Lisafuller wrote: ↑
Mon, 24 Oct 2022 2:14 am
smoulder wrote: ↑
Sat, 22 Oct 2022 9:11 am
Property is still a poor investment, Wd40. Your first property
will be your home, not an investment. If you are able to make some money from it, it's just a nice bonus, but certainly not a good investment.
The only property investment I would consider are REITS.
I don't think this is necessarily true, if you buy your first home and allow the value to appreciate, when you eventually sell it you can make quite a bit. I think buying a second property would be an unwise investment though.
Not really. Your first property is your home. Sure, you can sell it and maybe make some money. However, the CAGR on most property, especially in a place like Singapore is quite low. Factor in how much overhead costs you incur plus interest on your bank loan, the profits are not very impressive compared to the stock market which is where you really should be putting your investment money into.
That said, in my opinion, you shouldn't even be talking about your home as an investment - it's purpose is for you to stay in. It's about convenience as opposed to having to worry about additional uncertainties that come with renting (you can guess what they are - X9200 pretty much already covered them). Your home's primary purpose is not to make money off. If you happen to make some money off it, then that's a bonus, but that probably shouldn't be your goal - there are many other things that are probably more important when you are picking your home.
Now, in the Singapore context, the ABSD on the second property makes additional properties unprofitable which is why "investing" directly in real estate for the average middle class person is a terrible idea.
If you really want to invest in property, then you should be looking into REITS and not trying to buy apartments.