Do the maths yourself, moron. And buy your own ticket to the airport while you're at it.
You still have to pay interests on the SGD 1.3 million you borrowed, which you have to deduct from the rents you cash in every month to have your net yield. And then I can guarantee you that your yield falls way below 10%.
That is assuming that your tenant is idiotic enough to accept 100% raise on his rent in this rental market, where supply is abundant. True, the rents have rebounded somewhat since their bottom in Q2 2009, but nowhere near this extent. If I was your tenant, I'd tell you to go fly kite, and with just a little bit of research on his side, this is exactly what he'll tell you.
Keep dreaming.
Also factor in property tax, maintenance +sinking fund contribution
+ he's only calculating rate on the 800k he put down rather than the 2.1 million dollar value. which of course includes the mortgage, interest & of course risk that the debt inherently adds to the situation.
at 2% interest rate on 1.3million @ 30 years that means a 4.8k / month mortgage payment.
conservancy say 300/ month, tax at least 100.
I would say he is getting negative yield if anything. I think he is praying that he can find some dumbass to double his rent to because any shock to the interest rate will finish him.
I have a rental property myself. I paid for it using 80+% down payment in cash, unlike this asian landlord who is too poor and has to use less that 50% (sorry to all the non idiot asians out there, I just couldn't resist using stupid stereotypes either - seems to be the vogue around here).
My yield all things included is about 3-4% - in line with what every agent I have talked to projects. I think this dufus is looking at his half filled glass as an overflowing bucket through rose tinted spectacles - (out of cliches now)
