A very interesting question.
First i need to assume you are asking about physical properties and not an investment vehicle like REITS.
Assuming you could not care less about getting a BTO, i have seen a very very interesting scenario before.
There was an extended family (uncles, aunties, cousins, brothers and sisters you get what i mean) who truly wanted their younger generation to start accumulating wealth at a young age.
I had the privilege of helping the family with their loans and this is what they did over the past decade.
at age of 21-25 years old. 5 siblings + cousins pooled their money and CPF together and bought a 800k PTE house.
Rented it out for 4 years, sold on at the end of the 4th year and earned 10% capital appreciation.
Cash and CPF downpayment
$200,000 - you receive this back when sold
Costs
Loan interest over 4 years + stamp duties + legal fees
$50,000 estimate
Rental yield 4 years
$120,000
Sold profit
$80,000
NETT Gains = Yield + profit - costs = $150,000
Upfront 200k investment made $150k in 4 years
Yield per year 18% estimate
Did it again now divided into 2 groups.
Two of them shared and bought a million dollar property.
The other three shared and bought another.
Rented it out for 4 years again and sold it at barely breakeven.
But rental yield was good at around $40k per year.
again making some money.
Then finally last year they bought a property each.
So, this just illustrates that if you believe that property is a good investment vehicle, and you have relatives or friends with a similar mindset that you can trust. This may be a method you can try too.
DISCLAIMER : Property prices may drop also!!
A very interesting question.
First i need to assume you are asking about physical properties and not an investment vehicle like REITS.
Assuming you could not care less about getting a BTO, i have seen a very very interesting scenario before.
There was an extended family (uncles, aunties, cousins, brothers and sisters you get what i mean) who truly wanted their younger generation to start accumulating wealth at a young age.
I had the privilege of helping the family with their loans and this is what they did over the past decade.
at age of 21-25 years old. 5 siblings + cousins pooled their money and CPF together and bought a 800k PTE house.
Rented it out for 4 years, sold on at the end of the 4th year and earned 10% capital appreciation.
Cash and CPF downpayment
$200,000 - you receive this back when sold
Costs
Loan interest over 4 years + stamp duties + legal fees
$50,000 estimate
Rental yield 4 years
$120,000
Sold profit
$80,000
NETT Gains = Yield + profit - costs = $150,000
Upfront 200k investment made $150k in 4 years
Yield per year 18% estimate
Did it again now divided into 2 groups.
Two of them shared and bought a million dollar property.
The other three shared and bought another.
Rented it out for 4 years again and sold it at barely breakeven.
But rental yield was good at around $40k per year.
again making some money.
Then finally last year they bought a property each.
So, this just illustrates that if you believe that property is a good investment vehicle, and you have relatives or friends with a similar mindset that you can trust. This may be a method you can try too.
DISCLAIMER : Property prices may drop also!!