What property strategy do u recommend to earn money through the buying and selling of property ? - Seedly

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# What property strategy do u recommend to earn money through the buying and selling of property ?

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The question is how much ROI is satisfactory for you?

Buy, Wait and Rent is one of the better approach, as the main bulk of your payment is paid by the tenant.

Once after 3 years, evaluate options again, due to Seller stamp duty if sell within 3 years.

Let's use an example of a 3br in Punggol.

If you buy at 1.2m, rental is 2.6k per month. Loan \$900k

If you use 29% as downpayment (\$332,600)

Monthly installment is \$3102

Yearly installment is \$37,224

Rental per year is \$31,200.

Maintenance \$300 *12 = \$3600

Property Tax is \$2200

Agent Fee is \$1391

At the end of the year, every year, looking at negative cash flow of \$13,215

If 3 years, will be \$39,645

After 3 years of paying \$3102 monthly installment,

Total payment of \$3102 * 36 = \$111,672

Interest = \$38,917

Principle Paid = \$72,755

Outstanding Principle Left is \$827,245

Total cash outlay - \$332,600 + 39,645

= \$372,245

If sell at 1.3m

• 1.3m - 827,245(Loan) = \$472, 755

• Profits made: \$472,755 -372,245 = \$100,510

• Over 3 years, 100,510 / 372,245 = 27%

If you feel that this is satisfactory for you, then sell.

Usually my rule of thumb is that After 3 years, if property appreciated more than 3 years of rental collectible, can consider selling.

If below 3 years, can still consider renting out.

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Thank You!
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