What makes a property value increase? Many would answer, Demand & Supply. Frankly I never understand this concept, I was not an economic student and demand and supply always confuses me. It took me awhile to grasp the idea when I first joined this profession.
But I was happy that I do not understand at first, because it leads me to discover this:
“WHAT AFFECTS DEMAND & SUPPLY THEN?”
A more simple approach I find works for me is Growth and Population. The combination of this two is the fundamental of any long term and meaningful growth of your property investment.
Growth refers to, what kind of transformation or new installations are going to happen in future? Will there be an MRT, school, hospital etc be build here soon? What use is this land for and within the vicinity, how extensive is the government looking to transform?
Next, if there are growth and no population coming in, then we are stuck too. We have to be precise here and use logic and ask ourselves, how does this helped in the value in the area? Will more people want to live or work here? What are the X factors that pull or attract people into here?
Now, where can we find out these key info to do our due diligence? I wish to share this method which many successful agents used to help their clients win and invest safely. There two reasons why I think doing this is important:
One, so that you can verify yourself, most of the time when you invest you will need an advisor, if you are fortunate to have a trusted friend who is also an advisor, good for you, if not, you will have to bump into some agents here and there. You will be able to assess yourself if the agent knows what is he or she preaching and verify yourself and make informed decisions.
Two, if you have this ability, you forced the quality and professionalism of agents to increase. It will result into agents giving the right advice and consumers benefitting truthfully. The reputation of agents will no longer be just a transactional agent, but a true advisor. The industry as well as the consumers will benefit, and this is the spiralling effect I hope will change the world.
So it all starts from a small, good intention idea.
Let’s go!
Let me use a New Development to demonstrate, and once you get the idea, you can duplicate it. The development is called Hyll on Holland in District 10.
You can find out more about the area using THREE Links from URA
Urban Transformation
Regional Highlights
Master Plan
This is how we can use them to do our research. Suppose you are intending to invest a property in Hyll on Holland upon visiting the showflat and upon an advisor’s recommendation and is considering, but perhaps not quite sure is this a safe investment with good upside and Rentability.
