Owning property in Singapore is like a dream come true. We say this because the rates of the property, whether it’s a small condo or a decent-sized home, are very high and for some people, it may take a lifetime to save money to buy a home or apartment for themselves. But there are different investment opportunities for people in Singapore which they don’t know about.
REITS Are The Way Forward For Minimum Investments
If you are a small business owner or a person with limited means of income who has saved an ample amount of money then don’t worry about not being able to invest in the real estate business, because you can!
Because real estate is very expensive in Singapore, people often don’t look towards investing in it if they have a small amount of money. Buying a small condo can be very expensive in Singapore then talk about buying a full house!
So the question remains how can you invest in the real estate business with a small amount? The Answer is REITS!
What Are REITS?
The Singapore REITS refers to listed companies that invest in the real estate business and allow people to invest in them. It’s just like share buying in SGX listed companies.
The difference between these and publicly run companies is that they use their money to run different businesses whereas REITs use their money to buy, maintain and manage properties. The profits that come from these properties are transferred to the investors.
It is an easier and much quicker way of becoming a sub-owner of a property that you could not think of buying. The REITS invest in all kinds of properties which includes parks, hotels, restaurants, malls, and much more. This means they provide diversity to the investment pool and they also help manage these properties so it is a very convenient way of investing.
The property business has been going really well over the years and if you buy a property, you can be sure of selling it at a higher price after a few years. Just like gold, real estate has also become a store of money. You can buy a property, use it to earn money, and sell it for a better price later on.
Is It A Safe Option?
If you’re thinking about the safety of your money and the timely returns from the investment, then there is nothing to worry about. REITS are required to distribute 90% of their income to the investors in the form of dividends. This means that you will be getting a 5%-9% share from the profits in the form of dividends either yearly, quarterly, or after every 6 months. It’s a safe option to invest in and a profitable one too.
How To Use A Property To Earn Money?
If you are one of those who don’t want to invest in the property business but want to use your existing property to earn some money, there are several options present for you to choose from.
Because you already have a property, you don’t need to think about investing in a piece of land or building to start a business. All you need to do is look around your space and the area your property is situated in and see what business possibilities might be there which you can use to your advantage.
The Rental Business
The rental business is coming down from generation to generation with slight changes and modified business ideas. People have been renting their properties out to other people who need them and earn money in return.
If you have a property that is lying dormant and wish to make it functional and a source of income, then renting it out is a great idea. Obviously, if your property is not in a good position for people to live in or for an office to be set up, you will initially have to make some renovations to the place in order to make it presentable.
You can either rent a portion of your property to someone or rent all of it, as long as you’re not doing anything unlawful it's safe and good practice. You can also rent out your property for a commercial purpose if your property is situated in the commercial area, this way you can earn a higher amount.
The Storage Space Business
This is a new revolution in the storage and rental business. People often have spaces in their homes that are of no use to them, on the other hand, there are many people in Singapore who need storage space near their homes that can be easily accessible.
The demand for more storage and the supply of excess storage filled a gap between the needs and requirements of people from space to money. The Space Next Door concept allows people to rent out the extra space in their homes to other people who need some extra space. This can be a room, a garage, and in some cases even a full house or building depending on how much storage capacity you can offer.
The best way to get into this business is by logging on to the space next door website and registering yourself as a space supplier. The rest is up to the company. They help connect people who need space to the ones who can rent space and the whole thing is safe and guaranteed with camera installations and other security measures.
The Flipping Business
Another great idea to invest in is the flipping business. If you already have an old property that needs renovation or the money to invest in buying an old house and renovating it for sale, then this business can give you a good amount of money. It is called the flipping business. You buy an old house at a very low cost, renovate it to make it look just as good as new, and then sell it for a profitable price.
These were some of the top real estate investment ideas in Singapore which can be used by people for small to big investments.
This is a sponsored post.
