Read? Property Investing - doing the Math (Part 3)
Sunday, 4 January 2009
Property Investing - doing the Math (Part 3)
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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.
CW8888: Wah! It took 8 years for Experts to sound this wake up call in the newspapers as worthy news.
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For investment, better to buy leasehold. Higher ROE.
ReplyDeleteFor legacy, then buy freehold if can afford.
Or if make sense --- I know some people ngeh ngeh buy freehold, but can only afford mickey mouse studio apartment. If they have bought it for the right purpose then OK. But if they expect to raise family and then pass it on to their kids for them to raise THEIR own families in mickey mouse flat, then ...... ?!?!?!
Anyway freehold is overrated in S'pore --- due to the fact we have Land Acquisitions Act and the Emergency (Essential Powers) Act.
BTW, most REITs are owning leasehold properties. So they need to manage time decay & valuations & value proposition of their stable of properties.
In other words, buying leasehold properties for investment is the same as buying any other investment assets (stocks, bonds, trusts, REITs, etc). You need to monitor along the way. It's not buy & forget lah. :)
Of course if the property is just for staying, then it's not an investment in the first place. Just a consumption item for you to sleep, eat, shit, bathe, watch TV, surf internet, etc. :) :)