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If You Have 1.6m To Spend, To Choose Condo Or Landed?

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that's a very helpful insight.

So if i've that 1.6m I'll just plonk it down on a freehold condo near the city, e.g., The Waterside, in cash

cos i'd prefer a debt-free life :)

hmmm... don't think 1.6 can get waterside unless we're thinking of 2 different devts ...?

 

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that's a very helpful insight.

So if i've that 1.6m I'll just plonk it down on a freehold condo near the city, e.g., The Waterside, in cash

cos i'd prefer a debt-free life :)

Being in debt is actually not all bad because with the curren super low mortgage rate of 0.8 to 1.5% (1st 2 years), the banks are infact paying you to use their money (ie after factoring inflation of 4%)

If I were you, I will use 1.6m to buy 2 or even 3 apartments by taking up maximum 70% loan. The rental you could collect from your investment properties could easily pay for all your montgage. By doing so, you are almost living for free, and at the same time hedge yourself against inflation.

 

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Being in debt is actually not all bad because with the curren super low mortgage rate of 0.8 to 1.5% (1st 2 years), the banks are infact paying you to use their money (ie after factoring inflation of 4%)

If I were you, I will use 1.6m to buy 2 or even 3 apartments by taking up maximum 70% loan. The rental you could collect from your investment properties could easily pay for all your montgage. By doing so, you are almost living for free, and at the same time hedge yourself against inflation.

ever thought of what will happen when u can't service the bank loans due to

sudden decrease or lack of income, and u can't sell of the units cos losses will be over-whelming??

real-life experience we've been thru, so never be too gungho 'bt getting many apartments on loans.

life's never a bed of roses...

 

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Being in debt is actually not all bad because with the curren super low mortgage rate of 0.8 to 1.5% (1st 2 years), the banks are infact paying you to use their money (ie after factoring inflation of 4%)

If I were you, I will use 1.6m to buy 2 or even 3 apartments by taking up maximum 70% loan. The rental you could collect from your investment properties could easily pay for all your montgage. By doing so, you are almost living for free, and at the same time hedge yourself against inflation.

This is how the subprime starts... When people buys with loan/credit, thinking that property will appreciate over time.

BUY within your mean.

 

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Being in debt is actually not all bad because with the curren super low mortgage rate of 0.8 to 1.5% (1st 2 years), the banks are infact paying you to use their money (ie after factoring inflation of 4%)

If I were you, I will use 1.6m to buy 2 or even 3 apartments by taking up maximum 70% loan. The rental you could collect from your investment properties could easily pay for all your montgage. By doing so, you are almost living for free, and at the same time hedge yourself against inflation.

Bro or sis, be smart to learn from a fable: 3 cows story

- Amercian farmer has 3 cows. Work day & night, 24 hr a days. Farmer thought he's efficient.

- Mortgator A comes & gives him money for 3 cows, to buy property and insurance.

- Mortgator A mortgage out 3 cows to mortgator B, B to C to D, and so and so for, cycle repeats.

- Insurance A gives insurance to B, B to C, and so on.

- One day, mad cow diesease comes, 3 cows die.

- Farmer & Mortgator A panic. Cows no more in existence. Want to collect money from insurance.

- Insurance collect money from re-insurance, news of 3 cows' death speads.

- All want to collect money from each others, but money has been spent and no money leaft to pay each other, all die. Wait, not all, luckily got chapter 11.

- Now, gov keeps printing money to meet the "needs".

Edited by bepgof
 

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\

One of the main reason why landed prices are not moving up as quickly is because it is very hard to find tenant (unless its GCB) and the rental yield is very lousy. One can only hope for captial appreciation if you buy landed (and thats only if you can buy a freehold/999LH one). For 1.6m, you can probablyget an old inter-terrace which might require another 100-200K to rebuilt. Personally I would stay away from old leasehold landed,

I doubt that rebuilding of the house cost $100K to $200K. :)

 

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Being in debt is actually not all bad because with the curren super low mortgage rate of 0.8 to 1.5% (1st 2 years), the banks are infact paying you to use their money (ie after factoring inflation of 4%)

If I were you, I will use 1.6m to buy 2 or even 3 apartments by taking up maximum 70% loan. The rental you could collect from your investment properties could easily pay for all your montgage. By doing so, you are almost living for free, and at the same time hedge yourself against inflation.

When property prices and rental returns rise, having a few apartments and collecting rental revenue and enjoying capital appreciation are very good outcomes. People around you will praise you for the wisdom in buying a few apartments and taking the maximum loan to max your returns.

When property prices and rental fall, having a few apartments and collecting miserable rental revenue and suffering from capital depreciation would become very negative outcomes. People will scold you for the stupidity of over committing, taking excessive risks and chewing more than you could swallow.

Looks like wisdom or stupidity depend on the outcome of your action. Even don't take any action is also an action in itself (construed as missed opportunities to become richer or a lucky situation of not falling into bad times).

Just my personal views.

Cheers! :)

 

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When property prices and rental returns rise, having a few apartments and collecting rental revenue and enjoying capital appreciation are very good outcomes. People around you will praise you for the wisdom in buying a few apartments and taking the maximum loan to max your returns.

