Property Investment Thread

[agenda]

Couldn't find any threads here regarding property investments. So I thought maybe I could start one and get some discussion going on.

Recently, I've been looking at property launches, mostly around Paya Lebar/Geylang area. Noticed that alot of studio apartments are priced about 500k or so. So I did some research but most people advise against such investments due to higher psf, maintenance fees, competitive rental markets.

Just wondering what are some implications for a young single man looking to purchase such a place for living and investment? Will sell when ready to start a family.

 

[antonpoh]

Don't invest in a small property(studio/shoebox) if you're starting a family later. Seller Stamp Duty (SSD) for 1st yr 16%, 2nd yr 12%, 3rd yr 8% and 4th yr 4%.

http://www.srx.com.sg/cooling-measures

Best to buy at least a 2 bdrm + study/with utility room.. or bigger. When you start a family you can stop renting and still stay in it.

 

[mummy1234]

It is better to get a HDB as your first propertytheninvestin private property cause cannot do the other way round unless u sell off private.

 

[dork32]

It is better to get a HDB as your first propertytheninvestin private property cause cannot do the other way round unless u sell off private.

i agree that first property should be hdb especially bto. hdb is like our entitlement as sgean. but if you are foreigner, then private is your only choice

 

[dork32]

Don't invest in a small property(studio/shoebox) if you're starting a family later. Seller Stamp Duty (SSD) for 1st yr 16%, 2nd yr 12%, 3rd yr 8% and 4th yr 4%.

http://www.srx.com.sg/cooling-measures

Best to buy at least a 2 bdrm + study/with utility room.. or bigger. When you start a family you can stop renting and still stay in it.

i also agree that 2 bedders are the best. it is not too difficult to rent out, and it provides enough space for me to live in if i want to.

but price maybe a bit too high and out of reach for some.

 

[newjersey]

It is better to get a HDB as your first propertytheninvestin private property cause cannot do the other way round unless u sell off private.

mummy1234 is a wise lady to marry indeed!

 

[mummy1234]

mummy1234 is a wise lady to marry indeed!

Thx for the compliment but on hindsight, we made the mistake of selling off our EC when we bought private landed. Rental yield would have been much better for EC rather than MM.

 

[Perisher]

Stabilisation, the key word in the property market
http://www.straitstimes.com/business/stabilisation-the-key-word-in-the-property-market

Q: How has 2015 been for your industry??

A: Last year, the total impact of the Government's cooling and financial prudence measures affected the real estate industry quite significantly. Transaction volumes for all categories of residential properties were among the lowest historically.

Since then, as property prices stabilised, the resale market transactions increased this year, with the second half doing better than the first six months.

We are expecting a total of around 6,000 resale transactions for private residential and 18,000 to 20,000 resale HDB transactions. This would be about 10 per cent to 15 per cent higher than those of last year, although nowhere near the heydays before the cooling measures were introduced.

Q: How do you see 2016 panning out?

A: As the property market has largely stabilised, we do not expect the Government to introduce more cooling measures. Thus, we believe that 2016 will be a better year for us.

A home is a basic need as we all need to have a roof over our heads. Regardless of the market, people will still require a place to live.

With inflation, the rising cost of living and land scarcity, property prices will continually rise in Singapore over time, which makes property a great investment.

Due to the cooling measures, the property market here has softened significantly in comparison with 2013 and last year.

However, the market seems to have shown signs of improvement and stabilisation over the last quarter of this year.

•Resale HDB prices continue to remain flat (up marginally by 0.4 per cent last month, compared with October last year) but transaction volumes increased 16 per cent last month compared with September. Hence, with stabilised prices, transaction volume is forecast to increase.

•Bucking market trends, HDB units located in unique estates, such as Bishan and Pinnacle, have transacted at above market prices.

•Private apartment prices continued to dip 2.6 per cent year-on-year last month from a year earlier, and are expected to stabilise next year.

•However, new project development sales have picked up in the last quarter of this year and resale transaction volume has increased quarter-on-quarter.

•There will be few new project launches as few government land sales plots were released this year.

•Resale market activity will also increase as prices continue to stabilise.

Full article in above link.

 

[Perisher]

Property investment activity in Asia-Pac in 2016 seen exceeding 2015: Colliers
http://www.businesstimes.com.sg/rea...asia-pac-in-2016-seen-exceeding-2015-colliers

REAL estate investment volumes in Asia-Pacific in 2016 are set to outperform 2015 as the search for long-term yield overshadows short-term macro-economics and political threats.

In its Global Investor Outlook for 2016, Colliers International Group Inc, which surveyed over 600 investors across the risk spectrum in the Americas, EMEA and Asia-Pacific regions, notes that investor sentiment towards real estate remains positive globally.

