3 rules to know when investing in real estate

Treasure at Tampines, the biggest condominius in the east of Singapore, brings you the 3 rules to know when investing in real estate.

Rule 1: DO preliminary investigation

Some believe real estate investment in Singapore is a price-for-value game. Never invest in things that look attractive but you don’t actually understand the value. In other words, never invest in goods you don’t understand. It is suggested to compare horizontally by looking at historically transaction price and future development and vertically by checking prices of other similar properties in the similar district, in order to fully understand the overall price of real estate before making a decision.

Singapore’s property transaction prices are very transparent. All transacted prices, government development plans, details of each land parcel, bids are available on the government website.

Rule 2: Keep pace with the government master plan

Understanding the latest master plan of the Singapore is the foundation of successful investment in Singapore property. The Singapore government is one of the most efficient, honest and economic-driven governments in the world. The government is also the largest investor in Singapore, e.g., construction, education, urban infrastructure, etc. The projects planned and invested by the government over the past 40 years are all highly rewarding. In fact, most people who follow the government’s urban development plan to invest in property, earned substantial profit. Some successful local property investors in Singapore simply invest in the area which Singapore government’s heavily invested.

Rule 3: Own field study research and advice from professional property investors

Lots of people can give you advice when investing in property in Singapore, such as developers, bankers, fund managers, property brokers, loved ones around you, etc. Whose advice should you listen to? Some suggestions are to successfully sell their property to you. The actual value needs to be judged after your own field studies. Some suggestions are based on their opinions. They may not have a lot of personal experiences. Many investors did not enter the property market in the lowest market in February 2007 after listening to the advice of the banker, and lost the opportunity to buy property at the bottom. Some people followed the advice of developers and bought properties at a high price which is hard to sell. In fact, the most reliable advice should come from investors who continue to invest in property. They buy and sell property many times in a year. They have real transaction experiences in the market. They have the best grasp of the value in real estate industry. Their suggestions should be consulted. Of course, a successful property investment must be based on your own independent fieldwork and data analysis. Any so-called expert advice can only be used as a reference, otherwise it will increase your investment risk.

This update is shared by Treasure at Tampines, a recent project which is close to Simei MRT.