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:
- 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
- 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)
- 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 ...
- Income ($3,300/Month – 118,800 3yrs)
