Here’s a simplified table summarizing your second property investment strategy in Singapore:
🏠 Second Residential Property Investment Summary (S$700K Property)
Category | Details |
Purchase Price | S$700,000 |
Loan (45%) | S$315,000 |
Cash/CPF Needed (55%) | S$385,000 |
ABSD (20%) | S$140,000 |
BSD (~2.2%) | S$15,600 |
Total Initial Outlay | S$540,600 (cash + CPF + duties) |
💰 Rental Income & Returns
Metric | Amount (S$) |
Monthly Rent | 2,500 |
Annual Gross Rent | 30,000 |
Est. Annual Costs | ~10,000 (taxes, agent, maintenance) |
Net Rental Income | 20,000/year |
Net Rental Yield | ~3.7% on total outlay |
🧮 Break-Even & Outlook
Factor | Estimate |
Capital gain needed to offset ABSD | S$140,000 → ~20% price gain |
Break-even price (to recover ABSD) | S$840,000 |
Time to reach (at 3% growth/year) | ~7–10 years |
✅ Pros vs ❌ Cons
Pros | Cons |
Stable passive income (S$20K/year) | Huge ABSD upfront (S$140K lost to tax) |
Long-term asset appreciation | Limited LTV (low leverage = lower ROI) |
Singapore property stability | Better returns may exist in REITs or commercial property |
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