By MoneyBees
Work out the gross and net rental yield on a shop, office or industrial unit in Singapore. Property tax on non-residential property is a flat 10% of Annual Value, stamp duty follows the non-residential rates, and a GST-registered seller adds 9% to the price. See the yield on the price, on everything you paid, and after loan interest.
On your property tax bill
Gross yield
4.80%
$96,000 a year on the price
Net yield
3.36%
after vacancy, property tax and costs
Net on all you paid
2.98%
$2,255,100 with stamp duty and GST
The rent you collect, $88,000 a year, less $20,800 of property tax and running costs leaves $67,200. On the price that is 3.36%; on the $2,255,100 you paid in all, 2.98%. After $48,431 of loan interest in the first year it is 0.94% of the price.
You pay $180,000 of GST on the price and, not being GST-registered, cannot claim it back.
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| Item | Amount |
|---|---|
| Price before GST | $2,000,000 |
| Buyer's Stamp Duty, non-residential rates | $69,600 |
| GST on the price you cannot claim back | $180,000 |
| Mortgage duty, 0.4% of the loan up to S$500 | $500 |
| Legal and other fees | $5,000 |
| Total cost | $2,255,100 |
| Property tax, 10% of Annual Value | $9,600 |
| Management fees, insurance, repairs | $11,200 |
| Loan interest, first 12 months | $48,431 |
Cash in after the loan: $855,100. Rent after costs and interest returns 2.19% on that cash.
| Sold within | Rate | SSD at today's price |
|---|---|---|
| 1 year | 15% | $300,000 |
| 2 years | 10% | $200,000 |
| 3 years | 5% | $100,000 |
| After 3 years | 0% | $0 |
Industrial property bought on or after 12 Jan 2013 only. Shops and offices carry no SSD.
A S$2,000,000 shop from a GST-registered seller costs S$180,000 in GST if you cannot claim it, S$69,600 in BSD and S$500 in mortgage duty on a S$1,400,000 loan. With S$5,000 of fees, the total is S$2,255,100.
At S$8,000 a month with one month empty, rent is S$88,000. Property tax on a S$96,000 Annual Value is S$9,600; fees, insurance and repairs add S$11,200. That leaves S$67,200: a 3.36% net yield on the price and 2.98% on the total cost, against a 4.80% gross yield.
Gross yield is a year's rent divided by the price. Net yield takes off empty months, property tax, management fees, insurance and repairs before dividing. The calculator also shows the yield on everything you paid, stamp duty included.
A flat 10% of the Annual Value. Non-residential property has no owner-occupier rates or progressive bands.
Yes, if the seller is GST-registered: 9% on the price. Sales and leases of residential property are exempt. A GST-registered buyer can usually claim the GST back.
If you are GST-registered, yes: 9% on the rent of non-residential property, which you pay to IRAS. Registration is compulsory once your taxable turnover passes S$1 million a year.
Buyer's Stamp Duty at the non-residential rates: 1% to 4% on the first S$1.5 million and 5% above that. There is no ABSD on non-residential property.
Not on shops and offices. Industrial property bought on or after 12 Jan 2013 carries 15%, 10% or 5% if sold within 1, 2 or 3 years.
No. IRAS allows the 15% deemed expenses only for residential property. For non-residential property you claim the actual rental expenses.
These calculators provide general estimates for educational purposes only and are not personalised financial advice. Results may rely on rates and rules that change over time, so verify against official sources (IRAS, CPF Board, HDB, MAS) or consult a licensed financial adviser before making decisions.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).