Is Buying a Property Today an ASSETS OR LIABILITIES?
Recently I had been meeting a lot of property owners, most of them are having this similar concern: why are their properties not appreciating when others are?
In fact, many Singaporean and SPR has been working so hard and finally save enough money and decided to start investing in property to build their retirement nest and wealth.
Are you aware that purchasing a property is a Double Edged Sword?
Me and my wife are like most of the Singaporean, we started with a HDB. And at that point of time, we work very hard because we only want to quickly clear off all my loans to be debt free. But I realise one thing, by doing this, I will only be trading off all my time and need to work very hard for the money.
I'm glad to have many opportunities in my real estate career to learn from all my investors and mentors on how can I effectively build my property portfolio with a safe and systematic way. We manage to own Two private properties at the age of 34.
Being an investor myself, I started to be more sensitive to the property market movement, statistics and most importantly, STRATEGIES!
Are you aware, there are total 5 important Checklists to be ticked an 2 FATAL mistake to avoid before we say a YES or NO to the purchase?
The Last thing we want, is to buy the WRONG PRODUCT!
I have come across that many buyers love to time the market, but to be honest, who know when is the bottom and when is the peak? When you look at this chart below, can you really know where is the next direction? It can go up,go Straight or go down. In fact, when we start timing the market, we are actually gambling, not sure if you agree?
One thing I'm very lucky is to be able to learn from many property owners in the market. I still remember one of my clients told me this, "I'm so regretting timing the market, because why? Because when is high, I waited for it to go low, when is low, I wanted it to go lower, end up I'm not only missed the boat, but I also missed my age." From this sentence, I was enlightened, because can you imagine if you were waiting from 2005 to 2020 without entering the market? You may think that you never lose anything, but to be honest, you lost your 15years of time.
Yes, I agree with you that the market is like a roller coaster ride whereby it keep going up and down. But generally, it only goes in one direction, which is up. From 2005 to 2020, property prices have a total increase of 182%.Look at the chart below,anyone who didn't time the market and follow the rules of investment. They enter in 2005 and bought a $1million dollar property, today their property is worth $2.8million dollars. Within 15 years, they profited $1.8million dollar, and anyone know how was the market then, people only need 10% down payment to start their investment. Those who waited, not only missed the chance of profiting but also have to pay a 25% down payment to enter into the market today. So who is the winner? People who time the market? or people who follow the rules of investment?
This is also another good example:
The owner of #09-16 bought his unit at the price of S$1. 365m in 2016 whereby #08-16 bought it at $1.68m in 2018. Can you imagine that you had paid $313,775 higher at a lower level?
#09-42 Paid $34,000 higher than #10-42 In just a difference of 4 months.
My friends, now you understand why timing the market is definitely one of the worst strategy we should apply.
Many buyers buy property will definitely look for this thing call location, but does location really the main factor to determine a good purchase? Let's do a comparison:
I believe you will definitely choose to purchase Compass heights over High Park Residences due to their location and at a cheaper price. Compass Heights is going at $8xxpsf whereby High Park Residences is growing at an average of $9xxpsf back in 2015. Both projects are located in Seng Kang region.
The price for Compass heights has been stagnant from 2015 - 2019.
The price for High Park Residences has surged an average of $300psf from 2015 - 2019. This means if you own a 1000sft unit, you had made a profit of $300,000 over the 4 years time frame.
Both projects are in Ang Mo Kio, this is quite clear that Centro Residences are the winner in terms of location.
At the end of 4 years, Panorama owners reap a profit of $250,000 averagely, but Centro Residences, which have been just next to MRT station is Stagnant for the last 4 years. Owners who bought Centro Residences in 2014 are stuck today.
Within the same period of time, someone doesn't make money, but at the other side, someone made Few Hundred Thousands in their investment... Can you imagine, by parking your money in a property and cash out $300,000 in 4 years later.
I always ask myself this question: "by working so hard for the next 4 years, will i be able make this amount of money?"
When a major cooling measure implemented in 2013, the dynamic of the market had changed dramatically. No longer just about PSF or Location. Therefore, the old school strategy will never be useful in today's market.
Purchasing a right product will allow your money to work hard for you, purchasing a wrong product, we will have to work hard for money. Therefore, property can be an Asset to you or a LIABILITIES.
There is an opportunity in every crisis and the deeper the crisis, the better the opportunity can be. But some people are not capable of seeing it.
Savvy buyers had already took actions over the weekend launch!!
Why did i go thru this with you?
Ask yourself this question: How much u need to retire?
Do you know to Retire at the age of 62 and live until the age of 85 with $3500 income per month. How much you need to have in your saving?
The ANSWER is $966,000
Here are some immediate options:
1. Do nothing and retire with just 1 property and hope to save enough for retirement
2. Take the initiative to seek professional advice and learn from those who have successfully done it so that you can ultimately build a FINANCIALLY SECURE FUTURE!
What you can expect from the meet up:
This is one of the investment strategy you will learn from this meet up as well.
With over 10 years in the Real Estate Business, i have helped numerous homeowners to achieve their financial goal and own multiple properties in Singapore.
Let me tell you the truth, many home owners and investors have regretted not taking action earlier.
Don’t be one of them!
You can give up your dreams and continue doing what you are doing but let's be honest, you won't have read to this point if you wanted that.
Give me 1 hour,
Either you walk away the same after 1 hour or become one of my successful clients.
The most important part about building a successful property portfolio is to spot the right property, have a detailed, careful planning and meticulous financial calculations as these are the crucial steps to achieve your dream lifestyle.
There is NOTHING to lose in gaining more knowledge.
After all, knowledge is power.
You will be amazed at the insights you can gain from this short discussion.
No Obligation at all.
Freddie is a sincere, thoughtful and professional wealth planner. Throughout the whole period of working together, the advice that he has provided was always well-organised and straight to the point. There was no fluff and everything was transparent. Not only were his comparisons thorough and detailed, he uses clear strategies which always gives us very helpful suggestions on what we should and should not do. We are pleased to have him as our consultant and fully entrust our risk management and retirement planning to him. - Mr and Mrs Tan -
Freddie is trustworthy, communicates well and understands my financial needs. I find him to be very reliable, a confidante for financial matters. Prior to knowing him, I had no long term retirement plan from an investment viewpoint. After knowing him, my financial life has stabilized and improved tremendously over time.
- Ronnie & Jane -
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