Time to sell and Rent ?

[Throttle2]

everyday eat bread and porridge with soy sauce . sure can tong one. I went through those life before . won't die one.

Yes, tong.....

 

Now taking mrt....

[Little_prince]

was reading this

 

http://singaporeanstocksinvestor.blogspot.sg/2013/07/to-rent-or-to-buy-rule-of-15.html

 

 

I get the feeling that most of us don't like the idea of renting a place to stay in Singapore. Why pay rent and not own the place? We are helping the landlord pay his mortgage on the property!

However, a question then is what if we were to buy our home only to find out that we bought it at a price too high? That has happened to many people before, I am sure. Then, in such an instance, the person who chose to rent instead of buying would have done better.

How not to pay a price too high?

I am sure that there are many things to consider but there is a nice little rule that can make it easier for us to make a decision on whether to rent or to buy.

"Rule of 15" says that if we could buy a home at a price that is 15 times or less the annual rent a similar property would fetch in the area, it makes more sense to buy than to rent.

So, if a two bedroom condominium is selling for $1.5m and the gross annual rent a similar property in the same area is $60k, it makes more sense to rent than to buy. Annual rent of $60k x 15 years = $900k.

We can also use this simple rule of thumb to help decide if we would like to put up a property for sale.

If we look at it in terms of rental yield, this rule is basically saying that if the gross rental yield of a property is 6.66% or higher, it makes sense to buy and if it is lower, it makes sense to rent.

For a while now, we see people buying real estate in Singapore and being quite happy with rental yields of 2+% to 3+%. This is acceptable really only because of the abnormally low interest rate environment. It won't last.

The "Rule of 15" is a rough gauge but it is a sensible one as it suggests that a 6.66% gross yield, whether we are owner occupiers or real estate investors, is what we should be looking for to survive more normalised (i.e. higher) interest rates in future.

Definitely, it does not take in all factors which are necessary for consideration but it is a nice preliminary check on whether we should buy or rent a home.

 

[OmOm]

It makes more sense to buy than rent when the country is growing and expanding economically. This provides upside for property prices since more people coming into the country to work creates competition for supply.

 

When the country's economy has plateaued and is struggling to continue growing, and people are leaving the country for greener pastures, this presents downside for property prices through waning demand. It then makes more sense to rent than buy.

 

was reading this

 

http://singaporeanstocksinvestor.blogspot.sg/2013/07/to-rent-or-to-buy-rule-of-15.html

 

 

 

[Jamesc]

So many financial experts saying buy when he price is low.

 

I have one very teeny weeny little question for these financial gurus

 

giving free advice in papers and on blogs.

 

When is it low?

 

I remember one financial editor in a big paper

 

buying his condo in 1996 just before the Asian Financial Crisis.

 

A few year later he wrote in his newspaper.

 

He felt he made the right decision as he liked the place he bought.

 

Some people really say things to make themselves feel better.

 

I am sure he will like the place even more if he paid a much lower

 

price for it.

 

[Galantspeedz]

Rent cannot be paid by cpf leh

[Throttle2]

Mai spread fear

 

Why sell?

Agents say buy!

 

Huat ah!

[Sdf4786k]

Mai spread fear

 

Why sell?

Agents say buy!

 

Huat ah!

 

yeah, the economy still doing very good.

 

Prices are still firm and going sideway of 1 % every month up some months down some months compared to 09 /10 where it have gone up by 30 to 40 %

 

Sibor is going up. Some months down. This month will see if the Fed will raise

 

A much better question would be if we should switch to fixed rate instead of sibor and which bank

 

I went with Stand chart as ease of switching. But heard for Citibank, there is no fees for switching multiple times.

[Throttle2]

Yes buy buy buy.

Now is the best time to buy.

 

So that i can offload my 6 units....muayhahahahahah

[OmOm]

Technical recession risk in Singapore:

 

http://www.straitstimes.com/business/economy/technical-recession-threat-looming-once-again

 

 

yeah, the economy still doing very good.

