Property vs Equities

Quick answer: This tool compares deploying the same starting cash into leveraged Singapore property, using a 75 percent loan, against fully invested equities over 10 to 20 years, factoring appreciation, net rental yield and mortgage cost, to show how much leverage and liquidity each path trades off.
Same starting cash. Property uses leverage (75% loan). Equities use full cash. Both compounded over 10 / 20 years. The leverage matters more than people realise.
YearProperty netEquityDiff

The information and insights provided on this page are for informational purposes only and are based on Winfred's independent research and views. While we strive to ensure accuracy and reliability, we do not guarantee the completeness, correctness, or timeliness of the data presented. Real estate investments are subject to various risks, including but not limited to market fluctuations, changes in economic conditions, interest rate volatility, regulatory shifts, liquidity constraints, and unforeseen property-specific risks. Past performance is not indicative of future results, and investment outcomes may vary. This page does not constitute investment, financial, or professional advice and should not be relied upon as such. Investors should conduct their own due diligence and seek advice from qualified professionals before making any investment decisions.

Frequently asked questions

How does this tool compare property against equities?

It starts both paths with the same cash. Property uses that cash as a 25 percent down payment and borrows the rest at 75 percent LTV, then compounds appreciation and net rental income while deducting mortgage cost. Equities invest the full cash amount at your assumed return. It then shows the net position at years 5, 10, 15, 20 and 25.

Why does leverage make such a difference to property returns?

With a 75 percent loan, your cash controls an asset roughly four times its size, so appreciation is earned on the full property value rather than just your deposit. That magnifies gains when prices rise, but it also magnifies losses if values fall, and it adds mortgage interest as an ongoing cost. Leverage is the main reason the two paths diverge.

What assumptions can I change in the comparison?

You can adjust the cash deployed, annual property appreciation, net rental yield, expected equity return and the mortgage rate. As a rough historical reference, Singapore property has tended toward low single digit annual appreciation plus a few percent yield, while broad equity indices have shown higher nominal returns, though none of these outcomes are guaranteed.

Does the model account for ABSD and holding costs?

The model centres on leverage, appreciation, net rental yield and mortgage cost over the holding period. Real outcomes are also shaped by stamp duties such as ABSD on additional property, vacancy, maintenance, refinancing windows and cooling measure changes. Treat the result as a directional comparison and layer in your own transaction and holding costs before deciding.

Which is the better choice, property or equities?

There is no single answer. Property's edge is leverage and a tangible income producing asset, while equities offer liquidity and easy diversification. The right mix depends on your capital, time horizon, cashflow stability and tolerance for illiquidity and rate risk. Winfred Quek can help you read the numbers against your own goals rather than in the abstract.