Discover the 7 Unique Attributes of Real Estate Investing
TLDR The post highlights the benefits of investing in real estate, such as high leverage, capital appreciation, income generation, usability,...
Read More
TLDR
In Singapore, some individuals venture into property investments with unrelated partners, driven by opportunities and personal circumstances. Jim, leaving finance during the 2009 crisis, invested in real estate with an ex-colleague, turning an old apartment into a bed-and-breakfast. They maintain a stable business relationship, focusing on shared goals. John, unable to buy an HDB flat as a Malaysian, co-purchased a flat with a childhood friend, valuing trust despite potential financial disagreements. Sarah co-owns a condo with a family friend seeking Singaporean investment, balancing personal needs with co-owner expectations. These stories highlight unique co-ownership dynamics and the importance of clear financial boundaries and roles. For potential buyers or sellers, understanding personal goals and market conditions is crucial, with strategic advice aiding in navigating Singapore’s real estate landscape.
Most people buy homes with family or partners. However, some Singaporeans have bought properties with unrelated individuals, sometimes as business ventures. Here are some interesting co-owners and their experiences in investing together:
1. Investing together in a property with an ex-colleague
Jim left his job with a colleague in 2009, at the height of the Global Financial Crisis. Luckily, they left the finance industry just before the worst hit, so they were largely unaffected.
“We both had some savings but weren’t sure about investing in stocks. We expected some unexpected events to happen. However, I have always been passionate about hotels, casinos, and hospitality, even though I didn’t have the money to invest in that.”
Jim lacked the funds to start a boutique hotel, his ultimate goal, but he and his colleague spotted a chance in real estate. They bought an old walk-up apartment in Siglap and renovated it to resemble a bed-and-breakfast Jim had visited while travelling.
Jim prefers not to share too much detail but mentions he and his former colleague have “almost equal shares” in their property unit. There was a plan to buy out his colleague’s share later, but this has not happened, and they remain co-owners.
He notes a few disputes over the years, which were resolved amicably. He believes their relationship is more stable than that of family co-owners. He explains, “We have had disagreements about agents and problem tenants, but it’s positive. We’re less likely to argue than parents with children or spouses because we treat it as a business with shared goals and limited emotional involvement.”
For instance, they handle the property loan by letting his more experienced colleague manage refinancing, while Jim stays updated on changes. He thinks this structured approach is better than informal arrangements, where partners might not understand each other’s roles.
However, Jim believes arrangements like theirs are less common now due to discouragement of property investment by ABSD and the difficulties of financing compared to the past.
2. Purchasing with a childhood friend
In 2011, John bought a two-bedroom flat in Telok Blangah with a childhood friend. They both needed a place to stay since John, being Malaysian, couldn’t buy an HDB flat, and she was struggling to get her permanent residence.
Despite concerns from his family and property agent about potential issues, such as her not paying her share, John chose to trust her because of their long history. They decided on tenancy-in-common, meaning each owned a percentage of the flat and could sell their share independently. John’s share would go to a family member if he passed away, though he prefers not to discuss his legacy plans.
Over 13 years, they had only one major disagreement over renovation costs. His friend wanted to spend over $50,000, which John thought was excessive. He found a cheaper contractor, but she insisted on her friend’s cousin. Eventually, they reached an agreement where John accepted the higher cost in exchange for covering less of the renovation expenses.
John believes it’s important to set clear financial boundaries since one person might be more willing to spend than the other.
3. Sharing a property with a family friend
Sarah bought her first property, a condo, with help from her parents and a family friend. The friend, who had worked with Sarah’s mum in Japan, wanted to invest in Singapore but needed someone to manage the property while living abroad. Sarah was looking for a place too, so they decided to co-own a unit at The Minton around 2010, just before new taxes were introduced.
Initially, Sarah’s parents were hesitant due to concerns about repayments and safety since she would be living alone with tenants. They also worried about her inability to buy an HDB flat afterwards.
While there have been some issues with her co-owner regarding the property’s condition, Sarah feels fortunate overall. Many of her peers couldn’t afford private property at current prices, and her investment has appreciated. However, she finds the arrangement stressful, particularly when needing to make compromises to maintain good relationships with her co-owner and mother.
