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Negative sale is a very common pitfall, not many will realise until they are hit. Will be great if CPF board can provide some resources for everyone to calculate before selling their homes
There is. Or rather agent can easily calculate. You can also infer from accrued interest in ur cpf property dashboard. Measure it against ur selling price and remaining loan. Hope it answers
Insightful! Thanks for the video! Agree property price-on-price can create an impression of windfall, especially given the large quantums. Really need to look at cash-on-cash with interests from financing, cpf accrured interests, opportunity and transaction costs over the typically longer-time period of property investment to be objective.
What's your advice for newly wed with goal to get condo after MOP? Currently we are waiting for PR and our choice is between Standard BTO and Resale HDB(Woodlands, 4RM, 90k grant, 600k+ at 90 years+lease)? Resale HDB will rent out 2 rooms with minimal renovation.
Yo Josh, am a 30 year individual looking to buy my first home. Can’t go through BTO anymore so want to get your take on pinnacle at Duxton vs other resale or condos in the area. Appreciate ur great content as always!
Congrats on moving to next stage in life. If first house and just getting married I'd always suggest to prudent. Kids may come, or work may change. At your level of income, duxton likely is comfortable
Fantastic Independent analysis, Josh. Well Done. Please do more of such videos to wake everyone up. Dont panic to buy or sell so quickly as the agents per say. Property lnvestment is meant for long-term to reap big rewards. Definitely not in and out. that's called trading. In the process, you incurred more costs and short changed the potential growth.
I believe return of accrued interest is only valid when the SA has not met the FRS in CPF. Once you have meet this amount, returning of accrued interest is no longer needed.
But old 99 years properties may have different categories if we delve deeper...perhaps not enough data out there to reflect leashold properties aged 50 years and above...and the bala curve looks a bit more rippled as compared to freehold properties.
#6 sell 1 hdb buy 2 condo works for some, but definitely not works for all. dun blindly trust agents #7 own multiple properties with little or no money. sounds fantastic until u realise they r unregulated co-investments despite them claiming they r regulated by Sg gov.
Yes that's why using CPF to pay for mortgage is a bad idea.. Accrued interest can kill, not forgetting u missed out on the interest all these years. Also, I don't believe in rental income for investment. Property value might not go up, rental market isn't always lucrative. Not forgetting having to handle nasty agents and tenants. There are many other ways to generate income.
Josh, did you factor in income tax on your net rent income. That is another sizable expense depending on the person ability to loan due to his higher income status.
I find it strange nobody consider opportunity cost in SG property investment (i.e. % returns forgone from investing in property vs other types of investments).
It is not fair to use East Coast as your example because properties even HDB in East Coast is unique for those having sea view. Neptune Court is having sea view and having high chance of Enbloc, causing its value to appreciate despite decayed lease.
ENGAGE Josh Tan on a fee for full retirement planning NOW especially if you have mortgage payments &/or upgrading plans in mind
► www.theastuteparent.com/josh-tan
🌟 Specially written by JOSH TAN! 🌟 Invest in your financial success here, covering on what to know for a first home
HOW TO $1m (Newest Edition) ► payhip.com/b/q5Bln
► Follow Josh Tan on Linkedin to read articles and connect professionally
lnkd.in/gkfid5nG
To see updates and polls, join my TELEGRAM "Josh Tan Investment Official Group" here
► joshtan.link/telegram
Negative sale is a very common pitfall, not many will realise until they are hit. Will be great if CPF board can provide some resources for everyone to calculate before selling their homes
There is. Or rather agent can easily calculate.
You can also infer from accrued interest in ur cpf property dashboard. Measure it against ur selling price and remaining loan. Hope it answers
Hi Josh, thank you for giving a very detailed and clear explanation on property investment. Many property UA-camrs don't explain in this manner.
Thank you for the high praise. Share with someone who should see 👌🏻🙏
Insightful! Thanks for the video! Agree property price-on-price can create an impression of windfall, especially given the large quantums. Really need to look at cash-on-cash with interests from financing, cpf accrured interests, opportunity and transaction costs over the typically longer-time period of property investment to be objective.
No probs, smash the Subs and see you in the next episode 👍
What's your advice for newly wed with goal to get condo after MOP? Currently we are waiting for PR and our choice is between Standard BTO and Resale HDB(Woodlands, 4RM, 90k grant, 600k+ at 90 years+lease)? Resale HDB will rent out 2 rooms with minimal renovation.
