3 Alternative Financing Strategies for Property Investors

It's always an awesome feeling to see my writings published and read by keen real estate investors and fellow industry agents!


A Huge Shoutout and Thank you to the Team (Sandy Goh, Sabrina Tan, Romesh Navaratnarajah, Denise Djong, Agnes Goh!) at PropertyGuru for the coverage! 


Here's the full unabbreviated article below! 



Foreward


Singaporeans love properties. Let's face it.


We love the idea of speculation, of long term capital growth of our savings and dream of one day retiring upon the comfortable monthly rental paychecks that we receive from our tenants.


And once our time is up, this dream fulfilling portfolio can be passed down generations after to provide inflation beating income that our loved ones can comfortably rely upon. 


This passion for property might be an understatement for some families i know of who own rows of shophouses and acres of land in downtown Singapore and yet are always suffering the itch of accumulating more.


Not that it is a wrong mindset though.


After all, these families were first hand eyewitnesses to how, over the course of our 51 years as a nation, their parents and grandparents have seen their wealth skyrocket by buying into our national soil and airspaces early on in their lives.


This belief becomes in-built in our culture and property becomes the natural vehicle many of us aspire to put our hard earned wages into. 

The appetite for property investments though can be both a blessing and a curse.


While a healthy appetite for properties can stimulate the economy through job creation and infrastructure spending, over consumption can wreak financial havoc upon individuals and spiral easily into a nation wide crisis.


Something that we witnessed not too long ago in the Subprime crisis in the US.  


Hence that is in part, the reason for the current climate of cooling measures we all face today. 


With the various restrictions imposed on us by the Monetary Authority of Singapore for the purchase of properties, alternatives have been commonly sought by investors keen to get started on their investing journey.


In this article, we will examine 3 common alternative property financing strategies that different types of investors can ponder upon to aid in building their own dream fulfilling portfolios. 

Financing methods for property investors

Co-Investment Strategy


Many singles may have insufficient funds to buy their first property, and so one potential strategy is to jointly co-invest with another single friend.