Is your property an asset or a Liability?

Property can indeed be a good asset and a source of passive income in your retirement years, but only if it delivers the returns you expect. That depends on a lot of factors outside your control. So before you put too many eggs in the property basket, here are some factors to consider.

By Gregory Choy
Head of Wealth Advisory, Wealth Management Singapore

Property cycle

Like many assets, the biggest dilemma with property is when to buy and sell. Doing either at the wrong time can greatly diminish your returns. Moreover, all the while your money is locked into property, you are unable to invest a part of it into any other good options that may come up.

Rental income

Like the property market, the rental market too suffers from downturns, leading to the potential loss or reduction of rental income. To add to it, property taxes and maintenance costs also erode your nett rental income from property.

Is your property an asset or liability?


Recent cooling measures by the government have sent prices downwards and increased costs of purchasing investment properties with additional stamp duties, increase in down-payments and so on. Future policy moves can be hard to predict and can potentially decrease your returns.

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