IF $1M IN CASH, WOULD I BUY PROPERTY NOW? FIND OUT 😉

[@AlexTeo]

100% agree with what you said, private property investment is rather risky and not something you can easily pull out. If want to earn from property, put yourself in a position to go for BTO or EC are the safest

[@joshconsultancy]

Hi Alex, great to cya here. Nice channel you have too!

[@AlexTeo]

@@joshconsultancy haha thanks, I am planning how to go debt free by 65 with rental income for me to go spend my retirement life overseas looking at mountains and sea

[@SethCrescent]

Thanks for this comprehensive work. I was just talking to my family on the exact same topic, if I have 1m, I would rather put them all in DBS or REITS. Dividend yield may be lower, but not that much lower, and so much less work and stress. Your video reassure my thinking.

[@joshconsultancy]

Glad it was helpful! Cya around

[@damyeuful]

Thanks for the insight. You are right, where property can make decent returns, but you have to time it correctly. I have done so and believe it, when a group of 4 of us with decent, reliable incomes and dual incomes even worried that the unit went for months without a tenant and you still have to service the mortgage on an investment property. Even with 4 incomes, it was a worry. Imagine having to fork out upwards of 6k and if one person in the equation loses an income. We must not look at things through rose tinted glasses as agents only want your commission and do not paint the downside and stress you may have.

[@joshconsultancy]

Hi DG, sure :). Agents naturally have to paint a rosy picture when they are on the selling side.. cya around more ya

[@whis5448]

If put $1 million into SGX, can easily get $5k dividends per month for yield of 6%. No need to do much work too.

[@joshconsultancy]

Hi whis key, lol. True. But volatile. Property price stable 😉

[@eugeneteo9664]

same sentiment.pay million & you have someone living just above you.its just a box in the sky.sgx better option.

[@MsCorydorus]

Quick check, the first 3 years of new development, the installment is low as bank only charge amount that is paid for each stage of development. Not sure you considered.

[@joshconsultancy]

Hi Cory cat, ya I realized the calculations could be further fine tuned. But I think good enough la haha. Thanks for the feedback :)

[@greyzonee8242]

Thanks for the honest sharing. if only we have this kind of information decades ago...it would have helped in better decision-making.

[@joshconsultancy]

No probs greyzone. Welcome to the channel. Share with a friend :)

[@ryankoh2606]

Thanks Josh. Your video validate my calculations. Good content

[@joshconsultancy]

Nice Ryan 🤚

[@ChrisTang787]

I am not sure... I would only brand new property if they have unique attributes like sea views and for staying. For investment I would buy property with high enbloc potential, rent out and wait. The return will be more substantial. Else it will REITs.

[@joshconsultancy]

Hi Chris, high enbloc potential flats are old and HUGE risk is if enbloc does not materialise. Then stuck with a decaying property

[@ChrisTang787]

Josh, Hah, there’s where we need to be selective... condo Condition and desirable location key. It easy to buy new launch than finding a gem. If we have lease anxiety then buy FH.

[@jocheah4000]

Great work. The point of entry today is high and return of 2.3pct is too low as compared to the risk. Good old days of early to mid 2000 is gone and those are the days of compounding return of 8pct per year. One has to be a global property investor looking at growth and demographics to attain wealth.

[@joshconsultancy]

Thanks Jo! Global properties are not for the common guy though. But agree with your points

[@sundaresank6008]

Good work as always . An avid follower . Keep up the great work !

[@joshconsultancy]

Welcome aboard Sundaresan!

[@Zenus21]

Tx for Sharing Josh! Developers are businessman. Being opportunistic  if the market condo supply goes down and landbank do not increase prices goes up. If no demand prices goes south. Moving forward our nation is moving towards the “5 Star” location to attract and retain talents , UHNWI for long term vested interest. But there are many segments to this property market. I doubt the tiny mickey mouse units /tiny project plot size will do well.

[@joshconsultancy]

Hi youtubesponge. Agree. Developers have upping the commissions rather than dropping the price as it’s the easier route

[@lynngor8]

I am one of the developer appointed agents. To date developer has sold 84.4% I own a unit here too. The 2 and 3 bedrooms are selling fast. There are many hidden potential that most buyers cannot see unless you know how to read the masterplan.

[@joshconsultancy]

Can share further on hidden potential points?

[@lynngor8]

@@joshconsultancy Hahah sure! 😊 But it will take quite a some time, because this is a very good project. My son did this 3 part video series on Avenue South’s other factors. You can check it out here : kzbin.info/www/bejne/ZprFdaWDgdiseqs

[@PotatoLC]

👍 nice work and thanks for sharing. Just a comment. If it’s renting out, meaning it will be a 2nd property, meaning ABSD. So the returns will be different.

