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Thread: Should we sell?

  1. #1
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    Default Should we sell?

    Need some advise from property investors here.

    Currently me and my wife have 3 properties in Singapore and 2 properties are currently rent out to expat tenant on corporate lease which will run till 2016. rental yield based on purchased price from 5 and 2 years ago is around 6% and 4.8% respectively and our outstanding mortgage for both properties is around 50% based on current valuation price. For our 3rd properties, that's for own stay and we do not intend to sell.

    So the question on our mind now is

    a) Should we sell our investment properties, cash out and reinvest in future?

    b) Should we keep both property to enjoy regular rental income stream?

    Concern for (a) is the cost of replacement will be very high due to cooling measures and we might not be able to find a replacement properties which we like as much as the one we have right now. So we might end up having millions "rotting" in the bank away

    Concern for (b) is that we will not get to enjoy the feeling of being cash rich in our life time or we might missed to catch the property cycle.

    So the question now is, should we sell or do nothing, or is there other options?

  2. #2
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    Quote Originally Posted by Juniper View Post
    Need some advise from property investors here.

    Currently me and my wife have 3 properties in Singapore and 2 properties are currently rent out to expat tenant on corporate lease which will run till 2016. rental yield based on purchased price from 5 and 2 years ago is around 6% and 4.8% respectively and our outstanding mortgage for both properties is around 50% based on current valuation price. For our 3rd properties, that's for own stay and we do not intend to sell.

    So the question on our mind now is

    a) Should we sell our investment properties, cash out and reinvest in future?

    b) Should we keep both property to enjoy regular rental income stream?

    Concern for (a) is the cost of replacement will be very high due to cooling measures and we might not be able to find a replacement properties which we like as much as the one we have right now. So we might end up having millions "rotting" in the bank away

    Concern for (b) is that we will not get to enjoy the feeling of being cash rich in our life time or we might missed to catch the property cycle.

    So the question now is, should we sell or do nothing, or is there other options?
    The long term fundamentals for Singapore as a country remains sound, and hence property prices will always remain strong in the long run.

    If you do not have an urgent requirement to raise cash, you should not worry about your investments. Any actions you undertake to try to capitalise on the temporary distortions in the marketplace, you will end up being less well off.

    It sounds like you are happy with your current property types and locations, so my suggestion is not to let the 'noise' distort your conviction in using property as an asset class to build long term wealth in Singapore.

  3. #3
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    Real estate agents, fellow investors, bankers and those who do not have properties to their names all have separate kinds of advice for you. Whose would you like to hear?

    Quote Originally Posted by Juniper View Post
    Need some advise from property investors here.

    Currently me and my wife have 3 properties in Singapore and 2 properties are currently rent out to expat tenant on corporate lease which will run till 2016. rental yield based on purchased price from 5 and 2 years ago is around 6% and 4.8% respectively and our outstanding mortgage for both properties is around 50% based on current valuation price. For our 3rd properties, that's for own stay and we do not intend to sell.

    So the question on our mind now is

    a) Should we sell our investment properties, cash out and reinvest in future?

    b) Should we keep both property to enjoy regular rental income stream?

    Concern for (a) is the cost of replacement will be very high due to cooling measures and we might not be able to find a replacement properties which we like as much as the one we have right now. So we might end up having millions "rotting" in the bank away

    Concern for (b) is that we will not get to enjoy the feeling of being cash rich in our life time or we might missed to catch the property cycle.

    So the question now is, should we sell or do nothing, or is there other options?
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

  4. #4
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    Cash out, before the market comes tumbling down............

  5. #5
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    If u sell one of the investment properties and the profit can cover the other cost price fully, I think u should consider to sell one...

    Then in this case u have 1 fully paid up property tat is "free" and a huge amount of cash....

  6. #6
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    Never totally cash out... Buy smaller units

  7. #7
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    Quote Originally Posted by indomie View Post
    Never totally cash out... Buy smaller units
    My friend just bought a small unit in Robertson quay, I think price is $1.5m, rental is about $4k... I notice other units in the same development selling below his price now... At $4k, I think cannot cover mortgage even at this low interest.. If interests goes up, I don't know also what to say...

    Seriously it is about timing, but who can tell? If we know, we won't be here...

  8. #8
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    Yah, if we knew for sure we would be super rich. No need to work. It is all about taking risks and bearing the consequence of the risk.

  9. #9
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    Quote Originally Posted by Werther View Post
    My friend just bought a small unit in Robertson quay, I think price is $1.5m, rental is about $4k... I notice other units in the same development selling below his price now... At $4k, I think cannot cover mortgage even at this low interest.. If interests goes up, I don't know also what to say...

    Seriously it is about timing, but who can tell? If we know, we won't be here...
    That's how I felt for the first 2 properties I own. After many more I own.... Now I don't look at it that way. If risk doesn't kill me, it works for me.

  10. #10
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    Are investment units in great location in terms of rental with good pool of expats? Consideration should also be made based on your age, household income, security of income, etc.
    Quote Originally Posted by Juniper View Post
    Need some advise from property investors here.

