Why invest in Real Estate?
Proven way to grow wealth:
Property investment is a trusted and proven way to growth your growth over the years. Many millionaires earn their millions not by working, but by investing in real estate.
According to Forbes, the top 10 richest people in Singapore are:
Robert & Philip Ng; $11.9 billion
Eduardo Saverin; $11.8 billion
Goh Cheng Liang; $8.5 billion
Kwek Leng Beng; $7.6 billion
Khoo family; $6.7 billion
Wee Cho Yaw; $6.4 billion
Kwee brothers; $5.4 billion
Richard Chandler; $3.15 billion
Raj Kumar & Kishin RK; $2.7 billion
Choo Chong Ngen; $2.6 billion
With the exception of Eduardo Saverin (Facebook co-founder) and Goh Cheng Liang (Dulux paint), all the other tycoons earn the bulk of their fortune from real estate.
Photo: HDB flats in Singapore
2. You don’t have to be a genius to invest:
Unlike other vehicles of investment such as stocks and commodities, you do not need to be an expert to get rich in the property market. You can be a part-time investor while holding a full-time job and still build up a substantial portfolio over time if you invest wisely. You do not have to invest full-time in order to reap great returns.
3. Security of “bricks and mortar”:
Companies can go broke, stocks can become valueless overnight, but we never heard of properties going “broke”. People will always require a roof over their heads and save for a major disaster, it is impossible for properties to lose their value overnight.
4. Consistent capital growth:
The prices of Singapore properties have been growing constantly in the last decade since the Global Financial crisis except for a few minor blips with the introduction of rounds of cooling measures by the Singapore government.
5. Steady source of income:
Properties provide a steady source of income in the long term as there will always be somebody looking for a roof over their heads or a shop space to do business. Though the rental yield will be affected by economic cycles and monetary policies, rentals are likely to grow in the long run due to inflation, rising labor and transport costs and economic growth.
6. Leverage on somebody else’s money:
Properties are the only type of investment which enable you to borrow to finance their purchase at reasonably low rates. This is called leverage which allows you to use a small amount of money to purchase valuable real estate otherwise out of your reach.
7. You are in full control over it:
Properties make great investment because as the owner, you have full direct control over what to do with it. You can decide to stay in it or rent it out and you can add value to it through renovations or refurbishment.
8. You do not need to sell to earn a profit:
Unlike other investments, you do not need to sell in order to capitalize the increased value of your real estate. You can simply refinance your loan with the bank to get a higher loan and cash out the available equity.
9. You can pass it on to your children:
Real estate is an excellent asset to pass on to your children and a great way to preserve the wealth of your family. Not only is it stable and secure, its capital value will grow with time.