For years, Singapore has served as a hotspot for high-yield investments. As its business and financial sectors continue to bolster the country’s economy, more and more local and foreign investors are trying to get a piece of the pie and hopefully ride the promising trend ahead.
An investable market that makes sense to target is Singapore’s real estate space. As the country attracts more local and foreign investments, property prices are bound to increase in valuation due to a relative increase in demand. For novice investors, here’s how you can assess and compare properties and ultimately construct an investment portfolio that strikes the right balance between high reward potential and low risk.
Prerequisites of Property Investing
Buying commercial space or residential house for sale in Singapore is a huge investment, and one that will likely consume a considerable portion if not all of your capital. And considering the time frame in which this type of investment matures, you have to ask yourself if it makes sense to park your capital in a particular property.
Sit down and assess your finances at a microscopic level. How much can you afford to invest in a property? It can be disastrous to solely account for the purchasing price of the property. There will be other costs to consider, such as broker fees, loan interest rates, legal fees, stamp duty, etc.
Another good question is, how long do you plan on holding the property? There are several ways to generate profits from a real estate investment. For example, you can purchase rental properties, have them rented out, and collect monthly payments. On the other hand, you can buy a property, improve it, and then flip it for a profit.
Looking For Properties
This is perhaps the more exciting part of the process. Taking your first few steps out the door is both thrilling and terrifying. You’re this small fish swimming in a large, billion-dollar pond that is the country’s real estate market.
The first step is to contact a property agent in Singapore. These specialists will help you find good properties that match your investment needs, complete legal paperwork, and, if need be, negotiate on your behalf. Working with a local professional helps get you introduced quicker to the local landscape and alleviates the need to learn everything about the market from the ground up.
When looking for properties, go beyond the obvious factors like cost and appearance. Do your homework and focus on locations that have the most potential. Properties close to business hubs, such as the Port of Singapore, Changi Airport, and Sentosa Cove are prized for their strategic locations and are ideal starting points for your search.
Real estate markets are inherently safe investment vehicles, but they tend to be geared towards long-term investors who have deep pockets to buy into prime areas. Nevertheless, this guide can show the novice and budget-conscious investor how to compete with experienced real estate investors when it comes to snagging good properties, be it a commercial plant or a residential unit.