This condo investment has been a drag.

Is cash flow sufficient to service debt?





Reader:
Hello AK, I read many of your interesting articles on your blog on financial matters. 

I would greatly appreciate some advice to manage my finances. 

I turned 55 and am still working. 

I live in a 3 room HDB flat fully paid for. 





I purchased a 2-bedder private condo in the east for investment purpose and renting it out since mid 2015. 

The rental is covering my mortgage loan but the other expenses such as property tax, home/fire insurance and maintenance/sinking fund amount to $7000 (a year). 

I am thinking of letting go this property...

AK:
If you are concerned with investing for income to fund your retirement, it seems that this condo is more a drain than a pump. 

If the home loan is going to be paid up soon, then, less to worry about. 

If the home loan has another 10 years (or more) to go, at 55 years old, I might be worried.





Know your motivations and you will know if something is the right tool for you.

Related post:
Buy a condo or stocks?