Does it still make sense to invest in property today?

Some factors have changed today’s environment.

Stamp duties, including ABSD

Hefty stamp duties to the government are laid out right at the beginning of the purchase of the property. Depending on the number of properties, it can be as high as about 20%.

Tax

Properties attract tax over the income and the property tax that needs to be paid. This is usually glossed over and ignored.

Potential growth value

Due to the government measures, the rate of growth will be different in order to keep housing still relatively affordable.

Rental income

The yield for rental income has been dropping over the years with a larger supply of units.

Macro environment

There’s an addition of housing supply of another 30,000+ units in the market in Singapore. Developers are also looking outside Singapore due to the increased risks.

Property is still an instrument that is needed for people to stay and live in.

However, if a person would like to invest, there are numerous other instruments that can potentially do the same or better in the longer term with reduced costs and risks.