Case Study: Pocket View bought $7 million D15 landed for rental
This is not a rental-yield investment. Pocket View paid an estimated $7.8 million for a District 15 semi-detached house, borrowed close to the maximum and rented it out for approximately $15,000 a month. The rent helps carry the mortgage, but the goal is capital appreciation from scarce landed property in a sought-after neighbourhood.
After tax, the rent produces around $65,000 of annual economic profit. But the investment still requires around $8,400 of monthly cash top-ups because the full mortgage instalment includes principal repayment.
The family continues living in their current Bukit Timah home because of the children’s schooling. The District 15 house is an investment, not their current home.
The figures come from Pocket View’s house tour and buying-process video. The exact price, loan and rent weren’t disclosed, so the numbers below are my best estimates.
The deal in one table
The couple viewed more than 20 landed houses over 6 months. They chose a relatively small semi-D in a sought-after District 15 landed enclave.
My best estimate is $7.8 million, or $2,900 psf on 2,700 sq ft of land.
| Item | Best estimate |
|---|---|
| Purchase price | $7.8M |
| Land area | 2,700 sq ft |
| Built-up area | 4,500 sq ft |
| Purchase price per land sq ft | $2,900 psf |
| Age | 14 years |
| Configuration | 2 storeys plus attic |
| Bedrooms | 5 ensuite bedrooms |
| Renovation | $100k |
| Monthly rent | $15k |
| Gross annual rent | $180k |
It also has a helper’s room with its own bathroom, a swimming pool and parking for roughly 2 cars. It was already tenanted when the first video was published.
Nearby semi-Ds were around $9.5 million, while new houses could reach $12.5 million. The smaller plot lowered the entry price.
High psf, lower quantum. The same trick developers use when they make new condominiums smaller.
Appreciation is the actual plan
The strategy is capital appreciation, not rental yield. Expected rental yield is only around 2%.
The target is roughly 5% annual appreciation over several years. On a $7.8 million purchase:
| Year | Projected value |
|---|---|
| Purchase | $7.80M |
| Year 1 | $8.19M |
| Year 3 | $9.03M |
| Year 5 | $9.96M |
The 5-year target is $9.96 million, a $2.16 million gross gain before selling costs.
Another exit reference is $4,000 psf, or $10.8 million. These are targets, not current valuations. The strategy depends on a multimillion-dollar capital gain, not the rental income.
$2.46M went in upfront
I modelled a 75% bank loan, the maximum LTV for an eligible first-property borrower. Our landed-development case study explains this financing limit.
| Purchase funding | Amount |
|---|---|
| Purchase price | $7.80M |
| 75% bank loan | $5.85M |
| 25% down payment | $1.95M |
| Buyer’s Stamp Duty | $408k |
| Renovation | $100k |
| Estimated initial capital | $2.46M |
This excludes legal fees and a cash buffer.
As a Singapore citizen buying a first countable residential property, there is no ABSD. BSD is $407,600, rounded to $408,000. See our BSD rate table.
$15k rent becomes $65k profit
The house was already tenanted. I use $15,000 monthly rent, or $180,000 a year.
A $5.85 million loan at the disclosed 1.3% rate over 30 years gives:
| First-year mortgage | Amount |
|---|---|
| Monthly instalment | $19,600 |
| Annual instalments | $236k |
| Interest component | $70k |
| Principal component | $166k |
The 1.3% rate is fixed for only 2 years.
For tax, I use the simplified method. It deducts $27,000 of deemed expenses plus $70,000 mortgage interest, or $97,000 in total. That is $1,000 more than the video’s $96,000 actual-expense estimate. Our rental guide explains both methods.
| Simplified tax calculation | Amount |
|---|---|
| Gross rent | $180k |
| 15% deemed expenses | -$27k |
| Mortgage interest | -$70k |
| Total tax deductions | -$97k |
| Taxable rental income | $83k |
| Income tax at 23% | -$19k |
The 23% rate assumes total chargeable income between $500,000 and $1 million. Income above $1 million is taxed at 24%. Our investment guide explains how marginal tax reduces rental returns.
The $27,000 deemed expense is a tax deduction, not cash saved. Actual expenses remain about $96,000, so after-tax rental profit is still around $65,000.
The $100,000 renovation isn’t deductible from rental income. See our guide to allowable rental deductions.
The property still consumes $8.4k monthly
The $65,000 profit isn’t cash flow. Mortgage principal isn’t an expense, but it still leaves the bank account every month.
| Cash movement | Annual amount |
|---|---|
| Rental received | +$180k |
| Full mortgage instalments | -$236k |
| Property tax and operating costs | -$26k |
| Personal income tax | -$19k |
| Net annual cash flow | -$101k |
| Average monthly cash flow | -$8.4k |
The family tops up $101,000 in the first year while $166,000 of mortgage principal becomes additional equity.
The reconciliation is:
$65k economic profit - $166k principal repayment = negative $101k cash flow.
Not exactly passive income. More like a tenant-assisted savings plan with a very large mortgage attached.
The return is modest without appreciation
The return depends on what is measured.
| Return measure | Calculation | Return |
|---|---|---|
| Gross rental yield | $180k / $7.8M | 2.3% |
| Net operating yield before financing and income tax | $154k / $7.8M | 2.0% |
| After-tax return on initial capital | $65k / $2.46M | 2.6% |
| Cash-flow return on initial capital | -$101k / $2.46M | -4.1% |
The $100,000 renovation is included in the $2.46 million capital outlay.
At approximately $65,000 a year, 4 years of after-tax rental profit produces $260,000. After recovering the $100,000 renovation, around $160,000 remains to offset the $408,000 BSD.
After 4 years, rent still hasn’t recovered both BSD and renovation.
What has to go right
This investment isn’t self-funding. Rent must remain near $15,000 while vacancy, repairs and agent fees stay manageable.
The mortgage must remain affordable after the 1.3% fixed period ends. A higher rate means a larger cash top-up and lower return.
Most importantly, the land must appreciate. At approximately $10 million after 5 years, the gross capital gain would be around $2.2 million. That capital gain, not the $65,000 annual rental profit, is the investment thesis.
The tenant buys time. The land has to do the rest.
