Emuparadise

Real estate is an excellent way to diversify your investment portfolio. It typically performs less volatilely than stocks, and offers several tax breaks that can improve your return on investment.

Investing in rental properties can be a great way to generate long-term wealth, but you’ll need to consider your strategy carefully. There are many different types of rental properties, from single-family homes to condos.

1. Rent-to-Own

Rent-to-own strategies are attractive to buyers who don’t qualify for mortgages right away. Maybe they’re paying off debt, working on improving their credit score, or saving for a down payment.

Renting to own gives them a chance to move into a home without having to compete against other buyers in the market. The rental period is usually one to three years, and ideally, it’s a time frame that allows the buyer to take steps to improve their credit profile so they can secure a mortgage at the end of the lease.

However, there are some big risks involved in rent-to-own contracts. For example, the purchase price that’s locked in at the start of the lease is usually inflated to account for rising home values. If the property value plummets during that time, lenders might be reluctant to issue a loan for more than the home’s current appraisal. Plus, the additional money the buyers pay in the form of option premiums isn’t credited toward the down payment if they don’t follow through with their obligation to purchase at the end of the contract.

2. Buy-and-Hold

This is a passive investing strategy that is popular with investors who seek steady long-term returns. It eliminates the need to constantly follow market trends and may reduce transaction costs.

When investing in buy-and-hold properties, the goal is to earn a monthly cash flow that covers the property’s expenses. If this is achieved, the investor can make money both in the short term through rent income and in the long run as the property appreciates in value.

One of the key elements to consider when purchasing investment properties is location. It’s important to purchase properties that are in popular areas that will continue to see growth in the future.

The rental income from the property can also help to pay down the principal of the mortgage, which will lower the overall cost of the loan over time. This strategy can be a great option for investors who want to build an impressive real estate portfolio.

3. Rehab-and-Rent

Hillhaven Condos are a great place to live for investors who want to generate passive income while building equity in their property. The location offers easy access to the AYE, which leads to the CTE, MCE, and KPE expressways. Additionally, residents can enjoy the convenience of being able to access nearby nature reserves such as Bukit Timah Nature Reserve and Dairy Farm Nature Park.

The BRRRR Method is one way to invest in rental properties, allowing savvy entrepreneurs to boost the market value of their investment by rehabbing and then renting out their property. The strategy also produces monthly cash flow, which can help real estate investors build a portfolio of passive income properties over time.

To evaluate the profitability of a rental property, investors can use a tool such as Mashvisor to calculate the ROI and other important financial metrics of the property. By entering property details such as the location of Hillhaven, the expected renovation costs, and the desired rental rate, Mashvisor will give investors an accurate estimate of how much they can expect to earn from their investment.

4. Lease-to-Own

This strategy is popular with renters who want to make progress toward homeownership. The contract usually stipulates that a portion of your monthly rental payment goes toward the purchase price of the home when you get to the end of the lease period.

If you’re not sure you’ll be able to qualify for a mortgage after your lease period ends, a lease-to-own is a good option because it gives you time to work on your credit and save money for a down payment. However, you should have a plan for how you’ll raise your credit score before entering into a lease-to-own agreement.

Located in a quiet enclave near Hillview Rise MRT station, Hillhaven Condo is surrounded by nature reserves such as Bukit Timah Nature Reserve, Hindhede Nature Park, Dairy Farm Nature Park and Bukit Batok Town Park. The development is a joint venture between Far East Civil Engineering (Pte.) Limited and Sekisui House Limited, both of which rank among Singapore’s top property developers.