Why High Demand Lowers Rental Yields in Real Estate

Video description from @notgpodcast

Join us on this episode of "NOTG (Nuggets On The Go)" by PropertyLimBrothers as we delve into the dynamics of property yields, particularly focusing on why some properties exhibit high rental yields while others do not. We’ll discuss how properties in less desirable or stagnant price markets can offer high yields due to their lower purchase costs and consistent rental incomes. Conversely, we’ll explore why properties in high-demand areas, such as landed properties or commercial shop houses, often have lower yields despite higher buying activity and rising prices. This episode will also explain the concept of yield to price spread and how it impacts investment decisions, providing insights into the correlation between market desirability, price appreciation, and rental yields. Learn how to effectively review your property investment portfolio to optimize returns, considering both entry points and current market conditions.