7 Advantages of Property Investment in Singapore
Property investment is one of the many types of investment instruments that Singaporeans continue to have great interest in. The reason being that property investment is considered more stable, fiscally safer and generates very significant returns in the long run.
What is Property Investment?
It’s not a bad thing if you don’t know what real estate investment is! We all have to start somewhere, and the sooner you know the more your knowledge will be expanded. The definition of real estate investing is a type of investment that is concerned with buying, owning, renting, managing and selling real estate to make a profit.
Real estate investing is the goal of buying real estate, with the aim to get a return on investment (ROI) through leasing, resale or a combination of the two factors. The property itself can be owned by an individual, group or corporate investor.
From the perspective of the investment period, real estate investment is an investment that is flexible in nature, either in the form of short-term or long-term investments. Therefore, you can determine the investment period according to your needs. We have compiled a handy list of the advantages that property investment has for your portfolio:
Low Risk (When Compared to Other Forms of Investment)
The level of risk in property investment is low because its movements are not very sensitive, as is found in equity investing. Even if there is a decline, the fluctuation in price is not as drastic as currency and other investment instruments.
Assured Financial Returns
Your monthly stipends will balloon if the properties you own are rented out, or gradually grow in value over the years. The benefits of investing in property that are obtained are far more certain than other investment instruments.
Potential for Future Investment
Due to its scarce or limited nature (e.g., with there being a finite amount of land for construction), property prices will continue to increase. Something that is scarce or limited will affect the economic value of the product itself, so in most economies’ property is seen as one of the most stable investments you could make.
Protection Against Inflation
The rate of increase in property prices each year is much higher than the rate of inflation, so your savings will not get swallowed up over time.
Easy to Guarantee at the Bank
Your property can be pledged at banks as collateral if you need cash! Not so much if your holdings consist of crypto currency or more volatile assets.
Faster Asset Collection
With careful calculation and adequate financial capability, you can own many properties at the same time with minimal capital. By using a mortgage loan facility, you can buy several properties by providing only 20% of funds.
Long term Investment
The real estate cycle has an average investment of 3 to 5 years, i.e. after 3 to 5 years, the change in value is sufficient to generate a capital gain (the difference between the purchase price and the selling price).
Investment, especially long-term investment, is very important, especially since we cannot easily predict the current economic conditions. Currently, the types of investment are increasingly diverse. From investing in gold, stocks to branded goods, it is also considered a profitable long-term investment. Even with more investment options, real estate investing is still a common choice for many people.
In addition to the stable selling value of real estate and the value of real estate investment that continues to increase from year to year, many people also believe that the risk of real estate investment is lower than other types of investment. Even if the value remains stable and the risk is minimal, real estate investing is still very complicated. Because of this, many people, including beginners, are still reluctant to invest in real estate.
Hopefully, all this new information has helped raise your understanding of real estate investing. Visit https://www.realvantage.co to start your real estate investing journey today, and future-proof your portfolio!