do u consider auction props ?

Depending on the entry cost. I tend to look lesser on auction and subsale these days because of the initial upfront cost of around 15% and almost instant monthly payment since banks will disbruse 100% within 3-6 months.

So the opportunity cost you need to calculate the upfront 15% + monthly installment compunded to your target no of years to cash out.

But if u buy with cash and the rental can yield you more than 4%, I would suggest auction prop or even subsale. If loan, I don't really recommend.


If your property does not generate the return you intended after the no of x years, then the prop is not generating good enough return for u. You can refer to the qoute above on how truesmartinvestor calculate.

I only bought 1 auction unit which is less than 150k 6 years back and so far the yield is pretty good around 8% nett which the value increased around 50% over the past 6 years which is around 8% increase per year

But the value is now stagnated and I think if I were to liquidate it will be less than 8% pa. So far I will keep it since it's generating more than what I can find outside, and will liquidate it when I find better opportunities

This post has been edited by WannaGetBuffed: Jan 31 2018, 02:33 PM

nowadays i dont think there any primary prop that have yield of 5% and above.

i need to look at the calculations to find any value props that i can buy

That's why I advice if u can't find any just put it in a flexible interest account for now with self discipline and compund it yourself since u are planning to invest anyway.

If u put in 100k and 2k compound monthly into an account, it will be more than just plain 100k, interest calculation. A lot of people look down on the power of compunding interest or do not have selected disipline to do the self compunding that's why they get a bank loan to force themselves to save and invest.

Which I think is quite bad method in today's market

To be fair, I still have condo units generating positive yield. One of it is more than 10%. But if one goes in today, it will still depend on the entry price, the deposit, the return and it's cost.

I am still purchasing, in fact after selling off those 2, I bought another 2 which I believe will have a better potential to return more than 4%.

Furthermore this time smart already, entry cost is less than 40k so my opportunity cost to be negative is lower and I pump my money somewhere else for a higher return.

Property is not all ddd. Still can buy but super selected and lots of homework. But I believe it's rewarding if done correctly.

[/quote]
if i want to increase rental yield, can this unit with 3 rooms convert into 2 separate studio unit by breaking the wall between room 1 and 2 and living area(since there are 2 entrance doors)?

Erm wrong calculation.. Did not factor in that investor only took 10% on capital and the keyword is leverage..

Return should based on capital u folk out

Buy property 685k does not mean he using 685k as capital and the fact he just using 68.5k as capital..

Pls give your opinion if u think wrong

[quote=Agent 45,Jan 31 2018, 03:23 PM]
To be fair, I still have condo units generating positive yield. One of it is more than 10%. But if one goes in today, it will still depend on the entry price, the deposit, the return and it's cost.

I am still purchasing, in fact after selling off those 2, I bought another 2 which I believe will have a better potential to return more than 4%.

Furthermore this time smart already, entry cost is less than 40k so my opportunity cost to be negative is lower and I pump my money somewhere else for a higher return.

Property is not all ddd. Still can buy but super selected and lots of homework. But I believe it's rewarding if done correctly.

[/quote]
if i want to increase rental yield, can this unit with 3 rooms convert into 2 separate studio unit by breaking the wall between room 1 and 2 and living area(since there are 2 entrance doors)?


[/quote]


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Gone up di... gvh drop in value..

The vultures are scavanging the poor and herd investors properties.. and stuck with debts

so is leverage can give u advantage.?

or just need to calculate cashflow in like 5 years

buat rumah mahal2 lepas tu xde sapa beli

masuk berita salahkan kerajaan negeri kena cas mahal untuk tukar status bumi

bodo

buat rumah kedai banyak2

lepas tu xde sapa beli sbb tak strategik

bodo

This post has been edited by KiRin_KisHi88: Jan 31 2018, 06:29 PM

Some borrowers like zuiko407 and manutd and ah liew is doing like dis..

Buy say gvh project 1 million..30 years..10% dp or zero dp..monthly pay 4500 ..

They bought service loan ard 1 year.. total cost paid ard 55k..

They refinance 800k.. monthly pay 7k to 8k.. 30 years..

Now they have 800k.. can use to invest on others or break it down.. per month now pay 8k installment including refinance.. one year

7k x 12 months= 84k
800k can last 8 to 9 years without doing anything.. by that time wat ever financilal crisis over di.. and prop also increase in price too so win win

Some use d 800k to increase income and borrow again again.. and more.. u are buying term of years..

If they rented out.. they profit and less reduction..

I see ppl take housing loan.. then refinance.. then od.. then ml and etc..

Hard to see all of them if they use prudently.. but if spend on bmw.. audi.. etc then gg

My 2 cents

Wah, lu apa calculation

U scenario only can apply to fully paid property or have a very big capital gain..

Let say u buy 1m, valuation increase to 2m then u can cash out around 1m la
If u buy 1 Mil but price never increase then how to refinance

Secondly u must have enough cash flow n income to support only can do this otherwise bank won't borrow u

If u smartly use the cash then ok, don't refinance n buy fancy car

Borrow smart and spend wise

Refinance a lower sum lor..

Want to check with u if tenant not pay rent can I put him into CTOS? Or any other way to do that

Right, in the example, it is 1.5% on the leveraged amount but is excluding taxes and mot. With that sifu excel, the calculation can be thorough. With excel, you probably can do future calculation simulations with some assumptions. What if hold another 5 years and at the end of 5 years price is x amount.

So the 1.5% translates to 15% gain of 68.3k he invested which is about 10k only. Mot and taxes and maintenance cost more than 10k. And the lost is even greater if the nett yield is negative! Loss is also multiplied when leveraged.

10% rental yields are based on purchased price or market price?

Purchase price. I spent x amount to invest, I get x% of return. It don't make sense if I use market price unless I want to liquidate it.

Need to get a judgment I guess..

I saw some suppliers enter ctos their downline who dont pay

Bitcoin burst. Stock market crash. So property when?.
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