Property Investing

Buy BTO as first property

DISCLAIMER: Property agent here, DYODD. Not investment advice.

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Hello Jye Chiam,

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Glad to see a fellow property investor who is well-versed in the strict regulations as well as the cyclical market. I also believe that with discipline, property investment is a lucrative avenue to either generate passive income or multiply one's wealth.

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Now back to your question - how much is truly enough to get started into property investment?

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1. Budget and Savings: Assess your financial situation and determine how much you can comfortably invest without straining your finances. For this, I recommend a 20% buffer of your loan quantum.
2. Market Knowledge: Educate yourself about the property market, local regulations, and property investment strategies. The more you know, the better equipped you'll be to make informed decisions.
3. Property Type: The amount needed can vary significantly based on the type of property you want to invest in. For example, residential, commercial, or industrial properties have different price points. Different regions (OCR/RCR/CCR) has different price points as well.
4. Location: Property prices can vary greatly depending on the location. Research areas that align with your budget and investment goals and look at the government's URA masterplan.
5. Government Regulations: Stay updated on government policies like ABSD and SSD, as they impact your investment costs. Different regulations apply to Singaporean and foreign buyers.
6. Financing Options: Explore financing options, such as bank loans or leveraging your Central Provident Fund (CPF) savings. These can reduce the upfront capital required.
7. Risk Tolerance: Consider your risk tolerance. Property investments can tie up your capital for extended periods. Ensure you're comfortable with this illiquidity.
8. Market Timing: While market timing can be challenging, it's essential to enter the market when conditions are favorable for your investment strategy.
9. Professional Advice: Consult with property experts or financial advisors to get personalized advice based on your financial goals. As an agent, we calculate your finances to make sure you do not over commit to your property and we ensure that your entry price is right. All this with our tech tools and experience to strategise your best move. You can call me at 80 321 321 (non-obligatory) and let's work something out for you.

There's no fixed amount that's universally "enough" for property investment, as it varies from person to person. Careful planning, research, and a clear investment strategy are crucial. Additionally, ensure that you're financially prepared to weather market fluctuations and potential challenges that may arise during your property investment journey.

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All the best!

Larry Mah