Monthly archive - February 2013

4 Fundamental Rules of Property Investment

Posted on Feb 18, 2013 in Articles, Fundamentals Of Real Estate, Investment Strategy by 5 Comments

In any investments especially in property due to its high illiquid nature, there are 4 fundamental rules of property investment any ordinary investors have to adhere to, no matter what. We want to make sure our money:

  1. Must Be Capital Preserved (the ability to at least preserve the initial investment capital without losing it),
  2. Must Be in Constant Velocity (generating immediate returns)
  3. Must Be In Control (YOU Control the investment, not the other way)
  4. Must Never Invest in Something We Don’t Understand Well

These are the 4 rules which have I followed religiously ever since embarking on my property investment journey 10 years ago and these crucial rules have helped cushioned my property investments in the ups and downs since 2003-2012. These rules are not entirely created by me, but rather they have always been used by successful investors and entrepreneurs whom I have the privilege to learn from. One of them is my late wealthy grandfather who had built a multi-million dollar business and property empire by simply adhering to these 4 fundamental investment rules.

Killing the Sacred Cows – Where Property Prices Will Go from Now?

Posted on Feb 4, 2013 in Articles, Property Market, Singapore Property Investment by 1 Comment

I’m a very cautiously optimistic investor, who rather see ‘money on the table’ today, than someone with an over-realistic expectation or even try to make ‘godly’ predictions of an unknown future. As an investor, I avoid trying to be a future trend predictor, a ‘fortune-telling’ guru or think I possess super-power psychic. Trying to be either will simply make me lose sleep every night, worrying or thinking about what’s going to happen tomorrow with so many changes abound, and might even put unnecessary pressure on my limited brain capacity.

Recently within a short span of time, there were many new policies announced by the government, from 7th property cooling measures, population growth projections, future GDP growth, enhanced used of land for businesses and residential, new MRT networks, population ageing, productivity growth, and many more in future as you can name. How will these policies affect property prices in future? Well, for starters, I bet my every last dollar, in the coming years ahead, there will certainly be many sales predators using these new policies as ‘killing’ tools to hunt down more unwitting preys in our rich property savannah.

Firstly, it’s very hard or near impossible to pinpoint to any specific or even a range of policies that may cause property prices to fall or rise per se.

Due to our extremely volatile property market (besides Hong Kong) and being an open economy since 1965, there are many highly complex variables that worked concurrently and we can never determine what affect our property market specifically. Previously in my articles, I remarked that ‘experts and ‘gurus’ in the media who often try or profess to be able to predict the unknown future (and with so much unrealistic positivity) are no more intelligent than you and me. There are huge differences between someone becoming a visionary with the likes of Li Ka Shing and Donald trump, an amateur who tries to be or thinks he can be one, and someone selling snakes oil to unwitting buyers who think it is a life elixir.