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Caution❗️Do not buy any property until you read and understand the whole article sharing.

When it comes to buying private property, certain rules of thumb are often cited within property circles such as:

"Buying in a good location",

"Must be near MRT station", 

"Buying in a low market",

"Buying a freehold property",

"Buying a high floor

or

"Unblock view",

and even 

"avoiding old resale condos as prices are stagnant".

These guidelines are believed to increase the chances of making a profitable investment in the long run.

However does above all True at the present?

Example 1️⃣

LOCATION,  LOCATION,  LOCATION

If location is always the most important factor, take a look at Figures 1️⃣ and 2️⃣ below.

Scotts Square, located at the heart of orchard road, an area that is well known to wealthy buyers, but why is the prices moving sideways from the 1st-day launch.

On the other hand, a condo at Jurong West's pricing had increased from $5xx PSF to $12xx PSF, a 100% increase.

please refer to below chart for Freehold Scotts Square transaction below.

Scotts Square @ orchard seeing a total of only 8  profitable transactions vs 53 transactions that are losing money.

Now, take a look at a Condo in West performance below.

A condo in Jurong West, has shown excellent results with 503 profitable transactions and the highest profit crossing over a million dollar.

This shows that location may not always be the most important factor.

Choosing the right project is always the 1st critical step, as it can result in either making a profit or losing a significant amount of money.

Hence It's essential to avoid overpaying for a project, even if it's in an excellent location. Knowing what is the  entry price is very important, as it represents the current value, it represents now. I preferred not to buy a future, as   it may happen or may not.  

Scotts Square is an good example of an overpaid project which owners purchased at $4, xxx psf in 2007, while nearby brand new luxury projects like Boulevard 88, Cuscaden Reserve, and Klimt Cairnhill Freehold are selling at only $36xx psf in 2022, 2023. Newer but cheaper.

To reduce your risk and see a decent profit, we have created a framework that can be followed, even if the location is not the best. 

The entry price is only one of the  9 points  checklist, of the 6CS framework,  that we have developed to assess whether a property is worth buying with lower Risk and has a  higher potential appreciation in value.

Example 2️⃣. Near MRT Station

You can own the property at your convenience.

Most will say that it is a guaranteed fact about purchasing a property close to or next to an MRT station. The price is bound to appreciate as time goes by.

The price of a property appreciates due to one simple reason, which is the increase in demand over the years as there will be an increase in people looking for a new home.

Besides it is also highly Sought-after by investors who are looking to rent out their unit too. It allows the tenant to have a steady transport network close to their residence to their workplace and move around the country freely.

Does above still stay true ?

Example 3️⃣. Time the Market. Buy Low & Sell High?

Simple maths to understand that when buying in a  Low market  and selling in a  High market will surely make a profit.

But Let's take a look at the chart below.

Many feel they missed out on buying property earlier when prices were lower, now believing it's too late to act now!

Sounds familiar?

Does time really be the key factor when buying a property?

Buy in Low market and sell in high market. It seems to be a simple and logical strategy to apply.  

Above Chat: 1️⃣ case study,

Many buyers who purchased this particular project in one of the lowest price point period in real estate year, 2012, after the Global financial crisis due to   Lehman Brothers bank, filed for bankruptcy on September 15, 2008.  Despite that, even a good location like Bishan, owners are still losing huge money. 

Please refer to below Chat   2️⃣

On the other hand, some projects in mass market, which many buyers had paid for at one of the Highest price point   in real estate year 2018. Despite that, owners still made a handsome profit .

To me, when to buy, timing   will never be an issue in real estate saving but 

only if you know how ❗️

So can we time the market?

Example 4️⃣, Freehold or 99 lease, which is better?

Buyers who are fans of the Freehold property may be wondering why when seeing the chart below. Price in Red only moving sideways compared to the 99 leasehold property.

FH vs Leasehold 

When it comes to buying a private condominium, one of the key considerations is whether a freehold or leasehold condo. 

Between the two, most homebuyers tend to opt for freehold properties. 

That's because the common understanding is that freehold properties can be held indefinitely by the buyer and hence will see a better upside. 

Are the above true?

Some of the freehold fence may even be disappointed after seeing the chat below.

Despite 99 leasehold being bought $796 psf cheaper, yet sold about the close psf as the Freehold in 2023.

Example 5️⃣. Selection of the Right unit.  

High floor unblock view?

