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Hi Sean,

You can call me on 93380071  .

Thanks,
Ria
DTZ Read More

Hi Sean,

Firstly, there is no private property in the $300k range anymore.

Let's calculate together what kind of cash flow we can get with a developer launch unit with an extremely good rental yield potential.

The unit costs $460,000. The costs that you will need to incur is the 20% downpayment, and the stamp duty. The legal fees is covered by the bank loan legal subsidy, and there is no commission payable.

Therefore, with the 20% and stamp duty, the inital amount that you need is $100,400. With a 80% loan at 2% over 30 years, the monthly mortgage is around $1,360.

The monthly maintenance is only $175. Since utilities are paid by the tenant, the expense every month is $1,535.

The expected rental for such a unit in the location is $2,200 - $2,500. That means we are looking at a monthly positive net flow of $665-$965.

However, the main drawback of this is that it will take 2 years to be ready, and in the meanwhile you will be paying progressive installments. If you choose to purchase a completed condo, you are unlikely to find such low prices for the units. Most completed condo units start from at least $550k. That will increase your loan amount, and cause your monthly net flow to decrease.

But the good point of buying developer units is that the price rises very fast from the launch date to the TOP date. For this unit, it is expected that the price will rise $200psf in 2 years. That means that even before you can rent it out, you already made money from the capital appreciation. And you can choose to sell the unit off at TOP date and reap the gains.

If you are interested to know about how to go about choosing a good rental unit, or if you are interested in the unit I'm using in this example, do let me know.

Thanks!

Regards,
Richard Wan
Black Diamond Real Estate Group
richardwan@live.com
 94363793  Read More

Looking to sell, buy or rent? Looking to re-evaluate your asset portfolio? Look no further.

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