Renting HDB flats has become increasingly popular in Singapore. The major increase in approved HDB rental applications of about 58% in the past 5 years suggests that more homeowners are renting out their properties in order to earn extra money. We wondered what kind of returns a homeowner could expect from purchasing an HDB as an investment. This article explores the costs and benefits of purchasing an HDB flat by analysing the range of possible returns and comparing them to other investment opportunities.
Returns from Purchasing a HDB Flat as an Investment: Rent and Resale
There are 2 ways that purchasing an HDB could generate returns as an investment. First, individuals can earn rental income by renting out their additional residence. In fact, HDBs typically generate annual rental yield of approximately 5% of their market resale value, according to available rental and resale data from the Housing and ......