Hi,
1) ...going to migrate. From this statement, I would assume that you will be leaving for quite a long period.
For long period, judging from current HDB resale price situation, keeping for passive rental incocme could not justify to keep the flat.
2) The recent research also indicate there are more than 20,000 unit available in the market for the next 4 years. Thus can expecting it would be buyer's market for the next few years.
This imply the price will drop further.
3) You did not mentioned the flat type and estate thus couldn't provide a more accurate calculation to assist in your decision making process.
Calculation of P&L:
Gain: Taking $2k/month rent for example, you are getting $24k back.
Expenses:
(i) Property tax of 10% since not owner occupied, $24k-$2.4k = $21.6k
(ii) Town council fee, avg $60/mth, 21.6k-0.72k ~ $21k.
(iii) Agent fee & some minor repair since already 10 yrs old. You will roughly can pocket ~$19k.
(iv) Consider the depreciation facing at the resale market, properly will lost another 2% each year.
for a $400,000 flat, 2% each yr roughly is $8,000.
(v) Income tax, you might inccurred income tax as well, dependent on how you declare your income.
All in all, you will pocket around $10k each year. This is an estimation from today situation, but if the resale index drop further, the depreciation rate might has to adjust according to reflect the actual situation.
4) From monetary point of view, seems not wise to maintain it. But from another angle is if you want to keep a back up plan, than renting out the flat is an option.
5) Do note that the above are assuming you keeping current residence status. I also assume you are Singapore citizen. If you are holding a PR status, than you only left with a choice to sell it off. As PR status does not has the option to rent out the whole flat while away from town.
Hope the above answer to your main concerns, but if there are more queries, please feel free to contact me at
90110636
, or email: ling.ck7@gmail.com if more information is needed.
I'll be glad to assist.
Best regards
Ling CK
90110636
ling.ck7@gmail.com
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