Generally, most would pick units on higher floors because they are better as they offer more privacy and better views, among other things. As such, it’s common to see high-floor units snapped up first even though they cost a premium. 

But are high floor units much better?

Let's take a look at the number below.  

2 units were purchased and sold within the same period. You would have been relatively  upset and utterly disappointed if you chose the high floor.

The 3rd  floor unit of the same stack achieved a handsome profit of $345k in just 4 years compared to the 39th floor unblock view unit which only profited $131k.

Cautious , Not all the units can buy❗️

Finding the right project is only the first step, but more IMPORTANTLY is to understand which is the best “unit” in the development to suit for either investment or own-stay.

Do you know that by choosing the wrong one:

1️⃣ unit facing 

or

2️⃣ unit layout 

Even with the same size will result in a $100K profit differenc❗️

Another case study below, stack 20 below, one of most unpopular stacks to most buyers, achieved a handsome profit of 2X more than stacks, 09 and 18 with nice pool view within the same period of sale and purchased.

For some worst-case scenarios, 

With Both same-size units, purchased in the same-period, 

1st seller lost about -$353k, the other seller make around $453k profit. 

$353k lost, +$453k opportunity profit,

Total $806k opportunity lost.

So is very important that you need to study the project inside out and will be able to give an in-depth analysis what are the right choice of the unit that can give you the best returns based on a different location or District.

Next  

 Example 6️⃣Buy-only Big unit, better profit, sound Familiar? 

Can we pay lesser, using little money to make the most profit? 

Example 6️⃣

Do you know how  to own a Bigger unit, Cheaper price in the Same project?

If you have shortlisted a project but do not know what is the best available unit for you?

Example 7️⃣

even if side-by-side projects with close similarities in

1st purchase pricing and time, size, but get a huge different result ❗️

Do you know why?

Now is all about Resale Condos

Do you know that not all old resale condos can buy?

If you’re not choosing a resale condo correctly, some can result in you losing up to $500k or even $1 million.

In general buying most of the resale projects especially buyers who bought in 2013 will not see a decent profit to date as we all know that, at that point of time is one of the past highest points in real estate. 

Furthermore there are still many 1st owners who are sitting on a high profit in an old condo and they don not have to sell high, hence new owner who are buying high always are at their mercy when it comes to selling their targeted price to see profit.

Please refer to the chat below. Case Study  1️⃣

So the question is, can resale condo still make profit aside from saving?

A client asked me that he may want to Consider a resale condo given that New launch pricing is out of Budget due to the record high per square foot.

But at the same time, worry that resale prices are not appreciating much or even losing money.

So question again, can old resale condo have both of the best worlds with great living space and amenities yet still be able to appreciate like New Condo? 

Yes but only if you Know How to Choose?

Case study 2️⃣

Old Condo can still make profit?

Many will say that Never buy resale condo for more than 10 years old as they never make as much as New launches or even lose money.

Sounds familiar?

Below is a reale condo which  launch in 2010. Buyer who bought between 2016 to 2017 and sold today with a handsome profit of $700k to more than a $1m dollar in just 6 years.

Case Study 3️⃣
Another old condo in year 1995, with value appreciated more than half a Million in 4 to 7 years. 

Case Study 4️⃣
Another old condo in year 1977 to 1978 with value appreciated between $600k to $900k in 6 to 8 years. 

Case Study 4️⃣

A resale condo project with profit paper gain of more than $200K in less than 6 months.

Do you want to know how to choose a resale condo and still make profit?

Case study 5️⃣

Do you know Why the Units in RED sold cheaper?

Given the option,

would you be happier to purchase the units in RED or blue?

But Do you know How to get a Big Discount?

The question then boils down to, how does one select the RIGHT Project of unit?

 With our 9 points  checklist, 6CS framework, that we have developed over years to assess whether a property is worth buying with lower Risk   by carefully analysis of the facts and figures and market insights to determine if the property is safe to enter and  and has a  higher potential appreciation  in value.

Avoid repeating others’ mistakes above,  do reach out to me on WhatsApp  @ 90265006   so that we can schedule some time for an in-depth discussion since what we are dealing with here are big-ticket investments that easily cost more than a million of your hard-earned dollars.

Will address all these burning questions just for you.

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@Joe Ng Property Solution, achieve your retirement simple and earlier.

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Joe Ng XH Propnex Realty Pte Ltd

CEA Licence No. L3008022J/ R009874H

Phone No. 90265006

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