How to profit from wise property investment | Nowadays, everyone is encouraged to dabble their hands in property investments when they have surplus cash. You must have heard about all those famous success stories when people invested in real estate and made a huge amount of cash by trading the properties. At today’s market and with all the restrictions being put in place by the government to prevent speculative buying and others, the earlier feat to buy and sell properties has just become more complex. For example, you might be interested to invest in a condominium near Paya Lebar for your future. In order to ensure that your condominium purchase in Paya Lebar is worthy, you must consider a huge amount of factors such as potential capital appreciation, rental yield, proximity to amenities and more others.
An expert has shared his experiences from his property investment journey. When he started his journey in property investing, he was nearly bankrupt with terrible credit score and was trying to recover his finances from a major business setback. However, he managed to turn it around due to some key reasons. For starters, he took action immediately instead of waiting for the property market to fully recover from the slumps. Furthermore, he learned how to acquire property such as condominiums in a strategic area such as Paya Lebar for a reasonable pricing. This is to ensure that he or she could dispose the property rather easily even at a softer than normal economy. Without those reasons, the expert today would likely not to be an expert and would be renting condominiums instead of acquiring them for investments.
Buy and Sell the property simultaneously; Double close
A double close strategy is when you both buy and sell the property at the same time. If the markup is substantial enough, the strategy would definitely work. By having two sets of closing documents, the end buyer would only be able to see the price you are selling for the property and not the price you paid for it.
Wholesaling
This strategy may apply when you put a property under contract and then assign your rights in that contract to an end buyer for a fee. It only takes a little money. What you need is knowledge and a lot of “hustle”. Wholesaling served as the foundation of the expert’s property business and is what “kept the lights on” in the beginning. However, this strategy might not work in recent times as buyers are getting wiser when it comes to purchasing condominiums or properties due to property online platform like PropertyGuru, growing influences of social media and search engines.
Spec Home Building
Short for speculative, this is building a home by purchasing a condominium or property without having an end buyer lined up prior to starting construction. The risk of this strategy is relatively high as at the end of every boom speculation runs rampant and often these spec home wipe people out when the market inevitably comes back down to earth. It should be priced at decent rate, located in a decent area such as Paya Lebar or others. This is to ensure that at worse case scenario, the condominium could be rented out to recoup some cost instead of losing money every month.
Rehabs (rehab to rent, rehab to owner finance, rehab to sell)
This strategy seems really common for the property investors. Basically, the purchaser is transforming a condominium that needs repairs or updating. The finish-out of the rehabs vary pretty dramatically depending on whether the purchaser getting a house ready to rent or ready to sell.
Land Investment
Again as this is a speculative type of investment, every time you plan buy a piece of land, you also need to ensure that you can profitably develop it in case it doesn’t sell. Remember, until the land is acquired, it generally only produces outflows.
Owner Finance (homes and land)
When owner finance a condominium or land, they are essentially taking the place a lender traditionally would be in. Instead of receiving a lump-sum at closing, owner is paid out over a period of years and receive interest. This can be a great tool for creating passive income.
Rental Properties
Rental properties have historically been the best wealth building strategy in property investment field. Someone is paying for the costs of your assets as you enjoy the benefits of appreciation, equity build-up and tax advantages. You should primarily focus on moderate-income housing that performs well in any market environment. Additionally, every rental condominium purchases should always positive cash flow deal which means the income more than covers all of the expenses associated with the property. Rental properties are a great way to generate sustainable passive income.
