Learn How Leveraging Works
Property purchases may seem expensive, but you don’t necessarily require large sums of money in order to purchase one. A combination of cash on hand, CPF savings and bank loans could all be used when purchasing real estate. With an annual rate of only 2 offered by banks a housing loan is one of the more cost-effective loans you’ll find; other methods exist such as refinancing or taking advantage of favorable lock-in agreements at key moments (if appropriate). Furthermore, by conducting extensive research you may also find some loans with the lowest rates among them all – saving valuable time in terms of money!
The Continuum was built through an exciting collaboration with Hoi Hup Realty and Sunway and established in Singapore in 1983. Since that time, their property developer team has developed extensive expertise in various real estate fields. Over the last four years they have also actively acquired properties through government land sales as well as through an en bloc exercise.
Hoi Hup Realty have completed several developments prior to The Continuum Condo. They include Waterford Residence, The Continuum Showflat, Sophia Hills at Mount Sophia, Whitley Residences and Terra Hill at Pasir Panjang.
Be Prepared to Bite the Bullet
Properties with strong growth potential may face certain limitations such as an unsuitable location. But in the long run, future development makes the hassle worth while.
Make Sure Everyone is On Board
Property investment requires complex decisions (e.g. deciding the most efficient way to rent out a rental unit) with serious financial repercussions and no margin for error should exist in these choices. Therefore, all parties involved with your property should agree upon an investment strategy as soon as possible.
Attention to Detail
Owning property will incur expenses that should not be ignored; but instead identified and assessed closely so as not to incur massive losses that reduce profits. These small costs might take the form of rising maintenance charges or the price of materials your contractor uses, so paying close attention and scrutinizing each one closely could make all the difference in profitability.
Be at least 6 Months Ahead of Expenses
Planning for the worst is always best as one never knows when one might lose their job and no longer be able to pay their loan, or find their next tenant. Therefore it is prudent to ensure there are enough reserves on hand in case of unexpected events that compel you to make hasty decisions such as selling property at reduced price to minimize losses, or accepting tenants with lower rents than you prefer.
Being a landlord comes with hidden costs
As landlords, we may occasionally come across difficult tenants. Tenants with damaging behaviors could result in damage to furniture, property and equipment resulting from negligence or carelessness. Landlords also run the risk of having to pay rent as well as legal costs as a result of such behavior as renting without authorization or refusing to abide by house rules.
Every homeowner knows that homes require ongoing upkeep. Pipes leak, furniture deteriorates and equipment fails; walls become dull; bathrooms become rundown… the list is never-ending. A landlord is ultimately accountable for taking proper care in maintaining his/her rental. In case the washer breaks or air conditioning becomes clogged up; refrigerator is damaged etc, you’ll have to repair/replace these components or pay to have them fixed or replaced as soon as possible. Similarly if marble floors and countertops need protection a professional cleaning team should visit regularly instead of leaving this up to your tenant to do it all themselves after each meal cooked by them! Similar to new, expensive air conditioners
Before renting their home to tenants, owners often need to perform repairs and upgrades that range from simple repainting and renovations, to larger overhaul projects with new furniture being purchased for each room in the building. If tenants cannot be found without using realtor services (typically half of one month’s rent per year of the tenancy agreement) as needed for recruitment; once tenants leave you will then have two plus one months worth of deposits back due.
As your rental income continues, so will mortgage bills. While this shouldn’t pose a problem, if your rental earnings only cover half your mortgage balance you could find yourself forced to use personal savings instead of tapping into rental earnings! A landlord functions much like an orchestra’s conductor in terms of managing multiple financial obligations needed to keep a circus running smoothly.