Property Investing - doing the Math (Part 3)

I have sensed that some of those superfriends are getting ready to invest in property. I presume investing in Sinagpore 99 years Leasehold property as investing in Freehold property would need huge capital and highly leveraged.

What is 99 years Leasehold?
A leasehold estate is an ownership interest in land in which a lessee or a tenant holds real property by some form of title from a lessor or landlord. Leasehold is a form of property tenure where one party buys the right to occupy land or a building for a given length of time i.e. 99 years.

What work against an investor?
Time decay. Yes, time decay works against any investor (value investing).The property will likely to go through a few property cycles, finally, the full impact of Time Decay will be signicifantly felt in the last cycle and will be rapidly priced in and its value will plummet without no futher recovery i.e. approaching End of Life.

Is putting money in 99 years Leasehold property Investment or Speculation?

I think Investing is the most abusive word used by Investors in Singapore 99 years Leasehold property.(You should never ever think you are an investor if what you are doing is in fact speculation)

Leasehold property is good for living and for those who could afford a luxury living. By all means, live well, enjoy it, and spent your natural wealth in your lifetime. Never heard of anyone who has successfuly bring their wealth with them after their lifetime, most likely their wealth will be stolen or lost after sometime.

So are you still INVESTING OR SPECULATING? Leave it for you to answer truthfully. Alternatively, loading property counters bringing you nearer to INVESTING as there is no TIME DECAY element. Cheers!