An Example on How to Identify Winning Property

Why property investment is such an alluring asset to own? One of the reason I discover is that, you don’t need to be 100% precise and accurate in order to profit, unlike other investment or trading, property seems to be able to withstand more margin of error.

But, a Big BUT, it is still risky if one do not make an informed decision.
While every property is unique and the purpose is not to suggest a one size fits all approach, some principles and concepts are the same. The tricky part is when and how to use them to form an Unique Strategy that fits You Yourself only. Do contact me for a free and non obligatory Advisory Session.

Let’s delve into this example at Bukit Timah area, using a Top Down Approach

Is Singapore the Country I want to invest in? First of all, there are good reason why Singapore is a country you want to put your money in to grow. If you are a Singaporean, you should indefinitely, because there are many advantages that are in your favour, if you are a foreigner and will be looking into investing in other countries, Singapore is one that you must assess before you make any decision. Nonetheless, this part is out of the scope here and I would suggest you can read more here.

Which part of Singapore then? Now, we are ready to ask ourselves, which region should we look at. I like to have a checklist of P.E.T:

P – Population… E – Establishment currently…T – Transformation & Timing

Why P.E.T? When there is population increase, demand naturally increase too, and there goes price as well.

I personally do not like to find places where not much establishments yet. Though the growth can be huge, the rental and transaction are not tested yet and it could mean we need to hold the investment longer than we expect. *(Note: if you are a foreigner, it is generally fine if your strategy is to hold for as long as possible and inherit to your children, but if you are a Singaporean, it will be recommendable to restructure the investment at some point in life, for this, I will be writing another article solely on this, do stay tune.)

If there is population increase and have ready establishments, it is still not enough until we check out what will be the future transformation. Not just any transformation, so we got to ask “how will this transformation impact the property prices here?” Then the next sensible thing to do is to own a property in that area BEFORE the transformation takes place.

Let’s see how this particular property fulfils the PET Checklist!