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Best Ways to Buy Property Having a Tight Budget

By singhousepro

Best Ways to Buy Property Having a Tight Budget

12/29/2020 Property Investment Singapore is a great business worldwide. People from around the world invest in real estate either to buy a home or property investment purposes. The best way to involve in the best real estate property is to have knowledge and prior research before investment.
If you have a tight budget, you need to know about the best ways to invest in a Singapore property. Let us dive deeper to find the best ways to invest in a property, even with a low budget.

Co-Invest With Other Investors
It is a good idea to invest in some property with other investors. In this way, you would be able to divide the expenses involved in downpayment. Understand with an example, suppose you buy a property worth $2 Million, and LTV is 80%. Then, the downpayment becomes $400,000, and with a group of four investors, you will end up paying $100,000.

The only thing with this to keep in mind is to get a group of like-minded people or friends. It is because you need to ensure legal documentation and trust else the result would be abrupt.

Buy Overseas Property With Little Money Down
There are options to invest in a property overseas where you have to pay as low as $5,000 or no downpayment. It would be a great choice to buy property overseas. You need to find the best real estate agent or seller overseas.
USA offers this type to property under the scheme "Seller Financing." But these types of property are risk-investment. Even experienced investors fall prey, where the criminal hands in greed of buying low downpayment property.
Risks may involve hidden maintenance issues, low-income tenants, and other related issues. In this way, smart sellers put investor's decisions in problem.

Co-Invest with CPF (Central Provident Fund)
It is similar to co-investing with other investors with the only difference of paying via CPF (Central Provident Fund) instead of cash. There are cases where co-investors face problems fulfilling the amount for down payment. Maybe one of the investors has cash to pay down payment while the other can avail the bank loan.
In such scenarios, they invest together. But they are dependent on each other. One with the bank loan is dependent on the other for getting low or no money down. And the risk is equally likely in this, as is in co-investing with other investors.

Borrow To Pay for Down-Payment
It is good to go for borrowing if you have worthy friends, family, relatives who would be happy to lend you money. For fulfilling the down payment, you can borrow money. The only risk with it is you need to be sure about the profits you are expecting from the property you are investing in now.
Even you can borrow money via existing private property whose value is worth it in the market for your new investment. But again, it is risky until your seller assures you of the best real estate.

Final Thoughts

People who have a tight or low budget try to find ways to invest in real estate Singapore. Without having much knowledge, they may land up in trouble or succeed amazingly. But these ways can help you make a better choice. If you are having a low-budget and willing to invest in Singapore property, wait for some time, or try to arrange resources to pay for your dream home.

About This Author



Singhousepro is one of the leading real estate agent in Singapore. Managed by Julian Li, it is run by premium technology data and superior knowledge. It remains updated regarding every real estate market trends, fetching clients their required real estate properties. The company has access to the la…

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