In my many years in the real estate industry, when I approach people to invest in property,
Many people will say that they will invest in property if they have a million dollars or when they get rich.
How to get rich? What is the amount that is considered rich? I supposed the amount varies from person to person.
Investing is one of the ways to make money, and this is how you can grow your wealth.
What is investing?
1. Investing helps you grow your money so you can reach your financial goals
2. Investing is expected to provide better returns than bank deposits, but it also comes with risks
Do you think that a monthly fixed salary and savings are able to grow your wealth fast? Don't forget to factor in inflation, in reality, if you keep this amount of money in your savings account (or fixed Deposit which gives you higher interest), your savings and interest earned will depreciate yearly.
Why there are so many people putting their money into share markets, starting a business, etc…? Because they want to make money fast enough to overcome this.
Investing allows you to grow your wealth. It’s a way to grow your saving and for you to achieve your financial goal. Whatever the reasons, whether it's for your ego, your retirement, your holidays, your family, or your children’s educations fund, it’s always good to start earlier.
before you start any investments, you will need to make sure that you are equipped with the necessary information and knowledge before you begin. In general, investing will generate better returns than putting your money into a savings account of a bank. But be aware that, all investments will come with risks.
There is a possibility that you will lose some or sometimes even all the money you invested.
Likewise, real estate investment is one of the instruments that can help you to grow your wealth, and most probably it’s the lowest risk investment instrument because real estate is real and will not disappear!
Why invest in Real Estate?
Over the last two centuries, about 90 per cent of the world’s millionaires have been created by investing in real estate.
For the average investor, real estate offers the greatest way to develop significant wealth. Just like other forms of investment, it is best to get started early with real estate so you can put time on your side.
Real Estate investment is also one of the best instruments to hedge against inflation too. A good way to begin is to buy your first primary residence - A place you call home.
Why invest in Singapore Properties?
Locations of Singapore
Singapore is located in a strategic geographical location in the world. It connects the east and the west as an interim rest point from the 18th Century as a trading port. Its world-class International airports and well-developed seaports facilities, allow it to become one of the top logistic hubs in the world.
Singapore Stable Economy
Since its independence on 9th August 1965, Singapore, from a third world developing country to today, a first-world developed country within 30 years, we must give credit to the stable political environment that had painstakingly maintained by the Singapore government who has put in the efforts of understanding the needs of the people, and craft up well-developing plans ahead.
Singapore government has lines ahead 4 major plans for Singapore to move forward.
1. A world-class transit / logistic hub.
2. A world-class medical research centre
3. A regional financial centre
4. Educational hubs
To support all these developments, they not only prepare Singapore Citizens equipped with the knowledge of each field, learning the latest technology and know-how. They also invite professionals of all these trades to join us.
They have announced and hope to achieve 6.9 million of the population in the years 2030, currently, we have a 5.7 million population the moment
We need housing to house these people. so even if you are buying at a high today, wouldn't the price be 'cheap' when the population increase?
A small country with limited land
Singapore is a small country with a land size of 792 square metres. To make sure the property prices are stable and appreciated gradually the government control and releases land parcels according to the needs of the housing development.
Developers only have 2 sources of acquired land parcels, either from the Government Land Sales (GLS)
or by collective sales of old development which have redeveloped potential.
The cost of every new development will always be higher than the previous, this allows the prices to appreciate gradually.
Transparent Property Transaction System.
Singapore has a well-developed, transparent, property transaction system.
Every buyer and seller is able to see the latest transactions in our portal. Nothing hanky-panky.
I remember a Hong Kong seller who was very puzzled when he had to pay IRAS some money, and he eventually said. 'doesn't matter, just pay because IRAS will find his way to refund me if they overcharge me'
This is how a foreigner had so much confidence in our system.
The government has introduced the Total Debt Servicing Ratio (TDSR), to make sure you are financially capable to sustain and service your loan.