Property Investment: Should you Buy Property in Singapore to Rent It Out? Here's the Hidden Truth!
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- Опубліковано 6 вер 2024
- In this video, i undertake to work out whether is it a good choice to buy a property for investment in Singapore to rent out. I work out the expenses needed to pay your bank.
Also what are the cost when it comes to renting our your property, the maintenance fee, property tax, agent fee, insurance and interest payments too.
When you sell off your property, will it be worthwhile the return on investment for your property.
What if you're a 2nd property owner, where you need to pay 12% ABSD, will it be worth it to do so?
What if you were to sell it at the same price, when can you sell your property yet still make money?
Should you take a shorter loan tenure when it comes to property investment or should you take the longest period available?
I'm curious why CPF used for downpayment is not factored in for sales proceeds/profits?
my objective is to calculate the profit.
My downpayment could be form by cash or cpf&Cash.
Hence sales proceed - downpayment = profit
Great video. I found it very clear and concise but very informative.
very good analysis. thank you.
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Great video for learning 👍. Very detailed informations. Keep it up.
Another over optimism kind of calculation to lure ppl in.
Do you know that if you make a 30 year loan for example, the repayment is 31% towards the principal and 69% towards the interest. That is to say, if you have paid $100,000, actually you paid only $31,000; $69,000 goes to pay your compound interest. How can you say you make money if you buy and sell at the same price. Rubbish! Only your bank, your property agent and your lawyer made money.
Thank you so much for sharing this super informative video!
Caleb, you want to do an update for this excel since the interest rates and rental rates are so much higher nowadays. Also, want to ask you, if the case is for both PR for a couple, what would the impact be since we have to pay 5% ABSD whenever we buy.
Do Share What You Think about property investments too!
Thank you for the insights! Definitely agree that CA is primary goal. What are your thoughts on including the Principle paid under profits?
at the end of the day, i want to know how much i put in with my own money and how much i'm getting back after selling.
So that will help me understand my investment return.
SInce downpayment is what i put in, additionally, monthly installment is also what i put in, less off the net rental income, that will form my "new capital".
Then when i compare it with my sales proceed after selling, i'll have a good sense of my return on investment.
Do help me like and subscribe for future video too!
Should we deduct the accrued interest from sales proceeds to calculate the profits of the property? Would this be double counting because the accrured interest will be returned to our CPF from the sales proceeds
For me, I want to calculate my cash on cash return. That's why I have included it in so that I can see what's my growth for my cash at the end of the day.
@@CalebSeah Thanks for your fast reply!
Is there a seller's stamp duty in Singapore?
How did you deduce the monthly agent fee? What is the agent fee for the property? (Is the agent supporting getting the payment from the tenant? 111.46/2500 = 4.46% and how can it be derived from? Which formula did you use? Thank in advance.
typically i use an average of 1 month rental for every 24 months of lease plus GST
Hi Caleb, are you able to share the excel sheet you used for this calculations? I want to calculate my own profitability. thanks!
Just create your own. Simple.
What has the highest interest rate went in Singapore?
For your rental yield, shouldn't it be Net Rental * 12 / property price?
gross rental yield is gross rental * 12/ property price.
Net rental yield is net rental * 12 / property price.
Hi, just happen to see your video. What if we paid part of the mortgage using CPF. Will it lead to higher yields since you’re receiving more cash when you rent it out?
Yes. you're kinda drawing from your CPF when you rent it out and pay with CPF for your mortgage.
The more cpf you used.
The more cpf will be returned upon sellling.
Which will decrease your end of the day cash proceeds when you sell eventually...
@@CalebSeah Oh ya, that makes sense. Thanks for sharing!
Nice video. Great work!
May I know if you can share this Excel template for more people to benefit ? Thank you
sure... whatsapp me your email at 91085690, i'll send it over to you... *forgotten to put disclaimer in my video lol. so cannot share freely...
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