How Do Property Investment Companies Work?
A lot of Singaporeans are investing their money, according to their goals, in a portfolio filled with dozens of real estate projects, each one carefully handpicked and proactively developed with the goal of growing their net worth.
A property investment company can typically manage the purchase and reselling of a property on your behalf. Here at Noble Sky Institute Singapore, we source a wide range of high yielding investment properties through auctions in the United States.
We purchase the properties on behalf of our investors with a view to enhance its value either through house-flipping or lease them out to gain a substantial return for our investors.
We also guide our investors to invest only in safe and secure real estate investments, which provide speedy returns.
Can A Property Investment Company Find The Best Deals?
Noble Sky Institute has networks in the USA. This ensures that we are well placed to identify the most lucrative property investment opportunities in the USA markets and ensure the best deals for our clients.
Planning For Your Property Investment Portfolios
Investing in real estate can be a lucrative move. As an investor, you need to make an informed decision. If you have thought about investing in real estate and are motivated to get started – you will need to take proactive action to find out how.
We recommend that you do your research based on your own unique financial situation.
Different Types Of Property Investment
There are a number of property types and real estate investments available if you’re looking to invest whether in Singapore or otherwise. Once you’ve learnt about the different options of real estate investment listed below, you would want to think about the ideal one that you’re comfortable with.
You would also want to set your financial goals based on your budget, time and goal-based delivery and exit plans. Allow me to share with you the different types of investment before you jump right in.
- Vacant Land
- Single Family Homes
- Small Multifamily Properties
- Large Multifamily Properties
- Commercial Property Investment
- Mobile Homes
Evaluate Before Making Your Decision
One of the important things you would want to learn is how to evaluate a location or a particular neighborhood before making your decision.
My advice is not to invest in a city or locality that you are not familiar with. I always stress the importance of having a team on the ground to evaluate different considerations.
These considerations are such as finding the right location in a good neighborhood. As the saying goes – Location, Location, Location.
Find out the pros and cons so that you can be assured that you make an informed decision when jump starting your investment process.
Who Is A Property Investor?
A property investor or investment entrepreneur is someone who actively or passively invests in real estate.
An active investor may buy a property, rehab the building (make repairs and/or improvements), and then flip it later for a profit.
How Do I Become A Property Investor?
The older generation of Singaporeans loves to invest in properties. The property prices in our island state has since then, soared beyond the means of the average Singaporean.
When I was a working adult, I have met many affluent people who have made their fortune from buying condominiums for low prices and selling it today for more than a few million.
It is a smart move to be a property investor if you consider the following.
Capital Growth vs. Compound Interest
Here’s one example – A single story terrace house in Penang, Malaysia that my uncle bought for $70,000 in the 1970s now has a market value of over $900,000. This 10X capital gain over a period of 50 years is astronomical.
For a simple comparison, my uncle paid a 10% deposit and took a 90% mortgage for 30 years. His monthly repayment was $500.
Let’s just say instead of buying a house, you decide to put your $7000 in a savings account and continue to save $500 a month for a period of 30 years with compound interest of 6%. I know some of you are laughing now as the best FD rate 2018 hovers at 1.7%
Based on a Compound Interest Calculator;
Initial Deposit $7000
Monthly Deposit $500
Investment Time Span 30 years
Estimated Rate of Return – 6%
Future Balance: $514,717
By, purchasing a house, my Uncle was able to grow his wealth to $900,000 which is called Capital Growth, an appreciation of the value of an asset over a period of time.
This goes to show that property investment is a safe and sure way to accumulate wealth.
Effects Of Inflation On Investments
But if you factor in the cost of inflation, you may say, if your uncle sells that property, where would he live now?
This is how property investment works. The first property should be the one that provides you and your family, shelter, financial and emotional security.
Your investments are the second, third, fourth or even fifth and sixth properties.
“How is that possible?” you may ask. I can barely make the down payment for my first property with my $10,000 savings in the bank.
How Much Money Do I Need To Become A Property Investor?
Generally, a property investment partnership takes an investment between $5,000 and $50,000.
While $5,000 isn’t enough to purchase a condominium unit in Singapore, several partnerships with multiple investors “crowdfunding” their money together, can purchase a property that is shared and co-owned by several investors.
This will be an ideal win-win situation.
Can I Invest In Real Estate With Just $5000?
One of the surest ways to achieve financial independence is by investing in real estates. In fact, if you do a Google search, most of the billionaires and millionaires have prospered from their investment in properties.
This may seem like an impossible achievement for a newbie. However, it is taking the first steps with the end results in mind that will propel you to make continued progress.
Even if you have a modest amount to start with, there are ways to start investing and growing your initial investment or portfolios. In the past, this venture costs thousands of dollars in initial investment.
Once you understand that real estate is a tangible path to wealth, you will need a willingness to move quickly when you see an opportunity. It is the consistency of your investment that grows over the years as you learn the ropes along the way.
