Calculate Singapore property ROI in 4 steps: (1) Cash-on-cash yield = annual net rental / cash invested. (2) Capital appreciation = (final value − purchase) / cash invested. (3) Add cash-on-cash + capital appreciation over holding period. (4) Annualize: total return / years held. A typical 10-year hold delivers 6-9% annualized total return.
ROI formula
Cash invested = Downpayment (25%) + BSD + ABSD (if any) + legal + initial renovation.
Annual net rental = Gross rent − property tax − maintenance − management − mortgage interest portion − vacancy buffer.
Total return = (Final equity − cash invested + total net rental received) / cash invested.
Worked example: 10-year hold
| Item | Amount |
|---|---|
| Purchase price 2016 (RCR condo) | S$1,000,000 |
| Cash invested (25% + BSD + legal) | S$285,000 |
| Mortgage S$750,000 @ avg 3% / 25 yrs | — |
| Annual gross rent 2016 (3.5%) | S$35,000 |
| Annual rent growth (avg 2.5%) | — |
| 10-yr total net rental received | S$280,000 |
| Final value 2026 (3.5% p.a. appreciation) | S$1,400,000 |
| Loan balance after 10 yrs | S$500,000 |
| Final equity | S$900,000 |
| Total return = (900 − 285 + 280) / 285 | 314% over 10 yrs |
| Annualized return | ~15.3% p.a. |
The 15.3% annualized return reflects leverage — the 75% loan magnifies returns on the 25% cash invested.
FAQ
Should I include ABSD in cash invested?
Yes — ABSD is part of the cash deployed and reduces overall return.
How is mortgage interest treated?
Mortgage interest is part of carrying cost (reduces net rental). Principal repayment increases equity (not deducted).
What's a "good" Singapore property ROI?
10-year annualized 8-12% (after factoring leverage) is solid. 15%+ is exceptional.