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Property Investment Guide in Singapore (Updated 2018)

The Lion City is quickly coming under everyone’s radar as the city to look out for. Its pursuit to become the world’s first “smart” city is making its government and inhabitants embrace the digital age like no other. In many of its surrounding countries, a higher number of people live in rather poor conditions with unsophisticated housing. But here, the capacity in terms of public sector housing is quite vast. More than 80% of its residents, which amounts to a little over 3 million, live in affordable and decent houses. What’s more? Morgan Stanley predicted that the property prices in Singapore will double(!) by the year 2030. This makes it a really hot time for property investment in Singapore.

Property Investment

Things to Keep in Mind When Buying Property

Property investment isn’t child’s play. You invest a huge chunk of your money and time and as such, deserve the best that you can get. You should be careful and thorough in your research and then, only then hand over your money and sign the contract.

1. Invest in property which gives you maximum leverage

Many people prefer to borrow loans from the banks when they think of investing, usually paying 20% of the down payment, the rest being funded by the latter. How does this help? Imagine that your rental yield is low. Through OPM, this will still help you earn a high return on your investment. OPM is Financial Leverage in which you profit using somebody else’s money. A complete research is needed to take advantage of this.

2. Rent the property instead

Research found that Singapore’s Property-Price to Annual-Income ratio is 25.38, implying that residents have to at least work 25 years to pay off their mortgage. Hence, if you stay on your property then it’ll actually be a liability. This makes renting a better bet for you. When looking for properties, you should compare its yearly rental yields with the purchase price. Leasehold properties give more yield compared to freehold properties because of their purchase price. But, you do need the government’s approval if you’re a Permanent Resident looking to rent out their apartment.

3. Landlord Friendly

The real estate outlook in Singapore is landlord friendly, giving lot of room for contractual negotiations, in terms of deposits, rent, termination clause, etc. The government will hold the landlord accountable for his tenant’s legal residential status and as such, the latter should ask for proper documentation of his tenants.

4. Tax Payable

Property tax is payable in advance, on 31st January and is calculated by applying the tax rate to the yearly value of the property. Failure to do so would impose a 5% penalty.

Tips for the Right Investment
1. Knowing the right price. You should be aware of the correct valuation of the property that you are interested in. Check the age and condition of the property before finalizing the deal.
2. Spend time understanding the Singaporean market and its dynamics. This will help you make better decisions.
3. Pick the right mortgage plan that suits you. Find out whether medium-term or long-term investment work for you. Retain your ability to pay off your bank mortgage.
4. Keep a broad perspective. Try to see the actual potential of the property, use your vision.
5. Invest in good property consulting services. Most of us lack the experience and the expertise for property management especially in a foreign country.

Remember…
A huge real estate investment awaits you in Singapore. However, it is important to proceed with caution. Ensure you acquaint yourself with all the relevant dynamics of this industry before taking the plunge.

Business Consulting Guide – Choosing the Right Consultant

Business consulting is a fascinating field. Consulting management is also important and you can select the best consultant if you know what you are doing. Therefore, you should find out what you have to know so you can truly get them the most bang for the buck. We will talk about what a consulting firm is, what they can do for you and how you can select the right consulting firm. This is truly important for the future of your business, and you should read on so you can find out more.

What is a Consulting Firm?

A consulting firm will allow you to learn more about how to handle your business because they just do that for you. They will give you the advice you need to run your organization smoothly. These professionals will focus on profits and results, and that is what you need at the end of the day too. You will be dealing with many creative problem-solvers who will give you the different perspectives that you need to get.

 

What Services Do a Consulting Firm Usually Provide?

A consulting firm will do this for you:

  • They will work hard to understand your business model so you can make the most bang for the buck in no time.
  • They can also optimize your marketing campaign so they can truly make a difference when it comes to making more profits.
  • These professionals also can help you design the right software systems for your organization.
  • The increase of efficiency is what these firms are all about, and you can get a lot of benefits from these things.
  • You will get advice on how to address both strategic and operational challenges of your organization.
  • A consultant will work hard to make you think better and make better decisions over time.
  • They will give you the reliable, accurate information you need to do the job.

How to choose the best consultant? What do you look at?

  • Make sure that you can develop a long-term relationship with the consultant as soon as possible.
  • Make sure that this professional will understand what your project is all about.
  • The consultant should work closely with you at all times.
  • Ask for references and past clients right away.
  • Don’t allow any kind of conflict of interests to interfere with the relationship.
  • Check out and compare the cost with other providers.

 

Remember that a consulting firm can give you the accurate information you need to take your business to the next level. Yes, they can do that but you have to know how to pick up the best one for your organization.

Need a feasibility study? Well, a consulting firm can do that but you have to make sure that they are reliable and trustworthy. In any case, you can get a lot of value out of this relationship because these firms tend to give managers and business owners the accurate information they need to run their organizations properly. Follow these tips and do what you have to do.