of estimate 71644 apt and 137602 condo
= 209246 in total (ref singstat as of jun 2013)

total % leased is 21.8 on avg per annum basis


Ok im outta this thread liao as its started turning into the other threads pattern...

[eng81157]

Office Boy is BACK!

Office Boy got one simple Dont to contribute to this discussion.

DONT EVER buy at record prices!

The only small little exception is when surrounding are all selling at prices much higher than the one you eyeing. Then you will need an expert eye to know if what you are buying is just a temporary laggard, or a permanent impairment.

When the surrounding are all selling at $1,800, then got this new launch selling at $2,400 ---> Dont touch it!


DKSG

then i buy the one that's $1800.......

[chestnut]

Brudder mcm... Kum Sia.

Interesting hor. 80/20 rule again....

So out of 100% of private - less than 20% have 2 or more. We also know many hdb dwellers also rent out their condo.

So in times of trouble. 80% are home stay.

So 20% of rental from total of 20% (private occupy 20% of total market) means 4% of total market is private rental. I did not calculate hdb rental hor.


Thanks mcm bro

bro nutnut

I did some tabulation from URA non landed stamped rental contracts period Jun 2012 to May 2013 (i chose one year as avg since contracts get made and renewed or terminated in no particular pattern trend).

7,717 (D1-5)
13,050 (D6-10)
12,267 (D11-15)
6,282 (D16-20)
5,890 (D21-26)
448 (D27-28)
=45,654 in total

out of estimate 71644 apt and 137602 condo
= 209246 in total (ref singstat as of jun 2013)

total % leased is 21.8 on avg per annum basis

[Secretariat]

BTO is the reason why the whole young sg population is not moving overseas. If the minister suddenly say we don't have enough BTO, all the young people will move to australia. Off course the gov have to say there will be more than enough. BTO is the stepping stone for young people aspire to own a PC. In this way, HDB resale will always be strong.

I am not too sure that "HDB resale will always be strong." Particularly in relation to the aging HDB stock.

I have explored the HDB scenario in this thread:

http://forums.condosingapore.com/showthread.php?t=15272

Cheers!

[Fiona2004]

Brudder mcm... Kum Sia.

Interesting hor. 80/20 rule again....

So out of 100% of private - less than 20% have 2 or more. We also know many hdb dwellers also rent out their condo.

So in times of trouble. 80% are home stay.

So 20% of rental from total of 20% (private occupy 20% of total market) means 4% of total market is private rental. I did not calculate hdb rental hor.


Thanks mcm bro

Is 4% reasonable? thanks!

[chestnut]

Is 4% reasonable? thanks!

Estimate 4% of entire household have 2nd private property as an investment.

This does not include those private who have hdb rented out. This is another exercise which I am too lazy.

Many thanks to mcm bro

[Secretariat]

Rental yield by % term may have dropped but your capital appreciation would hae gone up by 50%, one fold or more. Tenants are helping you to pay for your dream homes with good leverage on OPM (banks). Imagine the lost if you would have put your money in the bank 10 years ago instead of in a property that gives both capital appreciation and net passive income. Note: 10 years ago is when SARs hit Singapore. Too bad if you sold off during lemon times. Enbloc even better.

In DC's case, the rental yield would be calculated based on the price the property was transacted. Not based on today's paper price la.

I wouldn't be surprised that it beats the yield of newly TOPed new launches today.

Cheers!

[Ringo33]

In DC's case, the rental yield would be calculated based on the price the property was transacted. Not based on today's paper price la.

I wouldn't be surprised that it beats the yield of newly TOPed new launches today.

Cheers!

Asset value of your investment will always need to be adjusted accordingly to reflect the true yield instead of using original purchase price. And more importantly also give us a consistency of what we are discussing.