Asked by Anonymous
High rental yield or easier resale?
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5 Answers
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Mark, your RIGHT choice
Propnex Read More
Mark, your RIGHT choice
Propnex Read More
Hi,
Both high rental yield and ease of resale are important considerations when purchasing an investment property. Personally, I would not focus on rental yield alone without considering the property's future resale potential.
A property offering higher rental yield may provide better immediate cash flow, but that does not necessarily mean it will enjoy stronger capital appreciation or be easier to sell later.
Likewise, a property with lower rental yield may appeal to a wider pool of buyers, particularly if it has desirable attributes such as a convenient location, practical layout, good amenities and family-friendly unit sizes.
I would suggest looking at the overall investment returns, taking into consideration rental income, maintenance costs, property taxes, financing costs, potential capital appreciation and eventual resale demand.
More importantly, your intended holding period matters. An investor looking for steady rental income over 15 years may have different priorities from someone planning to sell after 3 to 5 years.
May I know whether you are considering purchasing your first investment property or already own one? Also, which locations or developments are you currently exploring?
Have you engaged a property agent to assist with your investment plans? If so, has your agent provided a comparison of rental yields, historical transactions and resale performance?
I would be happy to share some insights and help you evaluate both rental returns and future exit potential before making a decision.
Geryl Lim
9278 7772 Read More
Both high rental yield and ease of resale are important considerations when purchasing an investment property. Personally, I would not focus on rental yield alone without considering the property's future resale potential.
A property offering higher rental yield may provide better immediate cash flow, but that does not necessarily mean it will enjoy stronger capital appreciation or be easier to sell later.
Likewise, a property with lower rental yield may appeal to a wider pool of buyers, particularly if it has desirable attributes such as a convenient location, practical layout, good amenities and family-friendly unit sizes.
I would suggest looking at the overall investment returns, taking into consideration rental income, maintenance costs, property taxes, financing costs, potential capital appreciation and eventual resale demand.
More importantly, your intended holding period matters. An investor looking for steady rental income over 15 years may have different priorities from someone planning to sell after 3 to 5 years.
May I know whether you are considering purchasing your first investment property or already own one? Also, which locations or developments are you currently exploring?
Have you engaged a property agent to assist with your investment plans? If so, has your agent provided a comparison of rental yields, historical transactions and resale performance?
I would be happy to share some insights and help you evaluate both rental returns and future exit potential before making a decision.
Geryl Lim
9278 7772 Read More
1
Hi,
I would be glad to assist you.
Feel free to contact me at
wa.me/6597100155
Hope to hear from you soon.
Pei Mobile: (65) 9 7 1 0 0 1 5 5.
Email: peicheng.tan@propnex.com
Associate Group Director
Propnex Realty Pte Ltd Read More
I would be glad to assist you.
Feel free to contact me at
wa.me/6597100155
Hope to hear from you soon.
Pei Mobile: (65) 9 7 1 0 0 1 5 5.
Email: peicheng.tan@propnex.com
Associate Group Director
Propnex Realty Pte Ltd Read More
Hi, I would assess both together. A headline rental yield can look attractive until vacancy, maintenance, repairs, property tax, financing and income tax are included. Separately, a property that appears easy to sell today may face different competition when you exit.
Compare realistic net income and cash flow, then check actual rental and resale transactions for the specific layout and total price. Run a scenario with lower rent, a vacant period and no capital appreciation. If the purchase only works with an optimistic resale price, the margin of safety is thin.
Your holding period and need for access to the capital matter. Neither high yield nor resale convenience alone makes a sound purchase. Are you buying mainly for monthly income, future own stay or a planned sale in a few years?
Silas Tan | Huttons | TRIBE
Free property guides and calculators: https://tribesg.com Read More
Compare realistic net income and cash flow, then check actual rental and resale transactions for the specific layout and total price. Run a scenario with lower rent, a vacant period and no capital appreciation. If the purchase only works with an optimistic resale price, the margin of safety is thin.
Your holding period and need for access to the capital matter. Neither high yield nor resale convenience alone makes a sound purchase. Are you buying mainly for monthly income, future own stay or a planned sale in a few years?
