Singapore Property Investment Calculator

Property Investment Scenarios

Singapore Property Investment Overview

• Rental Yields: Generally 2.5-6% depending on property type
• Capital Appreciation: Long-term average 3-5% annually
• Total Returns: Combination of rental yield and capital gains
• High Entry Costs: Stamp duties and ABSD for investors
• Cooling Measures: Government policies to moderate prices

Rental Yield by Property Type

• HDB Resale: 4.0-6.0% gross rental yield
• Private Condos: 2.5-4.5% gross rental yield
• Landed Properties: 2.0-4.0% gross rental yield
• Commercial Properties: 4.0-7.0% gross rental yield
• Industrial Properties: 5.0-8.0% gross rental yield

Additional Buyer's Stamp Duty (ABSD)

• Citizens (2nd property): 17%
• Citizens (3rd+ property): 25%
• PRs (1st property): 5%
• PRs (2nd+ property): 30%
• Foreigners: 65%
• Entities: 65%

Buyer's Stamp Duty (BSD)

• First $180,000: 1%
• Next $180,000: 2%
• Next $640,000: 3%
• Next $500,000: 4%
• Above $1.5 million: 5%

Seller's Stamp Duty (SSD)

• Within 1 year: 12% of sale price
• 1-2 years: 8% of sale price
• 2-3 years: 4% of sale price
• After 3 years: No SSD
• Exemptions: HDB flats, inherited properties

Property Investment Costs

• Legal Fees: $2,500-$5,000
• Valuation Fee: $500-$1,000
• Mortgage Processing: $500-$2,000
• Fire Insurance: $100-$500 annually
• Property Tax: 10-20% of annual value

Ongoing Property Expenses

• Property Tax: 10% (owner-occupied) or 20% (non-owner)
• Maintenance Fees: $200-$800/month for condos
• Property Management: 8-10% of rental income
• Repairs & Maintenance: 1-2% of property value annually
• Vacancy Allowance: 5-15% rental loss

Financing Considerations

• Loan-to-Value (LTV): Up to 75% for investment properties
• Total Debt Servicing Ratio: Maximum 60% of income
• Mortgage Servicing Ratio: Maximum 30% for property loans
• Interest Rates: 3-5% for investment properties
• Loan Tenure: Up to 30 years (subject to age limits)

Location Factors

• MRT Proximity: Properties near MRT command premium
• School Districts: Good schools increase rental demand
• Amenities: Shopping, dining, healthcare facilities
• Future Development: Upcoming infrastructure projects
• Rental Demand: Expat areas, business districts

Market Cycles and Timing

• Property Cycles: 7-10 year cycles typical
• Economic Factors: Interest rates, GDP growth
• Government Policies: Cooling measures impact
• Supply Pipeline: New launches and completions
• Global Factors: Foreign investment flows

Risk Factors

• Interest Rate Risk: Rising rates affect affordability
• Vacancy Risk: Periods without rental income
• Liquidity Risk: Property takes time to sell
• Regulatory Risk: Government policy changes
• Market Risk: Property value fluctuations

Tax Implications

• Rental Income Tax: Taxed as personal income
• Deductible Expenses: Interest, maintenance, property tax
• Capital Gains: Generally not taxed for individuals
• Property Tax: Based on annual value
• GST: May apply to commercial properties

Investment Strategies

• Buy and Hold: Long-term rental income and appreciation
• Value-Add: Renovate and improve property value
• Flipping: Short-term buy-renovate-sell (subject to SSD)
• Portfolio Building: Multiple properties for diversification
• Commercial Focus: Higher yields but different risks

Due Diligence Checklist

• Title Search: Verify ownership and encumbrances
• Building Inspection: Structural and defect assessment
• Rental Comparables: Market rental rates research
• Future Development: Nearby planned projects
• Legal Compliance: Zoning and usage restrictions

Exit Strategies

• Sale Timing: Market conditions and SSD considerations
• Refinancing: Extract equity for new investments
• Renovation: Improve value before sale
• En Bloc Potential: Collective sale opportunities
• Estate Planning: Transfer to next generation

Alternative Property Investments

• REITs: Listed real estate investment trusts
• Property Funds: Unlisted property funds
• Overseas Property: International real estate
• Commercial REITs: Office, retail, industrial exposure
• Property Crowdfunding: Fractional ownership platforms