Should I Sell now ?
Tell me Sam, do you think I should SELL my property now?
Why do you want to sell? The RENTAL VALUE of your property is still good.
But I am living in the house [I am not renting out], how does the rental benefit me?
Oh, it does sir. Rent is where the capital value of your property comes from [even though you are not renting it out]. You see sir, when your project [estate or block] is attracting good rental value, and when you put up your property for sale, investors will consider buying it because they can enjoy a good return on their investment.
How does it work for an investor?
For example, if you are selling your house at $1 million to an investor and the annual rental income is $60,000, it means that the investor is enjoying a yield of 6%. The banks are unable to pay that kind of high interest nowadays. Even if you minus the other costs of property ownership, the rate of return is still higher than the interest rate offered by the banks today.
So what do you suggest I do?
If you are going to monetise your investment, I can find a good and reliable tenant for you and ensure that the monthly rent payment is prompt. But if you really want to sell, I suggest you find an alternative home right now and I can help you pick a ‘winner’.
In this time of uncertainty, you need to pick the ‘winner’ which will not diminish so much in value even in a recession.
Singapore Property – Buy, Sell, Rent, Invest