Rental Yield For Positive Cash Flow

[ktnal 0]

Hi,

Planning to buy a second house for investment and rental but heard many negative feedback. Some of my friends said rental can hardly cover the monthly bank loan. They said have to pay monthly condo management fee, PUB bills and some time no rental for months. Is it true? Can a rental yield of 5% cover the monthly bank loan?

[therat 18]

Some of my friends said rental can hardly cover the monthly bank loan.

depend how much is your rental and how much you buy the property.

They said have to pay monthly condo management fee, PUB bills and some time no rental for months. Is it true?

True.

And if you so unlucky , had a "tenant" who did a runner. more headache

If you get a good tenant , treasure it.

Can a rental yield of 5% cover the monthly bank loan?

Now, still can get 5% yield?

Did your friend tell you. Once you buy 2nd property , u will lost all government rebate.. like recently GST voucher. U will get zero. Nothing at all.

No Medisave top up

No cash

No U-save for PUB

And your present HDB town council fee will be higher too.

Then from 2015, property tax for investment increase.

Loan also lesses

Need to pay buyer stamp duty.

shorter loan term - cap at 65 yrs old.

If you can't understand all these or find out these information by urself. and depend on mouth to mouth talk.

Better don't move.

[bepgof 20]

Side track. Portrait u a bigger picture.

Investors buy property for rental yield(DY) as well as capital gain (CGY). Much like stocks.

Short term (1-5yr)

Mid term(5-10yr)

Long term (10 and above)

Are u able to ride the 'roller coaster' still in 'one piece' at end of journey(actually no end, end only when call home by Lord)

Do you asset allocation planning properly. This one school never teach (some finance courses do actually)

1. Cash - cash flow (all the liquid accounts)

2. Estate - property

3. Insurance (home, car, medical, life, inv link......)

4. Education (intangible) - increase yr capacity to earn more!

5. Children/dependent...

6. Investments (business ventures, stock mkt, foreign exchange......)

All about cash inflows and cash outflows......

[kalimantan 6]

Hi,

Planning to buy a second house for investment and rental but heard many negative feedback. Some of my friends said rental can hardly cover the monthly bank loan. They said have to pay monthly condo management fee, PUB bills and some time no rental for months. Is it true? Can a rental yield of 5% cover the monthly bank loan?

Don't dream. The 5% yield probably given by sales agents talk.

People like you work hard and have good earning power to buy 2nd pty, but there is a tendency of public are anti-FT . If anti-ft continues, which means no foreigners arrive, how do you get tenants ? I honestly tell you - I've problems getting tenants as well as there are many anti-ft sentiments. Somemore my location is 1 min walk to MRT - and cheap cheap, also has problems.

Sometimes it is better to put $ in market to get the same returns.

[kalimantan 6]

depend how much is your rental and how much you buy the property.

True.

And if you so unlucky , had a "tenant" who did a runner. more headache

If you get a good tenant , treasure it.

Now, still can get 5% yield?

Did your friend tell you. Once you buy 2nd property , u will lost all government rebate.. like recently GST voucher. U will get zero. Nothing at all.

No Medisave top up

No cash

No U-save for PUB

And your present HDB town council fee will be higher too.

Then from 2015, property tax for investment increase.

Loan also lesses

Need to pay buyer stamp duty.

shorter loan term - cap at 65 yrs old.

If you can't understand all these or find out these information by urself. and depend on mouth to mouth talk.

Better don't move.

Can I clarify this further ?

1. I still put my HDB address in IC - and I continue to get those govt rebates

2. year 2015 tax property for investment increase ? Increase to how much ?

I put my name in HDB - pty tax is 4%, while my wife put her name in condo - also 4%. At that time, IRAS return me those $ when both my names are HDB (4%) / condo (10%). I ask IRAS for rebate because my wife first timer in condo which should be 4% and not tax the husband (10%)