 

Prices are still firm and going sideway of 1 % every month up some months down some months compared to 09 /10 where it have gone up by 30 to 40 %

 

Sibor is going up. Some months down. This month will see if the Fed will raise

 

A much better question would be if we should switch to fixed rate instead of sibor and which bank

 

I went with Stand chart as ease of switching. But heard for Citibank, there is no fees for switching multiple times.

[Wt_know]

recession?

property showroom still pack wor

[Duckduck]

So many financial experts saying buy when he price is low.

 

I have one very teeny weeny little question for these financial gurus

 

giving free advice in papers and on blogs.

 

When is it low?

 

I remember one financial editor in a big paper

 

buying his condo in 1996 just before the Asian Financial Crisis.

 

A few year later he wrote in his newspaper.

 

He felt he made the right decision as he liked the place he bought.

 

Some people really say things to make themselves feel better.

 

I am sure he will like the place even more if he paid a much lower

 

price for it.

 

 

no global recession no low. period. patience rewards i can tell u this.

[Baal]

How is the 'trilive' condo for own stay? Heard radio say cm very likely lifted this yr. About 1400+/sqft. Dual key unit. 109sqm.

[Throttle2]

How is the 'trilive' condo for own stay? Heard radio say cm very likely lifted this yr. About 1400+/sqft. Dual key unit. 109sqm.

If got money, and you like, buy lah.

 

The FinanceMinister already said recently that prices are high and CM will not be lifted

 

You heard radio say CM will be lifted?

I also heard the boy riding skate scooter in the park say CM will be lifted.

You want to believe?

[Baal]

If got money, and you like, buy lah.

 

The FinanceMinister already said recently that prices are high and CM will not be lifted

 

You heard radio say CM will be lifted?

I also heard the boy riding skate scooter in the park say CM will be lifted.

You want to believe?

Admittedly, wat i heard over radio should be bout 3-4mths ago.

[Throttle2]

Admittedly, wat i heard over radio should be bout 3-4mths ago.

There will be all these rumors and suggestions in self interest floating around.

[CH_CO]

yawns ,when coe at btm it will be a good time to buy car but where is the btm , for one which needs a car absolutely , it is anytime.

 

For those which is not in a hurry to buy car , can take their time.

 

And for those buying a spare car , they can wait for the ones no in a hurry to offload their cars before buying.

 

 

 

--------------------------

 

No massive bankruptcy , personally CM is here to stay if the garmen wants a stable government , i have run many models , all points out that a regulated property market is more sustainable than one which lets market forces come in and goes off causing the local residents to pay for the massive churning.

 

Anyway , letting the prices drop slowly would be better , it is slowly moving down but all we need is another jolt to let prices drop a little sharper and your future generations will thank you for it.

 

It is more than documented that the main cost of living in Singapore is housing and basic needs like food and electricity and water.

 

A high rental is the reason why hawker and coffeeshop food is not cheap , a drop in property prices and rental would indirectly reduce the cost and it is likely to point to a cheaper cost of food.

 

A cheaper flat would mean i have more accessible funds to have children and take care of their daily needs , more money to take care of your elderly parents(less taxing on garmen) and generally a better place for all to stay.

Edited September 13, 2015 by CH_CO

[CH_CO]

I also agree to suggestion that the properties should be sold back to hdb instead of floating on the open market. but it is too much of a hassle after that. so any solutions how to solve this?

 

I do find alot of people here bring alot of grievance but little solutions.

[Baal]

Viewed dual key unit at trilive. 1460-1500 psf. Size 108sqm. For the main unit, the toilets are large n so is the balcony

Result in small living/dining area. There s no wash area. Instead washing machine in the kitchen. Water pipes equipped in balcony. Can also place washing machine there. Its freehold. Top circa end of 2018 .