–Key features of U.S. rental yield :
- See also rental property: SEA beats U.S.#Susan
- 🙁 very high pTax, always increases rent.
- 🙁 higher mortgage interest rate than Singapore. Usually increases rent
- 🙂 More people (including affluent locals) are willing to rent, in western culture than in Singapore. In fact, if price is right, many who own a home also want to rent.
- There are more people unable to buy in U.S. than in Singapore, either due to credit, home prices, or other reasons.
- Jack He pointed out that tax + mtg interest + maintenance cost can be comparable to rent. See the real example in 389 Washington St #Newport
- 🙁 high repair cost. Some of it borne by tenant, some by owner. Xia Rong typically spends $10k each year on his old house.
- Gross rental yield much higher than Singapore, but Net rental yield is comparable to Singapore.
- My friend Youwei said he can get USD 36k gross rental on a 400K+ 2-family home in Jersey city. After taxes and mortgage I hope he can earn half that.
- My friend Wallace earns $3400/M on a 2FH in Jersey Heights.
— now the tips
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- #1 tip — pick a “hot” location. Can relieve bench-time. if the location is not popular enough, then request 2M notice period from tenants
- #2 many rooms — See 43 Rockledge hotel model
- Multifamily (MDU) in Bayonne are popular. If your family needs all the rooms, you still can “join” two units.
- dispute pTax assessment
- avoid condos having rental restrictions.
- high rental demand, low maintenance, often a condo in a prime location such as BGC and Newport, … yet GRY is a fraction of the 43R model.