As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

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Value Investing
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Thursday, 13 September 2018

HDB 4 Room Rental Soften???

Uncle8888 recently bumped into his long time no see neighbor who is living a few floors below him. 

After some chatting; he came to know that his neighbour has been living at her mother's place and rented out the entire 4 room flat.

That day; she came back to her unit to settle down her new tenant. 

Uncle8888 asked her about the rental rate. She said that the current rental is $2,000. The previous rental was $2,800. 

Down by 29%!


  1. Is there any difference in holding stocks especially Reits.

    i think it is best U choose what U like best.

    But U have to try both to really know which U like best.

    In most cases, nothing can beat U experience the practical yourself.

    Talk Male Chicken or high brow theory can only mean talk only

  2. Heheh, I would say $2.8K is abnormally good if it was last 2 years ;)

    Just like dividend investing, should always build up cash reserves during good times to handle the inevitable lean times :)

    My mickey mouse condo rental has dropped 25% from the heydays in 2013! At least still covers the expenses + imputed effort (we put it at $50/hr/pax) but headaches are extra! LOL!

    Renting out physical property is more like business ... got advertising, marketing, selling, pacifying customers, dealing with difficult customers, ongoing expenses, taxes...

    Being a mini-bank oops I mean shareholder means trying to manage from 30,000 feet. When the weather is good & the winds are right, just sit back & collect. But during bad times either jump ship or can scold management during AGMs! LOL!

  3. From 2013 peak, it is correct, rental has dropped from 25 to 30 %.

    What about expenses for maintenance of property's utilities, appliances, etc...

    So if invested in Reits, is there any thing difference?

    How much drop in dividend?

    How much drop in capital invested?

    How much drop in Riet's asset value?

    1. The Moral of the story is we need more than one source of "passive" income as rental and dividend can drop drastically without any advance warning.

    2. Dividend and/or rental income marginally exceeds expenses may not be fully FI yet.

  4. Actually, i think it is better off holding the correct Reits than properties.

    Unless U have too much money and just want to have some diversification for safety purpose.

    YOC should be better.

    Besides U will enjoy more rebates and ang pows form Big Brother.

  5. Think this neighbour doesn't to bother her HDB flat is leasing or ownership. Monetise it for next 10 to 30 years. Her pocket full of money liao. Those who cpcb are those can't monetise it. That is the real reason!

  6. That may be the reason but i think the No. reason is all HDBs belong to us or only the Elites?

    Or at least the commons want a little, a litter more.


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