Pros and Cons of Landed Property For Rent in Singapore

Many Singaporeans are interested in rental or selling real estate business because there are many potential clients not only the locals, but also especially the expats. They know that their capital investment will be return to them in just a few months or years, which is true. However, this kind of business might be easy as it looks, but it is not always the case. Remember that every business have its own advantage and disadvantages that includes the industry of real estate. Below are the pros and cons of real estate business in Singapore that will help you decide if you are ready to enter this industry.

Pro: Assurance

Owning a real estate property for rent can give you assured income every month because of the renters' payment. Imagine having definite income by the end of the month without even doing almost anything. You can use the monthly paychecks for your personal expenses, add cash to your savings account, or pay for your mortgage. Just ensure that the tenants are responsible to pay on time to avoid causing problems for both parties. Aside from this, the property should always be in good condition, which means that as the owner you have to be ready for expected and unexpected expenses, taxes, and vacancies.

Con: Unexpected expenses

Even though your condo for rent is in a good shape, you still have to be ready to shell out some money for unexpected expenses. The tenants might find some cracks on the wall or some of the tiles on the bathroom were removed, that means you have to repair it or call someone to the job. You should have a budget for the unexpected expenses to avoid panicking on where to get money. Keep in mind that these expenses might cost a little or big money so you have to save money from monthly rental fees and just use it for these expenses. There might be months that you do not use the money intended for that, but it does not mean you have to spend it on other things.

Pro: Tax benefits

The owners of real estate properties that offers condo for rent or HDB property for sale, have the capability to write any amount of expenses they spend in managing or owning their property. Some of these expenses include insurance costs, repairs, mortgage interests, and other expenses related to operating the business such as accounting and legal services, and home office costs. The money you spent for these expenditures can turn into money back at the end of each year. Aside from this, owners are not required to pay self-employment tax, which is additional to their monthly income tax.

Con: Responsibilities

Any kind of business, you have responsibilities to take on. In terms of real estate business, you have the responsibility to find property, answer queries of potential renters, make sure everything is in place, and resolve any problems that you may encounter. When is looking for landed property for rent Singapore or HDB for sales, you have to entertain them to turn them into your clients. You are the one who will process their application, interview them, and investigate their credit reports to make sure they are capable of paying the rent.