3 Characteristics of High-yield Rental Properties

· Rental

High-yield Rental Properties

Where Are They?

1) Proximity to the city centre

“Location, location, location,” – surely you’ve heard this phrase often enough to know of its importance. And indeed, it is pretty much the number one rule in real estate, since a home’s value pretty much depends on where it’s at. Prime district properties located close to the Central Business District (CBD) also tend to see higher levels of rental demand.

2) Proximity to MRT stations

Based on our study, the majority of properties that yielded 4% and above from January 2017 and January 2018 are within 500m of the nearest MRT station.

3) Distance to schools

Proximity to schools is another common characteristic of high-yield rental properties in Singapore

While knowing some of the core characteristics of high-yield investment properties is vital in helping you find positive cash-flow properties, it is important to note that rental yield is just one part of the total return of investment equation. When considering real estate investment, it is equally important to pay attention to capital growth potential. The general rule of thumb is, the lower the purchase price, the higher the potential for upside, and the higher the likelihood that rental yields will be favourable

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