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What to consider before buying a second investment property


(Image: The Straits Times / Desmond Foo)

 

You had been saving for years to buy a second property. Then came the cooling measures and it becomes much tougher to achieve that dream. Recently, there have been several seminars that claim to show you how to own two properties, even if you earn only a few thousand dollars a month.

But property expert Avis Wong warns there is no get-rich-quick scheme that can turn you into a multiple-property owner after a $2,000 weekend workshop.

In her free-to-download e-book Double Your Wealth Through Real Estate, Ms Wong looks at how such schemes work and the potential risks and pitfalls.

UNLOCK THE PROFIT

One common way is by leveraging your existing property, says Ms Wong, associate marketing director at PropNex Realty.

"Unlock your profits from your existing property by selling your flat and use the proceeds to upgrade to a condominium and buy a second investment property."

 

This way, you get to keep your svaings and use the proceeds from your current property to work for you. Couples who had brought their flats brand new would likely get a higher cash payout.

Of the two properties you buy, one should be sufficient to meet the family's needs while the second one should be of investment grade.

 

The article was first published in The Straits Times. To read the full article, click here.

 

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