Property Maket

[Eric Teo]

Hi Dennis,
I have an enquiry on Riverine By The Park near to Kallang MRT, a 1313 sqf unit asking for 1.7-1.8m (per spf ~13xx). The Free Hold property develper is Wing Tai, TOP March this year.
The agent told me that the seller was selling at a loss due to other commitment. I have also cheked the City Light near Lavender MRT, selling at ~13xx psf also but is 99 year lease.
Is this Property a good buy?
Eric Teo

[Dennis Ng]

Hi Dennis,
I have an enquiry on Riverine By The Park near to Kallang MRT, a 1313 sqf unit asking for 1.7-1.8m (per spf ~13xx). The Free Hold property develper is Wing Tai, TOP March this year.
The agent told me that the seller was selling at a loss due to other commitment. I have also cheked the City Light near Lavender MRT, selling at ~13xx psf also but is 99 year lease.
Is this Property a good buy?
Eric Teo

Hi Eric,
it is difficult to say. CITYLIGHT was launched in year 2006 for about S$600 psf, in year 2007's Peak, the price was S$1,200 psf, current prices of 13xx psf is even higher than year 2007.

However, if Ang Mo Kio condo is launched at S$1,200 psf and a condo one street from Geylang was launched at S$1,400 psf, then S$1,300 psf for this Freehold condo Riverine's price is comparatively lower.

Noone has a crystal ball. If you want to buy, key is how to mitigate your downside risks.

What are the downside risks?
what if prices fall? What if you cannot pay Housing Loan?

How can you mitigate the risks?

1. borrow 70%, even if prices fall by 20%, banks won't go after you.
2. standby enough Cash/CPF to pay for 6 to 12 months of Housing Loan instalment.
3. factor in possibility that rental might fall by 30% and standby money to cover the shortfall for such rental for say 1 year to 2 years.

[Dennis Ng]

On Tuesday 19 Jan 2010, spoke to one of my investing mentors. He is one of the rare persons who is good in both stock investing and property investing.

7 years ago he stayed in a 5 room HDB flat (just like me). Now he lives in his "dream house", a bungalow he bought 2 years back and re-built, with lots of recycling of natural wood and timber. His millions were made from both property and stocks.

He told me he recently sold most of his stocks bought in year 2009 as TA wise, the market was already over-bought and many stocks have risen quite a lot, the upside potential vs downside risk is not favourable enough... he also agrees with me that the 2nd liners and 3rd liners laggard stocks might offer better upside potential.

For property market, if nothing unexpected happens, his view is prices likely too rise further. However, he and I both feel that the risk of China property market crashing is the biggest Risk that might cause a Crash in HK Property prices, and when that happens, Singapore will not escape unscathed.

He is one of the 5 Property Mastermind members I have and someone that I will exchange views/comments on the stock and property markets from time to time.

[findleowong]

Will he be teaching in your property investing workshop?

[Dennis Ng]

Will he be teaching in your property investing workshop?

Nope, almost all of my mentors are very private persons who want to keep their privacy.

what he taught me will be shared by me in the property investing workshop.

[findleowong]

I see. I presume he's the sifu who build up over S$100 million property portfolio starting with just one property

[Dennis Ng]

I see. I presume he's the sifu who build up over S$100 million property portfolio starting with just one property

nope, that's my office landlord who has property portfolio of over S$100 million over 30 years.

[findleowong]

Dennis,

seems like you got alot of sifus on stock & property investing. I'm sure we will learn alot from you & the rest of the members in the long term.

I'm glad to be part of the community.

Thanks for setting up this forum to share your personal experience & others.