Private Property For Rental Investment

[bekind 0]

Is anyone planning to buy a private property for rental yield ? My husband and i have about 100k in saving and is thinking of investing in a property in singapore. Not sure if there are still good buys now and whether this is sufficient for the downpayment. i also need advice in location with better returns yields within my purchase bugdet.

i think that interest rates is going down and singpore is targetting at an increase population so buying property is a good bet now.

[zirhk3355 1]

You got to do your homework and find a property suitable for your needs and budget. Check out places like URA website, developers' websites and go showflats visiting every weekend.

How long can you hold the property before seeing any reasonable yield? What is your desired yield? Are you going to furnish the unit luxuriously or just basic necessities?

My take: Although transaction volumes had fallen now, the prices are still holding on because sellers still cannot believe that the property boom is over. Those who still can hold, will hold. But by April/May'08, there will be alot of speculators who cannot hold anymore and will let go. That will be the first round of REAL good buys.

Then, as the US firms are clearing their bad debts and the US market adjusts itself, they won't go falling for very long; it will recovers within this year (I duno exactly when lah, otherwise I won't be sitting here typing!!) And when the US market recovers, that's when our prime properties (read Dist 9, 10, 11) will fall. My take is that it should be about 3rd/4th quarter of this year (earliest being June/July '08), so that's yet another round of good buys for you to choose from, esp if you are looking at buying prime properties...

Last but not least, have you even considered overseas investment? Mark my words, I will not be surprised if the USD falls to $1.25. Yesterday papers already hinted of several worthy properties in US, eg Chicago Spire, going for $1000psf, which is cheaper than The Sail by 60%...

Edited March 17, 2008 by zirhk3355

[Phantom 1]

I'm not betting on a 1.25 USDSGD.. but then again.. I like Chicago Spire.

good value.

[madmax67 0]

Is anyone planning to buy a private property for rental yield ? My husband and i have about 100k in saving and is thinking of investing in a property in singapore. Not sure if there are still good buys now and whether this is sufficient for the downpayment. i also need advice in location with better returns yields within my purchase bugdet.

i think that interest rates is going down and singpore is targetting at an increase population so buying property is a good bet now.

Hi there

I suppose you want to invest in Singapore property market.

Just my 2 cents worth of thoughts : for your budget, my experience is that banks will very likely will lend you the most 80% of your investment property price and not more. Thus you will need to work out with 100K, whether it's enough to cover your 20% downpayment and the stamp duty (which is 0.03 of property price - 5400). Besides, you need to consider if reno needs to be done but this cost should be kept minimum (about 2-3k) coz a rental unit need not to done up as nice as a ownstay unit. Maybe you can ask your banker what's the maximum they can lend you to work out our budget.

Do take note that even though price is most important, don't just grab any that fits the bill. You need to consider other factors such as whether you will be able to hold the property during downturn when rental yield is not fantastic, or is the property still in good demand (ie good location) should you need to sell the property when market's not too good, whether there is any potental capital gain of the property, etc.

I personally have 2 properties collecting rental now, one is giving me a yield of 4.8% while the other is more than 6%. I bought them 1.5 years ago just before prices were shooting up. Although prices have gone up, rentals have also gone up and there are still potential units out there providing good rental yields for your investments.

Work out your sums carefully and hope you have fun in your property search!

[rachelle 0]

I am looking at investment properties too....but think prices have peaked. With dark clouds over the horizon, dun think the property market will go up in the near term. Even the big developers are holding back their launches...

[l_club23 0]

Property prices taking a dip right about now...

[zirhk3355 1]

With Bravo giving up its three enbloc sites, I think it had certainly caused anxiety amongst those investors and especially speculators. Those who bought uncompleted projects would be the most worried.

People who does not have holding power suddenly found themselves stuck in a corner; cannot sell and also cannot rent. Buyers and tenants alike are holding back with a 'look-see' attitude. Speaking of rental, the situation become obvious as we start to see hotels and serviced residences filling up, because those expats who are already here will park themselves there for a few months first.

The very first place to dip is city/prime districts, ie dist 1 to 8, 9, 10, 11; just look at the new projects in the area, all seemingly going to TOP at the same period!

Good stuff coming the way of those who had waited - about time to take out the chequebooks and visit auctions liao...

[gracesmith 0]

Hi.............,

Now property investment looked less attractive over the next few years because of the lack of capital gain, "although rents are likely to go up if you have a strong hike in people wanting to rent property". Rents were also expected to go up because there were likely to be fewer rental properties around. Competition between renters could see wealthier renters push traditional low-income renters to the margins.

[xebay11 0]

Hi.............,

Now property investment looked less attractive over the next few years because of the lack of capital gain, "although rents are likely to go up if you have a strong hike in people wanting to rent property". Rents were also expected to go up because there were likely to be fewer rental properties around. Competition between renters could see wealthier renters push traditional low-income renters to the margins.

Are you sure rentals are expected to go up? I thought many expats and foreign executives are moving out of Singapore. HDB rentals are still holding though.

[yoongf 11]

Gracesmith is talking about canada properties judging from her signature.