Haha I don't see HDB as "poor people's housing", just saying. But I agree with all of you in different ways. I hv rather negative view on condo but I don't mind a house to stay or invest. My personal experience with condo, which I am still holding onto for more than 10yrs (freehold) is that I will lose money if I add up all the costs/expenses incurred, i.e. property tax, income tax, mortgage, MCST, stamp duties, repairs/maintenance, CPF interest repayment, and other hidden costs including commissions, tenants from hell, irresponsible agents, etc. I don't assume that everyone is so lucky to meet a good agent who takes care of everything swee swee for you, or well I didn't. Also, if you meet a not too great banker, you end up having to deal with banks to fix the mistakes. If you meet a lousy tenant, and irresponsible agent, it's double whammy. Perhaps I paint a very pessimistic view, I admit I probably did everything the wrong way, that's why. Then again I think I bought it in my early 30s, even tho I wished I done it earlier, but it's not too late to make mistakes and learn. My experience is probably "worse case scenario" that everyone should factor in when deciding to invest in property, rather than the superficial rosier side. And I also wonder if anyone considered the TIME vested to deal with the hassle(s) that comes along with property. I consider time the most expensive commodity, and there should be a pricetag to it as well. Another thing I thought is important consideration is whether one can afford to pay for monthly mortgage if say you lost you job, or due to unforeseen circumstances? And I ponder over whether it's so easy to sell property to liquidate? So with the same amount of money, if I were to invest conservatively, I will still make better ROI. Still I know many who believes in using property investment to make good money. Maybe I am missing out something great lol... Then if I were to buy a condo to stay, I don't consider it an upgrade because the space is smaller and more pricey - not exactly my definition of a quality lifestyle. If it's just 99 leasehold, what's the difference to HDB? Why not just spend more $$ on your own HDB and make it into a palace that looks better than condo, and everything is cheaper. Reno/repairs costs for private property is higher for the same thing. This is the opposite of "stretching the dollar". People says condo got facilities, but most of the time, I see that they are not in use. If you are still needed to work hard to afford it, you have time to enjoy it? There's a bit of restrictions to adhere, eg. if you move house, your mover can only park at certain slot, and you have to arrange for padding to condo lift, etc. Some of these are stricter than HDB. Actually, I find the ROI for HDB is higher, with everything being cheaper, more affordable. I am not clear why I still hold onto my condo. Likely, I am simply lazy to act, lazy to move, don't want to realise the loss, and uncertainty as to whether I can afford even a similar unit later.
IMHO, property allows safe and cheapest leverage. If you have $400k cash, you can only invest in $400k of stocks/bonds (don't talk about contra/gambling). But you can also invest in a $1.6M condo with leverage at low rates (since it's secured by the property). This is simple logic base. But of course you need a little more than $400k in order to have sufficient liquidity to play this game. Sitting on a fully paid HDB in your 30-40s, and just investing in stocks/bonds etc, is fine, but adding property investing will help a LOT due to the leverage it allows.
Let's consider the condominium purely from an investment perspective. Personally, I purchased a condo for $1.6 million in 2021, putting down a $400,000 down payment. In 2024, I sold it for $2.25 million, resulting in a capital appreciation profit of $625,000. Additionally, the rental income amounted to $5,700 per month, with interest expenses deducted at $1,700 monthly, yielding a net rental income of $4,000 monthly. In total, the profit consisted of $150,000 from rental income and $625,000 from capital appreciation, summing up to $800,000. In summary you start in 2021 with 400k, end in 2024 with 1.2 million cash. The annualized return on this investment was an impressive 44%.
40% capital growth in just 3 years? Wow which project? Mine was the same but only after 8 years. City fringe. Annualised returns less than 5% including rental income though mine was much reduced. U may be missing something
$800K profit....misleading.... Buyer Stamp Duty from purchase of $1.6M property: $52,200 Reno costs (assuming resale home): $15,000 Agent's commission for selling (2%): $45,000 Interest forgone if $400K was to be invested elsewhere, assuming conservative return in bond purchase (not even talking about buying S&P here): $36,000 Tax payable to IRAS for renting: $15,000 MSCT: $12,600 Commission for rental (1mth): $5,700 Conveyance fees when buying & selling: $8,000 Property tax (non-owner occupied): $14,000 Total costs in 3 years: $203,500 Since this is an investment property, not sure if ABSD was paid. If it's using someone's name to buy, then profit will have to be shared. Net profit for 1 pax: $580k in 3 years...not impressive at all...with risks.
