Should You Rent or Sell?
Compare rental income against selling proceeds. Factor in yield, capital appreciation, costs, and opportunity, then decide with clarity.
Interactive Rental Analysis Calculator
Calculator functionality to be implemented. For now, explore LEVR™ for comprehensive rental vs sell scenario modelling.
Try Rental Analysis in LEVR™Rental Analysis Disclaimer
This calculator estimates potential rental income and yield based on market data and standard assumptions. Results are estimates only. Always verify with your property agent or valuer for actual rental assessments.
Actual results may vary based on:
- Current market rental rates and trends
- Property-specific condition and location
- Tenant demand and vacancy periods
- Management fees and maintenance costs
Decision Framework
When to Rent vs Sell
The rent-vs-sell decision depends on your financial goals, market conditions, and personal circumstances. Neither option is universally better; it depends on your specific situation.
Renting makes sense when rental yield exceeds your cost of capital, you want to maintain long-term exposure to property appreciation, or you have no immediate need for the sale proceeds.
Selling makes sense when capital can be deployed more productively elsewhere, the property requires significant maintenance, or you need liquidity for another purchase or investment.
Step by Step
How to Calculate Rental Yield
Calculate annual rental income
Multiply monthly rent by 12. Account for vacancy periods. A 5-10% vacancy allowance is standard for Singapore.
Determine property market value
Use recent comparable transactions or a professional valuation. URA provides transaction data for private properties.
Calculate gross yield
Gross yield = (Annual rental income / Property value) x 100. This gives you a quick comparison metric.
Calculate net yield
Subtract expenses: property tax, maintenance fees, agent commission (typically 1 month rent), insurance, and repairs. Net yield is the true return.
Comparison
Rental Yield vs Capital Gain
| Factor | Renting Out | Selling |
|---|---|---|
| Returns | Steady monthly income (3-5% gross yield typical) | One-time capital gain (market dependent) |
| Cash Flow | Ongoing positive or negative (depends on mortgage) | Large lump sum after transaction costs |
| Risk | Vacancy risk, tenant risk, maintenance | Market timing risk, transaction costs (3-5%) |
| Tax | Rental income taxed at marginal rate | SSD if sold within 3 years; no capital gains tax |
| Flexibility | Maintain asset ownership and optionality | Free up capital for redeployment |
Real Scenarios
Common Scenarios
Hold and rent post-MOP
HDB flat past MOP, considering renting instead of selling
Yield: 4.2% gross
Attractive yield. Consider holding if cash flow positive
Sell condo, buy landed
Condo generating 2.8% yield, want to upgrade to landed
Yield: 2.8% gross
Low yield. Capital may be better deployed in upgrade
Investor holding second property
Second property generating rental income, ABSD already paid
Yield: 3.5% gross
Moderate yield. Compare against alternative investments
Inherited property
Inherited property with no mortgage, minimal carrying cost
Yield: 5.1% gross
Strong yield with no debt service. Strong case to hold
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Frequently Asked Questions
Related Resources
Property Affordability Calculator
Determine how much property you can realistically afford
TDSR Calculator
Check your Total Debt Servicing Ratio before buying
ABSD Calculator
Calculate Additional Buyer's Stamp Duty for additional properties
Upgrade Planning
Model your HDB to condo upgrade with full financial analysis
Second Property Strategy
Comprehensive guide to acquiring a second property
Model Complex Rental Scenarios in LEVR™
Go beyond basic yield calculations. Compare hold vs sell vs upgrade scenarios with full TDSR, ABSD, and CPF impact analysis.
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