How do I get started on property investment? Purchasing property for rental yield? Any advice?

• For singapore. 1 person can only own 1 property. So u cant own 2 property without ABSD
• HDB is a depreciation asset, in general.
• When invest in sg property, we shall always aim for capital appreciation, rental is always secondary.
• To invest you need to buy a condo.
• Not every condo will earn $$$, need to have certain criteria when selecting an investment property, just like any other investment.
• Most property price will start to stagnent as it age or even go down.
• You need to buy/sell every few years, to "renew" your investment
• For property investment, FH/99 years doesnt matter.
• Your target profit should at least 6 digit, around $150k. Thus your entry price for the property cant be too ex, else the next buyer cant afford. Must leave room for th price to grow.
• Assume you know how to choose the correct property, able to enter at a correct price. You should treat your property as a saving plan. Because all the installment you pay will be "refund" back to you when you sell your property. Is a kind of force saving.
• Every few years, you will have to renew your investment, get a bigger if possible , based on your affordability. Becoz u need to have holding power.
• Then before 55 yr old, downgrade to a resale hdb. Then u basically have your hdb free + a sum of $$$

Property invesment would see returns in 2 forms: 1. capital gains, 2. income from rental.

You should consider alternative invesment returns to compare against the returns from property eg REITs, ETFs, stocks.

In Singapore or foreign countries, residential, industrial, commercial office or retail.

Usually a down payment is required, this could be 20 - 30%. THis has to be in cash, while the remaining will be by a loan. You need to check with your bank on the loan quantum you are eligible to get based on your salary and other commitments, like car loan, credit card payments etc.

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Typical gross yield of a condo apartment could be 1.5 - 4% depending whether freehold of 99yrs leasehold. Net off agent fees, repairs, management fees, vacant periods etc, the net return will be on the lower end of 1-2%.

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Capital gains is very much dependant on government cooling measures as our governement does not want to see an asset bubble burst and many people getting seriously hurt. So they have said many times that a growth that is in line with economic growth would be acceptable. SG is unlikely to grow as fast as during our grandparents or parents time. It likely to be low single digits.

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So compare this with growth stocks that could give you 10 - 30% capital gains or income stocks that yield steady 4-7% p.a.

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