We all know that our profit from property investment is not simply the sales price of your property minus the purchase price of your property plus rental income collected over the years.

There are other costs involved and you have also used leverage (i.e home loan) to finance your purchase.

Here are the costs that you may have to incur (the list is not exhaustive):

  • Financing cost (i.e. interest).
  • Stamp Fees (i.e. Buyer Stamp Duty, Mortgage Stamp Duty, Seller Stamp Duty, Additional Buyer Stamp Duty)
  • Taxes (i.e. property tax, good & service tax)
  • Professional Fee (i.e. Legal Fees, Property Agent Commission, Surveyor Fees etc)
  • Upkeep (i.e. MCST Fees, Renovation Fees, Repair & Replacement Cost, Pest Control, Cleaning Fees etc)

Taking into account of the above costs, your profit is seemingly decreased. But is your return on investment still attractive?

Using one of my client’s property investment as our case study today, let’s us go through the steps I used to work out the money (or returns) earn from his investment and examine if his investment is worthwhile.

Case Studies

My client purchased his 2 bedroom apartment at Riviera 38 in Jun 2012 for around S$800,000 and is aiming to sell it for at least S$1,000,000. So far, he has collected about S$130,000 in rental income.

Here’s the breakdown of items to be considered in working out the returns he made from his investment:

1.      Capital Invested


Initial Capital Invested


Note: During the time he purchased the property, he is able to loan up to 80% of the purchase price or property value for his 1st property, whichever lower. For purchase made on or after 6 July 2018, the loan to value is tightened to 75%.


Principal Paid as of Aug 2019


Tips: you can use the Amortization Schedule Calculator provided by Realila.SG to helps you break down your total loan amount into Interest Paid, Principal Paid and Balance Due over the course of your loan.

2.      Financing Cost


Interest Paid as of Aug 2019



3.      Stamp Duties


Buyer Stamp Duty Paid



Mortgage Stamp Fee


Note: There are changes in the rates of buyer stamp duty, you may refer to the article “What is Buyer Stamp Duty & Additional Buyer Stamp Duty (ABSD)?” by PropertyNet.SG for the latest updates.

4.      Taxes


Property Tax Paid



5.      Professional Fees


Total Professional Fees Paid



i. Legal Fee for Purchase



ii. Legal Fee for Sales



iii. Property Agent Commission for Resale (+GST)


iv. Property Agent Commission for Rental (+GST) S$5,778


6.      Upkeep Cost


Total Upkeep Cost



i. MCST Fee



ii. Furniture + Lightings



iii. Repair + Replacement Cost



With all the items listed out, we are now ready to work out the money (or returns) made from the investment of a 2 bedroom condominium if it were sold for S$1,000,000 in a couple of months.

Net Investment Gain/Loss = Total Investment Income (Capital Gain + Rental Income) – Total Expenses (c + d + e + f + g + h) = S$152,952 (Gain)

For holding the property for approximately 6.5 years, he would have made S$152,952. This may not sound exciting or rewarding. But we have to remember that he has used leverage (i.e. home loan) to finance his property investment.  

So, lets us take a look at the rate of return and its annualized return taking into account his leverage.

Total Capital Invested = a + b = S$278,504

With a total capital of S$278,504 invested over the 6.5 years to generate S$152,952, the return on investment (%) is a whopping 54.91%, and on an annualized return basis, a very rewarding 6.97%.

Useful Tool: Annualized Return Calculator

So, how much money (or returns) have you made from your property investment? Is it rewarding or is it time to search for higher potential development?

You can now examine your investment and assess if there’s higher potential property investment out there.


Edwin Goh

Branch District Director, ERA

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In my seven years of real estate career, I have seen many property owners losing their money or have their money stuck in their property investment. Mostly because of bad decisions made based on lack of information, bad advice and unchecked emotions. I would love to meet up with every one of you and help you in your real estate journey, but this may not be possible. So, I have started this blog to share my insights and hopes they will help you make a better decision.

If you are ready to begin your rewarding real estate investment journey with me, Whatsapp me today at +65 9004 5827, till we meet, good luck in your real estate investment journey.