Property investment is one of the top investment options in Singapore. This is because of its huge historical returns in a nation that has scarcity of land. Nevertheless, Singapore is one of the most expensive nations to fully own land. That’s why majority of property (land) owners have had to dig deeper into their pockets. The good news however is, other than buying, there are some other ways you can own property without necessarily going through the old purchasing process.
People own property either for personal use or investment. In terms of investment, the lucrative business is referred to as the quickest way to grow your money because its rate of growth in value grows quite rapidly.
Have you been wondering how you can successfully invest in property in Singapore? Here’s how.
How to invest in property in Singapore
This is a method where you purchase property expecting its value to increase then sell it at a higher price and earn capital gains (profit).
This is where you buy or build rental property. After renting it out, you’ll do your calculations to know your profit per year. For instance if you choose to buy an already established property at $1 million and charge $7,000 per month, your earnings will be $94,000 per year.
This is the easiest property investment as you do not need to purchase real estate to become an investor. These are listed companies who hold numerous properties under their name with the aim to either lease or sell them out. You can invest with them by buying stocks. Before making that decision however, make sure you study the company’s fundamentals including the financial history and their balance sheet.
Real estate crowd funding
This is an emerging digital investment method in Singapore. It is an online platform where small amounts of money is collected from individual investors which then is used to fund huge real estate projects. With time they earn high interest (6%-20%), depending on the projects returns. The interested individual investors are required to put in between $10,000 to $50,000. It is an attractive business venture due to its high interest rates but at the same time quite risky. There are numerous real estate crowd funding success stories so far but at the same time some investors have lost their money because the schemes went sour.
REITs stand for “Real Estate Investment Trusts”. There are many companies that manage or own a portfolio of real estate who welcome investors to trade with them by buying shares of their company. REITS work like the popular trades in shares and the investors can earn dividend income at the end of ever financial period.
Compared to buying property, REITs is the easiest and cheapest investment because you can begin with low capital and build it up with time. It is very accessible for new and upcoming property investors and does not require management. Just like any other investment, there are risks attached such as periodic government regulations which sometimes go against REITs’ overall pricing.
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