    Currently me and my wife have 3 properties in Singapore and 2 properties are currently rent out to expat tenant on corporate lease which will run till 2016. rental yield based on purchased price from 5 and 2 years ago is around 6% and 4.8% respectively and our outstanding mortgage for both properties is around 50% based on current valuation price. For our 3rd properties, that's for own stay and we do not intend to sell.

    So the question on our mind now is

    a) Should we sell our investment properties, cash out and reinvest in future?

    b) Should we keep both property to enjoy regular rental income stream?

    Concern for (a) is the cost of replacement will be very high due to cooling measures and we might not be able to find a replacement properties which we like as much as the one we have right now. So we might end up having millions "rotting" in the bank away

    Concern for (b) is that we will not get to enjoy the feeling of being cash rich in our life time or we might missed to catch the property cycle.

    So the question now is, should we sell or do nothing, or is there other options?

  11. #11
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    with 3 properties, not fullly paid, u got to gauge whether ur sampan is too heavy. no current still ok, but if strong current come how? can tahan?

    u look at the stars urself,
    if clear blue sky, u contine to saill,
    if see storm coming, den u better offload and dock faster.
    if not sure, u might want to lighten ur load a little bit if the sampan is carrying too much stuff... just in case..

    but of course, if your star reading skill sucks n made the wrong decision....den too bad....
    Ong lai ah!

  12. #12
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    Quote Originally Posted by indomie View Post
    Never totally cash out... Buy smaller units
    We already have a beautiful decent size 1 bedder unit which we are getting very decent yield at the moment and we even think about retiring there when our kids grow up. Plan is subject to change of course.

    Concern of cashing out of course is to have the money rotting away.
    Last edited by Juniper; 26-04-14 at 14:42.

  13. #13
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    Quote Originally Posted by onglai View Post
    with 3 properties, not fullly paid, u got to gauge whether ur sampan is too heavy. no current still ok, but if strong current come how? can tahan?

    u look at the stars urself,
    if clear blue sky, u contine to saill,
    if see storm coming, den u better offload and dock faster.
    if not sure, u might want to lighten ur load a little bit if the sampan is carrying too much stuff... just in case..

    but of course, if your star reading skill sucks n made the wrong decision....den too bad....

    We are not too concern as both me and my wife are still working and at the moment we dont even need to pay any cash or CPF service our mortgages.

    As long as interest rate remain low, it will still reward those who leverage. And thats actually the reason why I am afraid of cashing out because for future purchase, we will have to pay bigger down payment and monthly payment. So from cash flow point of view, its not so ideal.

  14. #14
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    Brother sabbie

  15. #15
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    Quote Originally Posted by Juniper View Post
    We are not too concern as both me and my wife are still working and at the moment we dont even need to pay any cash or CPF service our mortgages.

    As long as interest rate remain low, it will still reward those who leverage. And thats actually the reason why I am afraid of cashing out because for future purchase, we will have to pay bigger down payment and monthly payment. So from cash flow point of view, its not so ideal.
    Then u should consider buyer another unit since u have strong holding power and cash rixh😆😆

  16. #16
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    Quote Originally Posted by Juniper View Post
    Need some advise from property investors here.

    Currently me and my wife have 3 properties in Singapore and 2 properties are currently rent out to expat tenant on corporate lease which will run till 2016. rental yield based on purchased price from 5 and 2 years ago is around 6% and 4.8% respectively and our outstanding mortgage for both properties is around 50% based on current valuation price. For our 3rd properties, that's for own stay and we do not intend to sell.

    So the question on our mind now is

    a) Should we sell our investment properties, cash out and reinvest in future?

    b) Should we keep both property to enjoy regular rental income stream?

    Concern for (a) is the cost of replacement will be very high due to cooling measures and we might not be able to find a replacement properties which we like as much as the one we have right now. So we might end up having millions "rotting" in the bank away

    Concern for (b) is that we will not get to enjoy the feeling of being cash rich in our life time or we might missed to catch the property cycle.

    So the question now is, should we sell or do nothing, or is there other options?
    if your current pty are somehow very undesirable or problematic, then consider sell and switch to something better.

    if not, look to add a fourth one.

  17. #17
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    if u want to know the meaning of REGRET then sell
    In the final analysis.....its NOT whether you have a diploma,degree,masters OR PHD....its whether you have a HDB/PC/EC or LANDED...

  18. #18
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    Default Singapore market trending down.

    Today, ST published an article on falling prices. Also, we went to check out some condos today.

    Personally, if I were in your position, I would cash out now before the prices drop further.

    I have blogged more here.
    http://londonproperty123.blogspot.sg...ming-down.html

  19. #19
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    How much will it drop and how long for since your advice is to sell now?
    Quote Originally Posted by Londonproperty123 View Post
    Today, ST published an article on falling prices. Also, we went to check out some condos today.

    Personally, if I were in your position, I would cash out now before the prices drop further.

    I have blogged more here.
    http://londonproperty123.blogspot.sg...ming-down.html

  20. #20
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    Quote Originally Posted by Juniper View Post
    Currently me and my wife have 3 properties in Singapore and 2 properties are currently rent out to expat tenant on corporate lease which will run till 2016. rental yield based on purchased price from 5 and 2 years ago is around 6% and 4.8% respectively and our outstanding mortgage for both properties is around 50% based on current valuation price. For our 3rd properties, that's for own stay and we do not intend to sell.
    If I will you, which I am not.

