This is my 2 cents worth of advise..:)
Property market is cyclical in nature. Prices will go and down, depending on a lot of macro and micro factors. The best important thing about property is POSITIVE CASHFLOW, HOLDING POWER and FUTURE DEVELOPMENT.
1. POSITIVE CASHFLOW
If you rent out your property, your rental will cover your mortgage, tax, maintenance etc expenses with some cash left.
So, if you have 1 property that generate a POSITIVE CASHFLOW of $2,000, then 5 properties will give you $10,000 of PASSIVE INCOME.
However, there are many factors that determine cash flow, including the downpayment percentage, interest rates, rental income etc.
2. HOLDING POWER
You must hear that people DO LOSE money in property investment. Most of the time, these people OVER LEVERAGE and are not able to service the mortgage. The bank will simply foreclose and auction off the property.
If you are force to sell, you will DEFINITELY lose money.
3. FUTURE DEVELOPMENT
You must also buy at the right location, project, site. Look at future development.. e.g. Government plans, new MRT lines, Enbloc, Re-development, Mall, Good Schools location etc.
Let's take a look at some of the prices. Will prices continue to rise or correct? Everyone will have their own answer.
Condo/Apt Ave. Psf,
600psf (2006)..>1000psf (2011)
Landed Ave. psf
400psf (2006)... >1000psf (2011)
If you want cash flow, you can invest in a LH/FH condo. Location is important. Rental yield would normally be higher for LH due to the lower quantum. But they are always exception.. good deals are gone or will be sold before they even get listed!
People invest in landed for capital appreciation and for legacy reason. Rental yield are always lower than condo/apt. Investment time frame will be longer. Only invest in FH Landed. This will always go up since supply is very limited. The government will not release any more FH land.
We provide a buyer package that helps you source for projects based on your requirement at your targeted price. We include FREE property market analysis on the specific project for full transparency.
I would be honored to be able to service you.
Please call me at (65)-9745-5178 or email firstname.lastname@example.org for a followup discussion about possible locations and projects.
Thks & regards,
Mike Tay (郑树荣)
B.Sc. (NUS), EMBA (SUNY)
M: +65 97455178
HSR International Realtors Pte Ltd
Estate Agent Reg No: L3002226G