top of page

Why You Should Invest In Singapore Property Part 2

After I have shared my blog article “Why you should invest in Singapore Property”,

I feel great that there is quite a response to my article, thank you.

Of course, not all readers can agree with what I have shared.

"Regarding investment, why I should invest in property? It takes quite a bit of time for me to reap my profits, liquidation is not as fast as other investment instruments like shares, REITs, or even just put the money in my saving / fixed deposits account to earn interest."

Comments above have been put up to me.

I know where you are coming from, and I agree that you can always do that, invest in other areas.

Property investment is one of the lower risks in all investment instruments, especially in Singapore, and will build your wealth much faster.

Let's take a look at the below scenarios.

Property Investment Vs Bank Saving

Using the example of my client for in my previous article “Why you should invest in Singapore property”,

He bought a 2 bedroom unit during the launch day at the price of S$627,000 and sold the unit when T.O.P (temporary occupation permit) for S$760k making a profit of S$133K in less than 5 years.

The amount he invested in this property is as follows.

He took out only 25% of the sale price + stamp duty (3% - 5400) from his pocket.

That come out to S$156,700 + 13,410 = S$170,110.

He made 78.23% from this property investment giving him annually 15.64% returns ROI.

Now let's compare apple to apple, with the same amount, he deposits this amount of S$170,110 into his saving accounts to earn interest for 5 years at an interest rate of 1% per annum.

5 years will bring him an interest gain of an estimated S$8,505

Hey Peter, not saving accounts, why you cannot compare with a fixed deposit?

Let's explore then.

S$170,110 placed in Fixed deposit for 5 years at a rate of 1.5% per annum, interest gains after 5 years is S$12,758.

Investing in property, for 5 years will bring you an increase in your wealth of S$133K with a low investment amount of S$170,110.