Capital Gain – How to Maximize Your Profit
Capital Gain Vs Rental Yield (Investment)
Let’s compare is capital gain or rental yield better.
Tax Rate
Capital Gain from Sale of Property
Rental Yield Non-owner-occupier Residential Tax Rates (Residential Properties)
Conclusion: Capital Gain have 0% Tax and Rental Yield have 10% to 20% tax for investment.
Highest Capital Gain in Singapore Property
The Highest Capital Gain (Annualized) per year I have seen is 13.6%
Highest Rental Yield in Singapore Property
The Highest Rental Yield Residential Property Project in Singapore is getting around 4.7%
Conclusion: The fastest way to get profit is via Capital Gain.
How to Find a Property with High Capital Gain Potential?
What are the options available?
Resale HDB $840k =>$710k
After 7 years Made a Loss of $130k
BTO HDB $400k => average $550k
After 3 years of construction and 5 years to MOP (Total 8 years) get 37.5% gain (37.5% / 8 years = 4.68%) or $150k gain ($150k /8 years= $18.75k / year)
Resale Condo After 6 years psf range drop from $900+psf to 800+psf
New Launch Condo $1,072,398 =>$1,469,946
After 4 years Made 7.6% per year and $398,000 ($398,000 / 1582days X 365days = $91,826 / year)
Summary:
Resale HDB $840k =>$710k After 7 years Made a Loss of $130k
BTO HDB $400k => Average $550k After 8 years Made 37.5% gain (37.5% / 8 years = 4.68%) or $150k gain ($150k /8 years= $18.75k / year)
Resale Condo After 6 years psf range drop from $900+psf to 800+psf
New Launch Condo $1,072,398 =>$1,469,946 After 4 years Made 7.6% gain per year and $398,000 gain ($398,000 / 1582days X 365days = $91,826 / year)
Conclusion: New Launch Condo have the highest potential capital gain in terms of Percentage and Quantum.