Singapore’s real estate market has captured the attention of investors from all across the globe. Superior infrastructure, solid transportation network, and a disciplined community have all helped foster confidence in the country’s economy and why it is worthy of foreign investment. If you wish to ride this promising trend for the long haul but is not experienced enough to decide where and how to start, here are 5 tips to investing in Singapore’s real estate market.
Finding a Good Location
Location is everything when it comes to real estate. Prime areas tend to attract more buyers because its surrounding establishments, public services, and transportation options signal microeconomics health. If you’re an investor who wants to flip houses quick and easy and pocket the difference as profit, investing in a studio apartment within a buzzing financial center or technology hub is a far wiser decision than investing in large properties located in the middle of nowhere. You can find a myriad of ideal locations by watching Singapore property news and subscribing to websites related to local real estate.
Financing Your Investment
Starting a real estate investment portfolio can be very expensive. Fortunately, you can take out loans to buy investment properties and still be considered to have “good” debt. This is because owning investment properties generate a passive source of income and has numerous tax benefits all while the actual property is accruing in value over time.
Choosing a Broker
Hiring a real estate agent is especially vital for expat investors who do not have prior experience when it comes to investing in local properties. Consult a real estate broker and thoroughly explain your investment objectives including how long you can park capital in any one property and what types of property you are most interested in. If you choose to work with multiple real estate agents, make sure to keep them looking at different locations to avoid confusion and redundant search results.
Inspect the Property
Don’t just rely on what brokers and analysts tell you are good investments. Inspect the properties yourself. Before purchasing any property, make sure the person you’re in contact with is the legal owner and seller of the property. Don’t hesitate to ask for proof of ownership before putting up money. If you’re buying property from a seller who has recently filed for bankruptcy, make sure the seller has obtained a written letter from the Official Assignee and is entitled to oversee the property’s sale.
If the seller of the property has made any form of renovation to the interior or to the surroundings of the property, make sure that such renovations were legally approved by a housing committee. If any rectifications to the changes are demanded by housing authorities, the seller/previous owner will be held accountable for the expenses.
Aside from the aforementioned factors, you should also look at the type and size of the property and the accessible amenities offered to its tenants. These factors will play a key role in how fast you can resell the property and how much you can profit from it.