Monthly archive - October 2012

Top 30 Common Property Investment Mistakes

Posted on Oct 29, 2012 in Articles, Investment Strategy by 0 Comments


An investor or a clown?…Most ‘Masses’ investors wear a big fat red nose without knowing they are wearing it!

Warren Buffett once quoted, “Wall Street is the only place that people ride to work in a Rolls Royce to get advice from those who take the subway”. Investors who able to understand the real inner meanings of this simple quote, would stop any investing activities immediately and start to acquire real knowledge and wisdom to become a successful investor. Investment wisdom is not only acquiring necessary knowledge to make successful investment decisions, but also meant to learn and avoid severe investment mistakes. Buffett’s quote is indirectly pointing fingers to the foolish investors who are really ignorant on what they are doing.


Let me ask, “Do you have any history of money losses from property market investing?” or “Your property investment only yields ‘average’ returns for you or “Did you study about all the common investment mistakes investors commit regularly while investing?” If your answer is ‘negative’ to any of these questions, this article will solve your problem. Firstly, these are a well prepared list of top 30 common investment mistakes generally investors make and a warning to avoid these mistakes when investing your money into the property market. Secondly, if you have any history of losing money from property investment or making only average returns, I’m sure, reading this list would help you find the mistakes you have committed.

Diary of a Sudden-Rich – What should Adam do?

Posted on Oct 15, 2012 in Articles, Singapore Property Investment by 1 Comment

How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case. Robert G. Allen – Creating Wealth

Excerpts from the previous article on The Diary of a Sudden-Rich:

“ home value has recently appreciated and doubled in value! I am thinking of selling it so that I can upgrade my home. And my property agent friend has also calculated that I will have some spare cash to purchase another smaller unit for investment purpose since I don’t have any other investments. So this is my plan: I will sell my home, upgrade to a bigger unit and purchase a smaller unit for investment. The government is building an MRT system near the location. I know that the price is high today but with the new MRT under construction, I think the price will not depreciate much in a downturn. Years later, when my children grow up, I will sell away the bigger home, take the proceeds upon capital appreciation and move into the smaller unit for retirement.”

If you remember yourself reading the article, you must be thinking about Adam’s investment plan. Adam is 45 years of age and a Chief Operating Office of a MNC. I met up with Adam recently and get to know some details about the two properties he may want to purchase:

  1. A 4 bed room unit that he is eyeing on (recently TOP) will cost at least $1.7m. This will be his new home.
  2. A 2 bed room unit (an older project estimated to be about 7 years old) will cost about $850k. This will be his ‘investment property’.
  3. Currently Adam has outstanding loan of about $300k for his current home. He bought his current home for about $650k during the low times of 2005.

Game Over? New Property Cooling Measures Restrict Mortgages

Posted on Oct 8, 2012 in Articles, Property Market, Singapore Property Investment by 3 Comments

You don’t need a PHD in economics to know property prices are in bubble state!

On 5th October, Friday, the Monetary Authority of Singapore (MAS) announced that it was capping the length of a home loan at 35 years.

MAS is taking this step now to require more prudent lending and to continue to watch the property market carefully.

And Singapore has signalled clearly that it will not lag behind the regulatory curve.



With effect from 6th October, 2012:

  1. All residential property loans will be subjected to a maximum of 35 years loan tenure, including HDB mortgage loan tenures.
  1. Tighter rules will apply to borrowers taking loans longer than 30 years, or have their loan periods extend beyond the retirement age of 65.
  1. If they already have an existing mortgage and want to take another one for another property, the cash down payment is 60 per cent, instead of the current 40 per cent.
  1. Same rules apply for refinancing loans.
  1. Non-individual borrowers now subject to 40% loan limit (down from 50%)