[@joshconsultancy]

Thanks PLC, ABSD equation will flop. As mentioned in video haha. Usually its decoupled buying 2 private or single buying first

[@terenceleong]

Thanks for the comprehensive breakdown Josh! Very helpful! Btw for income tax calculation, I thought the mortgage interest is tax deductible? So it may not add up so much I guess?

[@joshconsultancy]

Hi Terence, mortgage interest ONLY (disclaimer please check with a qualified tax person). Share with a friend on the topic =)

[@daryltan9130]

thanks for the heavy lifting , appreciate it ! keep doing the good work !

[@joshconsultancy]

No probs daryl, share with someone too 🤚

[@daryltan9130]

A question do you think the CAGR you stated already includes property taxes?

[@joshconsultancy]

@@daryltan9130 didnt. Could add in too

[@alantan3004]

I think we must understand that 1 m is our investment money, ideally, the rest is paid by tenants, at the end of the mortgage loan, the property of $2.25 mil is yours. So effectively, it is more than 100% returns if you sell even if the property price never appreciate.

[@daryltan9130]

Assuming 100% returns over the mortgage loan period of 30 years. Will result in a 3.33 y.o.y returns which is pretty low. Am i right?

[@joshconsultancy]

Hi alan, it may be a misconception. At projected rental, it will be negative cashflow

[@PptyS209]

But not to forget the buyer stamp duty & extra buyer stamp duty

[@alantan3004]

@@joshconsultancy in that case , have to look for a cheaper property

[@Ivan-uo3yv]

@@alantan3004 I calculated most new launch rental yields is roughly 3% without even taking in account the maint fee, taxes etc. For a cheaper property you need to get resale which decays if its LH, which kind of bad to exit. If FH then the quantum is higher and back to square 1

[@simonlee2613]

1.3% is still way too optimistic. With market over supply and the government jss ending soon, let's wait for property market to crash. A lot of Singaporeans have the cash and are waiting for firesale to enter. I say let it drop 20% and we can talk.

[@joshconsultancy]

Hi Simon, the momentum is up now based on data. Crash might need some time. Property cycles move slowly

[@daniel98890]

Renting property for 5k is like a dream for most property owners … but realistically most 3 room condo are averaging 2.5k-3k .. 5k is optimistic, possible for a new property

[@joshconsultancy]

Hi Daniel, I think this property when built up can reasonably fetch that =P. Its new and location is outside CBD

[@eddielim8702]

I do have a million dollar now after exit from my Hdb flat. Your this video suddenly appeared which was what I am thinking what to do with it😂

[@joshconsultancy]

Congrats. Hope the video had good discussion points

[@lynngor8]

I have been in the industry for 15yrs. Pls don’t look at index. Many lost money and I can proof. As an investor and Property Agent myself, I have a 7R framework that i follow.

[@peterthermocline]

Great video, please explain as a Foreigner, what are reids?

[@joshconsultancy]

REITS are bought on stock exchanges. Check this playlist Peter kzbin.info/aero/PLE53_SWq6zfL9JtcYdyBzcbJZSamkyl9K

[@bill7580]

never complain Singapore Tax rate. I paid $250K tax from capital gain last year (Canada, bad country to make money). Tax rate is 53% for income amount above $250K. For tax purpose, I like to stay in Singapore. In Singapore, investing in property is still the best option if you have $1 million cash. But timing the market is key, really need to be patient. Unfortunately 98% of people do not have such patience. I am one of the 2%.

[@joshconsultancy]

Hi zhanyun, interesting to hear you lived in Canada. Vancouver properties were hot some years back 🔥

[@bill7580]

@@joshconsultancy I am in Vancouver. Property always hot here.

[@gabriellim2293]

Josh you should be a property agent instead of a financial planner 🤣

[@joshconsultancy]

Hi Gabriel, years ago, can be both concurrently le haiz haha

[@gabriellim2293]

@@joshconsultancyThose were the hay days man

[@EF-rj5gp]

Quite a good and fair video. Well done Josh

[@joshconsultancy]

Thanks EF =)

[@jasonkok926]

How about EC ? My brother and his girl friend each one hold one hdb flat. We stay at my brother 4 room flat, his girl friend 3 room flat rent out with 1700 dollar. My brother decided to get married with his gf and buy bto EC around 1million. Both property total up estimated can sell 700k. But in my point of view, is too risky for them to bet all their money to that EC futures selling price as their retirement fund. I am not so clear with EC. Can u please post more info about this asset? Thanks a lot

[@joshconsultancy]

Hi Jason, ec depends on whether it’s past 10y. If now building up only, they would have to sell their HDB to be eligible

[@cryptobuzz1645]

Stay unmarried

[@rheuevr]

Do u have video sharing ur 2017 property investment decision?

