So the 5th book, I'm reading to
learn more about investing in Residential Properties in Singapore. You can find the previous post
here
So off we go:
This book is more about renting than flipping it seems (which makes more sense and is less speculative to me).
Focus is on high yielding properties
- Properties must already TOP so you can rent immediately
- Make it easier to rent by pricing rents slightly below market
- Property must generate positive cashflow like a business
- Focus on acquiring cash cow properties
If rental income cannot service debt, try to
borrow less until rental income can service debt. This
provides safety during down cycles.
Author's calculation of ROE is Net Rental Income over Equity Invested.
For Equity portion:
- Deposit amount + Stamp Duty (include any renovation, furniture and repairs for conservative cost?)
For Costs
- Property Tax
- Mortgage Interest+installments
- Comissions
- Replacement/Repair costs
- Property Maintenance Fees
......