Your search results

5 Singapore Property Investing Myths Debunked

Posted by Jayson Ang on July 6, 2024

| 0

In the world of property investing, misconceptions can lead to poor decisions and financial losses. In Singapore, there are several myths surrounding property investment that need to be debunked to help investors make informed choices.

Here are 5 common myths about property investing in Singapore:

1. Capital appreciation of property equals profits: While it is true that a well-maintained property can fetch a higher price, it is important to consider other factors such as interest on home loans and maintenance costs when calculating actual capital appreciation. Renovating your property may improve its value and rentability, but it does not guarantee significant gains in the long run.

2. Property prices will always go up: Contrary to popular belief, real estate is subject to market cycles and downturns, just like any other investment. Although historically, property prices in Singapore have followed an upward trend, this is only true for long-term investments. Over shorter periods, it is possible for a real estate investment to yield negative returns.

3. HDB loans are fixed-rate loans: Many people believe that HDB loans offer fixed interest rates, making them a safer option compared to bank loans. However, this is not the case. HDB loans are pegged to the prevailing CPF Ordinary Account interest rate, which can fluctuate over time. It is essential to research and compare different loan options before making a decision.

4. A new launch is better than a resale property: While new launches may offer attractive promotional packages and modern designs, they are not necessarily superior to resale properties. Resale properties can provide better value for money, especially if they are well-maintained and located in prime areas. Additionally, resale properties allow buyers to physically inspect the property before purchase, unlike new launches.

5. Investing locally is the only safe option: Limiting your investments to local properties can be short-sighted. Overseas properties can offer lower prices, down payments, and stamp duties, as well as higher potential returns and rental yields. Diversifying your investments across different locations can help reduce risks and improve the overall risk-return profile of your investment portfolio.

In conclusion, it is crucial for property investors in Singapore to be aware of these common myths and make informed decisions based on accurate information.

By debunking these misconceptions, investors can better navigate the property market and maximize their investment returns.

Should You Buy, Sell or Wait?

If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?

It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.

I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.

I can help you by:

Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.

You May Also Like …

All Blog Posts Buying Tips

Step-By-Step Guide To Buy Resale HDB (Updated March 2023)

Jayson Ang – July 13, 2023 –

TLDR The process of purchasing a resale HDB flat involves steps such as checking eligibility, calculating affordability, registering intent to...

Mandarin Top 5

The Top 5 Legal Considerations When Investing In A Property In Singapore

Jayson Ang – August 21, 2024 –

Investing in property in Singapore is an attractive option for many, given the country's stable economy and strong demand for...

All Buying Tips Opinion

Here Are 6 Interesting Facts About The Minimum Occupation Period (MOP) That Not Many People Know About In Singapore

Jayson Ang – May 1, 2024 –

TLDR When it comes to understanding the Minimum Occupation Period (MOP) set by the Housing Development Board (HDB) in Singapore,...

Mandarin Top 5

Top 5 Places to Buy Local Art in Singapore

Jayson Ang – August 27, 2024 –

Singapore, a melting pot of cultures and traditions, is not only known for its breathtaking cityscape, delectable food, and shopping...

All Blog Posts Opinion

Discover the 7 Unique Attributes of Real Estate Investing

Jayson Ang – January 16, 2023 –

TLDR The post highlights the benefits of investing in real estate, such as high leverage, capital appreciation, income generation, usability,...

All Buying Tips Opinion

4 Key Factors to Consider When Purchasing a Private Property for the First Time

Jayson Ang – August 27, 2023 –

TLDR When considering buying or selling property in Singapore, it's crucial to understand factors like Additional Buyer’s Stamp Duty, Loan-To-Value...

All Buying Tips

Using CPF Funds to Finance Your HDB Flat or Private Property in Singapore: A Comprehensive Guide

Jayson Ang – May 13, 2024 –

Discover the extent to which your CPF savings can be utilized for the acquisition of a HDB home in Singapore,...

All Blog Posts Buying Tips

6 Essential Factors HDB Upgraders Should Be Aware Of Before Purchasing a Condo in 2023

Jayson Ang – June 12, 2023 –

TLDR When upgrading your property, consider factors like rental rates, Buyer's Stamp Duty adjustments, higher interest rates for bank loans,...

All Blog Posts Buying Tips

Exploring the Resale Condo Market? Here’s What to Watch Out For!

Jayson Ang – March 22, 2023 –

TLDR The impact of COVID-19 on Singapore's real estate market has been significant, leading to a surge in demand for...

Mandarin Top 5

Top 5 Most Common Red Flags To Watch Out For When Investing In Singapore Property

Jayson Ang – August 11, 2024 –

Investing in Singapore property has long been considered a lucrative and stable way to build wealth. However, like any investment,...

All Buying Tips

How Much You Need to Earn to Afford a Condo 2023

Jayson Ang – October 30, 2023 –

TLDR When considering investing in a private property in Singapore, it's important to understand your borrowing capacity. Financial experts recommend...

All Buying Tips Opinion

6 Unexpected Property Warning Signs That Can Be Negative for Some, But Beneficial for Others

Jayson Ang – February 29, 2024 –

TLDR When considering property preferences, what may appear as a disadvantage to some buyers could be a unique opportunity for...

All Buying Tips Opinion

What Factors Contribute To Singapore’s Real Estate Market Exhibiting Less Volatility Than Other Major Cities?

Jayson Ang – November 12, 2023 –

TLDR The Singaporean real estate market has remained stable due to government cooling measures. These include Additional Buyer's Stamp Duty...

All Blog Posts Buying Tips Opinion Reports

What Difference in One Year After the ABSD Hike in April 2023?

Jayson Ang – December 7, 2024 –

TLDR The recent hike in ABSD rates, especially the increase from 30% to 60% for foreign buyers, has dramatically affected...

All Blog Posts Buying Tips

3 Trends For New Launch Properties In 2023

Jayson Ang – March 20, 2023 –

TLDR When considering buying or selling a property in Singapore, it's crucial to understand the market dynamics and key metrics....

All Buying Tips

Transforming Your Home Loan Situation with Rate Cuts

Jayson Ang – September 6, 2024 –

TLDR When comparing fixed and floating mortgage rates, the present fixed rate of 3% is favorable, but predictions hint at...

Mandarin Top 5

Top 5 Reasons : Why Investing in Singapore’s Property Market Is a Smart Move for Expats – Expert Analysis!

Jayson Ang – February 7, 2025 –

Singapore, a thriving city-state in Southeast Asia, has long been a popular destination for expatriates seeking new opportunities and a...

All Buying Tips

Simplified Guide to Buying Landed Property in Singapore

Jayson Ang – January 8, 2024 –

TLDR When considering buying a landed property in Singapore, you have options like terrace homes, semi-detached houses, and bungalows. Understanding...

All Buying Tips Opinion

Should You Splash Your Cash on a Condo Despite the Sky-High PSF?

Jayson Ang – December 2, 2023 –

TLDR The blog post discusses various aspects of investing in condos in Singapore, covering topics such as leasehold versus freehold...

All Buying Tips Reports

2024 Residential Property Market Outlook

Jayson Ang – December 22, 2023 –

TLDR The market outlook for 2024 suggests continued uncertainties affecting housing demand and risk appetite due to geopolitical tensions, macroeconomic...