A Beginner’s Guide to Being a Landlord in Singapore

The promise of a rather balanced risk-reward profile of real estate makes it lucrative from an investment standpoint, but being a landlord can be tricky once you’ve made the investment in your property.

Here’s what you need to know to get you started on earning income on your property:

1. Being a landlord is not a 9-to-5 job
When you’re a landlord, days tend be more spontaneous than planned out. While on one day you may just be working for an hour, you might find yourself working for fifteen on the next.

Your obligations can also change depending on the situation at hand. For instance, what could be a rent collection for five or ten minutes could turn into a four-hour job trying to fix their sink, or cost you a significant amount for hiring a plumber to do the job for you.

2. There is a learning curve in the process
There is only so much you can learn from reading up on something and talking to others about it. When it comes to being a landlord, you will learn a lot of things about people you never even thought were possible.

That also means having a learning curve in dealing with people for extended periods of time, and you will inevitably hit some bumps when you first rent out the property to prospective tenants.

3. You can’t sell the flat at any time
Technically, you still can, but don’t expect a good return when you do – you need to remember that you may not always have the rental income to cover the mortgage costs. Worse yet, you may even end up making a losing investment if you’re forced to sell during the downturn.

When it comes to investing in property, it’s a good rule of thumb to have at least six months’ worth of mortgage payments on you before buying the house.

How Property Management Can Help You
Hiring a property manager can do a lot to maintain your property’s value and keep the rental income coming, especially with these services that they can offer you to get your property to its best:

• Screening potential tenants – Managing agents have a system of screening potential tenants for your property that’s both legal and highly efficient, and always with amazing results.

• Rent collection – Property managers can also collect rent using an efficient system that keeps everything hassle-free for everyone, especially if you’re busy and can’t collect on time.

• Maintenance – They can also take care of keeping the property in good shape for you while you’re away, as they often have a network of maintenance contacts that they can reach out to.

Lower Prices on Housing Units

Buying a house is a major step when you want to start living in Singapore. A house is very important that even married couples make this their top priority in starting their life together as a couple.

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A positive news for people looking to buy new homes in Singapore was just released. The prices of houses in Singapore are expected to drop further because of the strict deadline for developers to sell the remaining unsold inventory. This is according to the Japanese holdings company Nomura.

Nomura also explained that the unsold units must all be sold soon or else the residential projects will be fined heftily under the ABSD or Additional Buyers Stamp Duty.

The home builders are however, still reluctant to cut down prices but since we’ve reached 2015, they would surely comply in order to avoid paying the fines on the unsolved housing units.

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The lower prices of housing units may encourage buyers especially because the housing units are in the market for an average cost of $2 million and lesser. This is the perfect time for potential buyers to return to the housing market and purchase the unsold housing inventory.

Moreover, the builders will also be able to benefit from the cutting down of housing prices because it can spur the government to change or amend current housing policies. The amount of unsold inventory can also serve as a wakeup call for the companies to change their marketing strategies to more effective ones so that by next season, there will be more units sold and lesser chances of cutting down home prices before the designated deadline.

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