Silas Tan | Huttons | TRIBE
Free property guides and calculators: https://tribesg.com Read More
**Prioritize easier resale (liquidity and capital preservation) for most Singapore residential purchases—because Singapore taxes rental income and levies steep non-owner property taxes, whereas capital gains are completely tax-free.**
---
### 1. Why "Easier Resale" Usually Wins in Singapore
* **Tax Advantage:** Singapore has **no capital gains tax**. In contrast, net rental income is added to your personal income tax, and non-owner-occupied property tax rates (12%–36% of Annual Value) plus MCST fees and agent commissions typically shave **30%–40%** off gross rental yields.
* **Exit Liquidity Protects Your Downside:** A unit with a deep resale buyer pool (e.g., 2- to 3-bedroom family layouts near MRTs, primary schools, or regional hubs) sells faster across market cycles. Chasing high headline yield alone often pushes you toward aging leasehold blocks, odd layouts, or tiny shoebox units that struggle to find buyers later.
---
### 2. When High Rental Yield Makes Sense Instead
* **Cash-Flow Coverage or Retirement Income:** If you are buying with high leverage and need monthly rent to offset mortgage instalments without cash drag, or you are near retirement seeking passive income rather than waiting 7–10 years to sell, prioritize yield.
* **Suburban (OCR) & City-Fringe (RCR) Sweet Spots:** Well-connected 2-bedroom units in OCR/RCR hubs (around **3.5%–4.5% gross yield**) often strike the best balance—attracting both steady tenants and future HDB upgraders.
---
### 3. Quick Rule of Thumb
* **Own-Stay with Future Upgrade Plans:** Always choose **easier resale**—you cannot collect rent while living there, so exit liquidity and price resilience matter most.
* **Pure Investment Property:** Target **solid net yield (at least 2.5%+ net) inside a liquid, family-friendly project** rather than sacrificing resale exit just for an extra 0.5% rent.
---
Gan Eng Joo Onassis 颜荣裕, REALTOR®
MSc BIT (Middlesex, UK); BBA (UniSA)
CEA Reg No: R021244C | Mobile: (+65) 8889 9918
Email: onassis@sgagent.com
SGAgent.com | SGRealtor.com | SGCommercial.com | SGCBD.com
SGShowflat.com | SGNewLaunch.com
Integrated Services: SGCash.com | SGRepair.com | SGLegal.com
Social (Facebook & TikTok): @sgcommercial Read More
---
### 1. Why "Easier Resale" Usually Wins in Singapore
* **Tax Advantage:** Singapore has **no capital gains tax**. In contrast, net rental income is added to your personal income tax, and non-owner-occupied property tax rates (12%–36% of Annual Value) plus MCST fees and agent commissions typically shave **30%–40%** off gross rental yields.
* **Exit Liquidity Protects Your Downside:** A unit with a deep resale buyer pool (e.g., 2- to 3-bedroom family layouts near MRTs, primary schools, or regional hubs) sells faster across market cycles. Chasing high headline yield alone often pushes you toward aging leasehold blocks, odd layouts, or tiny shoebox units that struggle to find buyers later.
---
### 2. When High Rental Yield Makes Sense Instead
* **Cash-Flow Coverage or Retirement Income:** If you are buying with high leverage and need monthly rent to offset mortgage instalments without cash drag, or you are near retirement seeking passive income rather than waiting 7–10 years to sell, prioritize yield.
* **Suburban (OCR) & City-Fringe (RCR) Sweet Spots:** Well-connected 2-bedroom units in OCR/RCR hubs (around **3.5%–4.5% gross yield**) often strike the best balance—attracting both steady tenants and future HDB upgraders.
---
### 3. Quick Rule of Thumb
* **Own-Stay with Future Upgrade Plans:** Always choose **easier resale**—you cannot collect rent while living there, so exit liquidity and price resilience matter most.
* **Pure Investment Property:** Target **solid net yield (at least 2.5%+ net) inside a liquid, family-friendly project** rather than sacrificing resale exit just for an extra 0.5% rent.
---
Gan Eng Joo Onassis 颜荣裕, REALTOR®
MSc BIT (Middlesex, UK); BBA (UniSA)
CEA Reg No: R021244C | Mobile: (+65) 8889 9918
Email: onassis@sgagent.com
SGAgent.com | SGRealtor.com | SGCommercial.com | SGCBD.com
SGShowflat.com | SGNewLaunch.com
Integrated Services: SGCash.com | SGRepair.com | SGLegal.com
Social (Facebook & TikTok): @sgcommercial Read More