Want to invest in property but money not enough?!

[maryramp]

Want to invest in property but money not enough?

You are not alone! A lot of people in Singapore want to invest in property after buying their first property, be it private condo or HDB. But with the high property prices in Singapore, they do not have enough money to invest in a second property. How come?

For simple calcuation, let's use a ball park figure of $1 MILLION for a condo in Singapore. For second property, the minimum upfront cash payment for the downpayment is 25% as regulated by Monentary Authority of Singapore (MAS), which is $250K for a $1 MIL property.

As a Singaporean, you have to pay 7% ABSD (Additional Buyer's Stamp Duty) for the purchase of your 2nd property and 10% for the 3rd and subsequent property. For PR, it is 10% for 2nd property and subsequent property.

If you are a Singapore Citizen, the ABSD amount is $70K for this second property and you have to pay it in cash. Thus, the amount of cash you need to pay upfront is $320K! ($250K + $70K)

In addition, if you take a bank loan in Singapore, you are subjected to the regulation of TDSR (Total Debt Servicing Ratio) as imposed by MAS.
Under TDSR, your total loans including current monthly home loan payment and other loans such as car loan and personal loans cannot exceed 60% of your gross monthly income.

Does it mean that you have to give up on your dream of having a second property and enjoying passive income of a rental property?
The answer is a resoundingly NO!

 

[maryramp]

Investments in real estate have become popular again. Low rates on bank deposits and active growth of housing prices led to this. But what should people who do not have as much capital invest? Beginning to understand this, I came across the website wealthyliving.com, which told how you can become rich without having much money. And figuring it out, I realized there were programs in the real estate market for investing small amounts of money equal to the cost of a few square meters of housing or commercial properties. Such investments can bring a profit of 25%. Some analysts consider the new programs insufficiently transparent. Despite this, an increase in these transactions is predicted since the new format allows a very large number of participants to enter the real estate market.

 

[Lyayozoce]

Investing with credit money is a dangerous idea. Still, if you are confident that the investment will bring you even more money, you need to take the risk. The most important thing is to think through all the details and calculate the risks to secure your money. Finding a good company that will give you money at a favorable interest rate is also important. I have often taken loans from Credit24, as these guys provide loans on favorable terms and quickly give money. Plus, you can choose your own payment period.