Asked by Sam sam
I have a HDB shophouse in Block 8, Jalan Batu, (Mountbatten), what is current market price for this HDB shophouse (2 level)? How can I market it? How much is valuation? Area around 1400-1600 ft2. Anyone can help?
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Say
Expected Rental Yield $4000 Per Month over 56 Years
$4000 x 12 x 56 = Approx $2,700,000
THAT should be indicative Sale Price
PLUS
Your VIRTUAL GAIN over the last say 30 Years
You have have occupying for own use valued at
$720,000
LESS
Tolerance Expenses including Mortgage Interests
of of say $250,000
Total Net Virtual Gain
$720,000 - $250,000 = $470,000
Your Total Gain from this Shophouse investment would be
SALE PRICE + VIRTUAL GAIN + (A POSSIBLE INDIRECT GAIN)
$270,000 + $470,000 = $3,170,000
Of course LESS
Your first Capital Downpayment + Supposing Possible Interests Gain
over the last 30 Years
Good Luck & GOD Bless
.
Valuation should based on the RENTAL YIELD
Eg
Say per month rental is
$5000 x 12 Months x 50 Balance Years = $3,000,000
THAT should be the SALE PRICE
For the Owner his GROSS GAINS would be
30 Years of own use RENTAL equavalent
$2000 x 12 Months x 30 Years = $720,000
LESS
Tolerance Expenses of say
$500 Per Month x 12 Months x 30 Years = $180,000
PLUS say
$100,000 Mortgage Interest
Total Expenses $180,000 + $100,000 = $280,000
NET GAIN before Sale Price for owner
$720,000 - $280,000 = $440,000
There the FINAL GAIN by Owner would be
SALE PRICE + VIRTUAL GAIN
ie $3,000,000 + $440,000 = $3,440,000
Which is some 15% above the Sale Price
Dear Owners
Market has its LIMITS and SENSES
Beyond the CURRENT CONDITIONS
You may break the deal to harvest your PROFITS now
Good Luck & GOD BLESS
.
.
So the