How much is enough for retirement in Singapore?
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Coolkidsrock2\" post_id=\"1938482\" time=\"1569757880\" user_id=\"48901:
What I heard is the couple moved to HDB to prepare a cash pile for retirement (could have bought some annuity plans?). Sometimes when one is near retirement age, one’s mindset may be very defensive and would not think of buying condo as an investment?
They didn't buy another condo at that time? Would most likely have nearly doubled. In the meantime, earn rental. -
lee_yl\" post_id=\"1938464\" time=\"1569745368\" user_id=\"17023:
I don’t want to live on a landed property. I am not keen to take care of the maintenance of the house (garden, insects, roof leaking, etc) but I want the $$$.
Haha, that’s my dream house but must have a granny’s room and enough space for my wheelchair to maneuver.
Capital appreciation for FH landed definitely higher than FH condo in the long term. But in terms of recurrent income, rental income from FH condo should be more stable and predictable.
During one of the property seminars I attended, the speaker said if got money, buy FH landed, and landed doesn’t include those strata kind of cluster landed housing.
My friend told me one couple sold off their landed for $2mil+ 15 years ago to downsize to a HDB flat so as to cash out the money for retirement. The couple is still alive today and they look back at their decision with regret as their landed is now worth almost $6mil.
FH landed will appreciate more but FH condo will pay for itself (just need the down payment and rental can be used for installments). I think I must calculate... -
lee_yl\" post_id=\"1938739\" time=\"1569848041\" user_id=\"17023:
If one can afford fh landed, why not? It really depends on the purpose. If one buys to stay, one will probably be saddled with a life time of debt. Bec one has to pay the mortgage himself. No thanks for me at this stage of my life haha
True that the past does not always represent the future. Maybe we shouldn’t expect next 15years to see property prices continue to shoot up like they did in the past, but in the long run, property prices should be heading north for a highly cosmopolitan city like Singapore.tyeogh\" post_id=\"1938519\" time=\"1569810745\" user_id=\"94399:
15 years ago property prices were at its doldrums. Everything was iffy. Nobody then knew the greatest secret. That Sg was to accommodate 6.9m people. Since then, property prices shot thru the roof. To accommodate real demand. Now, we are at an oversupply state. I dont think it's reasonable to use the past 15 years to project capital appreciation for next 15 years.
All the more so in land-scarce Singapore, a FH landed will always be highly sought after.
The price index showed landed property prices outdo condos in recent years.
https://postimg.cc/PCns9nRS
If it is to provide rental income, a 3 bedder HDB or leasehold condo will have better ROIs. -
ngl2010\" post_id=\"1938749\" time=\"1569849089\" user_id=\"40978:
Can consider townhouse or strata landed. Maintenance taken care of and get to enjoy the luxury of space like a landed as well as the facilities.
I don’t want to live on a landed property. I am not keen to take care of the maintenance of the house (garden, insects, roof leaking, etc) but I want the $$$.lee_yl\" post_id=\"1938464\" time=\"1569745368\" user_id=\"17023:
Haha, that’s my dream house but must have a granny’s room and enough space for my wheelchair to maneuver.
Capital appreciation for FH landed definitely higher than FH condo in the long term. But in terms of recurrent income, rental income from FH condo should be more stable and predictable.
During one of the property seminars I attended, the speaker said if got money, buy FH landed, and landed doesn’t include those strata kind of cluster landed housing.
My friend told me one couple sold off their landed for $2mil+ 15 years ago to downsize to a HDB flat so as to cash out the money for retirement. The couple is still alive today and they look back at their decision with regret as their landed is now worth almost $6mil.
FH landed will appreciate more but FH condo will pay for itself (just need the down payment and rental can be used for installments). I think I must calculate... -
Just a quick estimate. To show ROI.
4 room HDB: $400k
Rent: $600 a room
ROI: 1800 x 12 ÷ 400,000 = 5.4%
3 bedroom leasehold condo: $900k
Rent: $2,300
ROI: 2300 x 12 ÷ 900,000 = 3.1%
FH landed: $2.5m
Rent: $4,000
ROI: 4000 x 12 ÷ 2,500,000 = 1.9%
If the purpose is to collect monthly rental income for subsistence, FH landed is a poor choice. -
HDB rental yield is usually the best. But sometimes people look at the absolute amount of rental they receive…so 4k is more than 1.8k. A friend of mine did that…rent out the condo and continue to stay in HDB…despite HDB having better yield.
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I would also do what your friend did. Say if cost of maintaining both the properties is $3k/mth why would I rent out the HDB and collect only 1.8k and make a loss when I can rent the condo out at 4k.
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Iluvmygals\" post_id=\"1938815\" time=\"1569889871\" user_id=\"26453:
Agreed, hdb rental yield is usually the best. Although I have maintained my hdb tenant rental for 3 years, the yield is still close to 5 percent. Condo can hardly match.
HDB rental yield is usually the best. But sometimes people look at the absolute amount of rental they receive...so 4k is more than 1.8k. A friend of mine did that....rent out the condo and continue to stay in HDB...despite HDB having better yield. -
Iluvmygals\" post_id=\"1938815\" time=\"1569889871\" user_id=\"26453:
Agree. Once one understand ROI, then it is about searching for the asset type to deploy one's money to build a portfolio.
HDB rental yield is usually the best. But sometimes people look at the absolute amount of rental they receive...so 4k is more than 1.8k. A friend of mine did that....rent out the condo and continue to stay in HDB...despite HDB having better yield.
Eg one can have a retirement portfolio of
CPF ERS $240k:
Monthly payout $2,000
4 rm HDB $400k
Monthly payout $1,800
Manchester, UK 2 bedder £300,000
5% ROI
Monthly payout S$2,100
Total Portfolio Cost: $1.15m
Total monthly received: $5,900
ROI: 6.1%
Want to increase monthly payout?
(One way is to) accumulate more overseas property. No ABSD. No TDSR.
Note above portfolio cost less than a FH condo -
I do hear overseas ppty fr ah acquaintance frens -
but they are property agents themselves - they know the market n they monitor it well ( london, vietnam etc)
Usually those buy overseas ppty din hold long - buy n sell n go - BUT we do not know the sale tax - better go thru
reputable pppty compy investments to feel "safe" - It is HIGH risk profile for lion appetite
some parents have deep pockets, buy overseas ppty for kids to study there (aust, nz) . after kid grad- likely to sell too - not sure they make profits or not- these people too rich to care / dun mind - they let they kids sublet out to collect rental during overseas study period n they themselves go go there to stay for fun . Aust/Nz mortgage int rate is rather high - we already complain at 2 to 4% - theirs even higher
the one who bought london already sold n keep money in pocket - beter dun hold long. Other countries politics not like here -stable . another one bought one in Osaka! - rich one, use as holiday home for herself
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