As I clinched my fifth deal, with a sixth coming, I know that the project is only half done. By 2018, I aim to have at least over SGD10m of assets, SGD4m of equity. Eventually, own buildings like Donald Trump and have a portfolio of rental income from commercial and residential properties.
I know that continental Europe's property prices have bottomed. I especially like Barcelona and Madrid residential properties. But I believe the VAT tax is roughly 10 - 15% of market value. So you need 2 years to breakeven. Mortgage is not difficult to obtain though.
I also like Lisbon properties. Because it provides me with residence opportunity.
Barcelona and Madrid's price to income are around 9 to 10x. Rental yields in CBD are around 5 - 6% gross. In Birmingham and Manchester, price to income is around 4 to 5x. Rental yields around 6 - 8%. If you ask me, Birmingham and Manchester may have as much upside as barcelona and madrid!
Of course, I'm partial to owning one more in West London, along the CrossRail route.
When investing in properties, you must make sure that the city is above 1m in population, and demand outstrips supply. This will enable you to enjoy a steady flow of tenants. Out of the 5 properties I own, only 2 are over 1km from a train station. One is in Brisbane, Tingalpa. That's because it's a town house and people seldom rely on trains to commute to work. It's like Los Angeles where everybody owns a car. The other is in Greenwich Millennium Village which is around 1.4km from the tube. It took a little more time to find a tenant but we still managed to fill it.
I know that continental Europe's property prices have bottomed. I especially like Barcelona and Madrid residential properties. But I believe the VAT tax is roughly 10 - 15% of market value. So you need 2 years to breakeven. Mortgage is not difficult to obtain though.
I also like Lisbon properties. Because it provides me with residence opportunity.
Barcelona and Madrid's price to income are around 9 to 10x. Rental yields in CBD are around 5 - 6% gross. In Birmingham and Manchester, price to income is around 4 to 5x. Rental yields around 6 - 8%. If you ask me, Birmingham and Manchester may have as much upside as barcelona and madrid!
Of course, I'm partial to owning one more in West London, along the CrossRail route.
When investing in properties, you must make sure that the city is above 1m in population, and demand outstrips supply. This will enable you to enjoy a steady flow of tenants. Out of the 5 properties I own, only 2 are over 1km from a train station. One is in Brisbane, Tingalpa. That's because it's a town house and people seldom rely on trains to commute to work. It's like Los Angeles where everybody owns a car. The other is in Greenwich Millennium Village which is around 1.4km from the tube. It took a little more time to find a tenant but we still managed to fill it.
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