What is the yield of my HDB rental

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Just last week on the last day of filing IRAS, I tabulate out my HDB rental income and here are the results. I hope my results can serve as a benchmark as I know there’s many discussion online regarding the yield. I’m using the current value of the house in the market for a better comparison and as my house is without any loan, there isn’t any loan interest in the calculation.

Rental incomeSP BillInternetS&CCMisc ExpensesNet TotalHDB ValueYield
$34,400$2882$480$1200$4620$24,818$442,0005.61%

In the Year 2018, the income is higher as the new regulation of 6 tenants per flat kick in on May 2018. This doesn’t affect me much as my flat is rent to 7 persons. Misc expenses are on the high side as I replaced the aircon in 3 of the rooms and it cost me $3000 for the replacement. As for property tax, I’m paying $1068 a cost which is unavoidable.

For 2019, I’m expecting a drop in rental income due to the limitation of 6 tenants per house rules. However, I’m not expecting to have any major repairs for this year and next year and I estimate the yield to be around 5.2% if the value of the house remains.

Author: The Financial Guy

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