Spotting A Good Property Investment

Here in Singapore and in fact, all around the world, we’re always searching on how we can make extra cash. One of the popular ways Singaporeans turn to is property investment, with a specific focus on generating monthly rental income.

While it’s easy to say you want to get into property investment, there’s a lot more than meets the eye, with the key factor being that you’re able to spot a good property investment.

Here are some key things to look out for when you’re on the hunt for a property to invest in.

The #1 identifier to know whether a property presents a good investment opportunity is most definitely the location.

Of course, being located within or closer to the city centre is a huge pull on the rental front – especially to lure in expat tenants. With so many dining, shopping and recreational developments in the area, it’s highly likely that rental opportunities are abound – at the right rental price.

Outside of these areas, you should aim for developments that are close to public transport hubs such as MRT stations and bus terminals as tenants will look out for these aspects when hunting for a rental unit. Being located close to top local schools or international schools also presents a huge opportunity as families will want to be located close to these educational institutions in the interest of their children. However, these properties will most likely be sold at higher price points, so you may want to consider properties that may be slightly further away so you’re not paying an exorbitant amount for the property.

It may be hard to keep track of the new launches that are in the market. You can easily view what’s available via the SRX’s New Launches. Also if you want to gather more insight, simply refer to the new project insights to view the percentage of units sold and launched, the average price, and average price per square foot (PSF), of various new and upcoming condominiums, all at a glance!

One of the key things you should look into when you’re sourcing for potential properties to purchase is Urban Redevelopment Authority’s Master Plan. This Master Plan is a guide for Singapore’s development plans over the next 10-15 years – which will be a key piece in the jigsaw puzzle as you’ll have a better indication of developments in the area down the road which may have a huge impact on both rental income and capital growth.

Key things to look out for in the Master Plan include plot ratio, business parks and white sites. Plot ratios are a key one to understand as you wouldn’t want to purchase a property only to find out that there will be another development being built on an empty plot of land that may potentially affect the views and thus rental opportunities.

Business Parks and White Sites are a key thing to note as it will largely impact the rental income, you’re able to generate. You’d like your property to be close to Business Parks seeing as there will be countless rental opportunities from expats that may want to reside close to their workplace. As for White Sites – which is a plot of land where a range of uses is allowed, such as commercial, residential or recreational, there is an expectation that there will be a mixed-use development in this space thus offering additional value to your property if there’s a white-site in the surrounding area.

Looking ahead to future developments in and around the area will provide comfort that there’s good resale value down the road. However, the fact of the matter is that it’s never a guarantee as things may change.

Rather to solely focus on the end sale outcome, think about the value of the property right from the start when you’re looking to make the property purchase. Ideally, you shouldn’t purchase a property that’s overvalued in the hope that the future PSF price increases. Instead, look for projects where it’s being sold at a current or lower PSF price.

With all that’s been said above, it isn’t easy to get the job done just by yourself, which is why we’re here to help at SRX. Once you have a chosen area or building in mind, simply head on over to SRX Concierge, where SRX’s special algorithm will connect you to a real estate agent that best matches your needs. You can then have the peace of mind seeing as the SRX team will ensure they service you well to get you the result you hope to achieve.