I currently have a listing at Blk 131 Bukit Batok, and precisely it is also a 4A corner unit on a high floor. I would be equally happy if we can get $2300, because at this present moment it is a rental slump. We are not getting much interest above $2.3K hence the eventual rental should be below that amount.
Your calculations is on assumption that:
1) you do not need to update/improve the flat over time
2) you do not need to pay the agent to rent it out
3) you are able to have consistent rental income without any lapse in between
4) Property tax & Conservancy
Over time you need to do repairs and updating of the house - aircon, painting, white goods. I normally tell Landlords to allocate 5% of income every month aside for subsequent repairs etc.
Again, we retain or sell the property - based on objectives.
In understanding that you may have great difficulties selling the HDB when the remaining lease on the HDB falls below 60 years - as that affects the CPF usage for the buyers, that is a big disadvantage for older flats.
Just yesterday a prospective buyer decided on a flat that was 18 yr old flat, but less accessible and further away from amenities & the central as opposed to a 30 yr old flat that's in the midst of everything and a new upcoming MRT. They would have offered the newer flat, if not for the fact that their HLE is not yet approved.
Cheers,
Yian Tay
Mobile:
82884499
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