Investing in real estate properties is an excellent way to grow your wealth and secure your financial future. However, there are certain things that you need to know to increase your chances for success. As you should know by now, property prices in Singapore are at an all-time high courtesy of the city’s continuing economic boom. The competition for both developed and undeveloped property is getting tougher by the day. That said, you need to be smart in making your investment decisions. To help you out, below are some proven tips that you can follow:
- Get in touch with a trustworthy and reliable real estate agent
This is the very first step you should take especially if it’s your first time to invest in a piece of property. Agents are knowledgeable about the real estate market and the trends that are currently affecting it. In fact, some property buyers hire two different real estate agents so they can compare and contrast their tips and advice. The agents will serve as your ears and eyes as you search for good property investments.
- Take note of the expenses when buying a piece of property
A lot of property investors often make the mistake of taking expenses and overhead costs for granted. The price you pay for a property is not the only cash outflow in the deal. You have to take into account the fees, interests, and other expenses related to the acquisition of the property. This is very important if you are paying for the property through a loan or a financing program. And of course, you should make an estimate of the renovation and improvement costs that you’ll spend on the acquired property.
- Calculate the amount of risk involved in the property investment
There’s always risk associated with purchasing a property. There are two main reasons why you should take note of these risks. One, it allows you to prepare for them. And two, it gives you leverage to negotiate for a lower price with the seller. It’s simple, why pay top dollar for a property that’s associated with too many risks? Seek the assistance of an agent or an appraiser in identifying these potential risks.
- Understand how property ownership works in Singapore
The rules and policies governing property ownership in Singapore may differ with neighboring countries like Malaysia and Indonesia. It’s important that you are aware of these policies to avoid problems in the future. It’s recommended that you consult with a property lawyer to ensure that you are doing things right. And don’t forget to read the deed of sale or leasehold contract very carefully before you sign the deal.
- Always think long-term
A very important factor you should remember about real estate properties is that most of them appraise in value with the passage of time. This means the longer you can hold on to them, the more returns you get in the future. That said, it is advisable that you acquire properties with the intention of improving and developing them in the years to come. Don’t worry because every development or improvement you make on the property will accrue in value as the years go by.
Buying or selling Singapore property can be both complicated and confusing. All it takes is one wrong decision, and your investment goes down the drain. However, with the right approach, things can be a lot more manageable. This is why it’s important that you follow all of the practical tips discussed above. These tips will serve as your guide in managing the ins and outs of property investment in Singapore.