Property Investment in Singapore

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Property Hints & Tips - Investment Strategies

Singapore Property Investment

Property investment is a risky business. If we told you that you are sure to make 20% on capital appreciation even during a good year, we are probably just creating the feel good effect in you. But making that 20% on capital appreciation on property investment in Singapore in 2 years is not impossible. But it is not as easy just to pick any property off the market and wait for the alarm of hitting the jackpot to sound and to collect your win fall. The task of making money out of property investment in Singapore has become a more difficult affair in view of the slew of cooling measures in place to check the price of jetting further north. Therefore we are very cautious in what we recommend. Through our years of experience we also realized that there isn't a one size fit all property. Therefore, we would recommend property based on different needs instead of wants. As such we attempt to provide you information on our website based on the client profile in a few segments namely, the New Investors, Home Buyers, Regular Investors segment. Each has different needs. For example, for home buyers they are mainly looking for property to stay, therefore we would recommend a property that offer more communal space or living space rather than one that fits their budget then later to realise their new home is not suitable to live comfortably. So bear with us and hope the information we provide here can assist you to decide which property is most suitable for you. Otherwise please do not hesitate to contact us for assistance.

You might want to know choosing an investing property and your own home is slightly different. For example, In Singapore the attractiveness of investing in an investment property is for a stable rental income. Size may be of a secondary concern.

sgpropertyinvestors recognize the importance of different buying needs and wants. As such we wish to help you by providing different information and tips based on your needs and reasons for the property purchase. Here, we highlight some of the important questions you should ask as a buyer and why you should invest with sgpropertyinvestors.

Get Relevant Information from us, the following 4 sections will help you:

As a New Investor (New Investor Section)
As a Home Buyer (Home Buyer Section)
As an Investor (Investment Strategy Section)
to Understand Why Invest with sgpropertyinvestors (Investing with sgpropertyinvestors Section)

If you’re thinking about investing in property for the first time, it’s important to seek professional advice. Find out why choose us. Or if you have questions, please do not hesitate to seek answers by contacting us below.

First of all why bother to invest in the 1st place?

Inflation
Inflation is often the consequences of economy recovery. Inflation is a form of taxation without legislation, it is the silent killer of your financial standing. The only answer to inflation is production of value on your money. Many people who want to protect their financial standing against rising inflation can often spend a long time debating the most effective inflation-fighting tools. Having a lot of cash may not be a good thing if the cash is not working hard for you. See video below.

To make their money work harder for them, many opt for inflation-linked financial instruments like shares, bonds, while others go for commodities, REIT (Real Estate Investment Trust) or even a physical property or real estate (the old fashion way). While it is difficult for one to determine which is the best investment. There isn't an answer because a lot of it comes down to your personality, preferences, and style.

Then the next question.

Why Property Investment
Sometimes real estate investing for beginners can seem a bit intimidating and it’s easy to get lost and confused in the lights and sounds of all the blogs, books, television and those gurus with slick hair. If among all options and you’ve decided that investing in property is the way to go, it’s important to be clear how you going to start and have a clear property investment strategy.

Last but not least, you have to realize that the way you might choose an investment property is a little different to how you would choose your own home. The conditions and the priorities you put on the investment home, would be different from those of choosing your own home. But why invest on property? We have summarized below, and the Most Important reasons are:

Making repayments on your mortgages like a type of forced savings. The more you pay off, the more of your home you will own.
As long as your property is appreciating or maintaining its value, you are growing an equity (ownerships) in your property. This equity can later be used to secure further loans and will also provide security in retirement.
There is no estate duty tax in Singapore and all your investment profits are free from capital gain tax.
Constant cash flow from rent when property is paid up.
Enable equity build up through rental from tenants.
Leveraging. The only investment that enables you to use other people's money.
It is a hard, physical asset. Unless it is destroyed completely otherwise its value would not go to zero.
After price has slump, its value always goes up again over time. Sometime, the value even rises to a level surpassing the previous peak, therefore it is a good hedge against inflation.

Recommended Reading:

Around the Web
Learn From the Experts - Expert Videos

Inflation - Why do You Need a Protection against Inflation Warren Buffet. Cash is always a bad investment. The effects of inflation.

Inflation - How is Inflation Going to Affect Your Retirement. Look at how much you would lose if inflation is at around 2% annual in 20 years time. CNN Money.

Get Rich - How to Get Rich in Real Estate Investing.
Learn the ways you can invest in Real Estate. Forbes.

Watch other Expert Videos here:

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FAQs

Hi I am a foreigner, can I buy a property in Singapore?

Yes you can. Foreigners are eligible to buy properties in Singapore as long as it is not a landed property. Most foreigners invest in a private condo in Singapore. Some do invest in shophouse, office or a commercial unit.

I would like to buy a condo for rental yield. Do you recommend a property in a mass market area or one in a prime district?

Generally, if your investment objective is on rental yield and it is of a holding period of say 10 years or less, we would recommend a relatively new 99 years leasehold property that is near MRT & and amenities. But there are also some properties in the prime districts that are built solely to increase the potential rental yield. But these properties tend to be smaller in size.

Property prices In Singapore is pretty high, do you recommend investors go for rental yield?

Yes, property prices are pretty high in Singapore. However, our interest rates for loan has stayed very low for the past 5-7 years. The interest rates has been less than 2%. Currently loan interest rate is hovering about 1.5-1.8%. Remember property investment is all about numbers. Some property in Singapore can fetch a yield of about 4-5%. Depending on your loan amount, there may be a positive cash-flow from these properties. Therefore, it is advisable to also look at rental yield.

Is it safe to invest property in Singapore?

This is a very general question. 2 ways to look at it. First, is it safe to buy a property in Singapore? Yes, it is very safe. In Singapore we use a standard tested set of sales & purchase agreement and contract. This is a very fair contract. And a purchase is done in stages, and it is easy to gain access to the property ownership through the government website. Money is not paid up front and it should not be paid up front only a deposit is needed. Lawyers will then be involved in the transferring of titles. Once all legislative and administrative work is cleared, the rest of the money will then be released to the seller.

Secondly, whether it is economical & financially safe to invest in a property in Singapore. Yes it is very stable and safe. Singapore has a very open economy (see our website - Know the Important Facts before Investing in Singapore). It has a pro business environment and is also a progressive economy. Economic Development Board (EDB) is spearheading many FDI projects into Singapore. While International Enterprise Singapore (IE) bring our local businesses to other countries. Our currency is also very stable against the world major currencies. To reduce financial risks, Monetary Authority of Singapore (MAS) regulate and set rules for banks and financial institutions on matters regarding responsible financial practices.

Singapore Property Investment

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