Real estate investing is both a gold mine and an Achilles heel for the average investor. Often referred to as the most profitable option, it requires a lot of planning, savings, and a sharp nose to prevent us from making mistakes. If not careful, we may end up losing much more than we thought we would win.
However, real estate investment has been undeservedly framed as a speculative practice due to inexperienced people, whose interests lie beyond obtaining a greater return on their savings.
This begs the question: How can we ensure that we are making a good real estate investment instead of falling into speculative practices?
How to invest in real estate
Here is one of the points that have given real estate investment its bad reputation. “Experts” and the news tell us that you are making a lot of money with rents and property sales. They encourage us to gather all the money we have to buy a home. They do not warn us about factors like bubble burst or issues such as undervaluation, which takes away all of our capital.
Therefore, we should never overexert or depend on them when investing in properties. If we do not have enough money, other forms of investments in Singapore may be more suitable for us.
Don’t do it alone
Crowdfunding is not just a matter of being able to finance personal projects. It can also be put into practice to bring together investors who can help acquire property without risking your savings, as indicated in the previous point.
The right platforms will allow anyone interested in entering the real estate market to do so comfortably. They will provide the capital they deem appropriate and finance the acquisition of properties collectively – the same way it is done with corporate actions or the sale of bonds.
Look for secure investment platforms
What can be considered a secure investment platforms?
Well, a platform registered and recognised as safe by the Monetary Authority of Singapore (MAS), the highest body in matters of regularisation and control of assets.
Platforms that are not under this regulated framework may engage in speculative practices with doubtful legality. They may compromise your investment and fail to provide you with stability and security.
Do not trust
Closely related to the previous point, we cannot invest lightly without accurate knowledge of what and where to do it. Knowing the investment environment is important. In which area is it being carried out? What are the chances that the market slows or decreases, among other points? What are the existing possibilities of revaluation? Do not be influenced by simplistic comments like “the purchase price rises” or “rents are skyrocketing”.