To buy an investment property collecting rental income is the dream of many Singaporean. With the popularity of having a passive income and make your money work harder, property investing is gaining traction all over the world. Not help by the low interest rate currently. Below are some ways to increase your property rental yield
Ideally, rental collected should be more than mortgage. When you know that your rental income is almost 100% higher than your mortgage payable to banks, you have won half the battle and en-route to been a successful landlord.
Buy at a low purchase price
Buying a rental unit at a lower purchase price than your neighbors will be advantageous for your property investment journey. That is where you often hear – ‘undervalued properties’, ‘below market value’, ‘fire sale’, ‘distressed property’. There is no magic number as to how low the discounted property should be. Talks on the ground is usually 15-30% will be very attractive.
Check the MCST fees for the development
Condo maintenance fee goes into your monthly over heads. Do be aware of the fees that you have to pay quarterly or monthly. Excessive high fee compared to neighboring development means high overhead for your rental project. As a result this will severely affect your rental yield.
Increase the appeal of your rental unit
Everybody like nice photos and environment. Just like online shopping, you will buy from sellers displaying nice product photos and detailed descriptions. After refurbishing & decorating your unit, do ensure the photos your agents took and post online are presentable. Else, you will leave a bad first impression to potential tenants.
Remember to claim your rental expenses tax deductions
Your aim for investment rental property is always decrease your overhead costs while increasing rental income collected. So never forget to claim the allowable rebates. If you have multiple properties, consider getting a property tax adviser to do your filing. They will save you a lot of time and maximum your returns.
Do let us know if you have other creative ways on how to increase ones property rental yield.