Invest in property - Salary.sg Forums
Salary.sg Forums  

Go Back   Salary.sg Forums > The Salary.sg Discussion Forums: > Investments and Net Worth

Investments and Net Worth Talk all about money making exploits, shares, property and building net worth




Invest in property

 Citibank Cash Back Card - up to $350 cash back* - Click to Apply Now 
Reply
 
Thread Tools
  #1 (permalink)  
Old 06-05-2007, 06:56 PM
Salary.sg
Guest
 
Posts: n/a
Default Invest in property

When you have some savings, say $100k or more, it's time to consider growing your money.

One time-tested investment strategy in land-limited Singapore is to invest in property.

Short story:

Shop around for a good condo. Rent it out. When it appreciates in value, sell out.

Long story:

How to identify a good condo? Location is important. Generally, districts 10, 9 and 11 are good, in that order. Expats like these districts.

Freehold and 999-year leasehold properties are good for the long term, as the government has announced not to release land with such tenure in future. 99-year leasehold properties are ok too, if your focus is on rental returns.

How much rental can your apartment fetch? The Straits Times has reported recently that an apartment in a good location can fetch up to 3.5 times its floor area in square feet. So, if your apartment has a floor area of 1,000 sq ft, you can expect to rent it out at roughly $3,500 per month.

Do you need to take a mortgage? Generally, even high net worth individuals take mortgages for leverage purposes. The rule of thumb is that your net rental income must at least cover your interest payments, provided that the property value do not depreciate in value. In other words, your net rental income minus your interest payments, plus the appreciated value of your property, will be your paper profit. When you sell out, the profit will be realized (after various deductions).

Note that you can't use CPF for your investment property due to a new CPF regulation.

Also, as mentioned in a previous post, the best time to invest in property is during a property slump. You should know that we are now experiencing a property boom in Singapore.

http://www.salary.sg/2007/invest-in-property/

Reply With Quote
Reply

Bookmarks

« Previous Thread | Next Thread »
Thread Tools

Posting Rules
You may not post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are On
Refbacks are Off


» 30 Recent Threads
Lawyer Salary ( 1 2 3... Last Page)
9,593 Replies, 3,074,636 Views
Compare civil service salary ( 1 2 3... Last Page)
10,710 Replies, 5,917,412 Views
HSBC Graduate Programme 2021
1 Replies, 100 Views
SIM-UOL fresh grad starting pay ( 1 2 3... Last Page)
3,151 Replies, 1,333,295 Views
ST Electronics ( 1 2 3... Last Page)
868 Replies, 258,842 Views
Civil Svc/ Statboard - Typical... ( 1 2 3... Last Page)
2,718 Replies, 1,131,896 Views
How is life as a doctor in... ( 1 2 3... Last Page)
1,461 Replies, 980,085 Views
Career as Teacher ( 1 2 3... Last Page)
2,877 Replies, 1,754,279 Views
Engineer Pay ( 1 2 3... Last Page)
109 Replies, 45,627 Views
Equity Research jobs
3 Replies, 289 Views
Q: Big4 - Yearly salary increment ( 1 2 3... Last Page)
1,022 Replies, 814,681 Views
Working in HDB ( 1 2 3... Last Page)
351 Replies, 280,339 Views
E-Reading apps for kids
2 Replies, 1,668 Views
PCB design course
3 Replies, 189 Views
anyone working at NCS ? ( 1 2 3... Last Page)
458 Replies, 317,093 Views
Job Application with MOE... ( 1 2 3... Last Page)
245 Replies, 224,688 Views
MINDEF DXO (All FAQ on it) ( 1 2 3... Last Page)
3,405 Replies, 2,009,767 Views
How much are you earning per annum? ( 1 2 3... Last Page)
12,047 Replies, 3,844,259 Views
NUS working environment and pay... ( 1 2 3... Last Page)
90 Replies, 74,396 Views
Hospital (Private or Public)...
9 Replies, 5,727 Views
Anyone jobless for a long time... ( 1 2 3... Last Page)
3,002 Replies, 1,144,635 Views
High loan approval for business...
3 Replies, 623 Views
Whats your net worth ( 1 2 3... Last Page)
2,765 Replies, 829,228 Views
How to start a small business ( 1 2)
12 Replies, 2,199 Views
Third Party Contract From... ( 1 2 3)
20 Replies, 2,499 Views
OCBC Graduate Talent Programme... ( 1 2 3... Last Page)
334 Replies, 114,070 Views
Should I switch to a higher paying... ( 1 2 3... Last Page)
32 Replies, 3,267 Views
AML/Compliance/KYC professionals... ( 1 2 3... Last Page)
1,394 Replies, 588,722 Views
MAS : Mid Career Professionals ( 1 2 3... Last Page)
224 Replies, 137,105 Views
Prospects of an economics degree ( 1 2 3)
25 Replies, 12,336 Views
Powered by vBadvanced CMPS v3.2.2



All times are GMT +8. The time now is 03:08 AM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.3.2