Are you planning to acquire property in Singapore? If so, you need to consider the merits and the demerits of doing so before you make up your mind to invest. Singapore is indeed a good location for investment, but before embarking on the journey of buying and renting of properties, you need to consider some factors—namely, your lifestyle, financial situation, standard of living and other equally important things.
Without further ado, we’ll get you acquainted with the pros and cons of acquiring properties in Singapore.
Pros of Acquiring Properties
Highlighted below are the merits of acquiring property in Singapore.
- It is a stable Investment: If you are looking for a stable source of income, then acquiring properties in Singapore is the best option. Over time, properties have been known to be a very low-risk investment when compared with other markets. The worth of property appreciates at a geometric progression, especially in economically stable areas. This means that the longer you hold on to a property in these areas, the more expensive it becomes.
- It offers reasonable tax benefits: This is one of the benefits of acquiring properties, especially in a city like Singapore. As the owner of a property, there are several tax benefits you can claim. Investors have the opportunity to claim the tax benefits on fittings and renovations of their property, saving them some money. In some cases, you will even be permitted to do a free inspection of your property.
- It generates rental Income:Many investors look to invest in a property so as to collect rent and generate stable, passive income. When you acquire properties in areas where the economy is booming like the Treasure at Tampines launch in Singapore, you stand a chance to make huge returns within a short period of time. Overall rental yield is currently within the range of 4.0% to 5.5% over the years. Make sure to check how large the property is so you don’t end up buying a property blindly. For instance, look up “Treasure at Tampines psf” and compare it to the findings for “Treasure at Tampines prices”—you’ll see from the site plan that every cent you pay will be worth it, especially since so many facilities and amenities will be made available to you!
- It gives a sense of ownership: There’s nothing that is as sweet and cool as enjoying the sense of ownership on the property you acquired. You have the right to decide what you intend to do with your property without seeking anyone’s consent. A fully-paid for property is a significant provision for you and your household.
Cons of Acquiring Properties
Nature has made it so that for every positive entity there must a corresponding negative counterpart. Buying out property in Singapore also has its own disadvantages which are stated below.
- Ithas a high entry cost: It will cost you a huge sum of money in order to acquire quality property in Singapore’s market where property prices are constantly rising. This makes it harder for people with low income or capital to invest in this business. If you’re unwilling to wait and want to start profiting as soon as possible, opt for the SBF(Sale of Balance Flats) scheme—but be warned—a shorter wait for balance units means paying more for them.
- Ongoing and extra costs:Property often carries with it hidden costs that can’t be found in other investments. Some of these costs include insurance, maintenance, mortgage repayments, council rates, renovations and so on. One thing about the extra cost is that it usually hits you when you least expect it. This tends to be a heavy deterrent to people who are interested in investing in property in Singapore.