With the ability of Singapore to endure a slowing market for a few years, the country is now seeing an increase in property sales volumes. Singapore real estate is meeting with the strong demand from property buyers and investors. However, even if the sentiments will start to pick up, there are still great reasons to invest in Singapore condominium and other properties. They include the following:
Attractive Rental Income
People who want to invest in a private property to generate rental income can take advantage of the potential of properties in vibrant locations such as in the city centre to generate more attractive yields. These properties will give them a passive income on top of their salary.
Leverage to Boost Returns
Investing in a property over other assets lets you borrow a big sum of money at a low interest rate to purchase a home. When your property’s price goes up, your returns will be multiplied. Surely, when prices drop, your equity is expected to fall even faster. However, you will often come out fine as long as you have holding power. Plus, you can certainly make plenty of money when you purchase the right property at the right time.
Ability to Make Improvements
If you tend to like to fix things, a renovation is a great way to add value to your property. Even as simple as giving your property a fresh coat of paint can already do wonders for its value.
Zero Capital Gain Tax
As with stocks, selling properties has no capital gains tax. Just compare this with your employment income where the taxman can cut up to 20% of it, depending on your tax bracket.
Popularity of Mixed-Use Developments
In these developments, commercial and residential properties are integrated into the same building. They make it convenient for residents to access shops, gyms, restaurants, and offices within the same buildings as their homes. Thus, they do not have to take a long commute to commercial locations. Investing in properties in these developments can yield good rental rates as compared to properties in residential developments because of the dynamic environment they can offer their renters.
While investing in any type of property can be expensive and time-consuming, the right mindset and strategy will guarantee big returns. Therefore, if you are looking to invest in Singapore real estate, remember the reasons mentioned above to know why you must give it a shot.