Whether you’re looking to add Singapore real estate in your investment portfolio or relocate to Asia’s Lion City to start a new life, investing in the country’s real estate will be one of the most important decisions you’ll be making in your life. Thus, everything must be taken with a pinch of salt, resources rechecked thrice, and decisions weighed for more than one night. Here are some savvy investing tips for novice investors looking to conquer Singapore’s real estate market.
Do Some Budgeting
How much money are you willing to put up to buy a property in Singapore? How high or low is your credit score and will you be able to get financing from the country’s local banks? If so, are the interest rates decent enough to make money from the real estate once both the full price and the ongoing expenses punch through? Investing is a marathon and not a sprint. You cannot expect to get a handsome return on investment after a few weeks or months of being a real estate investor. Doing some budgeting will help cover for unforeseen expenses.
Scout Good Locations
Being a real estate investor means knowing which properties are valuable and which ones aren’t. You cannot begin to understand the market and its features if you do not get involved in a personal level. Walking through Singapore is a simple yet powerful way to make informed decisions. Scouting which areas have high crime rates allows you to avoid these places as property valuations will be lower here.
Look at Global Macro
Conduct a top-down analysis of Singapore’s property market. Global macro is a principle of looking into the major economic factors that drive market supply and demand. You start from the broadest possible view and then work your way to the smaller, more specific items. This approach affords you a clearer perspective of future market direction and allows you to tailor your investment expectations and objectives accordingly.
Out of all the skills an investor must have, patience is at the crux of it. Knowing when to enter the market and when to exit it can save you from financially crippling decisions. Greed and fear of missing out are emotional qualities naturally imbued in every individual. As an investor, especially in big ticket assets like real estate, it is paramount to shake off these qualities. Being patient allows you to objectively look at the market and see opportunities or the lack thereof.
Work With a Realtor
Hiring a local realtor is often forgone to save money. The experience and connections that these professionals have, however, can play a huge role in your bottomline. Work with a realtor who can prove his/her credentials. Ask for any references of houses he/she helped a client invest in and is now making money.
Investing in Singapore’s real estate market can be done by anyone. However, to consistently succeed, one must have a combination of both knowledge and skill that’s covered by this article.