You picked a bull market for real estate. So let’s the do the same for stocks by picking a bull market during the same period (USA). I use $100 to borrow $300 on margin at 4% margin rate, similar to your property leverage. SP500 went up 42% from 2021 till date. I end up with $400*1.42 = $568. Minus the margin interest of $12 per year for 3 years, and we get $532. We repay the margin loan of $300 to get $232 profits on $100 initial capital, representing a 50% annualised rate of return. All this without the hassle of sourcing a good property, paying exorbitant transaction fees to agents and lawyers, potential ABSD, finding tenants etc.
Invest in what you are truely knowledgeable and are good at. For me property gives a lot better and more consistent return over 15-20 years period. I also invest in stock, but the overall return over the same period is below market average. So, knowledge is key.
Property needs to make the right choice from the 1st step. Therefore, out of the 4, CK has the potential to make the most $. But based on the financials of the other 3, it’s easy to own 2 properties and yet able to continue investing for long term.
Eric is so correct. I am thinking if I sell off my apartment and buy a bond instead, my returns is similar in numerical value minus tenant headache, lesser personal income tax, no property tax, no maintenance cost.
Agree with eric . Honestly minus the taxes, interest, fees and stuff the annual returns from condo investment kinda low. Even factoring in full rental income. Maybe better than 5% if a good right next to mrt city fringe. Other than that cui.
You can ask for all these figures before purchasing the property to see if the numbers makes sense. But for stock you have to make a lot more assumptions before you invest Property is 10x easier to value
I was looking to buy a 2m property with 1m down pay and 1m loan for two of us combined 17k income. To make money from it, I need condo to appreciate >30k pa for my property due to: Annual interest cost (1m*2.5%)=$25000 Annual Mcst fees - hdb conservancy ((350-85)*12)=$3000 Annual additional property tax vs hdb = est $4k As u can see, if we hold for 10 years I need to make $300k just to break even the additional costs. Not 100% of condos have such returns It is disgusting ppty agents are touting these minimum $300k as for ‘retirement’ where I could have made these $300k additional just from staying in my fully paid hdb and just collect interest from plain ssb/tbill/cpf.
anything that is not hdb bto is likely not going to give you amazing returns as equities. property just isnt really used as investment. so, just buy and enjoy just like cars. they are luxury items. dont mix them with investments and your. life is easier
Statistically I guess more Singaporeans make money in property than in stocks and crypto. Although I am a property agent but I do investments in stocks and crypto too but I find it a lot easier to have value investing in property than stocks and crypto which the valuation can vary greatly depending on growth assumptions. Property valuation is so much easier to determine
Man like me didnt have property knowledge also know this way ...but this system or planning should be 25ys ago la ...im 55now. At this time only ppl with lots of money in hand then can do it . Just go around and ask 100 of them whether is it easy to upgrade at this time?
Dont forget most importantly anything can happened within few years ...will job income stable ? Or strike lottery better....if some mishaps happened then cry father mother also cannot help
Haha I don't see HDB as "poor people's housing", just saying. But I agree with all of you in different ways. I hv rather negative view on condo but I don't mind a house to stay or invest.
My personal experience with condo, which I am still holding onto for more than 10yrs (freehold) is that I will lose money if I add up all the costs/expenses incurred, i.e. property tax, income tax, mortgage, MCST, stamp duties, repairs/maintenance, CPF interest repayment, and other hidden costs including commissions, tenants from hell, irresponsible agents, etc. I don't assume that everyone is so lucky to meet a good agent who takes care of everything swee swee for you, or well I didn't. Also, if you meet a not too great banker, you end up having to deal with banks to fix the mistakes. If you meet a lousy tenant, and irresponsible agent, it's double whammy. Perhaps I paint a very pessimistic view, I admit I probably did everything the wrong way, that's why. Then again I think I bought it in my early 30s, even tho I wished I done it earlier, but it's not too late to make mistakes and learn. My experience is probably "worse case scenario" that everyone should factor in when deciding to invest in property, rather than the superficial rosier side. And I also wonder if anyone considered the TIME vested to deal with the hassle(s) that comes along with property. I consider time the most expensive commodity, and there should be a pricetag to it as well.
