What is your opinion about HDB at Jurong East area? Dont you think that its prices will go high as the place is very near to Jurong International Park and new hospital, commercial buildings are being build there? I guess most of the emplyoees working at IBP & in this new commercial buildings will need house at nearby their office. At present rental yield at Jurong East for 3 room unit is around 6.7 %. However, price is NOT less than market value. I am planning to buy 3R unit. Please advise..

There should be other cost like agent fee, tax, and management fee , or renovation cost…
so the return should be lower. besides the past 46 years is a time singapore develop from a fish man village into a economical centre , it went through the high growing time, and turned into a developed country/city. look forward, if the goverment do not intend to pour in more foreigners, what is the motor to push the property gos up like the past?

which one is better for investment ? Singapore property or Indonesia property ?

thank you

The trouble I see is that people do not want to “get out when it begins to turn into a downtrend”, expecting it to go higher and higher forever.

That’s a great analysis on ROI. I have another version, taking advantage of today’s high rental yield.

As under $1m property appeals more to most people, let’s take example of a 2rm property in District 11 (abt 12mins walk from Novena MRT) at $900k.

Assuming 80% loan at 3.5%…

Property Price: S$900k
Your Investment: $180k
Monthly Installment: $3233

Potential Rental Return for this property has been between $3800 – $4200 in the past 3 mths. But let’s use the lower rate.

At $3800, means a Rental Yield of 0.506%(3800×12/900k). That’s not bad for Singapore investment!

But then, again like Adam points out, your actual investment is really the initial capital of $180k, so adding misc cost like stamp-duty, maintenance, legal, etc, your total cost is perhaps $205k.

Therefore, using $205k of your cash to invest in property that generates $45.6k annually means a whopping 22.24% ROI !!! Now which investment in Singapore gives you such return over 2years at least. Not forgetting you still own a physically asset, which has no monthly installment to worry (as the $3800 rental pays the monthly installment of $3233 $180 maintenance fees).

Not forgetting, you can also potentially collect “bonus” in capital appreciation, during a bull-run, as Adam quoted Kwek Leng Beng above that it may run to 2012. Assuming annual growth of 6%, that could mean potentially capital appreciation of at least another $100k to $200k. That should more than take care of all cost, including interest incurred over 2years.

of course, like any investment with high returns, there’s always downside risk. But unlike stock (which can drop to 0), you still have a physical asset that you can still rent out if the market is not favourable for sale, and generate income to pay towards part if not all of your monthly installment while you wait for the next wave.

So the bottom line is, may sure you have holding power before you enter any investment. Not only should you have the cash to invest, but also the cash to hold to weather thru any storm.

Sigh… now we know why why the rich people gets richer.

One question from me, if you had $100,000 now, would you invest in properties or other investments ?
Is it the best investments currently let’s say we have the holding power to hold for another 30 years.
Will properties’ return remain stronger than other areas like stocks or options?

Thanks
Vanson
http://www.funmobilephones.com.sg

Do let me know what you think.

Regards,
Hang Wei