A smart way to property investment
Reits, with their high liquidity and lower capital requirement, are a good option, especially for a beginner, says CAI HAOXIANG
Add BT as a preferred source
PROPERTY investing has always been popular in Asia and especially in land-scarce Singapore. The common conception of how one can invest in property is often limited to buying a Housing Board (HDB) resale flat or a private condominium.
For the beginner investor with limited capital, a condo unit might not be the best type of investment to start out with. The downpayment for a suburban condo is likely to be at least $150,000. One takes on substantial debt of up to 80 per cent of the value of the property. The private property market, too, is showing signs of a market top. Rental yields have fallen while prices have risen.
The government's cooling measures also mean that most young people will only own one investment property for some time. This makes diversification difficult, but putting all of your eggs in one basket is risky.
Copyright SPH Media. All rights reserved.