Another thing I thought is important consideration is whether one can afford to pay for monthly mortgage if say you lost you job, or due to unforeseen circumstances? And I ponder over whether it's so easy to sell property to liquidate?
So with the same amount of money, if I were to invest conservatively, I will still make better ROI. Still I know many who believes in using property investment to make good money. Maybe I am missing out something great lol...
Then if I were to buy a condo to stay, I don't consider it an upgrade because the space is smaller and more pricey - not exactly my definition of a quality lifestyle. If it's just 99 leasehold, what's the difference to HDB? Why not just spend more $$ on your own HDB and make it into a palace that looks better than condo, and everything is cheaper. Reno/repairs costs for private property is higher for the same thing. This is the opposite of "stretching the dollar". People says condo got facilities, but most of the time, I see that they are not in use. If you are still needed to work hard to afford it, you have time to enjoy it? There's a bit of restrictions to adhere, eg. if you move house, your mover can only park at certain slot, and you have to arrange for padding to condo lift, etc. Some of these are stricter than HDB.
Actually, I find the ROI for HDB is higher, with everything being cheaper, more affordable. I am not clear why I still hold onto my condo. Likely, I am simply lazy to act, lazy to move, don't want to realise the loss, and uncertainty as to whether I can afford even a similar unit later.
Your property is in CCR and small unit? Suggest u realise the loss, and re-invest in higher potential RCR or OCR one
Very wise insights.
💯
IMHO, property allows safe and cheapest leverage. If you have $400k cash, you can only invest in $400k of stocks/bonds (don't talk about contra/gambling). But you can also invest in a $1.6M condo with leverage at low rates (since it's secured by the property). This is simple logic base. But of course you need a little more than $400k in order to have sufficient liquidity to play this game. Sitting on a fully paid HDB in your 30-40s, and just investing in stocks/bonds etc, is fine, but adding property investing will help a LOT due to the leverage it allows.
Let's consider the condominium purely from an investment perspective. Personally, I purchased a condo for $1.6 million in 2021, putting down a $400,000 down payment. In 2024, I sold it for $2.25 million, resulting in a capital appreciation profit of $625,000. Additionally, the rental income amounted to $5,700 per month, with interest expenses deducted at $1,700 monthly, yielding a net rental income of $4,000 monthly.
In total, the profit consisted of $150,000 from rental income and $625,000 from capital appreciation, summing up to $800,000.
In summary you start in 2021 with 400k, end in 2024 with 1.2 million cash.
The annualized return on this investment was an impressive 44%.
How much is the condo monthly MCST? Property Tax? Renovation and repairs?
40% capital growth in just 3 years? Wow which project? Mine was the same but only after 8 years. City fringe. Annualised returns less than 5% including rental income though mine was much reduced. U may be missing something
@@marjaniminty8543 if you do some research.. mcst is actually peanuts in the grand scheme of a condo investment
$800K profit....misleading....
Buyer Stamp Duty from purchase of $1.6M property: $52,200
Reno costs (assuming resale home): $15,000
Agent's commission for selling (2%): $45,000
Interest forgone if $400K was to be invested elsewhere, assuming conservative return in bond purchase (not even talking about buying S&P here): $36,000
Tax payable to IRAS for renting: $15,000
MSCT: $12,600
Commission for rental (1mth): $5,700
Conveyance fees when buying & selling: $8,000
Property tax (non-owner occupied): $14,000
Total costs in 3 years: $203,500
Since this is an investment property, not sure if ABSD was paid.
If it's using someone's name to buy, then profit will have to be shared.
Net profit for 1 pax: $580k in 3 years...not impressive at all...with risks.
You picked a bull market for real estate. So let’s the do the same for stocks by picking a bull market during the same period (USA). I use $100 to borrow $300 on margin at 4% margin rate, similar to your property leverage. SP500 went up 42% from 2021 till date. I end up with $400*1.42 = $568. Minus the margin interest of $12 per year for 3 years, and we get $532. We repay the margin loan of $300 to get $232 profits on $100 initial capital, representing a 50% annualised rate of return. All this without the hassle of sourcing a good property, paying exorbitant transaction fees to agents and lawyers, potential ABSD, finding tenants etc.
