For many 1st time property buyers, the biggest obstacle is saving enough for the down payment. If the target of your 1st property is a $500K unit, by saving $3,333 per month, you’ll have your 20% deposit in 2 ½ years’ time. In fact, you can achieve that even earlier --- with money from your CPF ordinary account or your year-end bonus. Of course, you need to set aside extra … [Read more...]
Ten good reasons of starting young
Are you in your 20s and want to invest in properties? Looking back, I am grateful that I started early. There are at least 10 reasons why you should do so: 1. You build a habit of saving, and a nest egg for the future. The formula is: start early, invest right and retire early. 2. You have more drive and energy for property-related activities, including house hunting, … [Read more...]
Why you can’t trust the media
An article published in a local paper this week comes with the following title: Private homes hit by ECs ... But overall sales rebound amid rosy economic outlook As usual, the journalist turned to 'research analysts' from the real estate industry for comments. To me, it is awkward asking anyone working in the property market --- condo developers, real estate agencies, … [Read more...]
Can I afford it?
This is a common question from 1st time property buyers. 1) Initial sum Besides 20% down payment, factor in transaction costs like stamp duty, legal fee and budget for renovation/furnishing. Always use your own money. If you need to borrow even the 20% down payment from others, you are not ready to buy yet. If money comes from somebody else (say, your parents), you may … [Read more...]
Playing the property game (part II)
In the game of property investment, there is no one strategy that is better than the other. Only the ones with higher or lower risks. Strategy Four: Co-opt Players pool their money together with acquaintances, usually for capital-intensive projects like purchase of high-end condos or commercial properties. They lay down terms and conditions on how to split costs, share … [Read more...]