We are Singapore Mortgage Brokers who help you get home loans or to refinance your
property.
The key things to consider in Property Investments are: -
* Affordability and holding power
* Rental yield
* Capital appreciation
Affordability and Holding Power
Ideally, you should not purchase an investment that is way beyond what you
can Safely Afford.
You should also have good holding power to withstand Mortgage home loan
interest rates fluctuation as well as have enough cash flow set aside for up
to 24 months of Mortgage Home loan installment.
This is important as market condition can become volatile and the last thing
you want to do is to sell your investment property at a huge loss in a
Singapore Property market stricken with panic.
You can check your affordability with us: - Email: loans@propertybuyer.com.sg
Rental yield and Income
Rental yield is important in a property investment. However rental yield
cannot be over-emphasized.
What is important is the Return on Invested Capital (ROIC), most commonly
referred to as ROI.
Rental yield is: -
Annual Rental / Property purchase price
Return of Invested Capital (ROIC): -
[ Annual Rental - (Interest financing cost) - (Maintenance & Misc Cost) ] / Invested Capital
By looking simply looking at a property investment and comparing yield can
be very mis-leading. It is similar to looking at P/E for shares. As rental prices
fluctuate, so does property prices.
Buying based only on investment yield is the of the most foolish mistakes a
property buyer/investor can make.
RENTAL DEMAND
Singapore's rental demands are mainly derived from foreign expatriates as
most Singapore citizens own their own homes.
RENTAL SUPPLY
Property stock do not stay the same, as Property Developers will likely get
first hand information from Governmental development plans in order to add
to the supply.
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