REITs are a popular passive income option for many Singaporeans. In our land-scarce nation, we all know real estate prices trend upwards over time. REITs provide investors of all stripes a great way to add this exposure to their portfolios while offering relatively high dividend yields (around 6.6% per year).

What about physical properties?

While owning private property may be the quintessential Singapore dream, there is a lot more to being a landlord than just collecting rent.

Firstly, you need to have enough money upfront to pay the down payment on your property. For a condo unit that’s meant to be your second property, your minimum cash down payment is a whopping 25%.

Moreover, the rental income you earn is not exactly passive. After finding the right tenants, it takes time, money, and effort to manage and maintain your property for the long term.

Rental income from your property is