5 Reasons To Think About Acquiring Condominium In Singapore

Press release: 23 August, 2021: buying single family homes to rent them out is a strategy for investing that people have been using since the middle age. In order to earn passive income, more people are creating personal portfolios of single-family houses in recent times. Over the last few years, this method has become so popular that even big institutions with billions to invest have adopted it as a way to diversify their portfolios, earn income and gain exposure to the red-hot Singapore housing market.

The business known as "SFR" and has grown tremendously over the past five years, and retail investors have numerous options to tap into the trend, from private SFR funds as well as online brokerage platforms selling single-family homes that have tenants in place, and publicly-traded SFR real estate investment trusts. Bringing institutional-quality rigor and property management to what had previously been a cottage industry is a positive development for retail investors. Most of the current solutions are focused on single-family detached homes within suburban areas and secondary and third market markets.

Another investment strategy that is targeted I think could be implemented into the real estate portfolio construction that is related to traditional SFR , but with distinct advantages. That's a strategy I call "urban SFR."

Condos in major cities can be a fantastic way to invest in SFR. This is the area that my company specializes in, and through this, I've seen firsthand that there are five good reasons to look into condos in cities that are growing rapidly if you're seeking a new investment.

Favorable Supply and Demand Efficiency

Demand for condos isn't just affected by economics, but also by people's housing preferences and behavior. Keep in mind that the market for condos at Tampines St 62 EC price is primarily composed of homeowners who are end-users, not investors who's decisions are dictated by simple math. Homeowners who are end-users have a variety of reasons to buy and sell their homes, apart from generating outsized returns. This dynamic can create arbitrage opportunities that allow buyers to make money from the excess supply and lack of demand on the sell side.

Macro Urbanization Trends

People are moving to cities at an unprecedented rate, and it's predicted that in 2050, 68% of all people will live in cities, compared to 55% in 2020. The growing trend toward urbanization will influence people's preferences for housing. I am convinced that this could result in cities' prices rising more quickly than rural or suburban costs.

Market Liquidity

It's no surprise that selling a condominium unit is a lot easier than selling a whole building. If you have to sell a condominium, there's typically a plethora of buyers (at the appropriate price) and the transactions can be completed within a quicker time. Investors who want to enter the real estate market are protected by more protection because there is less liquidity risk.

Hassle Free Management

Full-service condominiums offer support to tenants. They pay the monthly maintenance costs that are included in the homeowner's fee or condo dues. If you are a homeowner or landlord, having an on-site staff is equivalent to having a property maintenance staff without the cost of hiring an entire team. Therefore, condo owners do not necessarily have to face the massive headaches that come with repairs and maintenance in the building, or with physical plant issues that result from single-family houses.

Differentiated Return Streams, Potential Upside

While many kinds of real estate are appraised by income multiples (cap rates) or dividend yields, condominiums are valued by demand and supply, as well as other factors like price per square foot. This creates an opportunity for increased price appreciation. Condos are an excellent way to diversify your income and add value to your existing investment portfolios that are income-driven.

Condos can be a low-risk way to invest in the city's development. However, it's crucial to keep in mind that you might not live in the city to get deals. Meeting brokers, attending open houses and bidding in bidding competitions are all essential parts of the process. However, it may seem impossible for those who are investing from distance.

Condo investment in Singapore has been a well-established option for those with a lot of money looking to protect their wealth and protect themselves from inflation. Retail investors have the possibility of gaining access to this investment class to capitalize on urbanization and capture the growth of cities through urban SFR.