What are landed property? And how can you invest in them? Though such questions don’t really concern you if you aren’t planning on investing any time soon, those who do wish to invest in Singapore’s propertymarket, particularly landed types of housing, must know the fundamental components constituting the real estate. Only then can you make sound business decisions that are congruent to future investment goals and retirement objectives.
What is Landed Property?
The general definition of the type of housing, at least in Singaporean borders, is a property wherein the owner has the deeds to the land being occupied by the property itself. This normally pertains to detached and semi-detached housing as well as terraced estates. To gain a better perspective, the counterpart to landed property are apartments and condo units, both of which are strata-titled.
Why are There Landed Property?
In the real estate business, a landed house for sale in Singapore is geared towards generating income for the property owner without him/her providing any ongoing maintenance and repairs. Landed properties date back as far as medieval Europe, when landed properties were subdivided into a manoralism and family farm structure. Nowadays, modern landed estate have quite similar characteristics and purposes but are governed slightly different.
Why Invest in Landed Property?
Among the different types of investment housing available in Singapore, landed property is one of the few that generates a competitive rate of passive income by means of monthly rent or lease. Historically, landed property has always been considered an excellent investment opportunity for growing wealth. Demand for properties in countrysides and suburbs is constantly increasing. Over a short time horizon, any investment put in landed estate will generate better gains that cannot be found elsewhere. The potential returns can be further amplified by the fact that Singapore’s economy is poised to expand in the future.
How to Invest in Landed Property?
While highly encouraged, investing in landed property should be carefully planned for. The benefits and good features of the property should be weighed with its unique set of risks. When investing in landed property, tailor your choices based on your investment capital. For small investors, it would be strategic to stick with shares of realty agencies and real estate investment trusts. These options provide more liquidity as opposed to directly owning a landed estate.
One should conduct proper research before buying a landed house for sale in Singapore. Many offerings for landed property allure private investors with large shares. However, what is not stipulated is the fact that it can take some time before these assets generate passive income. In addition, verify if your contact regarding the Singapore landed property is indeed the true owner of the property. You do not want to be wasting both time and money if he/she is not allowed to sell the estate legally.
While landed properties involve more complex stipulations than traditional single-family homes or apartment units, its liquidity and potential ROI make them invaluable additions to any investment portfolio.