[@joshconsultancy]

Hi HH, I saw a enbloc wave back then. Dont have a specific sharing on it but hmm maybe its a good topic for a future episode =)

[@fool1124]

problem is if this is your primary residence, if rented out, where are you going to stay?

[@joshconsultancy]

think the assumption is $1m spare cash how does this view as an investment property

[@DonYang73]

Haha, yes the formula doesnt work with ABSD. Thats why i cant be bothered with properties as an investment. Horrible yield and poor liquidity. 😄😁

[@joshconsultancy]

Yes DY absd for new purchase would make it super unfavorable. You’ve existing property investments?

[@DonYang73]

Yes, i have a recently rebuilt, fully paid landed house which i do not consider an investment. I sold my investment property at the peak of the market in 2013 at record price. The Record price held for 7 yrs until 2020. 😄. Meanwhile i invested the proceeds into the financial market and made some more. The primary Property is for the comfort and quality of life for my family and me. I never quite see it as an investment. There is no reason to buy another property as the yields are about half of what i can achieve with other asset classes and instruments. Perhaps when my children grow up, i will help them buy a property if they need. Property is way over-rated, in my opinion, in todays situation. Only the agents get rich, we wont. 😂. It is however a good store of value so i see it as a wealth preserver. I am 10 yrs older than you in case, you are wondering

[@joshconsultancy]

@@DonYang73 good sharing. What was your career path?

[@kendrickleong707]

I believe that you have missed out the tax payables for property bought for profit making. There is also a need to consider if you need to pay the additional housing tax when you are holding multiple property. These might add up taking away as much as 25% of the total profits.

[@joshconsultancy]

Hi kendrick, there are no tax payables for property in SG other than SSD to note when selling

[@kendrickleong707]

@@joshconsultancy The gains may be taxable if the individual buys and sells property with a profit-seeking motive, or deemed to be trading in properties according to IRAS. The rent gains are also subjected to the property tax as well. I am not sure how does IRAS defined 'profit-seeking motive'. But it was about 20-25% of the gains base on the figure given by IRAS. The above was referring to housing bought for investment instead of for living.

[@joshconsultancy]

@@kendrickleong707 first time hearing that. Not likely a factor. Any property agents feel free to clarify here too

[@fangshenlee2243]

If the property is freehold, problem because future developers not effort to buy to rebuild the place. If it is 99 years lease, the your money 💸. Both not so good. Don't buy

[@joshconsultancy]

Hi Shen Lee, Can buy but with understanding cycles and mortgage commitment better

[@shhow5767]

my property agent is suggesting me to give up my soon to TOP BTO and invest in private property with 200k capital gain in 3-5 years time. taking into consideration of my age of 50, which he says i don't have much time to make use with property investment. I think i need more facts and figures to validate now?

[@joshconsultancy]

TOP is a time you'd hear a lot of suggestions. Youre not alone sh. Think carefully and hopefully my tutorial has points for you to think deeper k =)

[@pngchoonbing728]

Josh, my experience in property inv bot new dist 3 condo for 1.29M in 2012. TOP 2016. Capital gain is v hard

[@joshconsultancy]

Hi Choon Bing, 2012 wise ya, that was close to a previous peak

[@lohdanwee474]

Josh, timing of purchase is the absolute key. 1.3% capital gains is low. With the right purchase price, the relative rentability of the purchased property will be easier. The capital appreciation plus rental income can easily meet 6% per year.

[@joshconsultancy]

@@lohdanwee474 ya timing has effect to return rate. 1.3% is actual from 2013 onwards

[@sharontay7810]

HI Josh in your previous video, you said try to keep 20k in the CPF OA instead of wapping all from CPF OA. i dont want to borrow from others but can i put back 20k say in June when my cash come in into CPF OA. Please advise and any interest occur.

[@joshconsultancy]

Hi Sharon, check on the housing refund portion using cash and into CPFOA, mentioned in that video. That may be what youre looking for

[@lynnc9531]

can you do a review of which reits to recommend for investor ? thanks

[@joshconsultancy]

Hi Lynn, stock tips are not helpful. If unsure of which reit buy a diversified portfolio or checkout my entire reit playlist kzbin.info/aero/PLE53_SWq6zfL9JtcYdyBzcbJZSamkyl9K

[@shonenking8028]

Hey man, if i have the money in the world. Can I actually pay off condo in full cash when buying it? And is there any pros and cons regarding this? Thank you!