Thats why when investing in good company stocks need to setup auto DCA and do not open the app so often so will not hand itchy go sell it.
if you have or intend to start a family, getting a property is better than renting the same equivalent unit for 10 years
Invest in what you are truely knowledgeable and are good at. For me property gives a lot better and more consistent return over 15-20 years period. I also invest in stock, but the overall return over the same period is below market average. So, knowledge is key.
Property needs to make the right choice from the 1st step. Therefore, out of the 4, CK has the potential to make the most $. But based on the financials of the other 3, it’s easy to own 2 properties and yet able to continue investing for long term.
The way Eric and Kevin is very interesting. Funny yet interesting.
Eric is so correct. I am thinking if I sell off my apartment and buy a bond instead, my returns is similar in numerical value minus tenant headache, lesser personal income tax, no property tax, no maintenance cost.
Eric got a good point Wanna earn solid 100k for 5 years equal zero . Not worth la ... playing property is for the riches
Agree with eric . Honestly minus the taxes, interest, fees and stuff the annual returns from condo investment kinda low. Even factoring in full rental income. Maybe better than 5% if a good right next to mrt city fringe. Other than that cui.
You can ask for all these figures before purchasing the property to see if the numbers makes sense.
But for stock you have to make a lot more assumptions before you invest
Property is 10x easier to value
Anything w the word investment..bears risk
IF i can afford, i will buy extra property instead of upgrade using ur HDB. Bcoz once u bought condo or private properties u can’t buy back hdb
Can, but you need to wait for a period of time to get complicated documentations and procedure done.
@@geraldinecheng4015 u sure?
I was looking to buy a 2m property with 1m down pay and 1m loan for two of us combined 17k income.
To make money from it, I need condo to appreciate >30k pa for my property due to:
Annual interest cost (1m*2.5%)=$25000
Annual Mcst fees - hdb conservancy ((350-85)*12)=$3000
Annual additional property tax vs hdb = est $4k
As u can see, if we hold for 10 years I need to make $300k just to break even the additional costs. Not 100% of condos have such returns
It is disgusting ppty agents are touting these minimum $300k as for ‘retirement’ where I could have made these $300k additional just from staying in my fully paid hdb and just collect interest from plain ssb/tbill/cpf.
anything that is not hdb bto is likely not going to give you amazing returns as equities. property just isnt really used as investment. so, just buy and enjoy just like cars. they are luxury items. dont mix them with investments and your. life is easier
Statistically I guess more Singaporeans make money in property than in stocks and crypto.
Although I am a property agent but I do investments in stocks and crypto too but I find it a lot easier to have value investing in property than stocks and crypto which the valuation can vary greatly depending on growth assumptions.
Property valuation is so much easier to determine
Can share the youtube video that you guys are referring to??
Man like me didnt have property knowledge also know this way ...but this system or planning should be 25ys ago la ...im 55now. At this time only ppl with lots of money in hand then can do it . Just go around and ask 100 of them whether is it easy to upgrade at this time?
Kana scam is also easier than losing than condo
Losing money in stock market is way easier than buying property
Why not stock & property investment together, since at the end objective is to grow the wealth. Both are different game play.
ua-cam.com/video/F974rLdtPNA/v-deo.html saw this interesting debate about, Crypto vs Property vs Stock Investment
Dont forget most importantly anything can happened within few years ...will job income stable ? Or strike lottery better....if some mishaps happened then cry father mother also cannot help
ua-cam.com/video/xGfFBP7U7pQ/v-deo.html
Why are so many big-city condos sitting empty? | About That
Eric is 40(+ ?? U look more like 32!! While the other 3 r below 29 !!! All boy bioy so young
Bagholder Pod can take sponsorship from cosmetic companies 😂
This video is too biases as all invest in stocks ask Eric to join a session together
Eric the huat kheu
Our Eric is here is also a huat kueh
Condo is always better than HDB.
ua-cam.com/video/eCIn6PKLPc0/v-deo.html Property vs Stocks: Which is a Better Invesment?
social。media。is。😢 😂😮😊 prepare to cashout to secure a wheelchair?