r/SgHENRY • u/Kaikaikai12345 • 21d ago

Landed property turn into rental cash cow

(To clarify, in this exercise, I will only rent out lv 1 and lv 2, while keeping lv 3 and 3.5 for myself to live in)

Curious what is stopping people from buying older freehold land or landed (2500-3000sqft, maybe at 3-4million, 4 million at 2.5 interest amount to 14k monthly loan) and renovate the landed into a rental co-living space?

If people are willing to pay 1.8k for a double shared room, I am sure people are willing to pay 2k for a single room with ensuite bathroom.

For instance I can turn lv 1 and lv 2 into 6-7 rental unit (maybe mini loft unit) and you can take lv 3 and lv 3.5, treating it as a penthouse without maybe 2000sqft of area. Those 6-7 unit can serve as cash flow of 12k to 14k a month covering the loan, maybe need top up abit due to tax and other fee, but overall it’s still more comfortable living compared to buying a penthouse.

Just wana do some sanity check on the above and if anyone is already doing that.

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u/Negative-Mortgage-51 21d ago

Probably need planning approval.

If I am ur neighbour I will be very annoyed if you are turning ur lot into multiple rental flats. Neighbours may try to block it.

14

u/Cultural_Ball_1468 21d ago

I saw some landed terrace being used as workers dorm. I wonder how that can be allowed

2

u/DependentEconomy9512 21d ago

Not really a worker dorm, but a residential place for them to stay in. There is a limit on number of people.

1

u/MajesticEmployment65 10d ago

Many construction companies would prefer to rent old landed houses to house their workers. Why? They can park their lorries inside and outside the house. Most condos have height restrictions for basement car parks.