2.97% rental yield, a long term savings plan
*****AT A GLANCE*****
+ 2.97% gross rental yield p.a.
+ Nearby new 99 years project selling at $1.3m and above with unit size under 500 sqft
+ Selling below valuation, $1.1m negotiable
Good savings plan for investors!!!
- Assuming Purchase Price at $1.1M
- Downpayment CPF $220k + Cash $55,000
-Assuming rental at $2,750 per month
- Est. Net rent = $2,750 x 0.8 = $2,200 (minus tax and maintenance fee)
- Installment over 30yrs @ 1.5% INT = $2,850
- CPF contribution $650 per month
- Cash commitment for installment = $0 (Installment - Net rent + CPF contribution)
- Principal loan paid down monthly = est. $1,900 (about 2/3 of installment goes to principal)
- Over 10-years;
Principal paid down = est. $228,000
CPF contributions = est. $89,500 (include accrued INT of 2.5%)
Outstanding loan = est. $590,000
Sale price $1.1M (without factoring inflation)
Total Sale Proceeds = est. $415,000 (inclusive of 25% DP)
Amount back to cpf = est. $370,000
Cash = est. $140,000
Est. ROE = $415k - $275k (DP) = $140k
Est. ROE (%) = $140k / $275k x 100 = 50%
Est. ROE per year = 5%
Est. Cash on Cash ROE = $140k (cash) / $55k (DP) = 2.55* 100 = 255% / 10 yrs = 25.5% p.a.
*Disclaimer: above figures are based on estimates.
+ Mt Sophia Suites is conveniently located on the foot of Mt. Sophia Hills, much easier and more convenient for tenants without having to ascend the hill
+ Ground floor with direct access to the pool
+ District 9 and Freehold
+ GOOD investment choice for its convenient location and freehold status
+ Within the Mount Sophia enclave
+ Hippy estate
+ Under 10mins walk to Plaza Singapura and Dhoby Ghaut MRT station
+ 2 MRT stops to Raffles Place station
Call Gary @ 9851XXXX
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