The good news is, nowadays there are alternatives to investing in property. In other words, you would not need to buy a real property, like an apartment unit, in a traditional way where you become landlord who rents out an apartment unit.
The concept of investing in “invisible property” has gained popularity over the last few years. If you are looking to generate some passive income, such investing strategy is an excellent solution. Let us take a look at some of the best ways to make it happen.
Invest in real estate funds
Real estate funds come with many options, such as exchange-traded fund (ETF), real estate mutual funds and real estate investment trust (REIT). Basically, ETF is a single fund that offers a collection of bonds or stocks whose benefits include low-cost investment and broad diversification. Similar to ETF, mutual funds also allow you to seize investment opportunities that come with low fees and broad diversification.
On the other hand, REIT is an alternative for you if you are not interested in investing in physical property. Without having to be landlord, you can benefit from holdings diversification based on the type of property your REIT invests in.
Moreover, some companies in Singapore do not operate as REITs but they own and manage real estate, such as real estate developers and hotels. This will be a great alternative for you if you aim at investing in a specific type of property.
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