Rental property ownership is often perceived as passive income. In reality, it is a capital-intensive commitment involving acquisition cost, financing risk, recurring expenses and opportunity cost.
This article outlines the cost framework of rental property ownership using Singapore (2026 market conditions) as a working dataset. The structure is universal; only the inputs change.
Acquisition cost includes stamp duty. If you want the mechanics: BSD & ABSD explained.
The following figures reflect typical private residential investment conditions in Singapore as of 2026.
Downpayments may range from SGD $200,000–$400,000 depending on property type and leverage used.
Budget for tenant-ready refresh and repairs: Renovation Cost in Singapore (planning bands + hidden items).
Over five years, interest payments may accumulate to SGD $60,000–$120,000 depending on loan size and rate environment.
If you want the long-horizon interest lens (not just 5-year totals), read: Mortgage Interest Cost in Singapore.
Property tax, maintenance fees, and repairs may total SGD $5,000–$10,000 annually.
Unexpected vacancies, tenant turnover, and market downturns create income instability.
Capital tied up in property could have been deployed in diversified investments. Over five years, this cost may be significant.
| Category | Estimated 5-Year Exposure (SGD) |
|---|---|
| Downpayment & Acquisition | $200,000 – $400,000 |
| Mortgage Interest | $60,000 – $120,000 |
| Maintenance & Management | $25,000 – $50,000 |
| Vacancy & Risk Buffer | $20,000 – $60,000 |
| Opportunity Cost | $50,000 – $150,000 |
| Total 5-Year Capital Exposure | $355,000 – $780,000+ |