Is it really difficult to learn how to invest in property in Singapore? I am sure that this can be a daunting task especially for first timers or HDB Home Owners who wanted to upgrade to purchase their first property investment
And honestly, you do not want put your hard earned savings or profits gained from your first property and eventually invest in the wrong one
But the biggest question is – how to do it right? How to be sure?
The sad truth is that property investment comes with risk but we can take a calculated approach
Hence i have specially prepared a video to share on how you can also learn how to invest in a property
In this video, i am going to show how you can determine the right entry price by studying various factors
Right Property Entry Price (First Factor For Property Investment)
We need to explore what are the surrounding property prices. This is an extremely important consideration to take note. Why? I am sure you do not want to purchase a property that is too expensive because eventually, you will need to sell it. If you bought at the wrong price, then selling it in the future with a decent profit will be extremely tough.
Let me show you an example: This is a Condo, SilverSea at Amber Road. Under the Profitable Transactions section, I have extracted out owners who bought the size of 969 sqft and their purchase price was at $1324 psf, $1381 psf and $1539 psf respectively. Eventually these owners made profits of $167,740, $142,500 and $234,000 respectively
However under the Unprofitable Transactions Section, this particular owner bought the same size of 969 sqft but his purchase price was at $1760 PSF which was much higher than owners who bought at $1300 – $1500 PSF. Thus resulting to his loss of $105,000 at the end.
Thus this example clearly shows that buying at the right “Property Entry Price” is extremely important
Importance of Floor Plan (Second Factor For Property Investment)
Besides just looking at the “Entry Price”, an investor should also look at the floor plan of a property. In fact, many investors ignore the importance of floor plan while investing in the right property. Why is it important? Because it affects the future buyers when they see your unit and realise that the size and space cannot suit their requirements
Let me give you an example. Many years back i was trying very hard to sell a Condo. The owner engaged many agents to sell but was not successful and i was the lucky one. From the floor plan, you can see that this is a 2 bedroom patio with many wasted space at the front balcony and backyard. And it is only left with very little liveable space. The owner finally get it sold but it took 1 year. Hence from this example, you can understand that studying the floor plan is extremely important when buying property investment
Many Other Factors When Considering To Buy A Property Investment
In fact there are many other factors to consider when buying your property investment. Why? Because we have to understand that human ideas and mindset evolve over the years. When our grandparents and parents bought their first property in Singapore, size is their main concern. Today, many youngsters can accept much smaller homes. Previously, our grandparents and parents love to buy freehold properties. Today, youngsters can accept leasehold. Hence you can see that buyer demographics change every few years and we have to buy a property that eventually will suit their needs as well
So the question is are you ready to purchase your first property investment? To many first timers, my advice is to do your financial sums and analyse before taking action. But do not over analyse till it makes it too difficult to take an action. I personally have witnessed many buyers who missed many good opportunities. As for HDB Upgraders, this next topic may be of interest to you. Click here to know if you should sell your hdb to buy a condo
If you have any questions or would like to seek for my assistance, please feel free to arrange a no-obligation appointment