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Hi Jean,

To generate a positive cash flow on a monthly basis, it definitely has to be a resale property preferably selling with tenancy. $850k is a decent amount to work on if you are not fussy about the property available, as most often than not, you will only be looking at leasehold projects.

Regards,

Geryl LIM
District Manager/Real Estate Consultant
CEA Reg R014783H
Mobile: +65-81577565 
ECG Property Pte Ltd (L3009759F)
Dynamic Alliance Group @ www.DAG.com.sg

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Hi Jean,

For positive monthly cash flow, there is two ways to look at it.

If you buy resale property, your monthly cash flow will be immediate, i.e you can get rental once the sale is complete.

However, the downside is that the cashflow may not be very positive. You might be only getting a couple hundred in positive cashflow per month. This is because in general, the resale market is higher priced, and your monthly bank loan will be similarly higher. This result is a lower nett figure after you use your rental income to pay off your mortgage.

If you buy new launch property, the monthly cash flow will be higher, as the price is relatively cheaper than resale market, and the loan you will be taking will be lower.

However, the downside is that you will not receive monthly rental income until 2-3 years later.

It really depends on what is your needs and preference - whether you prefer immediate cash flow, or a potentially higher cash flow a few years later.

There are also other things to take note, such as capital appreciation (new launch properties generally appreciate more over the same time period), maintenance fees of the condo (depending on age and no of units of condo) etc.

If you are interested to discuss more, do contact me for a friendly chat.

Thanks!

Richard Wan
Associate Branch Director
Propnex Realty
 92229344 
richardwan@live.com

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