Yo Josh, am a 30 year individual looking to buy my first home. Can’t go through BTO anymore so want to get your take on pinnacle at Duxton vs other resale or condos in the area. Appreciate ur great content as always!
Congrats on moving to next stage in life.
If first house and just getting married I'd always suggest to prudent. Kids may come, or work may change. At your level of income, duxton likely is comfortable
Fantastic Independent analysis, Josh. Well Done. Please do more of such videos to wake everyone up. Dont panic to buy or sell so quickly as the agents per say. Property lnvestment is meant for long-term to reap big rewards. Definitely not in and out. that's called trading. In the process, you incurred more costs and short changed the potential growth.
Thank you for the high praise 🙏
Freehold projects are "better" but they are also more expensive. They tend to be better store of value for those who don't want to move.
I believe return of accrued interest is only valid when the SA has not met the FRS in CPF. Once you have meet this amount, returning of accrued interest is no longer needed.
Dont think so. Its separate acc. Accrued interest on OA will still take place
@@joshconsultancy I checked with CPF. Give them a call...
Hi Josh, based on your example at 13:07, if sales proceeds balance is at $170k and CPF refund is at $190k, who will pay the 20k to CPF?
As shared, negative sale - no cash to take out. If sold at market price and above, no need to pay back to your own cpf
# 1 : old properties don't appreciate is typed as ALL properties. Typo?
Oops ya you are right, missed the editing typo.
OLD
But old 99 years properties may have different categories if we delve deeper...perhaps not enough data out there to reflect leashold properties aged 50 years and above...and the bala curve looks a bit more rippled as compared to freehold properties.
#6 sell 1 hdb buy 2 condo
works for some, but definitely not works for all. dun blindly trust agents
#7 own multiple properties with little or no money.
sounds fantastic until u realise they r unregulated co-investments despite them claiming they r regulated by Sg gov.
Good points 👍👍
Yup...#7 is a sham and scam
$500 in 1980s to $1500 today is only keeping up with natural devaluation of the SG dollar. But better than nothing.
the best determinant of future profits is your entry price
100%
Actually can also factor in MCST, property tax and increased income tax.
Yes aware. Adjusted from $5k to $4.5k in illustration alr
Large part of the increase imho is technically inflation only partly appreciation
That’s the point. Property is a good vehicle to defend inflation.
How do foreigners invest in property given the high 60% duty?
Almost no transaction alr for foreigners
Yes that's why using CPF to pay for mortgage is a bad idea.. Accrued interest can kill, not forgetting u missed out on the interest all these years.
Also, I don't believe in rental income for investment. Property value might not go up, rental market isn't always lucrative. Not forgetting having to handle nasty agents and tenants. There are many other ways to generate income.
Accrual interest doesn’t kill. It’s just opportunity cost to return to cpf which can use for next property
Accrued interest payable to cpf is still your own and can be utilised for next property purchase.
Josh, did you factor in income tax on your net rent income. That is another sizable expense depending on the person ability to loan due to his higher income status.
The situation in this tutorial? Haven.
Valid point
With everything said, property is still a safe investment.
It's your state of mind
I find it strange nobody consider opportunity cost in SG property investment (i.e. % returns forgone from investing in property vs other types of investments).
Maybe its because its very stable and predictable relative to others and the amounts invested are large which results in a large gain
Very few percent of people earn money from other investments. But majority of people kept good amount of assets in property. So it’s personal choice
It is not fair to use East Coast as your example because properties even HDB in East Coast is unique for those having sea view. Neptune Court is having sea view and having high chance of Enbloc, causing its value to appreciate despite decayed lease.
What?
Only 3x lol. Imagine having to hold 30 years for this type of returns. Basically you are just on par with the fiat debasement
Where to get rental of $4500 on a $1.6 m in this current market ?
Actual data - normanton park
Bencoolen residences is also an old property that appreciate over the year and renting out at that price.
#4: 8:28 the net yield of $295*100/($down payment) = ? If > 3% it is not bad too.
295*12/580,000 actually
@@joshconsultancy actually can factor in property tax and increased income tax as well. Not forgetting monthly MSCT costs
#1 MISTAKE. Listening to "influencers" and property agents' FOMO advice.
That’s why critical thinking is important.