How can I start investing in Properties in Singapore?

Hi,

I am honestly interested to learn and find out more on how I can invest in properties but at the same time I have no clue on how to start. Correct me if I am wrong but property investing is different from REITs right?

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Javier Tan Yan Kai

30 Oct 2023

Actuarial Analyst at AIA

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Larry Mah

Edited 17 Oct 2023

Property Agent at Propnex

Hi bro,

First of all, I respect your hustle in being willing to learn to ask this question as a financial consultant + being a student.

Ok back to your question - REITs are a form of property investment, but it's different. They provide dividend (similar in rental income) and may have capital upside appreciation in the long run (similar). But they are different as they provide liquidity, low capital upfront, and they also diversify your property holdings as they manage different properties.

Next, before you want to invest in properties, know what is your investment horizon, type of properties (commercial/industrial/residential), and most importantly - your cash outlay and other financial commitments.

To conclude, Property investment is beautiful because you have the power of leveraging while being able to pledge out your property after you have fully paid (another form of leveraging) but it is also a double edged sword because investments may have capital depreciation or appreciation depending on market conditions and type of property product.

Once I understand your situation better, hopefully I can value add to your question better so you can invest wisely and advice your clients better as well!

All the best!

Larry Mah (R069052Z)

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