I received lukewarm response when I first told my property investor friends that I wanted to set up a neutral property club for the learning and networking of fellow property enthusiasts.
Why savvy property investors don’t like to share
“What? You have time to do this? You are not busy enough?”
“It won’t make any money. Why don’t you just focus on looking for good deals?”
“I’m keen to explore any property opportunity with you, but not this property club thing.”
“Don’t waste time. Who cares about the man in the street?”
“We Asians keep to ourselves about our own money. No one shares investment secrets with strangers.”
“People like to buy rubbish just let them buy rubbish. Who are you to tell others what to do with their money?”
But I started Property Club Singapore anyway.
Why mortgagee sale properties are on the rise
The article “More repossessed properties being put up for auction” published in The New Paper this Wednesday caught my attention.
Mortgagee properties put up for auction just hit a high in Q2. Because of TDSR, it is hard for borrowers to find buyers for their properties. Furthermore, potential buyers are holding back their purchase in anticipation of falling prices.
There are buyers who bought off plan properties at new launches end up with ‘undesirable’ units that can’t be leased or sold. Together with incessant supply of non-landed private homes and reduced import of foreigners, owners face difficulties finding tenants. Rising vacancy is expected to affect more owners on their ability to service their mortgage.
I wish we could have a property club earlier for property buyers to learn about the traps of buying properties and pick up some tips from experienced investors.
Property auctions are sizzling again
On the other hand, more buyers are out to find ‘real bargains’ in the midst of a slow market. There is a renewed interest in property auctions. Many are eyeing at properties on mortgagee sale.
In fact, ‘bank auction property’ has always been one of the top ten search words that directs readers to my blog. We all know that Singaporeans like to shop when there are discounts.
So I decided to kick-off the series of education seminars with the first one on Property Auctions and Mortgagee Sales on July 5. Honestly, I myself also wanted to build up my knowledge of this popular topic.
Finding the best speakers for the seminar
Auction is a busy department in a property consultancy firm. Besides regular auctions, the staff have to juggle their time for client meetings, house viewings and follow-up work.
But I want to invite the most experienced auctioneer in the field, ask the person to speak on a Saturday morning, and present for a not-too-big crowd from a property club that has just been formed this April!
Knight Frank auctions an average of 180 properties a year. Besides property auctions, Sharon Lee who is the Head of Auction also leads her team to conduct public auctions for pawnshops and government departments, including URA, HDB, SLA, JTC, Singapore Police Force, Land Transport Authority and Singapore Civil Defence Force.
With a full plate on her hand, I was overjoyed when Sharon agreed to meet me. At the end, she didn’t only agree to speak, but also asked a manager in her team to cover another topic.
In our next meeting, she passionately went through almost an hour with me on what could be covered at the seminar. I had learned a lot from her: how owners secure a higher deposit upfront; why agents can’t play tricks at auctions, how she helped an owner who couldn’t sell his property for a year, what are the things bidders need to know …
When I asked whether there would be a slide on the background or achievement of Knight Frank, she simply asked,
“Do you really want me to talk about that?”
On Tuesday afternoon, I attended one of her auctions. Being one of the top property auctioneers, Sharon auctioned a total of fourteen properties with professionalism, persistence, a positive attitude, and a sense of humor at times. How wonderful to watch a master at work!
Two-time lucky with another prominent speaker
I sent an e-mail to Rayney Wong, a lawyer who has 30 years’ experience in conveyancing law and litigation. He himself is a seasoned investor buying properties for more than two decades.
I was a bit hesitant because Rayney often speaks for an audience size of hundreds or even bigger. To my surprise, he called me back personally the same morning, confirming that he could share his many years of experience in helping clients with auctioned and mortgagee sale properties. He also told me some examples of how things could go wrong.
With these renowned speakers for the seminar, someone like me who only attended a few auctions and bought a bank sale property before is best to take the audience seat. I also feel like rewriting that article in my book about Finding gems in property auctions.
As Aristotle said, “The more you know, the more you know you don’t know.”
I get more than I give
It may be an ambitious plan to build a property club from scratch single-handedly. It takes lots of time and efforts, and the courage to face the unknown and many rejections.
But through the process, I have learned a lot and met many like-minded people. Above all, I’ve got to know a few great property investors whom I look forward to inviting them to speak at the club’s investor experience sharing sessions in the near future.
The most effective way to learn is to share with others what you know, and in return, listen to others who add on to what you already know.
To me, it is always a privilege to learn from the very best, and to serve the like-minded who share the same interest.
Mr Sim says
Hi Are you recommending properties with your club, or doing crowd funding for bigger projects, or purely for educational purposes? tks
Property Soul says
Thanks for your question. Property Club Singapore is a “neutral” platform for learning and networking for property buyers, investors and owners.
We do NOT promote no money down, crowd funding or any get-rich-quick program. And we do NOT source, market, or mark-up and resell Singapore or overseas properties to members.
You may like to read more about our objectives and rules at http://www.propertyclubsg.com/aboutus/
Lim says
I do agree with you that at this current market, early birds get no privileges except that they get the units they desire. I also agree that developers when desperate to sell off units are beginning to offer 10 to 15% discount. However, most of these discounts apply to high-end condos and landed property priced from 1.9 mil to 10 mil.
It seems to me that the units ranged from 900k to 1.6mil are sold off successfully in a matter of time, without discount offered especially those in RCR or OCR. Agents told me that developers are pricing their product correctly so as to make them more attractive than nearby resale units and other new competitor project. Take for instance, one FH project was priced at about $1400 psf compared nearby projects priced at $1600 psf. Would you see these mid-ranged units as good buys or shall I just wait?
Property Soul says
For property agents, it doesn’t matter what type of property you buy, provided that you buy something so that they can get their commission.
For buyers, it doesn’t matter what type of property you buy, provided that you are fully prepared if prices continue to drop after your purchase, and you still have the holding power to see through countless days at the doldrums of the resale and rental market until the next property boom comes.
Lim says
Hi,
Thankyou for your prompt reply. Will definitely think twice.
Gerald says
Hi Property Soul,
Appreciate your effort in promoting knowledge in real estate investments.
Keep up the good work!
Regards,
SG Wealth Builder
http://www.sgwealthbuilder.com
Property Soul says
Thanks Gerald!
Sg Property Inc says
Thanks for your candid comments propertysoul. I really enjoy your informative blog and what you stand for. You’re doing an awesome job.
http://www.sgpropertyinc.blogspot.com
Property Soul says
Thank you for your support!
Zubz Kadir says
Just came across your blog and what a breath of fresh air. As a practicing agent myself, I agree that there are underhanded tactics employed by agents out there who are just after the commission of a one time transaction rather than a lasting relationship.
At the same time I applaud your decision to continue setting up the club because of conflicting messages from the media, developers agents and even the government so its good that there is a platform to learn from more experienced investors.
Sadly I wont be able to attend your seminar this weekend. Hopefully you’ll have one closer to the end of the year as well!
Property Soul says
Sure. Hope to meet up with you in one of our events. The education seminar series will run on July 5, August 3, Sept 21 and Nov 1. More details can be found at http://www.propertyclubsg.com/events