Tan Kin Lian's Blog: Landlords may also be struggling

Friday, July 03, 2020

Landlords may also be struggling

The finance minister expect the landlord to help their tenants by waiving rental for 2 to 4 months. The government will only compensate the landlord for half of the cost. The landlord has to bear the other half. This directive is wrong. It assumed that the landlords have been enjoying a good yield on their property and can afford to bear part of the loss. It is a wrong assumption. Read my view here: https://tklcloud.com/Feedback/feedback2.aspx?id=3210

8 comments:

Unknown said...: I know that this is not a big amount of money on private residential compared to malls.

When we bought our private property for investment, a foreign bank insisted that we have the

affordability to pledge a minimum 20% funds to their bank as a fixed deposit in the event

that due to unforeseen circumstances, they could use the fixed deposit as a temporary payment

till finances were to straighten out. Other than the 20% upfront payment for the property,

we maxed the loan to 80%, so as to have emergency money for other expenses and loan

repayment of up to a year for non-tenancy rent collection. There is a difference between

foreign banks who want your businesses, but also to protect themselves. As long as they

have a little security they are more a less not as particular in your application, citing

cash-rich, asset poor. There was no such thing as ABSD, LTV or TDSR or TDRS. Thinking out

of the box, they claimed that one's income is not permanent. Besides on tenure, one can

live up to 60 and be sickly, another can work up to 75 due to good health. There is a

difference between "smart" or just "book-smart. Of course, this was years ago. A lot has since

change since 4G took over. Today, we are retired and living on the rental, with the loan

fully paid.

Talking about malls, it has to be their duty to cut rentals when times are bad When business was good, there
was a clause in some contracts, that they are entitled to the tenant's profits of 30%. The

tenants have to forfeit their deposits (2 months plus one advance) or pay in full all

rentals if the tenancy is not fulfilled to their terms of the agreement.; July 03, 2020 1:12 PM
Anonymous said...: We don't vote for brash candidates. If one is not able to accept questions from their opponents, how are they able to deals with the laymen population, who just like to whine? Big question mark hanging!; July 03, 2020 2:27 PM
Anonymous said...: Prime Minister Lee only realises that his men worked hard. Pity we less hear of them worked smart. We now have most part of the young population that is educated, well-travelled and tech-savvy. Gone are the days of brain-washing.; July 03, 2020 4:03 PM
Anonymous said...: People hate the truth. The truth don't hate the people.; July 03, 2020 5:26 PM
Anonymous said...: Highest of 10 candidates will lose their deposits.

Lowest of 5 candidates will lose their deposits.

Sorry.; July 03, 2020 9:44 PM
Anonymous said...: Besides paying high rentals, mall tenants pay monthly maintenance fees and sinking funds plus GST for their payments.; July 04, 2020 12:54 PM
Anonymous said...: Some sinking funds plus the maintenance fees range from $500 to $4000 a month.; July 04, 2020 1:13 PM
Anonymous said...: Also, the tenants pay their individual PUB bills.; July 04, 2020 1:27 PM