Rental Yield For Landed Pty

[matrix0405 0]

We know HDB provides the best rental yield. Condo is around 4% - 6%. Any expert/landed owner can share what is the rental yield for landed pty? Is the rental the same as a 4-rm condo in the same location?

[bepgof 20]

We know HDB provides the best rental yield. Condo is around 4% - 6%. Any expert/landed owner can share what is the rental yield for landed pty? Is the rental the same as a 4-rm condo in the same location?

Based on rental yield definition: (yearly rental/house purchased price) x 100% , no doubt that HDB flats provide the best rental yield.

In fact can get yr answer, more or less, from URA's web:http://www.ura.gov.sg/realEstateWeb/realEstate/pageflow/rental/RentalController.jpf

Comparison is not that "straight forwards", must based on "par to par", theoretical=same district(location), same size, same...., different type of house. Anyway from data collected, we can conclude that D9, D10,D11, D15 have "top" rental yields.

Edited August 7, 2010 by bepgof

[matrix0405 0]

Instead of using that def, cld we use rental/current price? Otherwise its impossible to compare as a house bought 20yrs ago wld see return in excess of 10%, easily.

Thanks for the info. Unfortunately, most of the rental data are for condo, almost nothing on landed though. Do you know what is the return on landed? I susepct the yield shd be fairly similiar across the island. This is because a D9 house wld cost more but can rent out for more.

[random_username 0]

Instead of using that def, cld we use rental/current price? Otherwise its impossible to compare as a house bought 20yrs ago wld see return in excess of 10%, easily.

Thanks for the info. Unfortunately, most of the rental data are for condo, almost nothing on landed though. Do you know what is the return on landed? I susepct the yield shd be fairly similiar across the island. This is because a D9 house wld cost more but can rent out for more.

how about try going to an online property portal and do a search based on the area you are interested in (eg. street name) and see the current sale and rental prices - that may be some sort of estimate.

[crash022 0]

We know HDB provides the best rental yield. Condo is around 4% - 6%. Any expert/landed owner can share what is the rental yield for landed pty? Is the rental the same as a 4-rm condo in the same location?

rental yield (Condo) can be found on URA. they provide a 3months update each time. However it can only be used as a guide (only those legally stamp duty rental are registered). Location, Demand and alot of other factors play a part in the rental rates.

Rental yield for landed, you could use the psf as a guide. Do a search of the properties you wish to compare, do a detailed compariative market analysis (Current rental, Rental around the same area, compare apple to apple). Well if rental for landed can be easily compared, URA would have a report on it (they have to answer to the government on any trends).

[Plastic3 0]

We know HDB provides the best rental yield. Condo is around 4% - 6%. Any expert/landed owner can share what is the rental yield for landed pty? Is the rental the same as a 4-rm condo in the same location?

Which location & what type of landed (terrace/Semi-D/Detached)?

I can compute for you...

Edited August 7, 2010 by Plastic3

[matrix0405 0]

Plastic, The terrace houses at D16 Jln Tiga Ratus, opp the Expo. The land size shd be abt 2500 - 3000 sqft. What is the rental they can fetch?

[Plastic3 0]

Plastic, The terrace houses at D16 Jln Tiga Ratus, opp the Expo. The land size shd be abt 2500 - 3000 sqft. What is the rental they can fetch?

About $4.5k & up, depends on the condition, if its corner terrace can ask more...

[random_username 0]

matrix0405, which areas/condos have >4% yield as mentioned in your opening post, at current prices and rentals?

About $4.5k & up, depends on the condition, if its corner terrace can ask more...

Plastic3, would you also be able to highlight these areas/condos above?

thanks.

[matrix0405 0]

About $4.5k & up, depends on the condition, if its corner terrace can ask more...

The houses there is abt $2M. At $4.5K/mth, the yield is abt 2.7%, is that how you calculated? Or u are using actual rental info from that area?

random, I'm only looking at this place, so i do not hv info for you off hand.

[Plastic3 0]

The houses there is abt $2M. At $4.5K/mth, the yield is abt 2.7%, is that how you calculated? Or u are using actual rental info from that area?

random, I'm only looking at this place, so i do not hv info for you off hand.

Jln Tiga Ratus does not have many recent transactions, the rental data that I found is only $1.19psf which I believe is outdated, I think most of the houses there are owner-occupied and not tenanted, if you are staying there could you verify this point?

I estimated the $4.5k+/- from nearby terrace houses current rental asking price, like Limau Terrace, Limau Rise, Seagull Walk...etc

The Gross Yield I calculated is 2.4%, Net Yield 1.68% (using current sale/rental asking rates: 8th Aug 2010)

My calculation is usually more conservative as I factor in vacant/maintenance costs.

Please use my input as another reference, it is not meant as investment advise

Edited August 9, 2010 by Plastic3

[Plastic3 0]

matrix0405, which areas/condos have >4% yield as mentioned in your opening post, at current prices and rentals?

Plastic3, would you also be able to highlight these areas/condos above?

thanks.

From my research I have not found any property with above 4% Net Yield at current prices (I only look at Net Yield and not Gross Yield, so far I have looked at about 120 projects)

If there is any particular project you fancy I can help check it out

Edited August 9, 2010 by Plastic3

[random_username 0]

From my research I have not found any property with above 4% Net Yield at current prices (I only look at Net Yield and not Gross Yield, so far I have looked at about 120 projects)

If there is any particular project you fancy I can help check it out

thanks for sharing. i also prefer a more conservative estimate, taking into account maintenance charges and interest on loan to calculate yield what else do you take into account? what kind of vacant costs do you factor in (mentioned above)? iis it some like a no-rent for a 1 month period when it might be vacant while searching for a tenant or for maintaining the unit between tenants?

Edited August 9, 2010 by random_username

[Plastic3 0]

thanks for sharing. i also prefer a more conservative estimate, taking into account maintenance charges and interest on loan to calculate yield what else do you take into account? what kind of vacant costs do you factor in (mentioned above)? iis it some like a no-rent for a 1 month period when it might be vacant while searching for a tenant or for maintaining the unit between tenants?

Welcome

The vacant cost is just the time that the property is left untenanted while owner is still servicing loan & other costs...

In a good market a property can secure a tenant within a couple weeks(sometimes even no lapse), in a bad market it could take months....I use 1-month.

Edited August 9, 2010 by Plastic3

[random_username 0]

Welcome

The vacant cost is just the time that the property is left untenanted while owner is still servicing loan & other costs...

In a good market a property can secure a tenant within a couple weeks(sometimes even no lapse), in a bad market it could take months....I use 1-month.

based on your conservative estimates then, what's the max rental yield you have observed? if it's ok to ask: what characteristics would the property and the tenant/tenancy have? thanks for all your input

Edited August 9, 2010 by random_username