Investing in real estate has the potential to multiply initial capital fast. However, it can also empty your coffers at the same rate. A good example of a double-edge market is Singapore’s real estate. There are a plethora of real estate investment opportunities, but not all of them have a promising future. Be a smarter and safer investor by using these five tested and proven investment principles.

Plan Your Financial Objectives 

Before you buy your first house for sale in Singapore, or even do your initial research and analysis, clearly define expectations from your investments. What financial objectives do you have? And over what time frame do you expect to achieve them? Be aware of the “time vs money” idea, which means the more you have of one, the less you need of the other. Take time to understand your goals and if they are realistic, attainable, and appropriate to your particular situation.

Learn The Trade

You don’t necessarily need formal education when learning the skills for investing in real estate. However, this doesn’t mean you should just rush into it head first. Spend time and, if needed, money for books and seminars that teach you about real estate investing. Make sure it is relevant to Singapore’s real estate market and the current housing regulations enforced within the country. Outdated or surface-level information will do little to help you in your investing endeavors.

Have An Exit Strategy 

In fact, for some seasoned investors, an exit strategy is more important than where you enter. If you can control where you exit, you’ll be able to mitigate large losses and let profits run. A basic exit strategy for investing in real estate or in any other artificial market is when fundamentals suddenly shift. This could be signaled by a change in government policy or unfolding geopolitical turmoil.

Start Small 

A basic rental property is a good initial starting point for inexperienced real estate investors. Don’t try to snag large apartment complexes and condominium units for their prized potential resale value or appealing monthly tenant payments. Using up all your available capital on one property can bind you from making other better opportunities that come along.

Work With The Right People 

Like investing in stocks or commodities, investing in real estate also requires you to work with a middleman who will be processing your orders and making sure all legal aspects of the transaction are followed. Take the time to look for an experienced and licensed property agent in Singapore who knows the ins and outs of the market better than anyone does. Different property agents will have varying service fees and portfolio of properties they can offer you, so compare at least 2 to 3 property agents before deciding which one you are most comfortable working with.

Practice these five investing principles until it becomes second nature. Combined, these principles can help you find the most lucrative investment opportunities and maximize potential profits. They may not always work, but like any other speculative venture, they give you a higher probability of making money over time.