Singapore is known to be one of the most expensive places in the world in terms of real estate prices. But it is also one of the most secure Property Markets in the world.
This is the reason why Property Investing here is becoming a much more appealing opportunity to investors in recent days, for those close to retirement who want to secure a steady monthly income as well as for individuals both within and overseas looking for opportunities to enter our market.
Over here at The Smart Singaporean, we hold the view that Rental Properties can be a good addition to your Passive Income Investment Portfolio.
But Investing in real estate, especially when it comes to picking a property with a good rental prospect is not exactly easy. In fact, determining which properties will rent fast and how much money it is worth to invest in making the property appealing to tenants requires a lot of knowledge and experience.
We’ve been in your shoes before. To help you out, we put together this guide that aims to teach you how to spot good investment opportunities, which factors influence property prices, and how to get your property to lease out fast.
What makes a property good for investing in?
Factors such as the location of the property, proximity to public transport, facilities, and amenities in the neighborhood are going to be important factors that can affect a tenant’s decision to sign a deal with you.
If you are looking to purchase a property to rent out, your best bet is to invest in apartments situated in large complex buildings, as these buildings often garner the most awareness amongst renters.
Cheap does not always equal good. Even though it may be tempting to invest in cheap properties, some might require too much maintenance work or are situated in areas that are less preferred by tenants. What might seem like a bargain price wise might not always be the case on second look.
Your best bet is to invest in condominiums and use historical data to study the monthly rental numbers and see if it is consistent. Keep an eye out for landed properties as well, as they are especially popular with expats who typically move to Singapore with their families. If there are any good schools nearby, then the chances of you finding a tenant is also higher.
Take into consideration factors that can influence property prices
Investors know that, in order to make a profit, they need to sell when prices are high and only buy when prices are low. But what are the major factors that influence the Singapore real estate market?
In a troubled economic climate, you can expect prices to lower, while in times of prosperity, they will be on the rise.
Interest rates in Singapore are low at the moment, which means it costs people less to take out a loan and purchase a home. High interest rates, on the other hand, can discourage people from buying property.
Location and infrastructure
If the property is situated in a good neighborhood, with easy access to public transport, as well as schools, shopping malls, and libraries nearby, then prices are going to be higher. Look for properties in neighborhoods that are currently in development, as prices tend to be lower but will increase in the following years.
State and condition of the property
An old property requires a lot more maintenance, which is why prices are typically lower. A recently renovated property can be rented for a higher price, but do make sure you are calculating your risks and don’t end up putting too much money in it.
Tips for finding tenants swiftly
Tenants are typically looking for a place they can feel at home in, which means the house needs to be well put together and clean, but simple enough so that they can decorate it to their own liking. In most cases, a fresh coat of paint is enough to make the house feel like new, but don’t hesitate to fix cracks in the walls or any other things that may need maintenance.
When it comes to furniture, rugs, curtains, and lights, choose items in neutral colors that go well together. Try not to overcrowd the house, especially if it’s a small apartment, as potential tenants will also want to bring in their own stuff.
If you are wondering how to market a rental property, one of the easiest ways is promoting your property online, especially on social media, where news travels fast. If you can access some rental specific groups on facebook or telegram, the chances of you finding tenants are much higher.
Have a rental property that you need to market? Or looking for prospective tenants? We are happy to assist you. Send us a message and tell us more about this Property.