Property investment 101
With sky-high prices and harsh cooling measures, investing in property in Singapore has become a high-stakes game of chance. The way to succeed in the game is to know how to minimise risks and maximise profits. But just how do you do that? And what does it take to be a shrewd property investor?
Ten golden rules of smart property investment
Always look ahead
When investing in property, always look for the potential upside. That way, you’ll have an idea of how well your investment will do. But even while you’re counting your financial gains, don’t forget to calculate the amount of risk involved in the investment. If you do this right, you’ll know if the property is worth investing in.
Keep a cool head
It’s easy to be drawn into the hype surrounding a hot piece of property, but the key to making a smart investment is to always refer to facts and figures. Don’t let your hopes and emotions influence you into making a hasty decision. Before diving into your investment, always make sure you have researched everything there is to know about the property and work out if you have sufficient funds to hold on to your investment for at least the next few years.
Price is everything
When it comes to choosing the right property, it’s not about the big-name architect or the fancy location. What really matters is the right entry price. That means doing your research and checking the prices of neighbouring properties. If the price of your potential investment is lower, that translates to a lower risk and higher potential to make a profit.
A property’s popularity is usually a pretty good indicator of how profitable an investment it will be. In this case, size does matter, so look out for properties that are sizeable enough, located in a reasonably well-known area and have loads of publicity. These are the properties whose prices will shoot up when the market is hot.
It’s all about the technique
For those who are new to property investing, it is important to get the technique right and understand all the nitty gritty details involved. That’s why you need to equip yourself with the skills and strategies needed to identify the right properties. That way you’ll be able to determine the best entry and exit points, identify prime properties and grow your portfolio fast.
In the volatile property market, where prices wildly fluctuate, time is everything. That’s why it is important that you get the most up-to-date information on the property market. With real-time information, you’ll be able to make smarter investment decisions.
Look out for uncertain markets
Uncertain markets hold a treasure trove of good investments. That’s because when the market isn’t good, people start liquidating their assets. Add that to the fact that interest rates will stay low and you’ve got yourself a host of low-risk, high-return investment opportunities. With proper research, you’ll be more than ready to take advantage of these great opportunities.
Buy, sell, buy more
The most common mistake that even seasoned investors make is not formulating an exit plan. Always remember that the purpose of your investment is for profit so be ready to sell your property and cash in on it when there’s a great opportunity. That way you’ll be able to buy more properties and multiply your assets.
Make your investments work for you
If your property exceeds its peak selling price, you should seriously consider selling it. Great investments are everywhere so don’t get emotional and just hold on to your property. Instead, sell it when the going is good so you can invest in other better opportunities, and make your investment work for you.
The property market is not as volatile as the stock market and doesn’t fluctuate wildly day-by-day. As long as you do your research, have enough funds to hold on to your property for a few years and have faith in Singapore’s robust economy, you’ll soon be reaping the rewards of your investment.