Buying a 2nd property for investment

 Buying a 2nd property as investment

1. Someone shared that he bought a ~$1M condo 5 years ago, and did not take any loan.
 
2. Now the condo is worth ~$1.4M on market.

3. He did not rent out his condo.

4. By quick calculation of e-profit should he sell, ave gain works out to be 5% p.a., (after less Stamp duty, MCST, Buy n Sell Fees; not considering Furnishing).

I wonder if it is better to invest in other investment that gives 5% or higher?

My takeaway
1. If one owns a 2nd property, it is better to consider renting it out for higher net return.  (Choice of tenant is an important consideration).

2. Maybe he should have considered not fully paid his condo for high yield; subject to loan interest.  (The longer loan tenure, the higher loan interest.)

Comments

Post a Comment

Popular posts from this blog

13 Vitamins our body needs

  What are the 13 classes of vitamins that our body needs? The 13 vitamins your body needs are: vitamin A, C, D, E, K, B1 (Thiamine), B2 (Riboflavin), B3 (Niacin), B5 (Pantothenic Acid), B6 (Pyridoxine), B7 (Biotin), B9 (Folate) and B12 (Cobalamin). From the fruit-vitamin chart, these vitamins are available in fruits. Group1 : milk (6): A, B1, B2, B6, B12, D + sunlight Banana (2): B, E Tomato (2): C, K Group2 Egg (4): A, B12, D, E Beans/Nuts (): B1; B2, B, B6, E, K Oranges/Grapes: (1): C I am no Doctor.   Generally as one gets older, our absorption and consumption of vitamins may not be enough.  I hear of people adding supplements beside Multivitamin, Omega 3, 6 & 9 in their supplements. During my younger days, I was given cod-liver oil daily.   I remembered its taste.  Recently I tried to consume the same brand of Cod-Liver oil, it still tastes the same; so this brand is not so adulterated and authentic. ~~~~ One added Magnesium supplemen...
Read more

Retire with S$2k p.m. for Singles. Can?

Someone just chatted that $2,000 p.m. is enough for retirement for him as a single.  Maybe he is about 35? So I free free check. Can Singles retire with $2,000 p.m. (present value) now? H&S : $1,000 p.a. Home conservancy fee: $100 x 12 = $1,200 p.a. CareshieldLife: $0 (pay by MA) Utility n Broadband/Telco: $130 x 12 = $1,560 CI : $0 Term Insurance : $0 Home loan:  $0 (fully paid) Home Property Tax: $100 p.a. Transport : $30 Parent allowance: $100 p.m. Total annual fixed cost : $3,990 p.a. (= $330 p.m.) ~~~~~ P lanned budget: $2,000 p.m. Food : $15 daily x 30 =$600 p.m. Surplus: $2,000 - $330 - $600 = $1,070 p.m. In summary , 1. Previously someone said $1,000 p.m. (married with adult child, stay in condo, 5 Siblings support aged parent): $1,000 p.m. is not enough. 2. Here is the other way for Singles: $1,000 p.m. may even be possible. GxGx. 3. In 25-years time, $1,000 p.m. would be $2,000 per month, at 3% inflation rate compounded. Poor me, even with $7,000 p.m. (singly) ...
Read more

Endowment & Stocks for Retirement

 1. My sharing on my layered 20 endowments: a. For the past 10-years, I have been building up about $600k worth of endowments to supplement my Retirement Income base. I started the Endowment Chapter in 2011 at age 47.  (The same year that I also embark from my health regime and clocked 4 full Marathons in 10 years.) b. And 10-year later, this Endowment Chapter is yielding results. Starting from 2022 at age 58, my layered endowments have and will be paying my lifelong cash payouts. Last year was $40k,  This year payout is $70k. Next year onwards will continue to give me $40k+ p.a. , not including annual cashback reinvestment of $12k per year over next 6 ~ 8 years. This endowment payout will give me a stable average $4k p.m. of retirement income when I retire. c. For now, likely I will taper off my Endowments Chapter. One thing about nibbling into endowments, it gives me time and investment maturity & clarity for next portfolio.    d. I supposed that one can...
Read more