What Is The Cheapest Property For 99, 999 And Freehold

[big orange 0]

Anyone any ideas?

I have friends who are earning 7-8K want to buy and rent out.

Worth the risk?

many indication show the market can and will collapse anytime..

TIA

[rustgal17 0]

Anyone any ideas?

I have friends who are earning 7-8K want to buy and rent out.

Worth the risk?

many indication show the market can and will collapse anytime..

TIA

The cheapest is of course a 99 years old property. Better still, if you will to buy a EC, i mean for investment purposes like renting it out. It is not important how much you earn but how much you have in your savings (in ready cash) and it is not earning any interest if you leave it in a saving account.

[vampree 0]

renting is not as easy as many deem it to be ... alot of factors to consider (eg) location, potential demand, amenities within/without, ability to pay-off mortage if unable to find tenant, tenant problems etc

if one is thinking of using the rent to subsidise a huge portion of the mthly mortage repayment and has no $$$ reserve, it is overly risky and may cause undue stress.

[TYM 0]

7-8k i would think is just nice to get a hdb flat, set up a family, get a car mayb and still be a bit comfortable. Getting a condo might be tight especially if u are depending on the rental to pay the MI.

[lyuira 0]

I think that if you need to take on a loan for your investment property, the risk is too high, especially with all the talk about market bubble.

I also did some back of the envelope calculation and my conclusion was that sometimes your rental income will not be able to cover your installments, unless you're very far-sighted about the location.

[jwn 0]

lyuira

can teach me how to calculate rental returns by %? i have heard that about 4% is base line, 6% onwards is healthy. is it true?

[zirhk3355 1]

Start with doing initial yield (or gross rental yield) on your potential developments to shortlist the units you should consider.

"Initial Yield" refers to the annual rental divided by sales price, which means how many percentage of the buying price can the investor get back on an annual basis.

{Buying Price / (Monthly Rental x 12)} x 100%

WARNING: initial yield calculations do not take into consideration of the taxes, mortgage interest's changes and assumed that the rental rates and property's price remains the same.

Thus this is a very, very simplistic way of calculating yield and pls do not use this alone to make your decision to buy. However like abovementioned, it gives the investor a quick, on-the-spot judgement whether to further consider buying the property or move on to see others.

Want to do more 'chim' calculations, just search for "rental yield" in Google and you can find alot of info. Some kind souls who are real estate experts also give out spreadsheets with ready formulas inside.

Edited June 21, 2008 by zirhk3355

[Danielray 0]

one of the cheapest for freehold property is the geylang area

a 3-bedrm apt ard 90sqm could go as low as $600k

i thk it's seriously undervalued, no doubt due to proximity to red light district, but that area has many 'attractions' of its own

any property agents or investors or gurus feel the same way? will prices for that area spike upwards?

any other areas worth looking at? how abt south-west like pasir panjang, bouna vista, etc

[papbestdad 0]

Anyone any ideas?

I have friends who are earning 7-8K want to buy and rent out.

Worth the risk?

many indication show the market can and will collapse anytime. .

TIA

What indication do you see? You think PAP will let it Collapse?

[doggydo 0]

My old house lor...6000 sq ft, 999 yrs. Sold for 1mil only.

[wuga98 0]

where is your old house, just out of curiosity. Thanks

My old house lor...6000 sq ft, 999 yrs. Sold for 1mil only.

[doggydo 0]

where is your old house, just out of curiosity. Thanks

In The East...dun tell you location. In case peoples start buying there and I have no $$$ to move back to landed property...dun like HDB living.