In a nutshell, you don’t need six figures in the bank to be a Property Investor today. It starts with a solid financial plan and a willingness to learn more.
How Do I Set My Investment Goals?
Now that you have started doing your homework, you will need to set a range of the initial investment. You need to have a goal and know how much you have to invest. Is it $5000, $10000, $50000 or more?
Where Should My Money Be Invested?
At Noble Sky Institute, we help you achieve your investment goals by investing in a wide range of high yielding investment property through auctions in the United States.
These can be from a variety of models or a combination of assets;
- Vacant Land
- Single Family Homes
- Small Multifamily Properties
- Large Multifamily Properties
- Commercial Property Investment
What Is My Investment Goals?
Your investment goal should be as specific as possible. Rather than, writing “I want to be the largest real estate mogul”. Perhaps it is more realistic to write something more achievable in a shorter frame of time as in a short-term goal.
“I want to achieve $10,000 so I can go on a holiday in Europe for a month,” is a simple straight forward goal that some of young newbie investors have in mind.
Next, you need to reverse-engineer what you need to do to get to that point. What will be the initial investment amount required to get you started?
How Do I Find The Cash For My Property Investment?
A lot of us think that as a starving college student or even living on a meager salary makes investing almost an impossible dream.
Some of you may now have come to the realization that you need to start saving. You will know that you need to put aside some of your disposable income away – to fund your investing dreams.
Remember the goal is for your Property Investment to ultimately fund your dreams! So let’s start with the end goal in mind. Perhaps it involves some sacrifices. You may choose to cut down some lifestyle wants and start saving immediately.
Some of our young newbie investors tell us that they have a guilt-free coffee they make at home instead of a branded specialty coffee at the mall. This $9 a day saving is where they are able to start with immediately.
So start your new budget. It is not impossible to raise funds quickly with a side hustle.
What Are My Property Investment Options?
For an investor, one of the most important things to know is to understand your own risk appetite. Not everyone sees property investment the same way. Some options may have higher risks and higher investment requirements.
Let’s take a look at some of the ways to invest.
Traditional Property Investment
Traditional Property Investment involves buying properties to rent out to tenants and to collect a monthly rental as a profitable income.
Many Singaporeans love to grow their wealth this way. Before you make that leap, let’s look at some of the cons traditional property investment.
In the days before the internet, you would need to search through dozens of listings. You may need to visit several properties before you decide if the property is suitable for rental purposes.
After that, you will need to spend a considerable amount of time searching for tenants. Next you will need to show the property to the tenants. Once you have secured the tenants, you will need to prepare the necessary tenancy agreements.
When the tenants have moved in you will start to collect your rental income.
Property Management Issues
Periodically, you will need to deal with some minor property management issues. However, in certain cases, you may have to deal with some unpleasant situations with delinquent payment and even eviction.
Sometimes there are overlooked duties of maintenance and unforeseen property management you may need to attend to.
Buying a tenant occupied home does not always work in your favor. There is a risk in the event of a huge increase in mortgage payment or decline in the housing market. Sometimes the rental is not enough to cover your mortgage repayment and maintenance costs.
Crowd Funded Property Investment
If buying and owning your own property for rental is not appealing, perhaps you may want to consider a crowd-funded Property Investment.
As a participant of a crowd-funded Property Investment, you are part of a group of other investors who pool their money together to lend or invest with experienced rental Property Investment Company to manage an investment portfolio.
As a newbie, you stand to profit from the Property Investment Company’s expertise and skill with a minimal investment of time with minimal risk.
One of the benefits of this option is that you can track your investment portfolio. You will also get a periodic update and year-end summary. Crowd funded Property Investment gives investors access to a variety of investing deals.
This has worked well for newbies with limited time, resources or level of experience. This unique model offered by Noble Sky Institute takes out the hassle of directly having to manage the property and tenants.
Your risk and workload are minimized, yet you stand to gain profits.
How Do I Get Started With Property Investments?
There are many free resources for you to learn the basics of property investment. Many of my investors started out by searching on Google. There are also property investment seminars that will point you in the right directions.
If you continue to Google, you will find plenty of Property Investment books, podcasts, and free information online as well. You can even join a forum and speak with other property investors.
How Long Is My Money Invested?
In our experience of acquitting properties from an auction, the normal process takes about 24 months to 36 months. This includes time to get the proper legal documents in place, the rehab process and reselling the property on the market for the best price and exiting.
How Do I Monitor My Property Investment?
We will provide periodic updates to our investors.
Will I Receive A Statement?
We will also provide a statement to our investors.
How Do I Contact A Property Investment Company?
You can contact Noble Sky Institute Singapore for a free consultation and learn more.
While you trawl online you are bombarded with images of expensive homes. You may have watched many episodes of House Flipping TV Shows in the process. You can also learn the basics from many useful free guides online.
Many investors tell me that they have signed up with expensive Property Investment seminars to learn. My question to my investors is this;
“Are you able to take the next step and make your first investment with all the information you have gathered?”