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  • Writer's picturechloekks

How much could you earn if you purchased a condo 4 years ago?

Property values in Singapore appear to consistently trend in one direction – upwards. Despite the implementation of multiple cooling measures, rising inflation, and a doubling of mortgage interest rates last year, both Singaporeans and investors continue to exhibit a strong demand for residential properties.

I have a client who bought a unit at The Treasure at Tampines in 2019 and sold it recently. They purchased it at $623,000 and held it for approximately four years+, eventually selling it for $790,000, resulting in a profit of $167,000.

After deducting agency fees, loan interest, stamping fees, legal fees, the net profit amounts to approximately $135,000, which translates to roughly $34,000 per year in returns.

The amazing thing is they only come out with 5% cash when purchase which is $31,150 and they received an annual return of around $34,000. This represents a return of over 100%!

Plus, within the 4 years

  • No need to pay property tax

  • No need to pay condo maintenance fee

  • No need to look for any tenants and maintain the lease

  • Monthly instalment just few hundred before TOP and can use CPF

  • 5% cash and the rest covered by CPF & Bank Loan

  • Just buy and wait for a few years then sell, no extra efforts, no property gain tax in Singapore.

Consider what $31,150 can do for you? A whole family Europe trip or downpayment for a car? When you use your money wisely you can make $31,150 become $135k or more in a few years time, and what if you keep doing this for 5 years or 10 years or longer?

Will Singapore residences property prices continue to increase?

  1. Interest rates are currently at an all-time high, and they are expected to decrease in the next year or two, which is likely to further increase property prices.

  2. Singapore's population has grown from 5.9 million in 2020 to over 6 million in 2023, an increase of nearly 100,000 over the past three years.​

3. Despite the challenges posed by COVID and wars, the world's population continues to rise.

4. The trend of working from home persists, leading to ongoing demand for larger residential spaces.

Anyway, before you buy a new property, it's important to take a close look at your finances to make sure you can afford it, as buying property is a big, long-term financial commitment.

You should also think about the risks and the money you'll have to pay upfront, and compare this with other ways to invest your money in real estate or other types of assets. Feel free to contact me for a casual discussion or a non-obligation financial calculation. Whatsapp Louis

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