To avoid the pitfalls of property investment, you should consider the following points carefully before purchasing your next residential unit in Singapore.
Net rental yield not gross
Rental yield is the annual rental return from a property, or the amount of rent the property earns over a year. It is expressed as a percentage of the purchase price. The higher the yield, the higher the return. Most people mistakenly calculate rental income on a gross basis. However, bear in mind that as a landlord, you will be responsible for the condominium maintenance fees and property tax which lowers your returns.