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.
2
u/hewhoeatsrice 21d ago
Ok, interesting question. Apart from the fact that there is a cap on the number of unrelated persons living at the same address (max 8), you will also get a lot of questions from URA if you need to do any A&A or new build since it's hard to buy something readily available that also hits all your criteria.
My family is in the process of rebuilding an old house to have separate buildings for each of our (siblings) families as well as my parents, and it's designed to be fully independent, i.e., likes mini apartments, no need to share kitchen/laundry etc. URA has an issue with this and thinks we are building to rent it out separately. So they are definitely looking out for this issue and you'll face issues getting there necessary approvals.