Your search results

Top 5 : Dangerous Ideas Singapore Property Investors Have

Posted by Jayson Ang on February 19, 2025

| 0

Investing in property, particularly in a thriving market like Singapore, can be an enticing prospect. However, it’s not without its pitfalls. For small-time investors, especially those with one or two properties to let out, certain misconceptions can lead to irreversible mistakes.

Here are the top five dangerous ideas that Singapore property investors often harbor.

1. High-end Property is More Resistant to Downturns:

Many investors believe that high-end properties, such as penthouses on Orchard Road, hold their value even during downturns due to their central location and luxurious lifestyle. While there’s some truth to this, it’s not universally applicable. The concept of “centrally located” is changing as Singapore gradually decentralizes, and being in Orchard or Sentosa may not hold the same value in the future.

2. Property is the Best Investment Due to Low Interest Rates:

The belief that low interest rates equate to “borrowing for free” can be misleading. While Singapore has experienced low interest rates for the past decade, this situation won’t last forever. The historical interest rate for home loans is between 3.7 to 4 per cent per annum, and investors need to prepare for inevitable increases.

3. Property Investing is Safe Because You Can Always Sell the House:

This idea overlooks the potential for negative sales and the issue of holding power. If an investor can’t service the mortgage and needs to sell quickly, they may have to fire-sale the property, often selling at cost or even lower.

4. Old Properties Mean Higher Rental Yields:

While seasoned investors might find higher rental yields in older properties, new or small-time investors might experience the opposite. Investing in older properties requires expertise in property management and a larger cash outlay, as banks are often reluctant to loan large amounts for properties with expiring leases.

5. Interest Rates Will Remain Low:

Investors who believe that the current low interest rates will persist indefinitely are setting themselves up for a rude awakening. Interest rates will inevitably rise again, and relying on this assumption for long-term property investment can lead to financial difficulties.

Property investment, while potentially lucrative, is fraught with misconceptions that can lead to costly mistakes. It’s crucial for investors, particularly those new to the game or with limited portfolios, to approach the market with a clear understanding of the realities and risks involved. By debunking these dangerous ideas, investors can make more informed decisions and navigate the Singapore property market with greater confidence and success.

If you would like to arrange a viewing appointment with us in Singapore, do send us a DM here

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

Discover What Else You Can Focus On Beyond PSF – Here’s How!

Jayson Ang – July 17, 2023 –

TLDR When considering real estate investments, factors like property size, location, and PSF play crucial roles in determining affordability. Smaller...

Buying Tips Mandarin Top 5

Don’t Get Scammed: The Top 5 Red Flags To Watch Out For In Singapore’s Property Market

Jayson Ang – July 14, 2023 –

Don't Get Scammed: The Top 5 Red Flags To Watch Out For In Singapore's Property Market When it comes to...

Mandarin Top 5

Top 5 Bookstores in Singapore for Book Lovers

Jayson Ang – March 27, 2024 –

Singapore, a bustling cosmopolitan city, is known for its rich cultural heritage, diverse population, and of course, its love for...

Mandarin Top 5

5 Factors : Why Singapore’s Property Market Is Still A Safe Haven For Investors

Jayson Ang – May 22, 2024 –

Real estate investment has always been a popular choice for investors looking to generate passive income and build long-term wealth....

All Blog Posts Buying Tips

Uncover the Secrets of Buying Older Properties – What They Won’t Tell You!

Jayson Ang – December 30, 2022 –

TLDR When considering the appeal of older properties in hipster neighborhoods in Singapore, it's crucial to understand the benefits and...

Mandarin Top 5

Top 5 Reasons : How Investing in a Luxury Condominium in Singapore Can Boost Your Portfolio

Jayson Ang – January 16, 2025 –

Investing in a luxury condominium in Singapore is an attractive option for investors looking to diversify their portfolio and enjoy...

Buying Tips Mandarin Top 5

5 Reasons Why Timing the Singapore Property Market is a Risk You Shouldn’t Take

Jayson Ang – June 28, 2023 –

5 Reasons Why Timing the Singapore Property Market is a Risk You Shouldn't Take Entering the Singapore property market can...

All Buying Tips Opinion

Singapore Homes Prices Falling? Is This The Beginning Of A New Trend?”

Jayson Ang – December 30, 2023 –

TLDR The Singapore property market has seen a slight dip in private home prices after a significant increase over the...

Mandarin Top 5

5 Tips : How To Invest In Singapore Property Without Losing Sleep Over It

Jayson Ang – June 18, 2024 –

Investing in Singapore's property market can be a lucrative venture, but it's important to approach it with caution and a...

All Reports

Increase in ABSD April 2023

Jayson Ang – April 27, 2023 –

TLDR The impending rise in ABSD (Additional Buyer's Stamp Duty) is expected to suppress investment demand, allowing local homebuyers to...

Mandarin Top 5

Top 5 Places to Watch the Sunset in Singapore

Jayson Ang – March 21, 2024 –

Singapore, a bustling city-state known for its modern architecture and vibrant culture, is also home to some of the most...

All Blog Posts Opinion

Are We Truly Headed For A Slowdown? How Will This Affect Property Prices?

Jayson Ang – December 9, 2022 –

TLDR The pandemic-induced recession has surprisingly boosted property prices in Singapore, defying conventional economic trends. Factors like cost-push inflation, limited...