[@joshconsultancy]

Hi SK, depends on how you view wealth building I guess =) . Mortgage is one of the easiest leverage

[@chailengngheen2412]

Hi Josh I have made paper profits of 40% ard 50k from DBS and OCBC shares. Should I cash out and invest into other shares or keep for dividend?

[@joshconsultancy]

Hi Leng Ngheen, I can't advice buy or sell. Before investing be sure what to look out for. If not perhaps its better to buy diversified and dont look at it

[@ocswoodlands]

Josh, any plans to do a video on leveraged annuities?

[@joshconsultancy]

Hi Ocs, sure. Ive seen this request before. Stay tuned =)

[@billtay2839]

where can I find the progressive payment breakdown website?

[@joshconsultancy]

Hi Bill, putting link here. Cya around. Hope it helps and for anyone who hasnt seen it before too www.99.co/calculators/progressive-payment

[@sergiysanin4767]

And then interest rates normalize to, maybe, 5% (which is still historically low). Then what? Where does your math go then?

[@joshconsultancy]

Hi sergiy welcome to the channel. If it’s 5% the installment will climb and the roi could turn negative

[@daniel98890]

Very hard for interest rate to ever go up ...3% max

[@DonYang73]

I do have a million dollars unencumbered in cash right now, and i am not bothered with properties.

[@joshconsultancy]

Nice 🤜🏻

[@DonYang73]

Of course i am a lot more invested in the markets so in no hurry to deploy this remaining $1mil cash. Liquidity is opportunity and i prefer to take the right ones than to simply invest for the sake of investing.

[@TheEa85]

Hi Josh. Sorry but still don’t get why sell at 8 years, why not sell at 3 years right after SSD?

[@joshconsultancy]

Hi Edwin, possible. It will likely make the equation more unfavorable to the investor. Time is needed to covered stamp duty cost

[@ivanp9222]

For his answer, go to 19:30 :)

[@joshconsultancy]

haha, the context matters, not just the conclusion =)

[@vincentlim1160]

A lot of info, useful info! 😎 Indeed must have taken a long time to compute and to survey the pricing of developer! Developers may tend to raise the price in following phase but also increase the ‘discount’ and to make it close to earlier phase price 😅 In the end after TOP, if developers fail to clear their units, and remain the initial rate, those who bought can hardly make any profits. I came across some units years after TOP developer still selling at launch rate 😂 I’m not sure if that’s a steal or value trap in that case

[@joshconsultancy]

Hi Vincent, yes, very time consuming but passion makes it abit easier =). This part - TOP developer still selling at launch rate 😂

[@keenkeenli5683]

If you have zero loan, is it still worth paying 1 million ?

[@joshconsultancy]

Hi Keen, then the property wouldnt be $2.25m as discussed. But end conclusion is likely similar

[@Huatgaobaydinchu]

so what happens if market crash big time? potentially stuck for next 15 yrs before can even break even..

[@joshconsultancy]

Hi JL, it's a possibility although remote. Id think the bigger risk is not able to find tenants for long long periods

[@thsim88]

1 million if buy shares last yr march now maybe already at 2 to 3 fold . dump all n get extra 1 or 2 mill free . then buy property. still keep 1 mill😂😂😂😂

[@joshconsultancy]

Hi Tai hing, key word is “if” 😂

[@thsim88]

@@joshconsultancy ya if i got 1 mill. but anyway some shares i bought last yr mar is really give me 2 to 4 times return. imagine i really use this 1 mill

[@abhishekKumar-mf4fh]

U talked about putting 1 million but in ur calculations u showed only putting 20%? A bit confused 🤷‍♂️, can u clarify

[@joshconsultancy]

Hi Abhishek, ya if $500k is expanded out in purchase, there is still $400k plus cash. Buffer for mortgage maybe? =) cya around

[@abhishekKumar-mf4fh]

@@joshconsultancy thanks for ur replay, another question - from ur calculations people who buy with 5% ABSD hardly make anything over long run ?

[@joshconsultancy]

@@abhishekKumar-mf4fh It makes the equation harder, still exceptiins of course, hope it answers and cya around more ya =)

[@DavidArulnathan]

just buy BTC.....your investment will be 2M in a year!!

[@joshconsultancy]

Hi David, suggestions should be considering different risk appetite and ability to manage risk.

[@adhiroham]

Thanks for not putting the funny face on this video cover shot. I have told myself I will not open videos which have the exaggerated faces.

[@lkc4me]

Analysis paralysis

[@joshconsultancy]

There is a conclusion :)