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Tencent bounces back: What to know about China’s tech giant
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About Tencent (SGX: HTCD): A Global Leader in Digital Services Established
in 1998, Tencent has become one of the most recognised companies in China
and ...
7 hours ago
Heheh, I would say $2.8K is abnormally good if it was last 2 years ;)
ReplyDeleteJust 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!
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.
ReplyDeleteDividend and/or rental income marginally exceeds expenses may not be fully FI yet.
ReplyDeleteThink 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!
ReplyDeleteCW,
DeleteThe parable of talents.
Net rental income after 10% tax is about $1,800 for my neighbor so it should be enough to live simply on $1,800 in addition to any other sources of retirement income.
ReplyDeleteTo receive this level of dividend income of $22K per year; she will require capital injection of more than $430K at 5% yield.
How many of us have an additional capital injection of $430K?
Hee hee Uncle8888
ReplyDeleteGot quite a few costs need to set aside :)
Pty tax, if you're not staying in it, is up to 10X normal pty tax.
In S'pore, normally the landlord pays the conservancy fees ... so another expense to consider. And no more GST rebates for rented out flat haha!
Rental income is considered as "earned income" and thus subject to income tax. If no other active income, then still OK unless your rental income is very high. Luckily now can just claim 15% of your gross rental as deductible for expenses.
For your neighbor case, if she doesn't have any other income, then probably don't need to pay any income tax. (85% of $22K is below $20K)
But should set aside 10% of rental as buffer for maintenance / repairs / replacements. This one can be the wildcard or joker .... depends on your luck with tenant sometimes.