Property

A roof above your head or more?

ASK A QUESTION
Property
  • Asked by Anonymous

    Yixiong Chang
    Yixiong Chang
    192 Answers, 250 Upvotes
    Answered 11h ago
    you can buy private property whether locally or overseas. The requirement is just that you have to continue to be staying in the HDB.
  • Asked by Anonymous

  • Asked by Anonymous

    Sandra Teo
    Sandra Teo
    26 Answers, 49 Upvotes
    Answered 5d ago
    Initial Capital Outlay Investing in a physical property would require a large downpayment. Especially with cooling measures; additional buyer's stamp duty (ABSD) and total debt (TDSR). Many invests in a physical property under the assumption that the property value will soar over the next few years and that rental collected will be sufficient to offset mortgage. The downpayment for a property is at least 20%, which can amount to more than $10,000 for a condo! Whereas, REITs investment require a much smaller amount. Leverage Previously, one could easily utilize his/her CPF Ordinary Account to pay the downpayment and mortgage rates are low (approx 1.7%) however, with the current cooling measures, it is no longer as easy to get as much leverage. For REITs, due to high interest rates, brokers charge 2.5 to 3.5 times the value of the stock. Liquidity Physical properties are one of the most illiquid assets, as it may take months to years to sell, depending on the market condition. On the other hand, REITs can be bought and sold easily. Income Tax In terms of profitability, rental income on physical properties are subjected to income tax while REITs are tax free! If you're looking to diversify your portfolio, REITs offer the opportunity to own overseas asset as investments in physical properties are usually done locally. If you're looking to grow your portfolio, REITs is a cheaper method as you would not have to pay the large downpayment and ABSD.
  • Asked by Anonymous

    Sandra Teo
    Sandra Teo
    26 Answers, 49 Upvotes
    Answered 4d ago
    Hi there! Mortgages tend to have lower interest rates than margin rates and generally speaking, real estate prices have lower volatility than stocks. Additionally, real estate may be non-recourse, meaning that if the property fails, the bank can only go after the mortgage property and not your personal property. You can think of it this way, the bank cannot take away your house simply because the house dropped in value but on the flip side, the broker is able to take away your stock when the value drops.
  • Asked by Anonymous

    Devanshi Singh
    Devanshi Singh, Investment Planner, Writer, Adviser at Financial Advisory Services
    17 Answers, 26 Upvotes
    Answered 3d ago
    Property investment is always a smart choice for investment as by investing in property market you get theregular passive income source. It is good that you are investing in property directly by buying the preoperty but there are other indirect way to invest in property i.e . Singapore REIT. You migh be wondering it is even more hectiv to do all the study to find best Singappore REITs. Well, it is not if you know the right source to guide you. I am sharing a blogin which top performing property stocks are giving along with their basic information. I hope this can help to make a judgement about Singapore Stocks. https://sgtalk.org/mybb/Thread-What-are-undervalued-stocks-and-What-are-top-5-best-undervalued-stocks-in-Singapore
  • Asked by Anonymous

    HC Tang
    HC Tang, Financial Enthusiast, Budgeting at The Society

    Top Contributor (Jan)

    360 Answers, 869 Upvotes
    Answered 4d ago
    Congratulations for getting new house😃 Some opinions and suggestions below : 4 rooms HDB as the size different lies within the bigger living room space. (A) Cost Not only price of 5 cost more than 4, any extra ongoing monthly maintanance cost and annual property tax is also higher for 5 than 4. Over long terms it also adds to quite a sum. The annual incentives such as those packages announce with Budget such as GST voucher, S&CC rebate is more for 4 than 5 rooms HDB. Thus quite a substantial savings on going to keep cost low monthly. (B) Cleaning Though only smaller living room space, the extra maintenance is also an effort monthly for as long as you own them. (C) Selling demands In the future, if you're thinking of selling to upgrade , 4 rooms demand is always more than 5 rooms due to smaller family nucleus and lower cost. Finally , if you're looking at BTO over resell , the space BTO 4 vs 5 could make a big difference. As much as possible , find out the total size and go to a similar flat layout of your friends to take a look and get a feel of the size to choose the most comfortable size. Cheers
  • Asked by Anonymous

    Brandan Chen
    Brandan Chen, Financial Planner at Manulife Singapore
    153 Answers, 224 Upvotes
    Answered 2w ago
    Firstly, whats your definition of safe stocks? Secondly, Do you currently have the amount that is sufficient for your housing expense? Or still saving up for it? Suggestion: There are no such thing as safe stocks. Do note that Investment returns are never guaranteed but your housing expense in the future is. If you are able to take up some risk, perhaps apportion about 50% to 70% of the fund is lower risk products such as SSB, Fixed Deposit, Citibank Maxigain, or Single Premium Endowment Plans offered by Insurers from time to time. With the remaining fund, perhaps you can consider placing it in REITS or Defensive Industries to reduce your loss should a crisis occur
  • Asked by Anonymous

    Hariz Arthur Maloy
    Hariz Arthur Maloy, Independent Financial Advisor at Promiseland Independent

    Top Contributor (Jan)

    295 Answers, 494 Upvotes
    Answered 2w ago
    This is exactly what I'm doing. I'm not planning to have a baby in the 3 room flat. So just husband and wife. Also, this allows us to only pay a $500 mortgage via cash, frees up cashflow for investing. After 5 years, hopefully straight to condo or landed. Rule of thumb to follow for home affordability is: Your home should never cost more than 7 X the combined annual income of the family. Preferably 5 X is sufficient. So if household income is 100k, a 500k house is perfect, but never buy more than 700k.
  • Asked by Anonymous

    Yixiong Chang
    Yixiong Chang
    192 Answers, 250 Upvotes
    Answered 3w ago
    Yes, EC are priced much below average market value of similar private property, before any grants if any. And once it privatised, it will be sort of becoming the 'newest' condo in the area, thus it will also have price premium over surrounding condos if any. Once it is privatised, there isnt any more restrictions(HDB rules) attached to buying/selling, thus it opens up to a larger potential buyer pool (also richer buyers are available).
  • Asked by Shawn Lim

    Nicholes Wong
    Nicholes Wong, Diploma in Business Management at Nanyang Polytechnic

    Top Contributor (Jan)

    278 Answers, 395 Upvotes
    Answered 3w ago
    1 lot is 100 shares usually in Singapore context. 1 lot or 10 lot is up to you and have to see the share price of the REITs that you are interested in as well. Just make sure you done your research before buying and comfortable with stock volatility.
See more questions

Download Seedly’s free

Expense Tracking App
Download on the App StoreGet it on Google Play
  • Sync all your banks in one place
    Sync all your banks in one place
  • Quickly add transactions and view reports
    Quickly add transactions and view reports
  • Community Q&A and blog integration
    Community Q&A and blog integration