The truth is, people do lose money in buying residential property in Singapore.
If this was not true, we won’t have Edgeprop telling us who’s profiting or losing from selling their home every single week.
or we wouldn’t have articles Stackedhomes with headlines like “13 condos with the most unprofitable transactions (By region)”
and Edgeprop’s ‘Buying new condo units isn’t a profit guarantee’
I’m not a genius. I’m only able to tell whether or not a residential property has the potential to increase in value by using real estate investing formulas on the properties with actual transacted rents and sales, by looking at the government’s masterplan on the area and also by knowing where we are on the real estate cycle in Singapore’s context.
However, in my course of work, I do come into contact with many clients who seems to have the ‘Midas Touch’ in being able to purchase properties from which they’ve been able to profit from real estate without knowing and using the real estate investing formulas from which I have to rely on.
So by cross-referencing the properties they chose which made them money as well as including the real estate investing formulas that are freely available for us to use, I’m in the process of creating a free short ebook on how these people choose their properties which will include the following;
- The 5 characteristics of real estate investment residential properties in Singapore
The signs they look out for when purchasing their properties and the characteristics of these new launch residential properties. We will be looking at new launches that increased between SGD 300K – SGD 500K (for a typical 3-bedroom) in a short time span of less than ten years.
- Case studies of all the new launches that lost money so far and why they lost money
This will be a continuously updated list. Finding a new launch that will not make money is much more easier than finding a new launch that will make you money. Oftentimes, I don’t even have to use the real estate investing formulas to calculate. These characteristics are quite obvious and will help you choose a property that has a higher chance of being an asset instead of being a liability.
- A list of commonly held beliefs about real estate investing in Singapore and whether or not they are true or false.
How many times have you heard the following?
- Freehold is better than Leasehold or vice versa.
Actual Fact: Properties that increase in value regardless of their type of tenure. So you know it’s not true. In fact, this freehold tag often gives a chance for the developer to increase the asking price far above the market value.
- A good location a.k.a buying as close as possible to the MRT is the best indicator of whether or not your property will increase in value.
Actual Fact: Midtown Residence at Hougang. 300m from Hougang MRT. 3 Bedrooms were sold in 2013 at an average PSF of S$1329 and sold in 2021 at an average PSF of S$1314.
- Buying in D9, D10 or D11 is the safest and has the highest chance of buying a property
Actual Fact: Helios Residences. Location at Cairnhill Circle D9. 3 Bedrooms were sold in 2013 at an average PSF of S$3,500 and sold in 2021 at an average PSF of S$2,300.
- If rental yield is good in this area. Finding a high paying tenant would be easy and should help your property increase in value
Actual Fact: For other countries. The number one rule of Real Estate Investing is that the rent should pay for the mortgage. In Singapore, this rule is often broken for the bigger units as it’s not common for the rent to be higher than the mortgage. You should be looking at capital appreciation in the Singapore market instead.
- The number one real estate investing rule in Singapore
Through my thousands of calculations on both new launch and resale properties, there seems to be only one real estate investing rule in Singapore that hasn’t been broken yet and I will reveal it in this upcoming eBook. Break that rule and your property will have a higher chance of it stagnating or you being forced to sell it at a loss in the future.
- Freehold is better than Leasehold or vice versa.
With the recently introduced cooling measures by the Singapore government on 15th December 2021 and that the peak of the real estate cycle approaching, it is my sincere hope that when you are equipped with this ebook, you will be able to choose a residential property that will increase in value the longer you stay in it.
Who is this not for
- People who are okay with Trophy Condos and are not interested whether or not the property will increase in price in the near future (10 – 15 years).
- People who are already rich from doing their own businesses or investing in the stock market and are not really interested in whether or not their homes will appreciate in value. They are buying purely because they like the location and the way it looks and are not depending on their residential property to increase their wealth or net worth.
- People who are looking to purchase either Landed properties or HDBs because these formulas do not apply to either of these categories.
Who is this for
- People who are looking to purchase a private residential condo property and are very concerned about buying a property which will increase in value in the years to come.
- People who are looking to sell their property in the future at a higher price when their family situation changes (i.e children leaving their home and looking to right size the property they stay in
- People who are looking to buy 3-bedrooms homes which have the potential to increase S$300K to S$500K within 10 to 15 years and not S$30K to S$50K in the same time frame.
Interested on the free Ebook?
Sign up for Datacrunchrealestate’s weekly e-newsletter on real estate investing news and receive this ‘The 5 Characteristics of a Real Estate Investment’ Ebook absolutely free!
The Ebook is currently still in the prelaunch stage. The target completion date will be End March 2022.
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This disclaimer informs readers that the views, thoughts, and opinions expressed in the text belong solely to the author, and not necessarily to the author’s employer, organization, committee or other group or individual.
Datacrunch Real Estate does not accept liability for any investment decision made on the basis of this information. This website does not constitute financial advice and should not be taken as such.