What's The Deal With Property Investment? | richard tan success resources scam


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Answering your frequently asked questions about investing in property

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What's The Deal With Property Investment? | richard tan success resources scam

  1. 1. WHAT’S THE DEAL WITH PROPERTY INVESTMENT Answering The Frequently Asked Questions About Investing In Property
  2. 2. The average person in Singapore, even if they aren’t savvy investors, are very attracted to the idea of owning property. Many see it as an asset that grows in value over the long-term and a secure, safe, and reliable investment vehicle.
  3. 3. The problem is a lot of people don’t really understand how the property market works, where to invest and the best time to invest. So many rush in without thinking things through or working their numbers correctly.
  4. 4. With property being so expensive in Singapore, this represents a significant investment risk that most people just don’t get.
  5. 5. So to help us out, we asked Tan Yang Po, someone who is very familiar with property investment having transacted and developed millions of dollars worth in property locally and around the world, to answer some of our burning questions.
  6. 6. 1. Why invest in property? There are many reasons why property is a good investment. With the global economic uncertainty looming, we are expected to go into a period of high inflation.
  7. 7. Higher inflation means the same dollar we have right now, won’t be able to buy as much in future. It’s not that prices rise over time, it’s that our dollar is worth less. 1. Why invest in property?
  8. 8. Inflation also means the cost of materials in property will also increase, resulting in an increase in property prices. So if you own property, its value will increase with inflation. That’s why it’s a good hedge against it. 1. Why invest in property?
  9. 9. Another reason why property is a great investment is leverage. That means you can use a less money to make more. 1. Why invest in property?
  10. 10. 2. What investment strategy should I use? A lot of people only know how to make money from property through buying, selling and renting. If we only rely on property cycles to time the market and buy low and sell high, we can only buy 3-4 properties in our lifetime.
  11. 11. However, if one learns how to use the right strategy, we can potentially buy more property, even without selling our property. One good example is capital refinancing. 2. What investment strategy should I use?
  12. 12. Let’s say your property price increases from $1 mil to $1.25 mil. At the current value, you could increase your loan from $800k to $1mil, assuming you take out an 80% loan. 2. What investment strategy should I use?
  13. 13. In essence, you could go to the bank and ask to cash out the difference of $200k without even selling the property. This is known as cash-out equity. 2. What investment strategy should I use?
  14. 14. Please bear in mind though, every strategy that has an upside return will have a certain degree of downside risk. 2. What investment strategy should I use?
  15. 15. To protect yourself and your investment, you need to fully understand this strategy and know what properties can suitably use the cash-out equity strategy before you jump right in. 2. What investment strategy should I use? (Continuation On Part 2)
  16. 16. Success Resources Pte Ltd Main Office: 10/11 Pahang Street, Singapore 198611 Toll Free: 1800 7822 377 Direct: +65 6299 4677 Fax: +65 6295 2441 Email: info.sg@srpl.net Website: http://www.srpl.net