Tag: t_upto4
43R model requires renovation know-how
I think anyone following the 43R model need to be serious about renovation. The best bargains are usually unwanted houses that needs lots of fix-up. The non-bargains will also be 2nd-hand houses.
Also we may need to carve out bed rooms in living room or attic and improve the basement.
I need to start acquiring knowledge and network.
rental property wear-n-tear #index
NJ wood house rental property wear-n-tear = 5-10% of rent income according to Wallace.
Wood houses can have higher maintenance than the Singapore concrete apartments, esp. due to the grass. Many people are forced to learn DIY because of professional fees.
rental property: SEA beats U.S.#Susan compares with SEA including Singapore.
appreciation=less predictable than NGRY #Brian@RTS
43R: avoid huge bed rooms
A 200 sqft room can’t fetch the same rent as two 100 sqft rooms
HDB affordability=hard4other cities
reason — in other cities, the private developers are too powerful and influential. They can sway public policy. Policy makers are humans.
reason — in other cities, given the current level of valuation, any policy that threatens to decrease residential property valuation over 50 years will hit deep and systemic resistance. Call it “vested interest” if you like. HDB scheme has that “destructive” power in public perception.
## 3 biggest windfall profits ] my life
##high-ROI ] %%experience shows 2 big windfalls — 90k ] Beijing and Blk 177
The inheritance would be an even bigger windfall but not a profit.
MYS(+THA/Batam): world-class retirement choice right beside SG
##Y rental yield varies so widely across countries
- National culture is one reason , like Chinese^American etc. Remember Damien of Macq, Pinsky of RTS.
- I feel pTax and mortgage rate push up rental yield as they
- affect supply side — suppressing rental home supplies
- affect demand side — reducing viability of the “buying” option, therefore increasing the relative viability of “Renting” choice
- inheritance tax law is another factor.
- Aleris said traffic jam is another reason. BGC workers face huge daily commute if living outside.
reduce U.S.rental income tax
Tip: Prefer to receive rent checks payable to “Chase” or Citibank”
Itemized deductions can show repairs, depreciation, mtg cost, pTax etc, so you can’t hide your rental income.
Standard deductions show none of these and hence provide a loophole to avoid paying tax on rent income.
Wallace said you can write off many expensive renovations against rental income to reduce your tax, but I think IRS may pick you for audit.