The story of buying my first property (part I)

Don’t get me wrong. I have no problem telling everything about all my other properties. But the first one … it just reminds me of all those silly mistakes that I made due to ignorance and inexperience the first time.

The feeling is like, you know, an out-of-place ex-boyfriend whom you are simply too embarrassed to mention and would rather forget.

Anyway, having my own place is my dream from young. And I want to do this when I am single and in my 20s.

I began flat viewings mid of 2002. With a humble budget just enough for cover the down payment, I had to look for the cheapest units in the market — small apartments, walk-up flats, 1-bedroom units, etc.

Nonetheless, I did have some criteria in mind:

1) Good location and layout;

2) Minimum 5% rental return; and

3) At least 15% below last transacted price.

The last criterion was set as a buffer in case there’s further decline of the soft property market.

I soon found a 1,000-unit condo in the east with 1 and 2-bedroom units for sale.

They were previously serviced apartments owned by OUB (Overseas Union Bank). After the merge with UOB (United Overseas Bank) in early 2002, the latter sold these units in batches (because of a rule to limit the percentage of property ownership by banks).

I was eyeing at the bigger 1-bedrooms which provided a better layout. From the balcony, there was full pool view and fantastic sea view –– something I always fancy.

I learned from a property agent the exact date and time for the release of the next batch. I sneaked out of the office to be there –– to be one of the first few to view the units.

There were only two units on the mid-floor with the layout I preferred. Yes, they offered the unblocked pool and sea view! But the renovation and decoration of these serviced apartments looked tired after 15 years in the market.

After the viewing, the agent told me that this was the last batch of higher floor units. (Looking back, he was just pressing me since there were a few agents marketing the same units.) Anyway, he advised me what’s a reasonable counter-offer and I gave him the cheque for the deposit.

$375,000! It was the 1st big ticket item in my life!

I was overjoyed when my offer was accepted, not knowing that this was only the beginning and there’s a series of lessons waiting for me …