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Investing in Singapore

Asked by Rachel 5 Feb 2012

Hi I am a first time Singaporean buyer. I am looking for a freehold private property for capital appreciation and before I sell rental yield. It is for investment and not for own stay. I have a couple of questions: 1. Is it better to buy from the resale market than from the developer as I heard that the resale market should be 20-30% cheaper than the developers' pricing? 2. What is the best way to source for motivated sellers/fire sales in the resale market? 3. Should I consider landed properties as the psf is much cheaper? 4. Should I consider shophouses and other commercial properties? 6. After selecting the property type, which locations have more superior room for capital appreciation?

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Kevin Yeow 饶国威 · Answer 1 · 2012-02-13T23:23:11+08:00

Kevin Yeow 饶国威

Replied 13 Feb 2012

Hi Rachel
I would like to help you.

(1) & (2) the answers are already found in your question. Resale is highly attractive if you find a good unit in a good location from a desperate seller. For new properties, you are buying direct from a developer who sells you at pre-launch or launch prices depending on stage you buy. Developer would have to do their hedging to price the units attractively otherwise they will have to wait for sometime to sell out all their units.

To (3), (4), (6) - research, what budget you have, how do you project the market to develop in the window when you plan to sell (say 5yrs time, 10 yrs time etc).

For superior rooms for capital appreciation - find a place that few or no body notice right now; where prices are much suppress as a result of low demand; where you foresee promising upsider potential to be achieve in the future.

Email me if you are ready on your property search.

Best Rgds
Kevin Read More