5 Answers

Hi Eddy,

Rental yield = (Monthly rental x 12)/Purchase Price x 100

If I could assist in helping you with the purchase of a property for rental income, let me know. See www.dennisweeagent.myweb.sg which you may find some properties that suit your investment need.
TC Tan
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Rental Yield per annum =
12mths of rent / Purchase price
This is the gross rental yield for that investment unit.

This can then be fairly used as a comparison between different properties; like trying to compare apples with apples as much as possible.

You may want to also compute Nett Rental Yield, which will be rental income nett of condo costs (MCST costs), agency fees, taxes. This will be for your own decision making and comparison within your portfolio.

Another level of yield will be further nett of financing costs. This yield is also for own comparison and may not be applicable to use across different properties because the financing level used is usually different for each property investment.

Feel free to contact me if you have more questions.

Regards

Daniel Ho
OrangeTee Real Estate
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1
Explanation:

Annual Rental Income: This is the total rental income you expect to receive from the property in a year. You can calculate this by multiplying the monthly rent by 12.
Example: If your monthly rent is S$5,000, your annual rental income would be S$5,000 x 12 months = S$60,000.
Property Value: This is the current market value of the property you're considering or that you already own.
Example:

Let's say you're considering an investment property with a market value of S$1,000,000 and you expect to rent it out for S$5,000 per month.

Rental Yield Calculation:
Annual Rental Income = S$5,000/month x 12 months = S$60,000
Property Value = S$1,000,000
Rental Yield = (S$60,000 / S$1,000,000) x 100% = 6%
Interpretation:

In this example, the rental yield is 6%. This means that you can expect a 6% return on your investment each year from the rental income.

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1
Hi! Rental yield is basically the annual rental income divided by the property’s purchase price, expressed as a percentage.

Formula:
Rental Yield (%) = (Annual Rent ÷ Purchase Price) × 100

For example, if your property rents for $2,500 a month, that’s $30,000 a year. If you bought the property for $600,000:
Rental Yield = ($30,000 ÷ $600,000) × 100 = 5%

If you want help calculating your specific property’s yield or discussing what’s a good yield in today’s market, feel free to get in touch. I’m Aren from PropNex, reachable at 9657 6701  . Happy to help! Read More
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