facebookInvestment vs Property -> Is it better to invest in property in Singapore vs in other financial investment like shares/bonds/ETF/Funds etc. Pls suggest. - Seedly

Anonymous

18 May 2021

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General Investing

Investment vs Property -> Is it better to invest in property in Singapore vs in other financial investment like shares/bonds/ETF/Funds etc. Pls suggest.

Is it better to invest in property in Singapore vs in other financial investment like shares/bonds/ETF/Funds etc. Pls suggest.

Discussion (12)

What are your thoughts?

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As many have mentioned. Both have their pros and cons.

I would say if you are looking to have a more hands off approach and would rather spend more of your time doing the things you like or simply earning more money. Probably ETFS or ROBOS might do you more good.

If you are looking to spend time learning and understanding either. Than it would be the investment that interest you more and you are more willing to learn about. I would say only with the knowledge and expertise are you able to replicate and achieve gains that will satisfy you.

I would say both uses differing strategies and know how. But from a maintenance cost point of view. I would say investing in stocks n etfs/ bonds in singapore is slightly better than property? But im not an expert in either. So consult someone you know or trust if you wish to know more

I would think it largely depends on the amount of capital you have and your holding power. Property investment requires a lot more capital and potentially more holding power.

Real estate returns are lower compared to equities and come with their downsides. You have to run that business; maintenance, looking for tenants, renovation and repair.

Not to mentioned there are times where tenants create problem, delay on payments, crimes comitted in the home causing the place to be locked as a crime scene and have no rental income for months-years.

In stocks, you do not have to find solutions for business problems, you have a management team and staff to run the company for you. Best thing is you can jump to another company so easily when you decided the business is no longer doing well.

Why do people prefer real estate?

In the real estate market, people are less emotional because there isn't a daily quotation of market price of your asset. People research a ton, reading up, reviewing one house to another, asking people who are more experienced, bargaining for prices.

In stocks, businesses' valuation doesn't swing so wildy over a few days/weeks yet emotions drive the stock market prices like an auction house. People can watch a video on youtube or hear of a friend making a lot of money in a stock and that very day pour 30% of their net worth into the stock. Then they wonder why they lose money.

Many people get hurt by the stock market not understanding this concept that price is what you pay, value is what you get. The greats like Warren Buffett, Munger, Peter lynch have consistenly tried to share their wisdom but people still refuse to see stock prices as businesses but instead as lottery tickets, pancking when the "quoted" price goes down and FOMO-ing when it goes up, disregarding valuations.

When you buy a house, you don't call up your agent every day to ask if the valuation/market price of your house has changed.

But this is the beauty of the stock market and it is these swings that provide mispricing and hence opportunity. Munger and Buffett has mentioned several times that the real estate business is usually fairly priced and difficult to find cheap discounts because of the lack of emotional decisions.

Hi there, great question. I think it's all down to personal preferences.

Many here have stated the pros and cons of each so have to weigh them. I personally prefer to invest in properties through the stock market (by owning shares in property developers or REITs) as it's hassle-free.

What gives properties the attractiveness factor is the leverage that you can take on. Without this, in general, stocks give better returns over the long run than properties.

Both.

Residential property
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