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Investing in local commercial properties


Zerosum

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  • 5 months later...

I got my property license and have been learning from the others how to research and market properties so I guess that will be my preliminary research?

I think good grade offices are not exactly profitable in our current climate. Most of my calculations and the cases that I've handled or come across, it seems that shophouses are the most profitable. REITs might have good upfront return and liquidity but it also lacks the capital gains that could have otherwise happened.

Also, when buying a property, we only use a small percentage of our own money & leverage heavily on the banks. I'm hoping to save up sufficient to buy shophouses in the near future. 

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23 hours ago, Zerosum said:

I got my property license and have been learning from the others how to research and market properties so I guess that will be my preliminary research?

I think good grade offices are not exactly profitable in our current climate. Most of my calculations and the cases that I've handled or come across, it seems that shophouses are the most profitable. REITs might have good upfront return and liquidity but it also lacks the capital gains that could have otherwise happened.

Also, when buying a property, we only use a small percentage of our own money & leverage heavily on the banks. I'm hoping to save up sufficient to buy shophouses in the near future. 

 

The prime office rents have been doing well year-on-year:

https://sbr.com.sg/commercial-property/in-focus/singapores-prime-office-rents-237-in-q1

 

Not only due to limited supply in CBD, a quick expansion of co-working spaces like WeWork has big influence in reducing the office vacancy, may not be sustainable considering those co-working spaces are still losing money in billions, few of them even have obvious short-term target on just chasing for IPO.

 

 

  

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