How much money (or returns) do you really make from your property investment?
We all know that profit from property investment is not simply sale price minus purchase price plus rental income.
There are other costs — and you usually used leverage (a home loan) to finance the purchase.
Costs you may incur (not exhaustive):
- Financing cost (interest)
- Stamp fees (BSD, mortgage stamp duty, SSD, ABSD)
- Taxes (property tax, GST where applicable)
- Professional fees (legal, agent commission, surveyor, etc.)
- Upkeep (MCST, renovation, repair, pest control, cleaning, etc.)
After costs, is the return still attractive?
Using one client’s investment as a case study, here is how I worked out the money (or returns) earned — and whether the investment looked worthwhile.
Important: Numbers below are a historical case study (purchase Jun 2012; analysis as of ~2019), kept as originally worked. The method still applies; several inputs would differ for a purchase today — see the notes under each item (updated Sep 2026). Do not treat the ROI % as a forecast. This site does not calculate returns or affordability.
Case study
The client purchased a 2-bedroom apartment at Riviera 38 in Jun 2012 for around S$800,000, aiming to sell for at least S$1,000,000. By the time of writing he had collected about S$130,000 in rental income.
1. Capital invested
| Amount | ||
|---|---|---|
| a | Initial capital invested | S$160,000 |
Note: At purchase, first-property LTV could reach 80% (whichever lower of price or value). For purchases on or after 6 July 2018, LTV was tightened to 75% — still the first-loan limit in 2026. The same purchase today would need at least S$200,000 (25%) upfront rather than S$160,000.
| Amount | ||
|---|---|---|
| b | Principal paid as of Aug 2019 | S$118,504 |
2. Financing cost
| Amount | ||
|---|---|---|
| c | Interest paid as of Aug 2019 | S$82,570 |
3. Stamp duties
| Amount | ||
|---|---|---|
| d | Buyer stamp duty paid | S$18,600 |
| e | Mortgage stamp fee | S$500 |
Note: On today’s BSD schedule, S$800,000 still works out to S$18,600 — the 2023 increases only affect amounts above S$1.5m. An early exit also carries Seller’s Stamp Duty: for purchases from 4 Jul 2025, selling within four years costs 16% / 12% / 8% / 4% of the price.
4. Taxes
| Amount | ||
|---|---|---|
| f | Property tax paid | S$12,000 |
5. Professional fees
| Amount | ||
|---|---|---|
| g | Total professional fees paid | S$26,400 |
| i. Legal fee for purchase | S$2,500 | |
| ii. Legal fee for sales | S$2,500 | |
| iii. Property agent commission for resale (+GST) | S$21,400 | |
| iv. Property agent commission for rental (+GST) | S$5,778 |
(Rental commission was added after reader feedback on the original post.) GST on commission was 7% at the time; it has been 9% since 1 Jan 2024.
6. Upkeep cost
| Amount | ||
|---|---|---|
| h | Total upkeep cost | S$31,200 |
| i. MCST fee | S$19,200 | |
| ii. Furniture + lightings | S$10,000 | |
| iii. Repair + replacement | S$2,000 |
Net investment gain / loss
If sold for S$1,000,000 shortly after the analysis date:
Net investment gain/loss
= Total investment income (capital gain + rental income) − total expenses (c + d + e + f + g + h)
= S$152,952 (gain)
Holding roughly 6.5 years, S$152,952 may not sound dramatic — until you account for leverage.
Total capital invested = a + b = S$278,504
With S$278,504 generating S$152,952 over ~6.5 years:
- ROI ≈ 54.91%
- Annualised ≈ 6.97%
So: how much have you made after full costs? Is it rewarding, or time to search for higher-potential stock?
What this method is for
A transparent cost stack so you can compare investments apples-to-apples. Income tax, vacancy, insurance, and other personal items can be layered on for a stricter model — the original list is intentionally not exhaustive.
See also
Next step
Want this cost stack applied to a unit you hold or a shortlist? Send the brief on WhatsApp — we write the comparison so you can revisit it.