Lisafuller wrote: Swn4 wrote: ↑
Fri, 09 Sep 2022 6:20 pm
Property is a shitty investment. If you want to invest in property
, I'd rather suggest REITs instead. And did you factor in ABSD which is a killer of profits and is even higher for foreigners?
I walked the talk - sold our house last year and am now renting now. No regrets!
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No judgment but I'm just wondering why you would do that? Seems like you gave up all your equity just to burn money every month.
Everyone’s situation and opinions are different.
I have never been interested in buying additional properties since I think the effort of being a landlord is high versus the rental yield. And on average, the capital gain over 10 years in non-HDB is not that great (timing is everything!).
1. We are (almost) retired so no long mortgages possible
2. We have no kids, so no worries about leaving anything behind (Ie; we can eat into capital if financial returns don’t cover the rent)
Specific to our old home
1. We bought our house right after Lehman crashed and realized a significant gain when selling in 2021.
2. After 12 years, things needed fixing and would have required us to move out while they were repaired (roof, concealed wiring under driveway/walls, A/C ducting, water seepage, etc). All not immediately visible issues but very expensive to fix right.
3. Stairs - it would not have been a home to age in. So it did not seem worth while to put in more dollars to fix things now to only have the same discussion in another 10-15 years.
Specific to where we live now (or would want to live)
1. Monthly maintenance fees are high
2. Rent < maintenance fees + property tax + opportunity cost of tying up capital (since we would not be able to borrow)
While I fully expect my rent to increase next year, I still expect ‘Rent < maintenance fees + property tax + opportunity cost (or interest if we could borrow)’ to hold.
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