Last week, Chris Chan (Asia’s No.1 Referral Revolution Coach) and Patrick Liew (Global Investpreneur) held one of the many High Net Worth Series Masterclass on Property Investing. It was a very enriching and eye-opening lesson for many advisors to better engage their clients in the future and also start on their own investing journey.

Here are some tips for those who missed out!

1.    Fall in love with the numbers and not the property

Often, people are drawn to things that look good. Imagine viewing a property with such a gorgeous and stunning interior design…

I’m sure many of us would be interested in getting this property because we love how the property looks. But we should think further about the monetary gains instead of our own personal feelings.

Hence, we need to ask ourselves:

“Will this property give me the return and gains I want?”

“Is it in a prime and growing location to attract tenants or for capital appreciation?”

2.    Buy an undervalued first property

For new property investors, they feel that buying resale flats may be the best option since some of them are much cheaper than the current market rate. However, we need to consider further if these resale flats are marketable enough for capital appreciation. We have to consider the amount of capital required to upgrade and renovate the property and will it be more worth it for you to purchase the resale flat instead.

Next, we can also look at new condominium launches, as they offer a wide range of discounts from developers such as early bird discounts and vouchers. It is important that you look around different show flats and compare the prices around the area. Well, being Singaporeans we are kiasu and tend to follow the crowd.

“Wah, so many people waiting to buy this condo leh, maybe we should get this too!”

Explore your choices as there may be a better deal waiting for you just across the street.

3.    Is residential property the best investment for you?

There are definitely many benefits to property investing, but it may not be suitable for everyone.

Investing in property can help you gain passive income and can be an excellent long-term investment when the capital appreciates. 

However, investing in property requires putting a lot of money upfront and also renovation costs if you intend to rent it out.

For beginners who are not yet ready to invest so much money, another investment we can consider is to invest in Real Estate Investment Trusts (REITs). 

What are REITs?

REITs are securities that pool money from investors and purchase property in certain sectors, such as industrial, hospitality, commercial and residential sectors. Through rental income of the properties they have purchased, investors can get dividends from it.

The three main benefits of REITs include the following:

1.    Higher liquidity

2.    Does not require a lot of capital

3.    It gives you more exposure to various sectors as mentioned above and diversifies your portfolio.

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4.    Knowing where the “hot” spots with growth are

The Singapore Government has been continuously improving the infrastructure and amenities in various neighborhoods. Well, which will be the next booming neighborhood? This is where we have to do our homework and make extensive research.

Some facilities to look out for include:

1.    New MRT stations

2.    Shopping malls

3.    Supermarket

4.    Hawker Centers

5.    Schools

We have to keep a look for new major infrastructure upgrades, which can cause an increase in property prices in that area. 

5.    Value-added strategy

Renovating can be very expensive and may not be very cost-effective if not budgeted properly. However, upgrading the interior design of your house might increase the value of your property. 

So here are some tips to upgrade your property with a budget:

1.    Give it a fresh coat of paint – Neutral colors give the home a modern touch and make spaces look much bigger.

2.    Decluttering the property– Potential buyers will then be able to imagine their own furniture and belongings in your home.

3.    Keep things neat and tidy – Especially so in the kitchen and toilets. If you have more budget to spend, you can consider upgrading your toilet or bathrooms by replacing the sinks, taps, and cupboards.

That’s all for today!  To be updated on our future High Net Worth Series Masterclasses and be part of the inner circle, sign up through this link. 

Through the High Net Worth Series Masterclasses, we hope that our advisors are able to broaden their knowledge on important topics High Net Worth clients are interested in and share them with their clients.

Stay tuned for articles so that you will be updated on the latest financial advisory strategies. Alternatively, contact our Growth Consultants to find out more about our upcoming masterclasses and programmes.