What Do We Think?
Despite Districts 9, 10 and 15 being the Top 3 in terms of rental transaction volumes, the gross rental yields averaged at 2.8%-3.3%, which tells us that properties in popular and prime districts does not necessarily give you the best yields as an investor.
But you would have the certainty that your investment will have no lack of tenants.
Rental Yield vs Capital Appreciation
While a property’s rental yield form part of its investment potential, it is hardly the only factor buyers should consider.
Often, capital appreciation over time can provide a stronger and more substantial bump-up on the overall return on investment.
Your Exit Strategy?
For any property investment, the exit strategy is key. This is when you actualise your capital gains.
What happens if you are chasing yields but forget your exit strategy? An example would be freehold properties in city-fringe areas such as Geylang (District 14) that give high rental yields.
Are you aware of the many investors who struggle to sell their investment units in the freehold boutique condominiums, much less sell them at a profit?
Speak to us if you’d like a non-obligatory free consult!