cecilia84 wrote: 2. do your home work before you are buying the property and make sure the rental yield minimum 3 %
cecilia84 wrote: When you are buying a private property there is no restriction to lease it out either by room or by whole unit.
YesJR8 wrote:cecilia84 wrote: 2. do your home work before you are buying the property and make sure the rental yield minimum 3 %
Please can you explain the maths behind this 3% figure? That's less than inflation. Why '''invest''' (more correctly surely in this case 'throw money in drain') in something that yields less than inflation?
Net Annual Rent COllected = Total Rent Collected- Maintenance Cost, Property Tax, property agent cost , income tax, vacant cost, etc)
Example ( assuming no mortgage)
you bought property S$ 1,000,000, you rent it for S$3,800. month your maintenance fee S$400, agent fee is 1 months rent , furniture S$1,000/ year (i.e you spend S$ 10k on furnishing and expect it to last for 10 years , so estimated cost a year S$ 1,000) , property tax 10% of annual value say S$4,000 and assuming another cost negligible we have:
Net Annual Rent Collected in $ = $3,800 X12 - ( $400X12 +$4,000+$1,000+$4,000) =$31,800
Rental Yield ~ 3.18%
When people are saying your rental yield is up to 5 % please do check if they already calculate the expenses. 3% after you deduct all your expenses still consider healthy rental yield . Off course the higher rental yield is better.
cecilia84 wrote: When you are buying a private property there is no restriction to lease it out either by room or by whole unit.
I think this is untrue. condo management will certainly restrict who (numbers-wise/duration) a unit can be sub-let to...
as far as I know there is no restriction for private if you are saying about HDB yes, there is always a limit of people staying in the unit depend on the size, but not for private property.
Condo Management will restrict the number of access card they issued but not the number of people staying in the unit.
You're an agent aren't you?
cecilia84 wrote:3 % is consider healthy because at this point of time the bank interest rate is still lower than 2 %, meaning you still have another 1+% to gain.
But it is still going backwards isn't it. You could as an alternative buy SPH stock and earn over 5%. Would that not make more sense? 3% is 'bad' because 5% is better yah?
Not to forget that you also have capital gain from your property.
What capital gain, you haven't even bought anything. Ohhhhhh you mean the future gain on property that you're assuming will happen. That is a dangerous game.... but then again you are an agent so I'm sure you'll spin any old yarn to make a dollar.
torment is not the right word, may be educating ?
Well I've been a landlord for over 100 unit/years or so, so you might have a job on your hands. Unless you are a specialist on UK property tax law and the taxation (CGT) of non-residents in which case 'do get in touch'.
It is become out of the topic , seems you are testing me as an agent and not responding in line with the topic. However to answer your hypothetical questions:JR8 wrote:Here's one for you, hypothetical:
You're selling a unit in Castle Green Yio Chu Kang. They're going to build a highway from Woodlands to the CBD over ground covered by the condo. This will include cut and cover tunnels, sound-walls, and so on.
Do you present this to prospective purchasers as?:-
- A completely positive thing
- a potential issue
vb2011 wrote:Hi Strong Eagle,Strong Eagle wrote:Anyone can purchase certain types of properties in Singapore. Other types, like semi-D's and landed properties like shop houses can only be purchased by Singapore citizens.vb2011 wrote:Dear All,
Has anyone tried to purchase a property here in Singapore while you are still working here in any Singapore pass?
Can anyone share how they have able to do it?
Their contacts and who to go to?
P.S Dear Admin,
I could not find the area of which to post this. Please feel free to move it to another section that is connected to my query . thanks
How do you do it? You find something you want to buy. You go to the owner's agent and make an offer. You pay them money. Presto. You own an property. That answers the questions you asked, doesn't it?
I am looking for a property to buy and have it rented. The thing is i heard it can be done. I am looking for someone who have already tried it.
Singapore law when it comes to this always have so many things to consider. Especially foreign work pass and MOM has a law against working or self employed.
If I have a property and have it for rent. There is also rental tax that need to be payed as well.am I right?
So if anyone has the knowledge of doing this it sure would be a great help.
I haven't known someone who is a Foreigner working in Singapore and bought a property here and change and have it rented.
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