Top 5 Best Instagrammable Spots in Singapore
Singapore, a vibrant and modern city-state, is known for its stunning architecture, lush green spaces, and colorful streets. With its...
Read More
Singapore’s property market has long been considered a safe and lucrative investment option for both local and foreign investors. The island nation’s political stability, attractive income tax rates, and absence of natural disasters make it an appealing choice for real estate investments. However, as with any investment, there are risks involved, and some dangerous ideas have emerged among Singapore property investors that could lead to financial pitfalls.
We will discuss the top five dangerous ideas that Singapore property investors should be aware of and avoid.
1. Low interest rates will always make property investing profitable
While low interest rates have indeed made property investments more attractive in the past, relying on this factor alone can be risky. Interest rates are subject to change, and future increases could significantly impact the profitability of property investments. Investors should consider other factors, such as rental income and capital appreciation, when evaluating the potential returns of a property investment.
2. High-end properties are immune to market downturns
Some investors believe that high-end properties, such as luxury condominiums in prime locations, will always hold their value even during market downturns. While these properties may be more resistant to oversupply issues, there is no guarantee that their value will remain unaffected by changing market conditions. As Singapore continues to decentralize and develop new business districts, the concept of “centrally located” properties may evolve, potentially impacting the value of high-end properties in the future.
3. Property investing is very safe because you can always sell the house
While it is true that property investments are generally considered safer than other types of investments, relying on the ability to sell a property in a worst-case scenario can be misleading. Market conditions, liquidity issues, and other factors can impact the ease and profitability of selling a property. Investors should not assume that they can easily sell a property at a profit whenever they choose to do so.
4. Negative cash flow is not a significant concern
Negative cash flow, which occurs when expenses such as taxes and insurance exceed rental income, can be a major issue for property investors. Ignoring the potential for negative cash flow can lead to financial difficulties and even the loss of a property investment. Investors should carefully evaluate the potential cash flow of a property before committing to an investment.
5. Singapore’s property market is immune to global economic concerns
While Singapore’s property market has shown resilience in the face of global economic challenges, it is not immune to external factors. Economic slowdowns, rising interest rates, and other global concerns can impact the demand for property in Singapore and affect property prices. Investors should remain aware of global economic trends and consider their potential impact on the local property market.
Investing in Singapore’s property market can be a rewarding venture, but it is essential for investors to approach it with a realistic understanding of the risks involved. By avoiding these dangerous ideas and conducting thorough research before committing to a property investment, investors can increase their chances of success and minimize potential losses. Ultimately, a well-informed and cautious approach to property investing will serve investors best in the long run.
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 …
What Type of Properties Can a Permanent Resident PR Buy in Singapore?
TLDR When it comes to purchasing property in Singapore as a Permanent Resident or Foreign National, there are specific restrictions...
Read More
How Can Real Estate Investment Help You to Combat Inflation?
TLDR When it comes to real estate investments in Singapore amidst rising inflation rates, consider strategies such as capitalizing on...
Read More
Checklist for First-Time Homebuyers in Singapore: A Guide to Viewing Condos
TLDR The checklist provides essential steps for first-time homebuyers in Singapore to consider when viewing a condo. It includes aspects...
Read More
Top 5 : Places to Find Unique Singaporean Souvenirs
Singapore, a vibrant city-state known for its multicultural heritage and modern marvels, is a treasure trove of unique souvenirs that...
Read More
Subscribe to Jayson Ang’s Singapore Property Newsletter
TLDR Jayson Ang's Singapore Property Newsletter offers valuable insights on real estate investments, market trends, and expert advice. The newsletters...
Read More
Top 5 : Golden Tips to Spot a Good Investment Property
Investing in real estate can be a lucrative venture, but it's essential to know how to spot a good investment...
Read More
Singapore Property Price Set to Explode Upwards in 2024?
TLDR Understanding the factors influencing property prices in Singapore for 2024 can help in making informed decisions. Despite high rental...
Read More
Top 5 Tea Rooms in Singapore for High Tea
Singapore, a melting pot of diverse cultures and culinary delights, offers an exquisite high tea experience that caters to both...
Read More
Breaking Through the Stalemate of En Bloc Sales
TLDR The Singapore property market faces challenges with the ongoing en bloc stalemate. Lower success rates, higher development risks, and...
Read More
Top 5 Singaporean Dishes to Try
Singapore, a melting pot of diverse cultures and flavors, is known for its rich culinary heritage. With influences from Chinese,...
Read More
5 Reasons : Why Investing In Commercial Real Estate Can Offer Stable Long-Term Returns
Investing in commercial real estate has become an increasingly popular choice for investors seeking stable long-term returns. There are several...
Read More
Why It’s Not Financially Sensible to Pay Off Your HDB Flat Home Loan in Advance
TLDR When deciding whether to repay your HDB flat loan early, consider the limitations of not being able to obtain...
Read More
What Difference in One Year After the ABSD Hike in April 2023?
TLDR The recent hike in ABSD rates, especially the increase from 30% to 60% for foreign buyers, has dramatically affected...
Read More
When Should You Consider a Shorter/Longer Home Tenure?
TLDR Understanding the benefits of long-term home loans is crucial for financially conservative individuals in Singapore. Opting for a longer...
Read More
Top 5 Tips : How Investors Protect Themselves From Risk And Capitalize On Emerging Opportunities In Singapore’s Real Estate Landscape
The real estate landscape in Singapore has always been a lucrative investment opportunity for both local and international investors. However,...
Read More
How Can Decoupling Help You in Buying a Second Property?
TLDR Decoupling property ownership in Singapore can help you avoid hefty Additional Buyer's Stamp Duty fees when purchasing a second...
Read More
Sentosa’s Sizzling Property Market: 5 Reasons Chinese Investors are Flocking to Singapore’s Premier Island
Sentosa's Sizzling Property Market: 5 Reasons Chinese Investors are Flocking to Singapore's Premier Island Here are the top 5 reasons...
Read More
From Overseas to Singapore Property: 5 Steps Guide to Remitting Funds
From Overseas to Singapore Property: 5 Steps Guide to Remitting Funds 1. The first step in remitting money to Singapore...
Read More
5 Impacts Of The Singapore-Malaysia High-Speed Rail On The Property Market
The proposed Singapore-Malaysia High-Speed Rail (HSR) is a joint project between the two countries that aims to improve connectivity and...
Read More
