How to Make a Killing in Singapore Property Investment
Though there was a decline in the real estate market during the last few months of 2016, the market has started stabilizing in 2017. The overall fall in the prices of private homes during the year 2016 was estimated to be around 3%. However, thanks to the stability in the market, developers seem to be gearing up for launching their new projects. In fact, some of the developers have already announced their projects including condominiums and some of them have begun their work also.
Not only those who are on the look-out for suitable living spaces but others who want to make long-term investments in properties are excited that they will have more number of options in 2017. Especially, investment minded folks are elated over the positive signs that are visible in the real estate field because they justifiably hope to make a killing by parking their funds in the properties developed in prime areas as well as those areas in Singapore that have excellent growth prospects.
Singapore real estate market mainly consists of three types of properties and they are those developed by The Housing and Development Board, such as HDB Flats, Executive Condominiums, and Private Condominiums. Let us now look at the features of each one of these types.
Properties developed by HDB
The Housing and Development Board has been formed by the Singapore government with an intention to make available affordable housing to the general public. Public housing is the main motto of this board. According to an estimate of 2015, nearly 82% of Singapore residents live in the houses developed by HBD. HBD ensures that the estates in which their properties are developed are self-contained which means that all the necessary amenities will be available for the residents within the estates. Not only that, their flat types as well as layouts are designed suitably to cater to people with various levels of budgets. In short, HBD investment will suit those who are looking for affordable housing. Most of the buyers of these properties buy them for living in them. Not many people consider these properties as an investment option.
According to the HDB website, executive condominiums cater to professionals as well as young graduates who are financially sound and can afford to go for a property that is better than a public housing flat. At the same time, these people cannot afford to buy a private property. In other words, executive condominiums are suitable for those who are at the middle level and between those who can afford only an HDB investment and those who can easily buy private properties. Nevertheless, executive condominiums will have almost all the facilities that are available in private condominiums because most of these executive condominiums are also built by those companies that develop private condominiums. Designs of the executive condominiums will also be the same as those of private condominiums. Those who park their money in these condos do so not only for living in them but for reaping rich investment benefits also.
Those who belong to the higher strata of the society can alone buy these private condominiums. In general, private condominiums in Singapore are developed in very attractive locations and they come with lavish and expensive amenities. The hallway, lobby and other facilities like the swimming pool, gym and garden of these condos will be luxurious though residents in the condos have to share all these amenities. But there are no governmental restrictions that bind these private condos. On the contrary, in the case of executive condominiums, the developers have to abide by the restrictions and rules laid down by the governmental authorities. These condos help investors flaunt their wealth. Of course, these condos are good investment options also for these folks.
Banks that finance property investment in Singapore
It is a common knowledge that Singapore is a hot destination for tourists from all over the world. However, this island nation can justifiably considered not only the banking nerve center of South East Asia and Asia but also one of the banking centers of the whole world. Several banks from all parts of the world have set up their offices in Singapore.
Apart from these overseas banks, there are many local banks also here. Banks such POSB Bank that is a part of DBS Bank. Far Eastern Bank Limited, Oversea-Chinese Banking Corporation Limited, etc. are some of the most popular local banks of Singapore. Their operations cater to the various banking needs of Singaporeans. These banks finance property investments also and HBD investment is no exception.
For example, POSB frequently announces promotion schemes for encouraging Singaporeans to invest in properties. Similarly, the Far Eastern Bank Limited that is a part of UOB and OCBC have loan schemes to suit the varying needs of those who wish to invest in Singapore properties.
Keep in mind that this is an ideal time to invest in Singapore properties appears to be an undeniable fact. Regardless, there can never be a single rule that can help in decisions related to property investments, especially with regard to Singapore properties. Some people can afford only a HBD investment whereas professionals and those who have reasonably higher levels of income can go for executive condos. Of course, affluent people need not be prompted for parking their surplus funds in properties and more particularly, in private condos.
The point that is being emphasized is that people have to make an honest assessment of their needs as well as their financial capabilities before making their investment decisions. Not only that, they have to take into account various other factors also while deciding on the location of the properties they choose to invest.
To summarize, Singaporeans have to be conscious of not only their needs but their financial resources as well before making their real estate investment decisions. Let them not forget that “the time for investing is now.” By making a wise investment without delaying, they can make a killing in the Singapore property market.