Remembering Lee Kuan Yew - Thank you - The nation with you in your final journey - See u in heaven

Remembering Lee Kuan Yew - Thank you - The nation with you in your final journey - See u in heaven
Presented to you by Property Smart Investor- A Real Estate Online Education and Discussion

Thursday, 4 June 2015

Rental Yield Along the North-South MRT Line

Rental Yield Along the North-South MRT Line

Rental Yield Along the North-South MRT Line




According to the SRX Property Index, apartment rents are down 6% in the last year.
Landlords are watching this number very closely as a drop in rent means a decline in their income.
A decline in income leads to a decline in gross rental yield, which is defined as annual rental income divided by the home’s purchase price.
While a landlord can try to offset a decline in income with a reduction in expenses and taxes, a decline in rent is not good. 
What makes for a good gross rental yield is subjective.  It depends on the investor’s objectives, risk tolerance, and the returns available from other asset classes.
For example, in a low interest environment in which cash yields below 1%, you might consider a 4% gross rental yield justifies the hard work and risk of being a landlord.
However, if you can get a 7% return on stock with the same level of risk, you might decide to place your money in stock rather than in real estate. 
Or, maybe you will invest in both stock and real estate, as you are happy with the 4% gross rental yield as part of a diversified portfolio of cash, stocks, bonds, and property.
While we cannot tell you what a good rental yield is for you, we can show you what the median gross rental yield for various locations around Singapore.
Here, we list the gross rental yield for apartments within one kilometre of an MRT station on the North-South line.

As you can see, apartments near Marsiling MRT station have the highest median gross rental yield at 4%.  The lowest, at 2.57%, can be found within one kilometre of Orchard MRT.
In reading this graphic, note that the rental yields reflect what a landlord would get if he or she bought the home in 2014 and immediately rented it out.  As a result, you can approximate what you could get in rental yield if you were to buy near the North-South line today.
(For more information on the methodology used in this graphic, visit SRX Research.)
What you end up earning for a rental yield ultimately depends on you. 
If you get a good deal on the property, keep your expenses down, and offer a home that will command an above average rent, then you can outperform the median gross rental yield.


Rental Yield Along the North-South MRT Line


Please click the following for other Related Readings:






Sales of 2 condos at Sentosa Cove raise hopes of rebound

Corridors of discontent at Pasir Ris One

Freehold redevelopment site in Katong up for tender

33 Parklane basement units for sale

Warehouse market faces challenges in short term: Reit boss

Slower sales, fewer visitors hit Q2 shop rents

$483m top bid for private home site in Queenstown

More details of new HDB scheme revealed

Pasir Panjang Terminal's $3.5b expansion kicks off

Eye on Lavender: Transformation in progress

Centrale 8 in spotlight over defects

Private home prices 'could fall another 10% in next 2 years' 

Buy resale flat near parents? Financial help is key: Experts

Private home sales up but prices down

Dawson's SkyVille and SkyTerrace projects are raising the bar for stylish public housing 

In pictures: Stylish BTO projects at Dawson's SkyTerrace and SkyVille

24% apply for BTO flats under schemes to help families live closer together: Minister Khaw Boon Wan 

Singapore surprised by Malaysian transport agency stating preference to end high-speed rail in Johor

Malaysia's transport agency says CEO misquoted on high-speed rail 




Rail improvements to put SMRT on fast track
















Lakeside project launched in Iskandar

Developers face hefty extension charges over unsold units (Amended)

Govt releases new developer rules on show units, sales data

Changes to Housing Developers (Control and Licensing) Act effective May 25

Government releases EC site in Choa Chu Kang for sale



More companies buying strata offices

Bids for Paya Lebar site likely to top $1b - Government Land Sale (GLS)

Please see Related Issues :

My Tribute to Mr Lee Kuan Yew - Remembering Lee Kuan Yew - The world should know his stories, his contribution and his final journey - The Legend - He will be in the heart of every Singaporean 

No comments:

Post a comment