What is the definition of annualized capital gain?

Annualized capital gain for a condo in Singapore is defined as the total capital gain realized from the sale of the property, divided by the number of years the property was held. Here’s a simplified example:

- If you purchased a condo for $1 million and sold it for $2 million after 10 years, the total capital gain would be $1 million.
- To calculate the annualized capital gain, you divide the total capital gain by the number of years you held the property: $1 million / 10 years = $100,000 per year.

This metric gives you an average annual rate of return on your investment, helping you to evaluate the property's performance over time. However, it's important to note that this is a historical measure and does not guarantee future performance. Other factors such as stamp duties, legal fees, maintenance fees, and property taxes should also be considered when assessing the overall return on your investment. You can use tools available on EdgeProp to help with these calculations and to get a more comprehensive view of the property's value and potential.