Tax increase may impact rental income for property investors

For buyers, on the other hand, the tax increase may be management, said experts. Investors planning to purchase private homes for rental income may face a couple of challenges once the hike in property taxes kicks in next year.“For investment properties, the impact is expected to be greater for luxury condos and landed properties , as the tax increase tends to be higher for these categories of properties,” OrangeTee added.

Increased property taxes alongside high ABSD rates, elevated interest rates, and higher maintenance costs will lead to higher costs of investment and whilst some may try to pass these costs to their future tenants, OrangeTee underscored that increased competition for tenants may make it difficult for landlords to do so. Huttons echoed this: “With private residential rents and HDB rents estimated to soften in 2024, it is unlikely that investors can pass the increase in property tax to tenants.” As a result, OrangeTee said the increased property taxes are likely to reduce rental income for landlord

Tax Increase Property Taxes Rental Income Property Investors Luxury Condos Landed Properties Investment Properties ABSD Rates Interest Rates Maintenance Costs Tenants Competition Landlords

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