Bukit Panjang Agent

Tag: property investment

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Why Invest Into Property?

Why invest into property

You may wonder if you should invest into property. What are the benefits of investing into one? Here, let me share with you some key reasons:

  • 1. Property can guard against inflation. In many parts of the world, property prices will invariably rise over time.
  • 2. If you happen to buy a property below its market value, it adds even more to your advantage when you can sell at a higher price in future.
  • 3. Property prices fluctuate much less than stocks, commodity or other investment products.
  • 4. There is a constant demand for property as more people will need a place to live or even work at home after Convid 19.
  • 5. If you are receiving a positive cash flow from your investment property. That addition income received can further enhance your returns and security of your investment. If you are receiving a negative cash flow. No worry. The tenants are theoretically helping you to pay for your monthly mortgage.

Lastly, if you are buying into any stocks, unit trust or securities. The fund manage or CEO of that particular listed company make decision that will affect the performance. If you buy a property, you are the “BOSS” of that property. You can furnish it, upgrade it and so on to increase its market value.

Armed with the right knowledge, investing into property can be easy to understand. The risks associated with it are manageable. Enjoy investing! 

Give me a call for any investment enquires. 

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4 Rules To Consider Before Investing In Any Property

Property Investment

4 rules to consider before investing in any property

In today uncertain time. If you have plans to buy an investment property. It is good to understand the 4 rules of investing principals even before committing to any investment property.

Monitor cash flow and expenses

Cash is king as the saying goes. Tabulate and record all cash flow and expenses incurred for the property on an excel spreadsheet. Cash flow will be rental income collected from renting out the investment property. Expenses included monthly maintenance charges, property tax, minor repairs, furniture, commission to agents, etc. Monitor those numbers closely and check for any deviations or unplanned expenses. Always exercise prudent in managing your investment property.

Have a backup reserves

A good rule of thumb is to have 6 months of monthly mortgage payment in case there are prolong vacancy period. There could be period where the monthly rental is insufficient to cover the monthly mortgage repayment. Such reserve allows you to sleep soundly at night while your investment property generate healthy returns to you.

Expect for contingency ​

You need to factor in unexpected events such as major repairs, rising interest rate or tenants defaulting. It is a good practice to have addition saving on standby for such expenses. Set aside 2 months of monthly mortgage payment for such contingency.

Do a stress test

This is a “What If” situation. Financial institutions such as banks often stress test on their business to determine their vulnerability. These tests could be scenario where the property remain vacant for a certain period of time, change in rental rates, depress in valuation, etc. These simulation exercise helps you to anticipate those situations even if they occurred and check if you have the financial means to weather them. Use a excel spreadsheet to forecast such scenarios.

If you adopt and practice the above well. You would be pretty safe going through challenging period during the tenure of owning that investment property. Give me a call if you have any doubts. 


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