Recently I’ve been asked my a close friend if I would purchase a landed property as an investment… So I spotted a real nice Terraced Flat (3B/2T/Full renovated/1.5k SQF/99 Years/Terraced/Prime location) online going for $850k and decided to use that as a comparison to a REIT etf.

These are factors I took into consideration:

  1. Total cost of the property
    • Downpayment (20% of Property Price = 5% cash +15% CPF) = $170k
    • Buyer stamp duty tax = $20.1k
    • Total UPFRONT payment = $190.1K up front
    • Total COST OF property = $870.1k
  2. Loan amount $(850k – $170k = $680k)
    • Sourcing out loans (Moneyline)
    • Total loan cost (Cheapest) for 3 Years will add up to $83.1k (30 Years Tenure)
  3. Rental Income
    • Income ($3,300/Month – 118,800 3yrs)
      • Vicinity rental rate ( $2.8k – $4k)
      • PSQF rental ability (Similar SQF area is going for $2.8K)
      • Furnished ability …