After reading Uncle8888’s post, I thought I would just do a quick post on how one would fare buying a HDB 4-room resale flat that costs $360,000 as a single (assuming single at 35yo and flat is with 70 years lease left i.e TOP 1991).
The table below is a super simple illustration of the rental yield plus saving over a period of 70 years, assuming the rental of a room is $600 per month.
Disclaimer: I did not factor in inflation of rental over the years nor utilities / income tax or possibility of years when there’s no tenant renting.
Year Renting cost Collection of rental (2 rm rented out) Rental yield + saving
1 7200 14400 21600
2 14400 28800 43200
3 21600 43200 64800
4 28800 57600 86400
5 36000 72000 108000
6 43200 86400 129600
7 50400 100800 151200
8 57600 115200 172800
9 64800 129600 194400
10 72000 144000 216000
11 79200 158400 237600
12 86400 172800 259200
13 93600 187200 280800
14 100800 201600 302400
15 108000 216000 324000
16 115200 230400 345600
17 122400 244800 367200
18 129600 259200 388800
19 136800 273600 410400
20 144000 288000 432000
21 151200 302400 453600
22 158400 316800 475200
23 165600 331200 496800
24 172800 345600 518400
25 180000 360000 540000
26 187200 374400 561600
27 194400 388800 583200
28 201600 403200 604800
29 208800 417600 626400
30 216000 432000 648000
31 223200 446400 669600
32 230400 460800 691200
33 237600 475200 712800
34 244800 489600 734400
35 252000 504000 756000
36 259200 518400 777600
37 266400 532800 799200
38 273600 547200 820800
39 280800 561600 842400
40 288000 576000 864000
41 295200 590400 885600
42 302400 604800 907200
43 309600 619200 928800
44 316800 633600 950400
45 324000 648000 972000
46 331200 662400 993600
47 338400 676800 1015200
48 345600 691200 1036800
49 352800 705600 1058400
50 360000 720000 1080000
51 367200 734400 1101600
52 374400 748800 1123200
53 381600 763200 1144800
54 388800 777600 1166400
55 396000 792000 1188000
56 403200 806400 1209600
57 410400 820800 1231200
58 417600 835200 1252800
59 424800 849600 1274400
60 432000 864000 1296000
61 439200 878400 1317600
62 446400 892800 1339200
63 453600 907200 1360800
64 460800 921600 1382400
65 468000 936000 1404000
66 475200 950400 1425600
67 482400 964800 1447200
68 489600 979200 1468800
69 496800 993600 1490400
70 504000 1008000 1512000
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