Thursday, April 12, 2018

10 Steps to help you choose a good property for rental income -




10 Steps to help you choose a good property for rental income - 
1) The value of the property should be cheap or low so that you can quickly make it fully paid. Once it is fully paid, it becomes your "cash cow" especially when this property is freehold or 999 years leasehold.

2) Ideally,  buy a freehold or 999 years leasehold property are the best.

3) 1, 2 or 3 bedroom property is up to you - most important is who do you wish to rent it to ? For a one bedroom usually single or couple would take up this rental unit. For more rooms, usually a family would rent them.

4) The fengshui of this condo need to be very good - Otherwise it will be very hard to find a rental tenant willing to pay.  So, you can choose "the Facing the condo unit" as North, South, North East or South West facing will be good. 

Most of my clients bought SW facing.

5) You will need to do up the house as if you want to stay in it. If the lightings are not nice or you don't have day and night curtain, you may have a problem renting out your unit. Some tenants like day and night curtains.

6) When we want to buy a property for rental income, we also want to buy a house that we want to stay in next time when we are old or whatever.  Don't anyhow buy like some people anyhow buy then next time rent cannot rent out then sell also difficult. These people usually buy the second level unit as these tend to be cheaper in pricing.

Therefore, it is important that you have holding power. No one renting it, never mind, can wait till a good and rightful tenant comes along. Last year and this year, some of my clients tend to wait for 6 months before they find a good tenant. And it is worth the wait.......

7) Ideally,  the unit should be very near MRT station or near roads where your tenants can take the Bus or go via Train. Calling for taxi or Grab also easier. Some take bus can already so near to roads are good units for rental income though most people would say must be near MRT station. Well, this logic is true but not complete.

8) If the condo unit is near to famous schools, these units are usually quite good rental property like those in Bukit Timah. The expats also like there and rental there should be easy.

9) Ideally the condo unit is near amenities - got coffeeshop nearby or these days, food delivery is also very convienient.

10) If you buy a small one bedroom condo unit, usually after owning it for 5 years, the loan amount is 50% already paid up, leaving 50% more to pay.......very fast it will be fully paid. And the tenants are the ones who help you pay unless the unit wasn't rented out.


FSQ NOTE : This article is written by an owner of a small freehold shoebox.


1 comment:

cassie's blog said...

hi hi

thks so much for sharing... as for those choice directions you had given... does it mean even in period 9 these will be the same as aspics as period 8?

thks !!!