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Sell Private & Buy HDB & Private?

KiaCeratoHB

By KiaCeratoHB,
in Property Buzz

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F10_Blackhawk

F10_Blackhawk

4th Gear

The pty mkt has not truly corrected, what makes you think that someone entering 5 years later will get priced out? Agents say that?

I agree...the market has not fully corrected UPWARDS...its only just started moving up in terms of number of transactions and prices (resale, new sale, land price that Developers are paying to govt).So do listen to bears and wait some more. Pls don’t listen to agents, analysts as ONLY they are vested. Bears have no secret agenda for prices to be low.

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LPPL

LPPL

6th Gear

I agree...the market has not fully corrected UPWARDS...its only just started moving up in terms of number of transactions and prices (resale, new sale, land price that Developers are paying to govt).So do listen to bears and wait some more. Pls donât listen to agents, analysts as ONLY they are vested. Bears have no secret agenda for prices to be low.

What kind of rental yield you expect from your property? 0.1%? Lol
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Showster

Showster

Twincharged

A few years ago, HDB rental yield typical calculation is 6 or 7% rental yield, a condo rental yield is 4% while a landed House may be 2%.

 

Supposing the public housing prices stay stagnant and private housing doubles, we are still looking at 6% (public) versus 2% condo and 1% house.

 

Going by rental yield one will still go for HDB and not private, even if there is much more room for appreciation. Conversely, if the price of private halves while public stays the same, would we say now go for condo because it’s yield is 8% followed by HDB at 6% followed by landed at 4%?

 

Conclusion: rental yield is a part of the picture, but it should never be the sole consideration especially if one's intention is to stay.

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F10_Blackhawk

F10_Blackhawk

4th Gear

https://www.propertyguru.com.sg/listing/19916883/for-rent-sweetenham-gcb-d10-for-rent

 

This GCB is not quite 0.1% yield but after minus property tax, income tax, maintenance etc, it would be close to 0.6% assuming it is valued at 1500 psf.

Well last i checked, HDB does not build GCB. And TS was considering HDB / Condo....thus i asked LPPL please show us which ppty yield 0.1% rental. If not its just another case of fake news.

 

Years ago i remembered when i bought a resale Maplewoods 3 bedder, rental was $2,500 / month. The unit cost was close to $1m. Subsequently the unit was leased out at ever increasing rental value until my last renewal where i kept it flat.This is despite the fact the condo was right in front of massive works due to the construction of DTL.

 

Fast forward to 2018, it is still commanding $4,200 / month and my downstairs neighbour sold it for $2.1m. While the rental yield based on current value is in the Low 2% (certainly not 0.1% lol) but base on historical value it’s 5%. Some jokers will come and tell me rent will drop, massive supply etc. So let me ask, even if it drops to $2,300 / month, the yield is 1.3% (certainly not 0.1%). However, lets not forget even a 5Rm HDB is going for $3k rental around Toh Yi area and i have not even considered inflation or the recent rule change that cap the number of persons staying at 4rm flat and above at 6 pax.

 

So tell me, will HDB or condo yield drop to 0.1% lol. Anyway like i said, Bear, `Miss the Boat’ people will always be behind the curve. When price was dropping, they hope for it to go lower. When it’s rising, they say it will drop. Anyway it’s good, less competition in the market for buyers lol

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LPPL

LPPL

6th Gear
(edited)

Pls show me which property is 0.1% yield? Your house? Lol

 

You don't know what is a figure of speech? If market is going to "correct upwards" further as what you mentioned, we are looking at a very pathetic yield, hence 0.1% is used to highlight my point. Didn't expect people to take things so literally in a forum...lol

Edited by LPPL
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Ash2017

Ash2017

Twincharged

A few years ago, HDB rental yield typical calculation is 6 or 7% rental yield, a condo rental yield is 4% while a landed House may be 2%.

 

Supposing the public housing prices stay stagnant and private housing doubles, we are still looking at 6% (public) versus 2% condo and 1% house.

 

Going by rental yield one will still go for HDB and not private, even if there is much more room for appreciation. Conversely, if the price of private halves while public stays the same, would we say now go for condo because itâs yield is 8% followed by HDB at 6% followed by landed at 4%?

 

Conclusion: rental yield is a part of the picture, but it should never be the sole consideration especially if one's intention is to stay.

when we calculate rental yield, do we use bought price or current price?

 

I thought we use current price

 

theoretically net yield can go below 1%?

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Showster

Showster

Twincharged

when we calculate rental yield, do we use bought price or current price?

 

I thought we use current price

 

theoretically net yield can go below 1%?

It’s really up to you.

 

If you have no intention to sell at any reasonable price, can use your buying price.

 

But if you benchmark against potential selling price or trying to gauge opportunity costs for your funds instead, can use current price.

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F10_Blackhawk

F10_Blackhawk

4th Gear

You don't know what is a figure of speech? If market is going to "correct upwards" further as what you mentioned, we are looking at a very pathetic yield, hence 0.1% is used to highlight my point. Didn't expect people to take things so literally in a forum...lol

Of coz I know lol but 0.1%? You might as well stretch it figuratively and say negative yield. We all know who are the big ppty bears here...yourself, throttleB and a few others.

 

The thing is, bears and those with agenda for prices to be low (miss the boat, sellers who sold too early hoping to buy back etc) will always find excuses to shout low. They want to justify their past actions or ‘analysis’. Eventually they will get it right coz nothing goes up forever but after the drop, the low could still be higher than the previous low. Seriously, are you afraid of competition that whenever there are interests to buy, you discourage people from buying? Lol

 

Not to mention loss of rental income opportunities or paid rental to landlord while waiting for durians to drop.

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Showster

Showster

Twincharged

But if you take that stretch, just the appreciation gain (without considering yields) is going to make some people numb in their fingers.

 

Moreover, as supply and demand balances together, it is also highly likely that price will not run away on its own without rental following. 

 

A more balanced tug-of-war scenario should appear soon, moving more and more in favour of private properties until both sides are balanced.

 

 

You don't know what is a figure of speech? If market is going to "correct upwards" further as what you mentioned, we are looking at a very pathetic yield, hence 0.1% is used to highlight my point. Didn't expect people to take things so literally in a forum...lol

 

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Wt_know

Wt_know

Supersonic
(edited)

what for? unless it's really cui that will depress the price ... but buy how much?

clean up + repaint should suffice to ensure it's not totally rundown

renovation is sibei subjective ... you can throw in $50K-$70K to make it looks nice

buyer don't like the design or talk down the cabinet not nice la ...  this and that ... will lowball the price

 

Do you guys renovate your house before selling it off?

 

Edited by Wt_know
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F10_Blackhawk

F10_Blackhawk

4th Gear

Do you guys renovate your house before selling it off?

No. Even for myself, I love to buy run down ppty so I do not have to crack my brain to see what to keep or hack. As WT mentioned, 1 man’s meat could be another’s poison

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Chongster

Chongster

6th Gear

actually should divorce wife, buy HDB, buy condo, still live together, get a good lawyer to write a good will and various POA to replicate the legal effects of marriage. if eventually sold HDB can marry back. get another round of ang paos some more. 

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