Singapore properties are on the hot list of every local and foreign investor around the globe. The country’s stable GDP figures, strategic physical location in Asia, and highly-effective Free Trade policy are only few of the key reasons why you should be parking some of your savings into the country-slash-state-slash-island.
While Singapore housing prices have suffered a setback last year, it’s mostly the result of deliberate government policy. The demand for properties, both residential and commercial, remain relatively high over neighbouring Asian countries. As an investment, Singapore’s real estate market is promising thanks to the country’s strategic location, which places it at the heart of the trade channel used by major cities and locations including Tokyo, New Delhi, Beijing, and Bangkok.
Property Types To Choose From
There are several types of investable property you can choose from in Singapore. HDB flats appear to be the more common form of living accommodation in the country. 80 percent of Singaporeans are reported to live in HDB flats, which are also referred to as public housing.
Condominiums are another housing option you can invest in, albeit pricier than other real estate investments. When browsing advertisements for condominium units, you may see the term TOP, which is short for Temporary Occupation Permit. This simply pertains to the year when building work was finished.
Single-family homes are categorized as landed buildings in the country. Expat investors may find it difficult to purchase this type of land due to stringent restrictions imposed on foreign ownership. Nonetheless, they are one of the most demanded accommodations in Singapore and can generate a sizable income stream from the monthly rent and thus a worthwhile addition to your investment portfolio.
How to Start Investing
Identifying both obvious and hidden cash-flow factors is imperative to gauging future demand for the real estate, whether as a rental unit or a buy-and-hold asset. Singapore property taxes are a predictable cost, but there are variables at play that can affect the real estate’s appeal. For instance, for a rental unit, you may think adding utilities in the monthly rent will entice renters, but it’s not always a fixed cost since the renters may secretly bring in more tenants, which would increase consumption of heat and water and, ultimately, expenses.
Contact a broker as soon as you sort out your personal finances and preferences. Zoom in on promising locations that attract consistent demand and is poised to become a busy landmark in the future. Do your research of future projects that could affect demand and valuation of properties in the area.
What Not To Do
The number one deterrent of successful real estate investing is thinking you’ll get rich quick. It’s not a career that will reap six figure salaries every year after only a few months of legwork. You’ll need to dedicate considerable time and effort to look for properties, add on your portfolio, and manage existing ones to ensure they don’t get blown to pieces by renters or drastically decrease in value due to changes in policy you failed to see and prepare for.
As an investment, there is definitely more to Singapore property purchases than what can be contained in this article. However, all the information above should give you a core knowledge base for you to work around in.