Thursday, 27 August 2020

BTO as investment asset class. 92% ROC i.e. close to 2 baggers profits over 12 years

Read? Punggol HDB loft unit sold for S$900,000 to couple who viewed it only once

A HDB loft at Punggol Sapphire estate was recently sold for S$900,000.

The previous owner had purchased the flat directly from HDB for S$468,000 in May 2008





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3 comments:

  1. Spur27 August 2020 at 23:04:00 GMT+8

    Hoho shiok! 😁

    Property agent will tell you ... Wait! There's more!!!

    92% is return on asset ROA. Return on capital is much higher!

    Why?

    Coz property can leverage mah!

    Down payment only 20% ($93,600).

    Borrow 80% from HDB 2.6% loan (assume they unsavvy dunno about bank loans larr).

    Monthly $1,693 mortgage.
    After 12 years paid $243,800.

    Using primary school / property agent maths (ignoring time value of money):

    ROC = 900,000 / (93,600 + 243,800) = 166% Song song gao jurong! LOL!

    Ok lah ... need to pay back remaining loan:

    ROC = (900,000 - 224,000) / (93,600 + 243,800) = 100%

    ReplyDelete
    Replies
    1. CreateWealth888828 August 2020 at 08:06:00 GMT+8

      Hmm .. so 61% who can count voted for MIW! LOL!

      Delete
    2. Singapore Man of Leisure28 August 2020 at 11:17:00 GMT+8

      CW,

      LOL!

      I guess the owner who sold that Punggol flat is not in the camp complaining HDB flats "too expensive"; or after 99 years, our flats will go to ZERO ;)

      No need 2 bites of the cherry. One bite can already!

      $900K is more than enough down payment for a private apartment or condo ;)


      Sometimes its luck; sometimes its skill.

      Instead of whining, its better to focus on playing the hand we were dealt as best as we could ;)

      Delete