You can’t buy an HDB flat if you own a private property, but this isn’t permanent. You can buy a flat if you sell your private property within six months. From 2024, there’s a temporary waiting period: you must wait 15 months after selling a private property to buy a resale flat, unless you’re 55 or older and moving into a 4-room or smaller flat.
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 …
Is the Dream of Homeownership Becoming a Steeper Climb?
TLDR The article discusses the evolving trends in the Singaporean real estate market, focusing on the affordability and accessibility of...
Read More
5 Exciting Trends Shaping Singapore’s Property Market for Future Buyers After 2024
TLDR When it comes to the evolving landscape of property development in Singapore, developers are facing new challenges and opportunities....
Read More
Buying HDB Resale : How to Minimise COV
TLDR Understanding Cash Over Valuation (COV) is crucial when buying a resale HDB flat in Singapore. COV is the additional...
Read More
The Lease Buyback Scheme Is A Strategy That Could Help You Retire Comfortably In Your HDB Flat
TLDR The Lease Buyback Scheme (LBS) trend among older Singaporeans is slowly gaining momentum, despite initial reluctance. The scheme allows...
Read More
Top 5 Places to Watch the Sunset in Singapore
Singapore, a bustling city-state known for its modern architecture and vibrant culture, is also home to some of the most...
Read More
Top 5 : Reasons why Freehold Properties Cost More in Singapore
Freehold properties, a term often heard in the real estate market, are properties that are "free from hold" of any...
Read More
Top 5 Places to Learn About Singapore’s History
Singapore, a thriving metropolis with a rich history and diverse cultural heritage, offers numerous opportunities for visitors and locals alike...
Read More
5 Factors Affecting A Property’s Resale Value
The real estate market is a complex and ever-changing landscape, with various factors influencing the value of a property. When...
Read More
Transforming Your Home Loan Situation with Rate Cuts
TLDR When comparing fixed and floating mortgage rates, the present fixed rate of 3% is favorable, but predictions hint at...
Read More
Strategies for Overcoming ABSD and Acquiring Multiple Properties in 2023 (Revised)
TLDR When it comes to navigating the Additional Buyers Stamp Duty (ABSD) in Singapore, there are legal strategies available to...
Read More
Is Renting Out Your HDB to Live in a Condo a Smart Move? How Rentvesting Can Help You Save Money
TLDR Rentvesting is a strategy where individuals rent a home in their desired location while purchasing investment properties in more...
Read More
Top 5 : Common Characteristics Of Singapore Condos That Make Them An Attractive Investment Opportunity For Foreign Buyers
Singapore, a thriving hub of business and commerce in Southeast Asia, has become an attractive destination for foreign investors looking...
Read More
When Is the Right Time to Sell Your House?
TLDR When deciding to sell your house in Singapore's competitive real estate market, timing is crucial. Selling during a seller's...
Read More
5 Tips : How To Spot A Good Investment Opportunity In Singapore’s Property Market
Singapore's property market offers a plethora of investment opportunities for both local and foreign investors. To spot a good investment...
Read More
Can You Make the Leap to a Condo Upgrade in 2024?
As the Chinese New Year festivities wind down, folks are once again on the prowl for new homes, and understandably,...
Read More
5 Critical Mistakes to Avoid When Investing in Singapore Property: Insights and Advice from Experts
Investing in Singapore property can be a lucrative venture for investors, but it's important to avoid common mistakes that can...
Read More
Top 5 Reasons : Why Singapore’s Property Market Is a Safe Haven for Investors in Uncertain Times – Insider Analysis!
In today's uncertain global economic climate, investors are constantly on the lookout for safe havens to park their wealth. Amidst...
Read More
From Garden City to Smart Nation: Singapore’s Top 5 Goals Building a Sustainable and Livable City
Singapore is a small island city-state with a population of over 5 million people. Its urban landscape is constantly evolving,...
Read More
5 Reasons Why Condos Are The Best Real Estate Investment in Singapore
Investing in a condo in Singapore is a popular choice for both locals and foreigners. Condominiums offer a range of...
Read More
