Singapore Real Estate Investment


2007 marked the beginning of Singapore’s real estate market boom. Strong economic growth coupled with the influx of professionals migrating into the country at the time made real estate space highly valued and in-demand. Nowadays, however, profitable opportunities are scarcer and investing involves a more sophisticated and rigorous process. If you wish to maximize ROI, take these five investing principles to heart.

Start Simple

As an inexperienced investor, it will do your capital good if you take baby steps rather than go after it at full speeds. A rental property, for example, is the most basic strategy you can use when starting out as a real estate investor. Generally, you buy a property and then rent it out to a tenant. Over time, as you get paid a regular passive source of income, you can reinvest it into more properties. You can mix it up and buy a studio apartment in Singapore to complement 2-bedroom or traditional bungalow units.

Consider REITs

Real estate investment trust securities are a relatively nascent financial product for investors who wish to expose their capital to real estate but do not want the burdens of being the property’s landlord. Look for a reliable and established investment group that focuses on rental properties and commercial spaces that fit your specific investment objectives. In exchange for the service, the investment firm will charge you a percentage of any amount you make from the monthly rent paid by the property’s tenant.

Credit Reports

In today’s economically troubling times, credit reports are deemed a necessary weapon by borrowers to avert unjustifiably high mortgage rates and by lenders who wish to prevent any defaults on their mortgage contracts. Majority of lenders require a minimum FICO score of 700 who wish to purchase investment property. Furthermore, make sure that your credit balance is proportionately lower than your monthly income. To check your credit report, you can request a free one every year from Trans Union, Equifax, or Experian.

Identify Prime Locations For Real Estate Investing

Inexperienced investors make the common mistake of focusing their search locally or in areas that are an obvious goldmine. This can severely limit opportunities and any potential profit. If you want to maximize investment growth, try to get out of your comfort zone and look further away. You can keep updated of new areas that look promising by paying attention to Singapore property news.

Stay In The Loop

Participating in Singapore’s real estate market without actually being in the country can serve as a disadvantage to an investor. Staying in the loop allows you to timely react to market events, such as new housing regulations being enforced or geopolitical issues that may affect the valuation of properties in a particular location. As mentioned in the previous paragraph, try to pay attention to local news channels that cover the subject matter.

Real estate can be a cutthroat financial market to participate in. Novice investors can use the five tips above to even out the playing field and be able to compete against more experienced investors.