Capital Appreciation
Capital Appreciation refers to when the value of property increases beyond its purchase price over time. For instance, if a house that cost $500,000 appreciated over time to become worth $800k and was then sold off, that represents $300,000. You could then earn capital gains via capital appreciation by selling off at higher than purchase price for another buyer and reaping capital appreciation’s rewards as capital gains from Capital Appreciation if sold again at higher than purchase price value in turn for capital appreciation tax benefits – making the investment worthwhile and crucially aware of any factors which could spurring its rise soon afterwards!
Hoi Hup Realty and Sunway joined forces to develop The Continuum. Established in Singapore since 1983, Hoi Hup Realty’s real estate development experience spans various real estate related businesses; over the last four years this group has actively acquired land through government land sales as well as through an en bloc exercise.
Hoi Hup Realty have completed several developments prior to introducing The Continuum Condo Condominium complex. These projects include Waterford Residence, Sophia Hills at Mount Sophia, The Continuum Showflat, Whitley Residences and soon-to-be Terra Hill in Pasir Panjang.
One effective strategy for making money through the property market is investing in buying and selling, or flipping, properties. Flipping houses allows you to generate profits quickly. Speed should be your main priority here in order to reduce risk to capital as quickly as possible; but note that appreciation may occur which you cannot control directly.
Rental Income
Rental Income refers to the money collected from tenants using your property, making it a lucrative source of revenue. The Rental Yield refers to how much rental income was earned each year relative to its value – for instance if renting out a home purchased for $500,000 at $5,000 monthly rental fees you would earn $60,000 annually with an overall Rental Yield rate of 12% [(60,000/500,000) (x 100%) * 100].
An increased rental yield not only leads to greater returns on investment, but can also assist property owners in meeting loan payments for property. With the buy-and-rent approach of property investing, landlordship becomes possible; unlike flipping properties it requires long-term vision; your goal should be maintaining and renting out the property while earning income through renters. In order to turn a profit your rental income must exceed mortgage repayments plus amortisation costs of repairs or renovations undertaken on it.
Investment in Real Estate Investment Trust (REIT)
REIT investment requires contributing your money to an investment pool along with other investors as part of an investment plan that invests in real estate assets with the goal of earning profits. REITs come in all shapes and sizes; retail, commercial and industrial REITs as well as healthcare REITs each come with their own set of risks and rewards.
REITs are professionally run, and any profits generated through investments are distributed regularly back to investors as income distribution or long-term appreciation. Real Estate Investment Trusts (REITs) are an attractive way of investing in properties without taking on all the responsibilities on your own. Like mutual funds or unit trusts, your money is pooled with other investors before being invested into real estate properties. Diverse REITs invest in various properties, including office, residential and retail real estate as well as hospitality properties. An experienced manager may oversee each REIT at an additional fee; for an easier investing experience robot-advisors like Syfe offer portfolios containing REIT investments.