Capital Appreciation Vs Rental Income

[Misc100 2]

Capital Appreciation VS Rental Income - which is more impt?

[wil74 0]

Capital Appreciation VS Rental Income - which is more impt?

Assuming it's an investment property (not for you to live in)..

I would say..:

1) For flipping - Usually those before TOP, Capital Appreciation

2) For income - Usually TOP properties, Rental yield (assuming you pay in full)

In any case, for both type of cases, I will go for only investment grade properties in the D9,10,11 and City. Prefer 999,FH but 99 if location is **** superb. And in any case, as long as you are having a loan, the capital appreciation is the only thing you are interested in ultimately but rental is there to keep your dreams alive.

I would not be penny wise, pound foolish and go for other areas and hope I am right about the development potential in that area.

Example, Jurong Lake District going to turn into Next CBD.. How true and WHEN(The most important question).. The longer it takes to turn into one.. the lower your return on investment.

Remember Tampines? It was supposed to be a regional CBD for east and it is now only slowly morphing into one with all the backoffice operations moving there because of the high rental in CBD/city.. But what if CBD/City rents become so attractive that new companies setting up would consider CBD instead of Tampiness. In any case, it has been a good 5-10yrs since the govt announce that.. and look at the price fluctuation in the area .. still very small.. as compared to Prime which can go up from $1000psf to $4000psf.. (You are looking at capital appreciation are you?)

Edited February 22, 2009 by wil74