Investing in Singapore’s booming property market can be financially fruitful but at the same time incredibly complex. You have all sorts of barriers including language and culture differences, policies surrounding procurement of property by foreigners, and of course the intrinsic risk involved in picking a rental property to invest in. At the end of the day, however, working as a professional real estate investor in Singapore can be well worth the shouldered burdens. Here’s how to up your game from a novice investor to a professional one with four simple habits.
Research Your Way Into the Market
Research is a good habit to form if you wish to become a successful property investor, especially in a foreign market. Researching through local Singapore property news and general investing-related books can instill the knowledge necessary for predicting market patterns and handpicking properties with actual value. The term “research” does not solely imply reading books, but has more to do with how you use the information. Build a criteria or template that you can use to filter property listings with ease.
Understand What Market Cycle You Are Buying Into
The market cycle you are buying into will predominantly dictate your approach. Being an aggressive buyer during a recessionary period can be detrimental to your finances. You’ll end up taking on too many mortgages with no immediate payoff on your rental properties. Market recovery phases are a good period to enter into Singapore’s real estate market. During this time, most investors are still fearing to invest their money hence lower competition on the streets. Moreover, property sellers are still trying to offload their properties at discounted rates, which means lower prices for buyers.
In this line of work, patience pays off. You don’t want to be buying when there are no good opportunities and selling when there is little to no demand. Successful real estate investors know how important it is to set long investment horizons and actually prepare themselves financially for the ongoing expenses of maintenance and legal fees. If you are uncertain that a particular property is a good fit in your portfolio, don’t buy it and simply stay liquid until an actual investable opportunity emerges.
Know What Style Suits You
Investing in Singapore’s real estate market can be done in a creative number of ways. The most common investment strategy is to buy a rental property and collect monthly rent from tenants. However, there are many other strategies in which you can own and profit from investments. REITs, for example, can be bought to earn annual profits and dividends from a corporation’s property portfolio rather than owning any tangible property. Knowing what style of investing suits you makes it easier to look at properties and manage your portfolio since the assets all fit your investment criteria.
Transforming yourself into a professional real estate investor in Singapore will take more than a day or even a year. Absorb as much as you can from the foreign market and ask help from native realtors. This will at least help close the information gap that’s preventing you from succeeding as an investor.