I was reading an article on the website telling people that they can invest in properties with little or no money. 3 suggestions were given in this article.
1. Buy REITs funds.
2. Take a loan for your downpayment.
3. Co-own the properties.
Suggestion 1: Buy REITs funds
There are many REITs shares that can be bought from the stock market. However, we do not just buy any REITs shares. I would recommend Fraser Centrepoint Malls and CapitaMall and CapitaMallAsia. These are the ones handling the shopping malls in Singapore and overseas. These are the ones that can bring in stable income. This option is suitable for those who have not saved enough for the downpayment to buy a property.
Suggestion 2: Take a loan for your downpayment
This is a definite NO-NO. If you cannot afford the downpayment, then save for it, or invest in REITs as in suggestion 1. Are we going to pay forever or be the slave of the properties? No, investment in properties should give us our passion income and not to work harder to meet the monthly repayment. Please think twice if you want to take up this suggestions.
Suggestion 3: Co-own a property
This suggestion is the worst. If you want to put your relationships with relatives and friends at risk, then co-own a property. Never have monetary connections with friends and relatives, or the relationship will definitely turn sour. If any company approaches you to be their investor as they are very good with property investment, think twice. Just in case, it's a scam. I would not want others to deal with my savings, I think you wouldn't want it too.
Property investment is really simple and straight forward. If you do not have the downpayment, just invest in REITs first. Until you have raised enough money for the downpayment, then start looking for one property, buy it and rent it out.
Make investment in property a happy one.
Cheers.
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