Buying an investment property: the rules that change your return
Buying · 2026-06-12 · 10 min read
Start from net yield
Gross rental yield minus property tax, maintenance, agent commission and vacancy is the number that matters. Model it on the rent you can actually let for, not the asking rent.
Taxes before purchase
Additional Buyer's Stamp Duty and seller's stamp duty can move a modest gain into a loss. Confirm your buyer category and holding period before you commit.
Exit costs
Legal fees, agent commission and any seller's stamp duty all sit between you and your profit. Plan the exit on day one.
Frequently asked questions
Is a studio better than a two-bedroom for rent?
Studios usually rent at a higher price per square foot, but two-bedroom homes attract families and tend to have lower tenant turnover.