
When you have some savings, say $100k or more, it’s time to consider growing your money.
One time-tested investment strategy in land-limited Singapore is to invest in property.
Short story:Shop around for a good condo. Rent it out. When it appreciates in value, sell out.
Long story:How to identify a good condo? Location is important. Generally, districts 10, 9 and 11 are good, in that order. Expats like these districts.Freehold and 999-year leasehold properties are good for the long term, as the government has announced not to release land with such tenure in future. 99-year leasehold properties are ok too, if your focus is on rental returns.
How much rental can your apartment fetch?
Do you need to take a mortgage?
Generally, even high net worth individuals take mortgages for leverage purposes. The rule of thumb is that your net rental income must at least cover your interest payments, provided that the property value do not depreciate in value. In other words, your net rental income minus your interest payments, plus the appreciated value of your property, will be your paper profit. When you sell out, the profit will be realized (after various deductions).
Also, the best time to invest in property is during a property slump.
Is it now?
The time is about to come, so be on your toes and keep a lookout, make your weekend free. Try a few viewings.
Would I invest if I had that 100k?
I certainly would if i had.
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