Despite round after round of cooling measures in 2010 and 2011, many investors remain eager to park their funds in residential properties.

The tightening measures have merely relegated a fraction of the investors to the sidelines and, while they watch the market closely, others continue to invest.

Why are investors so attracted to residential property investments?

Low interest rate environment

Savings interest rates are at an all-time low of 0.1 to 0.2 per cent per annum, while fixed deposit rates average about 0.3 to 0.8 per cent per annum, well below the rate of inflation, estimated at 3 to 4 per cent for this year (Feb 17, 2011, Ministry of Trade and Industry).

On the flip side of the coin, home loan rates start from below 1 per cent per annum. Interest expenses on property investments have never been so low since 2003 to 2004, right ...