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Misc100

If You Have 2 Properties, Will U Sell Or Rent Out 1 Of Them?

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If I buy the REITS now, it may also mean a 100% profits return when times are better.

For properties, which has not really dropped (Citigroup is predicting a 40% drop), it will not give a 100% returns, but may correct up to 40%, if Citigroup prediction is correct.

I dont see why a weaken property sector will make reits becoming more attractive in the near term. Buying reits just because its share price has fallen by 50% is just like trying to catch a falling dagger and hoping you dont get cut. You should do more reading about the reits before making an investment decision, plus not all reits a equal.

Edited by Husky
 

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Reits is simply a "tool" use by property companies to avoid paying corporate taxes, hence its primary business is basically to manage the properties (not own) and distribute the profits generated from its properties.

What an apt way to describe reits!

I also do not buy the idea of reit because it had undermined the traditional landlord-tenant relationship, which is usually fostered as a win-win business venture. Look at the properties that had been 'reit-ed', they are just like a big black hole sucking profits, pushing up rental rates to crazy levels, while being very stingy on costs to upgrade the buildings.

From investor's POV, you had said it right, all the reit till now had yet to be proven as a worthwhile investment, usually only speculators would take a second look at them.

 

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bad investment are usually made by people who make investment decision based on gut feelings rather than looking at the numbers, such as ROI and cashflow.

If saving on interest is a measurement of smart investment, then why didnt you consider accumulating $1m cash before buying the $1m property because in that way, you not only pay zero interest, but you get +% interest by putting your money your FD.

If you are 100K pa earner, care to share with us how you pay off $1m loan in 10 years?

Surprisingly gut feeling works better for me.

Opportunity comes and goes really fast, sometimes it doesn't allow you to accumulate sufficient to execute.

Hence we take the shortest time to recover this opportunity cost to give us the full potential of returns.

Anyway I'm not a FD person.

It is 1mil property, u taking 100% loan? I don't need to feed u a financial calculator, right?

When you invest in property (as oppose to speculating in property) you are always looking for medium to long term property appreciation rather than immediate gain because property is not a liquid asset like stocks where you can buy and selling with a click of a button.

Why can't you buy and sell with a click of a button? it is about how much hard cash you have to utilize.

Gut feeling don't need option period, conveyancing is faster using cash payment.

 

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Surprisingly gut feeling works better for me.

Opportunity comes and goes really fast, sometimes it doesn't allow you to accumulate sufficient to execute.

Hence we take the shortest time to recover this opportunity cost to give us the full potential of returns.

Anyway I'm not a FD person.

It is 1mil property, u taking 100% loan? I don't need to feed u a financial calculator, right?

Why can't you buy and sell with a click of a button? it is about how much hard cash you have to utilize.

Gut feeling don't need option period, conveyancing is faster using cash payment.

Gut feeling will make your ego feel better but definitely not your investment because if you cant quantity what you are investing you wont know how to manage it. Unless if your investment strategy is all about working for the money and not letting your money work for you.

You might want to tell us what sort of loan amount are you talking about when you "smartly" claim you can pay off a $1m property in 10 years and ?? months based on 100K pa salary.

you should teach the thread starter how to off load his property with a click of a button. fire sales discount?

Edited by Husky
 

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Gut feeling will make your ego feel better but definitely not your investment because if you cant quantity what you are investing you wont know how to manage it. Unless if your investment strategy is all about working for the money and not letting your money work for you.

You might want to tell us what sort of loan amount are you talking about when you "smartly" claim you can pay off a $1m property in 10 years and ?? months based on 100K pa salary.

you should teach the thread starter how to off load his property with a click of a button. fire sales discount?

There is no gains without dirty your own hands.

A typical investment property loan of 80% of the 1mil value.

$800k over 10yrs @ 3% ~ $7,700 monthly or $92,400 yearly

If you able to offset the interest amount with rental deposits, even better.

If one can afford a fire sales discount, why not? human mankind has been that cheapskate when it comes to discounts.

I am not qualified to teach, just sharing session.

 

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There is no gains without dirty your own hands.

A typical investment property loan of 80% of the 1mil value.

$800k over 10yrs @ 3% ~ $7,700 monthly or $92,400 yearly

If you able to offset the interest amount with rental deposits, even better.

If one can afford a fire sales discount, why not? human mankind has been that cheapskate when it comes to discounts.

I am not qualified to teach, just sharing session.

I am not sure if it is humanly possible for someone who make $100,000 a year to put aside $92,400 for mortgage and survive on $7600 a year or $633.33 per month?

Thanks for sharing anyway.

 

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I have come to the conclusion that it is not worthwhile holding on to 2 properties. Rental gonna be really sluggish. Liquidity is more impt in the next few years!

 

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Hi................,

It is usually necessary to sell one's home in order to afford a new home. Most people do so when relocating. However, some people choose to rent out their homes instead especially if they plan to return. In some cases, people know that they'll be back in a year or two - possibly when they complete a graduate degree or finish a specific project at work. There are also times when a would-be seller wants to hang on until the market picks up in order to sell at a price deemed acceptable. A more likely scenario lately, however, is that the owner wants to maximize his or her gains and is inclined to hang on while property values continue to soar. Others, like Miller, don't feel confident in changing jobs and want to keep their old home until they're certain they won't be coming back.

Whatever the reason, there are important financial issues at play when weighing this decision and it's helpful to have a clear idea what issues come into play.

 

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