Property investment is not just buying a second property to lease out, to earn a passive income. Property investment applies to the property that you buy to stay in as well.
In July 2010, I bought a landed property, in original condition. In February 2011, a unit along the same road, also in original condition, was sold at 15% above the price I paid for. The renovation for my house is completing end of this month, and my wife and I intended to sell it away at about 25% above our purchase price. Of course, the selling of the house will only be done after July 2011, so that I need not pay the seller's stamp duty.
After that, where are my family going to stay? After doing some calculations with our CPF monies and enquiring the loan quantum for each of us with various banks, we will buy two properties under two separate names. In this way, not only can we overcome the hurdle of only 60% loan quantum, we can have a property that can bring us passive income. We can actually take a loan of 80% of the purchase price for both properties.
That is why it is always good to update your loan quantum with the banks and keep a lookout for property sales every now and then. There are still some very good properties out there that are selling cheap and can give us a relatively good rental yield. We have actually a couple of target properties that we will buy after selling the current landed property.
I have come across an advertisement last week. A 3 bedroom unit in Adam Park Condo (freehold) is selling for $1.5million. It is freehold and within 1 km of very good schools like Raffles Girls Primary School and Nanyang Primary School. When 2015 comes, the nearest MRT station is just about 600 metres away. Comparing to other properties that are selling at skyrocketing prices, this is considered a good catch. There are some others in the Straits Times Classified, go look for them yourselves.
For those who are wondering, my family is currently staying in a rented apartment.
Happy searching and investing.
Cheers.
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