Ready to start your Sustainable Property Investment Journey?
When considering the purchase of a new home, you have two primary options to explore:
- Resale Property
- New Launch Property
Assessing the Financials:
If you opt for a new launch condo, a 5% booking fee is typically required by the Developer. For instance, on a $1 million property, this would amount to $50,000. The period from paying the booking fee until receiving the keys to your new home can span three years or more. Selling the property after obtaining the keys can help avoid Seller Stamp Duty (SSD) within the initial three-year timeframe, which can be substantial.
Investment Potential:
In a scenario where your $1 million condo appreciates by 20% to $1.2 million over three years, you could realize a paper gain of $200,000. This represents not just a 20% return but a fourfold increase on your initial investment of $50,000 as the booking fee. This translates to a significant 100% Return on Investment (ROI).
Property Investment Risks:
Property investment entails risks, with higher risks often associated with potentially higher gains. Liquidity poses a significant challenge in property investment, as selling at desired prices may not always be feasible.
Considerations on Safe Investments:
While traditional safe investments like bank deposits offer minimal returns due to almost non-existent interest rates, they may carry risks related to inflation eroding savings over time.
Influence of Central Banks:
The decisions and views of influential Central Banks like the Federal Reserve Board (FED) in the US can impact global economies and interest rates, including those in Singapore set by the Monetary Authority of Singapore (MAS). The correlation between US and Singapore interest rates remains subject to speculation and analysis within the financial industry.
Future Outlook for Property Investment:
Property investment involves managing known risks within a defined time horizon and strategic location selection. Collaboration and community support can enhance decision-making processes in property investment journeys, which require foresight, patience, energy, and prudent decision-making.
Embark on Your Investment Journey Today:
Initiating your property investment journey involves careful planning, assessment of risks and opportunities, and proactive decision-making to navigate the dynamic real estate landscape effectively.
