A question that has always been deliberated upon is whether one should purchase a property now or in future for personal home stay or for speculative investment purposes? However, the major concern stopping people from buying properties is the volatile economy.
Through improvements in forecasting of economic trends, there are government measures put in place to ensure that variations in the market do not vary beyond 20% estimation. The instability have been constraint in the market with economists forecasting that there would not be market dislocation like 1998 or 2008, as well as recessions in 2001 and 2003. Hence, with such a cushion provided to sustain the fall, this slight fluctuation would not amount to a large risk.
For homestay, purchasing a home now would eventually lead to better economic sense due to the constant rising of personal disposable income as well as the value of the Singapore currency plus the country small size and land scarcity.
A short term investment would require much more deliberation as there is currently a 5 years hold on property purchase before it can be sold, careful consideration have to be made as to which property would likely peak within a 5 year period and reap the largest amount of benefits. It is evident that even with a dip in the market, pricing would not fall much and will likely rise given the total forecast. Ultimately, investing in properties is an important step in creating wealth despite speculations of unpredictability.
As property prices rise over the years, so do the opportunities and capital gains. The price of the property will also be higher, therfore it is pertinent to choose the property you wish to purchase carefully. All factors have to go through very thorough checking, to ensure that the worth of the property will gradually go up. This subject however, opens up a new can of worms as the question to ask then would be what are the factors that are compulsory when one is selecting a property to purchase. Singapore's robust economy will continue to grow, along with the spending power of the people of Singapore. The value of our currency increases and with various trends, property purchase no matter long or short run, will reap significant gains.
Leveraging is one of the biggest plus point when it comes to investing in property as opposed to other assets due to the return of investment quotient. When the pricing of property goes up, the amount of money invested would be multiplied. This is especially so when there is land constraint in a country. With a high demand of property and the inability to meet this demand, the value of a property will likely rise. And when it comes to servicing mortgages and loans on the property, there is the option of renting out especially so when there is a constant increase of expatriates entering the country. These expatriates are relatively high net worth income people who are able to pay higher prices for rental. This would generate rental income as well as enhance the ability for mortgage to be offset simultaneously. If done appropriately, with the rental yield high enough, positive cash flow can be attaining. Of course this would depend on the popularity of the property.
Strike while the iron is hot and seek out a good property in a location of prospects as a step towards the creation of your wealth.
Office @ Kallang Way For Rent
Kallang Way 2A
S$ 2,500 / month
The Sail @ Marina Bay
Kim Seng Road
S$ 5,950 / month