"In spite of this increasingly challenging environment, a majority of investors think direct real estate investment will continue to grow in 2016,'' the report says.

The global investment community is particularly bullish about the Americas and specifically the US, with 54 per cent anticipating an increase in volumes. This figure drops only marginally for EMEA (48 per cent). On the other hand, a majority of investors think volumes will decline in Asia-Pacific (40 per cent), although nearly 50 per cent of investors from Asia-Pacific think volumes can still go up in their region.

More than half of the respondents with multi-asset portfolios said that they would increase their real estate allocations in the next 12 months into 2016. The US will be a preferred destination for global capital.

"2016 will see a greater emphasis on secure income and asset management to drive performance. For some investors 'overcrowded' core markets are being seen for longer-term investments rather than short-term trading,'' according to the report.

Global gateway cities like London, Paris, New York, San Francisco, Tokyo and Sydney remain the primary target for global cross-border investors over the next 12 months. These markets have the advantage of offering large lot sizes and volume of stock that appeal to global mandates.

Full article in above link.

 

[wahkao3]

i dont think property is gd investment

 

[Perisher]

i dont think property is gd investment

Reasons?

 

[Genosis]

i dont think property is gd investment

Bcos not 'low risk high returns' right?

 

[focus1974]

The only time you can buy property for short-term is when market is hot.. you can flip within a year or two.

For all other times, please consider it a long-term investment .. time horizon min. 5years

 

[shareholder]

The only time you can buy property for short-term is when market is hot.. you can flip within a year or two.

For all other times, please consider it a long-term investment .. time horizon min. 5years

The price of the property is dependent on the population growth of sg. The population of sg has reached a plateau, so the property will only rise at the inflation rate in the long term, unless the population is allowed to increase again at a higher rate.

 

[GoldenBargain]

i dont think property is gd investment

You have gotta to be kidding me. Just look at people who bought duxton pinnacle....and most singaporeans who have made a bundle is through property investments. IF one does their due diligence before purchasing a property, with patience it will definitely appreciate. Definitely more returns as compared to putting your money into a savings account.

 

[shareholder]

You have gotta to be kidding me. Just look at people who bought duxton pinnacle....and most singaporeans who have made a bundle is through property investments. IF one does their due diligence before purchasing a property, with patience it will definitely appreciate. Definitely more returns as compared to putting your money into a savings account.

This statement is time relative. There are periods where properties and shares dropped in value, but the money in the savings account continue to grow.

 

[GoldenBargain]

This statement is time relative. There are periods where properties and shares dropped in value, but the money in the savings account continue to grow.

For sure, a savings account can/will grow at a nominal amount...with zero risk. But it doesn't keep up with inflation. Personally feel that it is good to help assist with building up that kitty which can then be invested in a property.. Key is location. When valuation is high...take it as an opportunity to build that housing kitty...when it does reach the targetted buy price...use it. In the long run, it will pay off. BUT one must always ensure that s/he can finance the morgage without rental income. Take the rental income as a bonus, and extra money that can be dumped to pay off the morgage when re-financing comes around.

 

[shareholder]

For sure, a savings account can/will grow at a nominal amount...with zero risk. But it doesn't keep up with inflation. Personally feel that it is good to help assist with building up that kitty which can then be invested in a property.. Key is location. When valuation is high...take it as an opportunity to build that housing kitty...when it does reach the targetted buy price...use it. In the long run, it will pay off. BUT one must always ensure that s/he can finance the morgage without rental income. Take the rental income as a bonus, and extra money that can be dumped to pay off the morgage when re-financing comes around.

As a shareholder, still prefer to buy and sell shares. When valuation is cheap, buy, when expensive, sell. Very liquid and hassle free. More free time with dividend income compared to rental income. Yield is almost similar, maybe even higher at current valuations.

 

[final1]

For sure, a savings account can/will grow at a nominal amount...with zero risk. But it doesn't keep up with inflation. Personally feel that it is good to help assist with building up that kitty which can then be invested in a property.. Key is location. When valuation is high...take it as an opportunity to build that housing kitty...when it does reach the targetted buy price...use it. In the long run, it will pay off. BUT one must always ensure that s/he can finance the morgage without rental income. Take the rental income as a bonus, and extra money that can be dumped to pay off the morgage when re-financing comes around.

To be accurate, Singapore is actually in deflation now. Not inflation.

 

[GoldenBargain]

To be accurate, Singapore is actually in deflation now. Not inflation.

For now. Thanks to lower oil prices, SG50 goodies, budget goodies. But how long more will that go on?