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Property Purchase

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cecilia84
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Postby cecilia84 » Fri, 22 Jun 2012 12:43 am

Hi Vb2011,

There is no foreigner restriction to buy property in condominium, meaning as long as you are able to provide 20% cash and manage to get a bank loan up to 80% then you will be able to buy the private property under your name .

When you are buying a private property there is no restriction to lease it out either by room or by whole unit. 2 taxes will be imposed if you are renting out your apartment :
1. property Taxes
2. Income Taxes (http://www.iras.gov.sg/irasHome/page04.aspx?id=2724)

Some of the owner renovate the place and get additional one more room in order to have a bigger income. It will only possible if the size of the place is sufficient. {edited by moderator]

So what do you need to do if you want to go into this business:
1. search for a good location and high demand property
2. do your home work before you are buying the property and make sure the rental yield minimum 3 %
3. get the renovation done
4. buy the furniture (if you want to)
5. rent out the premises either by room or whole unit

Bear in mind that you also need to pay maintenance fees of the condo, fees to securing the tenant and the renovation cost.

Hope this help and good luck

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Postby JR8 » Fri, 22 Jun 2012 12:52 am

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?


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...




You're an agent aren't you?

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Postby cecilia84 » Fri, 22 Jun 2012 8:58 pm

JR8 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?
Yes

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JR8
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Postby JR8 » Fri, 22 Jun 2012 9:09 pm

Why is a 3% net return considered 'healthy' if it is less than inflation?



p.s. I'll try and ignore the rest. You sound like X9 has put on a wig and decided this week his mission is to torment me .... hehehe...

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Postby cecilia84 » Fri, 22 Jun 2012 9:44 pm

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.
Not to forget that you also have capital gain from your property.

torment is not the right word, may be educating ?
:)

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Postby sundaymorningstaple » Fri, 22 Jun 2012 11:53 pm

cecilia84 wrote:
JR8 wrote:You're an agent aren't you?[/color]
Yes


tic...toc...tic...toc....

moderator

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Postby JR8 » Sat, 23 Jun 2012 12:38 am

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'.




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Postby cecilia84 » Sat, 23 Jun 2012 2:00 am

Dear Sunday morning tape :

When people asked you whether you are an agent or not , while it is my profession should I say no ? I hope I didn't misrepresentative myself here, I just share my knowledge and try to answer a questions here.

Dear JR 8 :
Every investment is a risk I believe, even you buy a share or Unitrust or any other investment there is a risk involvement . Please share with me if you manage to find a high return investment with no risk and I will join you there.

As you are pretty sure that every agent will spin any old yarn to make a dollar, I wish you all the best in your property search and best of luck to your property agent .

Cheers

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JR8
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Postby JR8 » Sat, 23 Jun 2012 2:05 am

There is no 'property search', I'm a landlord. Didn't you understand that bit, you know the bit where I said 'I'm a landlord' lol?


Jeez

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Postby JR8 » Sat, 23 Jun 2012 2:11 am

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

cecilia84
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Postby cecilia84 » Sat, 23 Jun 2012 2:16 am

oh yes haha ! I didn't read your reply properly, it's should be an experienced landlord with 100 units.

Anyway , just one of curiosity since you have your 100 units, are you managing all the unit by your self without an agent? if yes, there is a lot of knowledge you can share which I believe people will appreciate.

May be you can start from your experience finding a good property with a good rental yield, I will be more than willing to learn from the expert .

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Postby JR8 » Sat, 23 Jun 2012 2:20 am

Do you have a fit rack?

cecilia84
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Postby cecilia84 » Sat, 23 Jun 2012 2:25 am

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


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:
Buyer has their own eyes, and own ears, If I know there will be a construction over another 12 months, I'll just tell them in advance there will be a construction noise that they need to bear but in the end of the day you will have the highway and could potentially increase your property value. They are the one who decide if they are willing to bear with 12 months of construction and if they are willing to go ahead and buy the property.

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Postby JR8 » Sat, 23 Jun 2012 2:39 am

It's ok, if you're shy you can just e-mail me a photo.

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Re: Property Purchase

Postby beedao » Tue, 26 Jun 2012 3:02 pm

I dont know why you're so confused. Buying a property in Singapore is so easy, you just need to have the cash and a good agent, who will help and guide you on what to do (including introducing a banker and lawyer to you) PM me if you want a good agent, he's very helpful.

If you wanna rent it out but you're still unsure about property tax then write an email to MOM and IRAS. They usually reply within a couple of working days.

Cheers,
Bee

vb2011 wrote:
Strong Eagle wrote:
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


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.

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?


Hi Strong Eagle,

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.
Dream what you want to dream; Go where you want to go; Be what you want to be; Because you have only one life and one chance to do all the things you want to do!


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