Investing in property

[dominion23]

Anyone looking to invest in property too?

As shares, commodities are not doing so well, thinking of looking into property to generate passive income down the road. For those who have done so:

- have you considered commercial properties?
- what are the additional charges (in %)? stamp duty, absd, legal fees?
- what's the typical minimum downpayment?

 

[BBCWatcher]

As shares, commodities are not doing so well....

The world's largest stock market, the U.S. stock market, is at an all-time high. I'd say that's doing well.

....But why would you avoid buying something that isn't doing well? If the shares and commodities you're looking at have low prices, isn't that a reason to buy?

 

[OngHuatHuat]

Price will increase if they abolish absd, dunno when is it coming though.

 

[Wood41]

Why die die must buy property & not REITs ?
I still can pretend I own multiple properties all over the world with 4-8 % return per year.

 

[SBC]

Enblock sale & SLA land sales are doing super high. Developers sentiment is at record high now.

 

[henrylbh]

Price will increase if they abolish absd, dunno when is it coming though.

I hope and pray they won't remove absd at all, though that would certainly affect me or the return that I would get in getting another property.

 

[henrylbh]

Why die die must buy property & not REITs ?
I still can pretend I own multiple properties all over the world with 4-8 % return per year.

You can also by comfort shares and pretend you own all the taxis.

 

[BBCWatcher]

You can also by comfort shares and pretend you own all the taxis.

Comfort doesn't even own all their taxis, but shareholders own Comfort. To be precise, the shareholders of ComfortDelGro Corporation Limited own Comfort. There's no pretending about it. The shareholders own CDG.

As an analogy, if you would like to invest in the transportation sector, would you buy one taxi? Or one seat aboard one specific passenger aircraft operated by one specific airline? Or one cargo container that sails aboard one cargo ship operated by one specific ocean cargo line? You can, but most people should not (except perhaps for their personal use). If you want to invest in real estate -- not necessarily a good idea! -- then one option available in today's modern financial markets is to buy a low cost global REIT index fund, preferably via long running dollar cost averaging (a technique not generally available with individual properties). Then you would own shares of thousands upon thousands of properties spread across the investible world. You would not be subject to the peculiar but all-too-common whims that can much more easily affect one property or even whole countries. You would have no management burdens, and you would be much better diversified within real estate. For the vast majority of readers of this forum that's a much more intelligent, sensible approach to real estate investing.

 

[itedino]

Bo hua. How long can u get back all yr money? Rental yield going down

 

[hindsight]

Enblock sale & SLA land sales are doing super high. Developers sentiment is at record high now.

But rents are moving in the other direction. Would you buy a stock with shrinking profits and a falling dividend payout?

 

[BBCWatcher]

Would you buy a stock with shrinking profits and a falling dividend payout?

If the price is low enough, maybe. But the price isn't low enough, is it?

 

[SBC]

More value buy from secondary market. New projects are too ex.

 

[cscs3]

If the price is low enough, maybe. But the price isn't low enough, is it?

This is one consideration. Another consideration is population. Which current situation of population growth and not welcoming of FT. Why do we need so many houses?

You may already know we even need to merge some school due to number of students continue to drop!

 

[BBCWatcher]

Another consideration is population. Which current situation of population growth and not welcoming of FT. Why do we need so many houses?

I quite agree. But even while I'm a real estate realist, part of being a realist includes understanding that "zero is the wrong answer." Despite the ongoing headwinds for property owners, if you want to sell your two bedroom freehold condo to me, free and clear, for $1, I might take that deal.

 

[mynickname]

You can also by comfort shares and pretend you own all the taxis.

Legally speaking, reit unitholders own underlying property more directly than shareholders

 

[scholar88]

Patrick Liew Course

 

[trailblaze]

I quite agree. But even while I'm a real estate realist, part of being a realist includes understanding that "zero is the wrong answer." Despite the ongoing headwinds for property owners, if you want to sell your two bedroom freehold condo to me, free and clear, for $1, I might take that deal.

Hahaaaa lol at tis....even if seller wanna do tat, mortgagee bank also wont allow lah...
Btw tat 2br condo has a snaking queue 3 blocks long even if sell at 500k...u wait nong nong lor.

 

[cscs3]

I quite agree. But even while I'm a real estate realist, part of being a realist includes understanding that "zero is the wrong answer." Despite the ongoing headwinds for property owners, if you want to sell your two bedroom freehold condo to me, free and clear, for $1, I might take that deal.

In fact china is one very good example. When polution cure started to move. Everyone start to understand these investment become bubble. So now they need more then 1 child policy. Not just due to social issue. But future market.

You will find one day. It may be cheaper to rent vs actually own one. So in the end, developer will rent you one instead of selling one to you. Dont need a middle man or agent.

Also keep in mind no one will know what happen to Qatar will not happen th Singapore. We are exactly the similar situation by taking our nearby countries in similar consideration.

 

[scholar88]

Study in NUS Real Estate.. can get your answers from the professors and lecturers.

 

[OngHuatHuat]

Where got 2 bedders 500k? Please recommend.

Hahaaaa lol at tis....even if seller wanna do tat, mortgagee bank also wont allow lah...
Btw tat 2br condo has a snaking queue 3 blocks long even if sell at 500k...u wait nong nong lor.