Purchasing property is not a decision that comes easy, especially because for most people, it’s a lot of money we’re dealing with. Whenever you purchase property, whether you like it or not, you are making an investment. Why put all your money into a liability when it can be used to grow as an asset?
Investing in property need not be a spiral down the rabbit hole. Especially when it’s your first property, you need to make the correct decision because it affects all your property considerations down the road (Should I sell? Should I buy? Should I move? Should I consolidate my assets?).
In today’s article, I share the 2 most important factors when investing in property.
1. Low Entry Price
When you invest, find something that is low risk. This means finding property that has a low entry price. A low entry price doesn’t necessarily mean the lowest possible price that you can afford. Instead, it means a price that is relatively lower than the surrounding properties, either:
- in the same development, or
- in neighbouring developments
When you can find a unit that is of a relatively lower price than the surrounding ones, you can always sell it in the resale market later on at a higher price, but lower than the surrounding units. The higher price of surrounding units when you buy helps to buffer your asking price when you sell.
2. Upcoming Transformations
How do you tell that a property has the potential for price appreciation?
Answer: Upcoming transformations around it.
With ongoing or planned transformations and developments in an area, the value of the land increases. So what you see now that could look like swamps and barren land (at least in Singapore), could one day be the next Raffles Place. When that development has completely taken place, it is already too late to jump on the bandwagon.
Savvy investors know value when they see it. They look at the big picture and think/plan for the long term.
So what does all this mean for you?
New launch projects/condos are a great investment option, especially for first-timers. They are priced the lowest entry price when they enter the market at that specific point in time. However, not all new launch developments are the right one for you.
Some might be freehold/99-year leasehold, some might be in locations that do not fit the bill, and some might not fit your other requirements like size and facilities.
Thus, in order to find the best one that fits your needs and ensure that you do not over-commit, it’s best that you consult a professional realtor who can advise you. If you’re ready to make that commitment to a property and enrich your life, reach out to me for a free consultation today.
Retirement & Legacy Planning with Property, Propnex Realty Pte Ltd
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Learn more: www.roxannechiarealty.com
Matthew Lam Division | Marcus Luah Division
🏆 PropNex Overall 2018 Champion Team
🏆 PropNex Singapore & PNG Champion District
As I am a CEA-registered real estate salesperson, I am licensed to market and sell property in Singapore. My clients come first in all my dealings and I look forward to establishing a long-term working relationship with you. If you’re in your thirties and still don’t own a property, do reach out to me. It will be my pleasure to help you with your retirement planning with property.
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