Question 1

What is a good rental yield in Singapore?

Accepted Answer

In Singapore, gross rental yields for private condos typically range from 2.5% to 4%. Yields above 3.5% are generally considered good. HDB flats can sometimes achieve higher yields due to lower purchase prices.

Question 2

What is the difference between gross and net rental yield?

Accepted Answer

Gross rental yield is calculated using annual rent divided by property price. Net rental yield deducts expenses (maintenance fees, property tax, agent fees, repairs) from the annual rent before dividing by property price.

Question 3

What expenses should I include in net rental yield?

Accepted Answer

Common expenses include monthly maintenance/condo fees, property tax, agent commission (typically 1 month rent per year), repairs and maintenance, mortgage insurance, and income tax on rental income.

Question 4

Is rental income taxable in Singapore?

Accepted Answer

Yes, rental income is taxable in Singapore. It is added to your other income and taxed at your marginal income tax rate. You can deduct allowable expenses such as property tax, maintenance, and mortgage interest from the rental income.

Question 5

How do I improve my rental yield?

Accepted Answer

Strategies include buying at a lower price (resale vs new launch), furnishing the unit well, targeting high-demand locations near MRT stations, minimizing vacancy periods, and keeping maintenance costs low.

Property Type	Typical Gross Yield
Private Condo (CCR)	2.5%–3.2%
Private Condo (OCR)	3.0%–4.0%
HDB Flat	3.5%–5.0%

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