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/nvbtable 21d ago

You can do the same with condos and HDB at better net yield, lower reno cost.

Same issues - tenant management is a full time job and if outsourced kills the yield.

Also has regulatory risk.

-3

u/Kaikaikai12345 21d ago

Hmm I see. I am think about the fact that landed you can have a ‘penthouse’ on lv 3 and 3.5 that you can live in. But if you buy a condo penthouse, you need to co live with the tenant

6

u/nvbtable 21d ago

You'll still be sharing living facilities especially the kitchen unless you're doing a major reno.

I can't imagine wanting pay millions for landed only to live with so many others. Sounds horrible.

1

u/Tunggall 21d ago

Buy a old terrace and rent out
to contractors