    What is the chances of property drop 50%?

    Is the world still printing money?

    How long can you pay the mortgage if both are not rented out (cash on hand)?

    How much % on current valuation is the own stay?

    After selling is there a better ROI for the cash?

    Do you think money in the Bank is better than having loan from the Bank?

    If you can answer the question you should have answer to your question.

  21. #21
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    will some suggest sell then use the money to buy bond or not ?

    http://forums.condosingapore.com/showthread.php?t=15297

  22. #22
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    Quote Originally Posted by DC33_2008 View Post
    How much will it drop and how long for since your advice is to sell now?
    If I knew the answer to your questions, I'd be a tycoon by now.

    I am just reading all the data and making a prediction, aka crystal gazing.

    Looking at the graph, looking at the market sentiment, looking at what Government is doing, my take is that the market will come down by 15 to 20% over the next couple of years.

  23. #23
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    Quote Originally Posted by august View Post
    if your current pty are somehow very undesirable or problematic, then consider sell and switch to something better.

    if not, look to add a fourth one.
    They are very good units with good facing and layout, thats why it can command higher than average rental.

    We are contented with having 3 properties in Singapore and with ABSD and lower LTV ratio, it just doesnt make any sense to buy now. So 4th for us is not something we will consider in the near future

  24. #24
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    Quote Originally Posted by Arcachon View Post
    If I will you, which I am not.

    What is the chances of property drop 50%?

    Is the world still printing money?

    How long can you pay the mortgage if both are not rented out (cash on hand)?

    How much % on current valuation is the own stay?

    After selling is there a better ROI for the cash?

    Do you think money in the Bank is better than having loan from the Bank?

    If you can answer the question you should have answer to your question.
    Having loan from the back is having better return compare to money in the bank is you collection rent from property.

  25. #25
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    Like what you have just said that we will be filthy rich if we know the future. What if existing properties giving rental income of 5% and passive income. Should one sell them?
    Quote Originally Posted by Londonproperty123 View Post
    If I knew the answer to your questions, I'd be a tycoon by now.

    I am just reading all the data and making a prediction, aka crystal gazing.

    Looking at the graph, looking at the market sentiment, looking at what Government is doing, my take is that the market will come down by 15 to 20% over the next couple of years.

  26. #26
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    Quote Originally Posted by Londonproperty123 View Post
    Today, ST published an article on falling prices. Also, we went to check out some condos today.

    Personally, if I were in your position, I would cash out now before the prices drop further.

    I have blogged more here.
    http://londonproperty123.blogspot.sg...ming-down.html
    When we bought our properties our intention is hold it for long term because we could possibly see ourselves using them in future, either to stay or use it as a source of passive income for retirement

    The decision to sell is a easy one, the more difficult question is what to do with the money after you cash out. Some might say put the money in other form of investments, which we already have btw, but we still think brick and mortal assets like properties is still worth holding, especially if you are Singaporeans.

    So, what would you do with the money after you cash out?

  27. #27
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    Quote Originally Posted by Juniper View Post
    They are very good units with good facing and layout, thats why it can command higher than average rental.

    We are contented with having 3 properties in Singapore and with ABSD and lower LTV ratio, it just doesnt make any sense to buy now. So 4th for us is not something we will consider in the near future
    Care to share which are the properties that u have rented out? Maybe we can advise if they are worth keeping.

  28. #28
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    Quote Originally Posted by Juniper View Post
    When we bought our properties our intention is hold it for long term because we could possibly see ourselves using them in future, either to stay or use it as a source of passive income for retirement

    The decision to sell is a easy one, the more difficult question is what to do with the money after you cash out. Some might say put the money in other form of investments, which we already have btw, but we still think brick and mortal assets like properties is still worth holding, especially if you are Singaporeans.

    So, what would you do with the money after you cash out?
    Hold on to the money in cash or near cash.

    Wait for the property prices to come down then invest again.

  29. #29
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    Quote Originally Posted by Londonproperty123 View Post
    Hold on to the money in cash or near cash.

    Wait for the property prices to come down then invest again.
    Hi bro London

    I only scared prices come down not much and chiong again, no major economic crisis and job loss...Now seriously...people like got lots of cash... just came from tiong bahru...so many hip cafe mushrooming...quite crowded leh. Very painful if sell and then cannot buy


    Maybe status quo may not be a bad idea after all. If crash, then buy one more.

    I also not sure.

  30. #30
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    Quote Originally Posted by Werther View Post
    Hi bro London

    I only scared prices come down not much and chiong again, no major economic crisis and job loss...Now seriously...people like got lots of cash... just came from tiong bahru...so many hip cafe mushrooming...quite crowded leh. Very painful if sell and then cannot buy


    Maybe status quo may not be a bad idea after all. If crash, then buy one more.

    I also not sure.
    Yeah, I see your point.

    Well, if we knew for sure, we'd be tycoons by now.

    So, all the best!

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