There are a few strategies that a real estate investors in Singapore can adopt to maximise the investment potential. And it is critical to know these strategies. One wrong decision may end you up with hundreds of thousands of losses, and that may not be a favourable situation for you.
One of the most anticipated new launch that has been the talk of the town in Singapore is actually Normanton Park.
With proper characteristics of a high potential investment, along with amazing features that is beneficial for own stay, Normanton Park is to get snapped up fast by investors and homebuyers.
Purchasing and owning a real estate can be for two reason, one is for your own stay while on the other hand you can purchase for investment, however this depends on your future plan and which is more beneficial for you. Unlike stocks and bonds, a property investment is something that you have to be more patient with the market and you can physically feel, see and touch your own asset.
Leveraging on property investment to become a property investor will require a lot of downpayment with a loan interest that you would need to consider for your own financial strength. In the long run, you will need to weigh which condominiums such as Normanton park why having one of the biggest development will attract a pool of buyers and interest islandwide.
Aside from just buying a property and selling it at the right time, investors will reap as much profits as they can to make sure of the potential growth of their property. Additionally, property investors would rent out to high profile tenants looking for luxurious condominiums or a convenient place to stay near their work area. These high profile tenants are normally located near central districts area which Normanton Park has a high and huge pool tenants to serve. There will be a supply and demand for this particular project as there will be more tenants than the units left to rent.
Some tenants would rent over years and fell in love with the place they are staying at, they would even offer the landlord to make a purchase and take over as the owner. This is an advantage for property investors. Commonly, property investors would always look to take advantage of buying the projects cheap at the early phase even before it is being constructed. Buying it cheap means few years when it is ready, they can sell it even higher from what they purchase. Alternatively, they may hold on to the property to rent out and sell when the market is in demand.
Most project condominiums does not need renovation, as it is mostly well provided from flooring to walls and aircon are provided when the unit is up and ready. This save the hassle for property investor’s wallet as well as time. Some property investors would use that time to eye on other projects and invest pulling in a few properties that will be lucrative in the long run. Washing machines and refrigerators are sometimes even provided by the developer so that property investors could rent out fully and ready without entertaining tenant’s daily necessities.
Real estate investment groups are also ideal who want to own rental real estate without even running it, a pool of investors will be put to good use of their cash to create capital investment and has lesser risk due to a group that property investors have a cushion to fall back on together should it have a loss. A company collect the capitals from property investment and buy or build a set of apartment or buildings, overtime when it appreciates there are dividends payout for property investors. Low risk means low yield, however it is always safe to know when you enter an investment with ten to twenty people.
These companies will manage everything from maintaining the property as well as marketing the unit or apartment, saves a lot of trouble from worrying as the property itself will be determine by the company and a portfolio from these companies will help analyse and prepare a report for property investors. Nonetheless, a good property investor will always double check the said property before they commit to one.
There are two type of manner holding, one which is leasehold and the other is freehold. Manner of holding does not come into factor for future tenants, but it does come down as a factor for property investors as they will need a strategy on which manner of holding could secure them better returns as the difference in the holding would also result in the price for the property. Freehold could be indefinite while a leasehold has a certain amount of years left before returning back to the state. Looking at these factors, property investors would aim to use leasehold as their investment as they are able to predict faster capital appreciation as well as knowing when it will start depreciating.