Those were the days where u can still have healthy surplus of cash flow from rental. Now???? Consider lucky if u can get anything above 5%..

So if i got my apratment at around 400k n rent out at 2k++ is not that bad then.

Too late i think. Now 600k for the 920 sq ft And 500k for the 719 sq ft. And that is considered as the best price u can get if u are the buyer. Mine was offered by an interested buyer at 660k even though i did not advertise it for sale but just for rent. It seems that the buyer was interested wit my unit view. Anyway there are still subsale buyers and from my observation, these people who bought subsale are really well off thus have high holding power. All are anticipating with d coming of sunway velocity and the MRT. Btw sunway velocity is 1m++ for the 920 sq ft and 1st phase all sold out and i heard the second phase is almost finished. I believe the sgprean who was interested with Amaya might have go for sunway velocity instead becausw of foreigner hav to buy property more than 1m.

Right now 2.7k fully furnish with rm230 maintenance fee if u can find d tenant.

Those are not fully furnish. 2.7k is the highes been rented out unless there were more and i didnt know. Anyway try and sort ur search based on highest asking rental to lowest rental. U know dat iproperty website can do that.

Seriously depends, from my observation, will be hard for you to rent out if it is not furnished. And look at the sq ft too. If u look at it, 719 sq ft was part of the rental that u ade averaging out. Doesnt seem fair

If rent is enough to cover loan repayment,  most if not all tenants would have bought.

Well iporperty advetsied some of the 719 sq ft partial furnish at 1.8k. And some of the rented out units is still there and not taken out.

Anyway fair enuff but as someone on the ground and went to amaya almost everyday, 1.8k is partial furnish for the 719 sq ft and 1.8k average for the 920 sq ft partial furnish is a misleading analysis. But i dont deny that some were rented out that very low rate but not the vast majority. Those are the people with no holding power and rented out very early. Eg i only rented out mine on february when the furnishing and reno was finished done at end of last year. Some renovated early and got rented out around october last year.

how you get 3.06%?

The yield is taken from leverage assets. So a 3% yield is quite good and after take into account the capital appreciation, the return will be higher. Of course i am going to try and increase the yield by increasing the rental as well.

Of course i am using 400k as the value of the property instead of 600k. I mean make sure that the rental covers ur installment. So if 600k u should maybe rent at 2.7k and get a yield of 4.5%

I m suprised.. are u the same boat as us hoping for cirrection crash then only go buy? I m impressed...

That is good welcome to the boat.. atmosphere is here just needed the correction /crash..

Omg!Your accounting fail. U r really 'lek enm cik'

pls google what is asset and  what is bank toxic assets.

Even without collateral it is possible to arrive at fair value. Further reading http://www.sirudorealty.com/assets/PDFs/Mark-to-Market.pdf

In the current and prevailing mortgage market, the mark-to-market only occurs
during the lender’s due diligence as part of the loan approval process.
The only other occurrence is of course when an existing loan is refinanced.
The risk associated with a lack of mark-to-market as a risk management tool is that
during the life of a loan, the market volatility, due to decline in property values, can
cause the risk for both mortgagor and mortgagee to be substantially different from
such calculated risk at the time of the origination of the loan.
Such risk can be alleviated by using the mark-to-market model on an annual basis
and adjust the exposed risk on the lender’s balance sheet.
R(it) = P(it) – L(it) + D(it)
The risk ®, at time of loan initiation, equals the FMV of the property minus the
loan amount increased with the original down payment.
In this formula, the risk is zero from a theoretical perspective. However, from a
mortgagee balance sheet perspective the loan will have a book value of 95%, which
includes an expected industry average default risk of 5%.
...

i am retiring accountant.

U still dont understand my point. As u never face this transaction.

said u r bank a. During property booming your bank if sold off  is worth 20bil.
During property bubble. Do you think u still can sell your bank at 20bil?

I am not trying to relating it to prudent concept.

No problem u dont understand.

First, I hv to qualify myself that I am not an accountant, altho I hv to deal with accounting every year.

For normal cases, I think cherroy mod, hikari are absolutely correct. Why mess with the account and entries here and there when it is not necessary.

For extreme case, when bank is going under, chances of those servicing the loans are in doubt, and "white knight" or shark is coming into the scene, tikaram's theory may hold some truths. When massive write downs are required, prop prices may take a bitting.  This is just my thought, no technical basis.

I hv never heard of "margin call" for prop loan!

Remind me of gold hoarders/investors argument that gold price has been on upward trend for over 7 years and will continue to breach $2,000/oz in 2012, etc, etc, etc. Believe even those who hoard gold before the beginning of bull run in 2008 and invested more along the way are under water at current price.

Given enthusiasm level in the current property frenzy is similar to gold during the last bull run, it won't be a surprise the price drop will follow gold in proportion. Nothing goes up in straight line forever else there won't be less than 8% of adults have net worth over US$100k.

Traditionally; those profited in the beginning of bull run will reinvest more, and opportunists/flippers only enter the market after bull run has started for a few years and price has risen a substantial amount. History has show, both group will end up worst off at the end.