My thoughts on Glendale Park Part 2 and XIRR

 

A follow up on right after we bought our unit at Glendale up till now. For those who haven't read my first post on this can click here to read. The unit has been rented out since we purchased it(Jan 2019) till now. As it was unfurnished at first the rental yield was around 2.3% pa to the recent 2.5% pa, because previous tenant left their furniture and bed behind, hence its now semi furnished.

The reason we are able to purchase at a price quantum slightly lower than market rate then(Jan 2019) was because of the condition of the kitchen and the ex owner wanting to downgrade to hdb(likely due to monetary concern). It is also due to me trying to lowball and abit of luck. 

I consolidated similar unit size transactions after our(wife and I) purchase till date. The circled row is the unit that we have bought. If we compare it with the recently transacted $psf of my exact unit type and floor level. Capital appreciation is about 8%(Not including the rental yield). After deducting the mortgage and the maintenance fee, remaining free cash flow is around $1.2k monthly.

As you can see, the kitchen was in a very bad condition. But I know its superficial. Just need some carpentry work. We spent $800 to fix everything up and this is the outcome.

Many times, ugliness of certain areas will repel buyers and demotivate sellers. We can use this reason to ask for a lower price. But, upon closer inspection, its usually easy superficial work if you know the right contractor to call. Renting out fast is also ideal as if any further wear and tear we can share the cost with our tenant(they have to fork out $150 for every item that needs repair). 

Another good aspect of Glendale is its close proximity to HillV2 which is a shopping center with many restaurants, barber, tuition center, florist and supermarket. Its practically just a few meters from the main entrance separated by a road. Its like a double benefit with mrt 50 meters away and a shopping center right beside it. Being a freehold with that kind of proximity is pretty rare in Singapore. 

Snap shot of my portfolio performance as of today: Total profit for 2021: S$5,113.24. Manage to exceed $100k profit in total from this portfolio alone since 2015 till now.