Can I Still Make Money From Property?
An overview of the current property market, property investment strategies, considerations before investing, the profitability of real estate, diverse ways to generate income, and the role of passion in real estate success.
Property continues to be more expensive, and it is almost sure to make money or get Rich with Potential Profits over a span of time, but it is harder to become wealthy by buying/selling property.
TLDR: Property investment in Singapore, especially in HDB BTO and resale flats, can still be profitable despite high property prices and cooling measures as long as the right property is bought with a long-term horizon.
In addition to these trends, it is essential for investors to consider the impact of external factors such as government policies, interest rate fluctuations, and price volatility on the property market. By comprehensively understanding the current landscape, investors can make informed decisions and navigate the real estate market with confidence, leveraging the prevailing trends to their advantage.
Key Concerns
People are concerned about the high costs and low profits of property investment, especially with the rising prices of HDB flats and new condos, and are skeptical about the potential for significant returns.
If annualized gross profit is below <5%, you can’t make any profit because you an average of a 4.5% interest rate you sign the loan in 2022-2023. If you calculate all the costs: renovation/repair, tax/insurance, BSD, ABSD, SSD, agency fees, etc.,homeowners may be only making marginal profits. By the way, it still needs to factor in 3~5% inflation.
Hdb giving high Subsidies grants to flat buyers. This may help buyers to buy a HDB Flat with more confidence and that may also help to push up the raising price in HDB flats, especially resale flats. In the last three years, resale flats have risen by more than 50%.
Part of the price growth within the landed segment can be explained by people doing A & A and rebuilding, which makes the average landed property bigger/more excellent than it was in the past. It’s much more expensive than renovating a condo!
Key insights
💰 “To date,we never seen a MOP BTO flat that lost money.”
💰 The top gains in property such as Kovan Residences can be making $1.746 million with an annualized profit of 6.3%.
📈 Looking at the property charts, it clearly shows that landed properties in Singapore have appreciated and with more stable growth.
1. 🏠 Property prices are high, interest rates are high, and there are cooling measures, but there are still opportunities to make money in property investment, especially in the HDB segment.
2. 💰 HDB can make $1.2 billion by selling BTO flats to private developers, but they build public flats for affordable housing and to secure votes.
3. 💰 BTO flats are a good investment, but HDB flats are not for making money.
4. 💰 Property data for 2023 is time-consuming to analyze, so consumers can use Edgeprop’s weekly top gains and losses, which also showcase that Kovan Residences making $1.746 million and Hilltops losing $650,000.
5. 💰 Buy the right property with a long-term horizon for profitable returns in the property market.
6. 🏡 Landed properties in Singapore have seen a 308% price appreciation over the past 20 years, making them a better investment than high-rise properties.
7. 💰 Property prices have appreciated and are expected to continue rising, making it an excellent long-term investment. HDB BTO and resale flats are suitable investments, and EC and landed properties are still worth exploring.
8. 💡 Scarcity supply will continue to drive up landed property prices in the long term, making it a clear winner for investment.
Property prices, especially for landed properties, have significantly appreciated over the last 20 years and are expected to continue to rise due to scarcity of supply, making it an excellent long-term investment.
HDB BTO and resale HDB flats are suitable investments; while private condos in certain areas may start losing money, EC and landed properties are still worth exploring.
8. 🏠 Property investment can still be profitable but requires effort and improvement.
Capital Appreciation
A Fundamental strategy for making money from property investments. This strategy entails investing in properties that are poised to increase in value over time, driven by factors such as location, amenities, and overall development in the surrounding area. For instance, investing in a property located within a rapidly developing neighborhood can lead to significant capital appreciation as the area evolves and gains prominence. This approach offers a more stable and long-term perspective on generating profits from property investments, appealing to investors seeking sustained growth and wealth accumulation.
Rental Income
Earning rental income represents another pivotal avenue for reaping financial rewards from property investments. As landlords, investors can generate profits through monthly rental payments from tenants, providing a reliable source of income. It is imperative for investors to consider factors such as property attractiveness, location, and rental regulations to ensure a consistent and positive cash flow from rental income. For example, investing in a property situated in a high-demand rental market with desirable amenities can result in a steady stream of rental income, contributing to the overall profitability of the investment. However, it is essential for investors to be cognizant of the responsibilities associated with property management and tenant relations when pursuing this strategy.
Conclusion: Can I Still Make Money From Property?
Earning rental income represents a pivotal avenue for generating profits within the real estate market, providing a reliable source of income through monthly rent payments from tenants. It is essential for investors to consider property attractiveness, location, and rental regulations to ensure a consistent and positive cash flow from rental income. By recognizing the diverse opportunities and strategies available, prospective investors can embark on their real estate journey with confidence, leveraging the potential for financial success and long-term prosperity within the dynamic property market.
