QUOTE(Count Auction @ May 31 2017, 05:29 PM)
At the current interest rate, it is so much better to rent.
4.15% interest v. Paying 2.5% gross cap rate.
I am thinking of selling my house and renting. Can upgrade and stay in 5 star residence at lower price.
Also, at current interest rate, investors are losing money most of the time. Unless your entry price is low enough, hoping to make money from rental? Better put it in an index fund.
rarely you can make profit out of rental, you have to wait until the house has been fully paid then rental starts to yield profit. before that, rental is just a cushion to reduce your monthly loan commitment. remember house is not shoplots, very hard to hope rental can cover your monthly installment because house prices are too high if you rent based off your monthly loan no one wants to rent coz it's too expensive.
shoplot on the other hand, owners know you start business you must have money, and doing business, you MUST BE MAKING ALOT OF MONEY. so they won't mind charging high rentals to cover their loans and even make some surplus.
this is why doing shop biz the most expensive is the rental, owners assume all business are doing good.
Koreans are smart, they are known to rent upper floors for their biz, they do it in every country, rarely you see them rent Ground floor unless it's mini mart. restaurants mostly upper floor wherever you go. the rental saved can be used for "All you can eat" entries to attract more customers.