Anonymous

26 May 2019

∙

Based on a personal experience, it seems like the moment when we buy a property, the breakeven point is another 10-20%. Is it true? What are your thoughts?

Bought a new launch @ 1m about 5 years ago.

5 years later, property websites are marketing at 1.15m to 1.2m.

When I try to sell, it never manage to fetch that price. I end up selling $1.1m

Upon a more detail calculation, I was actually losing money:

Stamp duty
Agent fee
Loan interest (more goes to interest portion upfront)
Property tax
Reno (minor)
CPF usage + Interest

It seems like the moment when we buy a property, the breakeven point is another 10-20%.

What’s your thoughts?

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Douglas Chow

26 May 2019

Chief Enlightenment Officer at Empower Advisory

Hi, Douglas here. 2nd Keynote speaker.

It's pretty much property specfic and depends on how much loan you take, so it's hard to conclude what is the break even point. In your case, assuming you have not taken a loan, you would surely be profitable.

In today's context with 75% loan as max for pte properties, assuming one takes maximum loan, it shoud be profitable with a 15% price increase from launch date to TOP. But of cos maket conditions can change esp in Singapore where the goernment is the biggest landlord and supplier of land, with the ability to impact the market through cooling meaures.
You can always connect with me via https://www.facebook.com/douglas.chow.908 or simply whatsapp/sms my company 24/7 hotline @83324283
Remember, plan your finances properly, don’t overstretch, do your homework and enjoy your property investment journey.
Regards
Douglas Chow

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