When property prices and rental fall, having a few apartments and collecting miserable rental revenue and suffering from capital depreciation would become very negative outcomes. People will scold you for the stupidity of over committing, taking excessive risks and chewing more than you could swallow.

Looks like wisdom or stupidity depend on the outcome of your action. Even don't take any action is also an action in itself (construed as missed opportunities to become richer or a lucky situation of not falling into bad times).

Just my personal views.

Cheers! :)

Totally agree, have to exercise prudence and not overstretch oneself when it comes to investments...

 

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When property prices and rental returns rise, having a few apartments and collecting rental revenue and enjoying capital appreciation are very good outcomes. People around you will praise you for the wisdom in buying a few apartments and taking the maximum loan to max your returns.

When property prices and rental fall, having a few apartments and collecting miserable rental revenue and suffering from capital depreciation would become very negative outcomes. People will scold you for the stupidity of over committing, taking excessive risks and chewing more than you could swallow.

Looks like wisdom or stupidity depend on the outcome of your action. Even don't take any action is also an action in itself (construed as missed opportunities to become richer or a lucky situation of not falling into bad times).

Just my personal views.

Cheers! :)

Extract from The Business Times - 16 Oct 2010:

In the near future, many people will look back and regret that they did not take any action to benefit from it.

by Callie Liew

Founder and executive chairperson

HSR Property Group

Edited by bepgof
 

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Extract from The Business Times - 16 Oct 2010:

In the near future, many people will look back and regret that they did not take any action to benefit from it.

by Callie Liew

Founder and executive chairperson

HSR Property Group

if lose money can claim back from her? :sport-smiley-004:

she is a ppty agent..vested interest big time..my view of cos is still uptrend but only for the long term and much more gradual increase...conservatively at least 5 yrs...and if one can foresee no cashflow issues aft investing for that tenure, then ppty is a good area to park some money..but for the borderline investors, it is def not recommended...i wld also say alot depends on the next GE...

 

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Dear all smart hunters, condo-owner and landed owner,

If you had 1.6m to spend, would you rather spend on CONDO or LANDED??

I'm curious to know answer to the question above. Condo price is shooting week by week and yet Landed price is still keeping low (around $400-$600psf++). I believe there are alot of non foreigner, ie LOCAL is buying condo at all time. I don't understand since the local have the choice to landed but why they show more interested in Condo instead? Hmm... is it juz fore investment purpose only?

Is just an open discussion ^____^

If I have 1.6m, I prefer a landed property but provided it is freehold/999LH. A landed property normally is bigger and I can stay with my aged mother. At present, I am staying in hdb massionete and its too crowded with my children and my brother-in-law staying with us, so I can't get my mother to stay with me.

 

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For 1.6m, likely to get an old FH/999 inter terrace. However, old terraces usually have rather small built in as they are either single or at best two storey. Minus the staircase and carporch etc, will have lesser useable area.

With 1.6m, may still be possible to get FH/999 condo with 2000+ built in area.

 

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I'd use the spare cash to buy overseas property instead. Ideally

A) An apartment in upper westside NYC (for summer) = this one most ex...800k sgd

B) A house in florida, slightly off downtown (for winter) = 150k sgd

C) A unit at The Met at Bangkok, for golfing, shopping needs (all year round) = 400k sgd

Total = 1.6M cash with some $ left for renovation, 80k reno for Florida, 50k reno for NYC, 30k for BKK reno

D) Look for some piece of land in Taiwan or Japan suburbs build a house with a little farm (for spring or autumn) = yet to check out

E) A townhouse in England or apartment in central London (for summer)= again, yet to checkout

Since i already have assets in Singapore, to think long term, Singapore is just too expensive to retire...too many PRC, ERP...

What i want is also a HDB flat but too bad..not eligible, thought it would be nice to stay in a flat once every few days to experience pigeon hole living..note, not for more than 3days per interval

 

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I'd use the spare cash to buy overseas property instead. Ideally

A) An apartment in upper westside NYC (for summer) = this one most ex...800k sgd

B) A house in florida, slightly off downtown (for winter) = 150k sgd

C) A unit at The Met at Bangkok, for golfing, shopping needs (all year round) = 400k sgd

Total = 1.6M cash with some $ left for renovation, 80k reno for Florida, 50k reno for NYC, 30k for BKK reno

D) Look for some piece of land in Taiwan or Japan suburbs build a house with a little farm (for spring or autumn) = yet to check out

E) A townhouse in England or apartment in central London (for summer)= again, yet to checkout

Since i already have assets in Singapore, to think long term, Singapore is just too expensive to retire...too many PRC, ERP...

What i want is also a HDB flat but too bad..not eligible, thought it would be nice to stay in a flat once every few days to experience pigeon hole living..note, not for more than 3days per interval

retirement age already old, still have to fly across countries to live in different homes... too much of a hassle for me.

since there is a 1.6M in capital, i would have spread it across property and bonds (Stat board bonds) for income yield. Stable, recurring income would be the most important priority.

Having said that, it would be hard for me to imagine retirement age as it is still too far away. :P

 

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Get the rental yields just nice to pay for a 2-way ticket. Sit aeroplane for "shiong".

Edited by bepgof
 

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