Long gone are the days when ownership of properties got swapped with just the simple transaction of deeds from its original owner to the buyer and when people sought out properties for the sole purpose of occupying it. Nowadays, you’ve got this sophisticated infrastructure in place for both buyers and sellers of property. Fortunately though, it doesn’t take an undergraduate program to instill the knowledge and skills to becoming an effective and profitable real estate investor in Singapore.
Why are so many investors buying a condo in Singapore? Is it the new promised land that’s poised to take on conventional prime locations like New York, California, Sydney, and London? Is it set to turn a small investment into a chunk of cash in a matter of months?
Perusing through the most recent news reports about real estate, you’ll find that Singapore’s market exhibits a distinguished rate of expansion compared to the real estate markets of other developing countries. Well-known for their power in finance and technology, the country continues to attract investors from all corners of the globe to participate in its upward-trending direction.
Aside from its healthy industries, cost of living in the country is generally more affordable compared to other areas that have similar attributes and potential. Moreover, there are so many travel hotspots to visit in Singapore that it’s impossible to run out of activities to engage in.
What Housing Options Do Expats Have?
More than 70 percent of Singaporeans live in what the country calls HDB flats, where the acronym stands for Housing Development Board. However, HDB flats are only accessible to investors who have either a permanent residence status or a is a citizen of the country. If someone in your family is already a permanent resident or citizen, he/she can do the investing for you.
As an investor, there are several housing types and corresponding approaches to consider in Singapore. You can purchase an apartment complex and profit from rooms for rent, flip houses in high-demand locations, or buy and hold a property for a longer time frame and wait for the windfall payout.
What Should Novice Investors Avoid?
Lack of research is one mistake that commonly throws an investor off-track. They fail to ignore signs of an impending market collapse and see profitable opportunities in other niche spaces. Becoming a successful investor requires you to have concrete skills in efficient research, data acquisition, and its subsequent interpretation. Data will serve as the foundation for your short-term and long-term plans and objectives.
Financing is another important factor when investing in real estate, and yet only a handful of investors are able to perfect their financing approach. Exotic mortgage options remain ideal even after the real estate bubble collapse in 2007. By default, these mortgages are designed to enable buyers to procure certain properties that they might not otherwise have been approved of with traditional 10- to 20-year mortgage contracts.
From a financing standpoint, the takeaway you should embed in your mind is to ensure that you have the financial capacity and dexterity to make monthly mortgage payments even if interest rates go up.