You probably have heard people saying that you should invest in real estate during crisis period. Probably so. But before you decide to do so, think about minimizing risk first. What are the ways to minimize risk?
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I am sure many would have heard that during this crisis period may be a good time to invest or buy a property. Looking at the past epidemic crisis in Singapore, very probably this could be the case. We are all excited when we are told that you can make lots of profits.
But hang on. In any investment, there will always be risk. There is no such thing as 100% guarantee in any form of investment including real estate. That is why risk management to minimize risk is very important. There are many considerations when comes to minimizing risk. Today let me share with you 3 points.
Financial Planning
This probably is where you should start off with. It will be very helpful to run through the calculation, taking into consideration your expected income, your current savings, your loan eligibility, your commitment and many others hard facts and intangible details of your life and family.
And it is also very important to set aside reserves after property purchase. Financial Planning is like playing soccer. The players are often not able to see the entire picture, but the coach can. The coach usually is the one that plan the action for the players to execute to strike a goal. I would recommend that you engage a competent realtor or property agent to conduct a property wealth planning with you.
Location
Choosing a good location can minimize your risk. There are 28 districts in Singapore, which one should you go for? If that district has high demand, healthy transaction volumes and good track records, you probably may hit the jackpot. There are many other considerations when choosing a good location. You can contact me if you like to discuss further.
Exit Strategy
I bet many of us when investing in a property probably never thought of when to sell it. I guess owning a new property is a very happy occasion that always overshadow the need to plan when to sell.
The fact is that we don’t hold non-landed properties indefinitely in Singapore, so having a plan when to sell the property is vital.
Exit strategy has to do with your risk appetite and risk profile, setting target of achieving a certain profit in a certain period, managing your fear & greed, and many other considerations.
By having even a simple exit strategy can help minimize risk.
The time taken for your risk management and planning to invest in a property can be shorten if you have a competent realtor or property agent who can advise, plan and walk along with you in your property investment journey.
If you like to understand more and have a further discussion or planning, or if you like to be updated of my new vlogs, please leave your contact details (at <sign up and stay updated>) below and I will be in touched with you. See you soon.
**all data and information extracted from URA and OrangeTee & Tie Research & Consultancy. The content and information provided is for general information only. It should not be treated as an invitation or recommendation to buy or sell any specific property or product. Each illustration in the presentation or article is based on current information as at the date of publication. Readers are to consider the content as one of the many factors in making investment decision and should seek specific investment advice. Readers should carry out their own due deligience or verification of such information. The author and publisher of the article are not liable for any losses. All right reserved.