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.