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 …
Jayson Ang – May 11, 2025 – Share
The Singapore property market has always been a hotbed for investors looking to make substantial returns on their investments. As...
Read More
Jayson Ang – January 22, 2025 – Share
Singapore's property market has been experiencing a tight supply in recent years, leading to increased demand and rising property prices....
Read More
Jayson Ang – January 21, 2023 – Share
TLDR The property market in Singapore has witnessed significant shifts in the past two years, with a surge in prices...
Read More
Jayson Ang – January 14, 2025 – Share
Singapore's property market has long been an attractive investment destination for international buyers, offering a stable and well-regulated environment with...
Read More
Jayson Ang – December 6, 2023 – Share
TLDR The article discusses the evolving trends in the Singaporean real estate market, focusing on the affordability and accessibility of...
Read More
Jayson Ang – April 2, 2024 – Share
TLDR The blog post discusses the aspirations of individuals like Siti and Mr. Tan regarding property ownership in Singapore. Siti...
Read More
Jayson Ang – March 5, 2025 – Share
Singapore's property market has long been considered a safe and lucrative investment option for both local and foreign investors. The...
Read More
Jayson Ang – May 23, 2023 – Share
Here are the top 5 reasons why Chinese love to invest in Singapore's property market today. 1. Political stability: Singapore...
Read More
Jayson Ang – August 17, 2024 – Share
Singapore, a bustling city-state known for its diverse culture and vibrant food scene, has also become a haven for coffee...
Read More
Jayson Ang – February 6, 2025 – Share
TLDR From 2014 to 2024, the en-bloc market has faced challenges due to fluctuating cooling measures and a shift from...
Read More
Jayson Ang – August 5, 2023 – Share
TLDR When aiming to purchase a home, it is crucial to gain knowledge about the buying process and track your...
Read More
Jayson Ang – March 30, 2024 – Share
Singapore, a bustling city-state known for its iconic skyline and innovative architecture, is home to some of the most stunning...
Read More
Jayson Ang – December 10, 2023 – Share
TLDR When it comes to navigating the ups and downs of the Singapore property market, timing is crucial. Three real-life...
Read More
Jayson Ang – June 20, 2024 – Share
Singapore, a bustling city-state known for its impressive skyline and modern architecture, is also home to a plethora of natural...
Read More
Jayson Ang – February 19, 2025 – Share
Investing in property, particularly in a thriving market like Singapore, can be an enticing prospect. However, it's not without its...
Read More
Jayson Ang – June 24, 2024 – Share
TLDR Summary: The "Sell One, Buy Two" real estate tactic, popularized in 2016-2017, involves selling a property and buying two...
Read More
Jayson Ang – August 25, 2024 – Share
Singapore, a thriving city-state with a robust economy and a strong demand for real estate, has always been an attractive...
Read More
Jayson Ang – May 25, 2023 – Share
5 Top Primary Schools in Singapore Popular with Expat Chinese Community When it comes to education, Singapore is a top...
Read More
Jayson Ang – June 20, 2023 – Share
TLDR When navigating the Singapore property market, it's crucial to consider various superstitious beliefs that can impact your decisions. From...
Read More
Jayson Ang – August 19, 2023 – Share
TLDR When comparing a million-dollar HDB flat to a private property of the same value, the HDB flat offers more...
Read More
