Strategize With Elson

29/09/2020

While waiting for a second viewing to happen, I had some time to walk around this BTO cluster that has reached MOP.

Right beside this cluster, sits the old blocks of Tampines 865-870. Well since I had some time, might as well look into their selling prices in comparison to the newer ones.

The flats are 31 years old and a 5’l’ of 121sqm has been sold at $475,000 in 2019.

During its heyday in 2012, flats were sold at $535,000. That’s almost a 18% difference in price over a 8 year period. (2012-2020)

Comparing to the flat in this newer cluster at 868A, which I took 5 days to sell, the newer one is smaller in size at 92sqm and it’s only a 4’A’.

We sold it for $513,000.

It seems to prove that even if the flat is larger in size with better layouts, the buying behaviour of the next generation sways toward newer types of flat, while compromising the smaller size and higher price.

What can happen 10 years later to this new MOP cluster which won’t be new anymore and can also start to lose out to the newer breed of flats in future? Will the value still hold at $513,000?

Probably not. We are only as excited to pay for a product at its youngest tenure with fresh renovation.

If you still can’t figure out your HDB plan or what you should do right now, reach out to me.

wa.me/6590074405

17/09/2020

Somewhere near to the end of July, few months back, an investor I had knew for years was ready to purchase a second property for capital gains. Very quickly, we toured a few projects and scaled down the shortlisted one.

I summarised it in this simple excel sheet. You should too as it offers a bird eyes' glimpse.

As you can see, for $1.4mil, you can buy a RCR (Rest of core region) 2 bedroom. You have good choices like Stirling Residence and Avenue South Residence.

Or you could go for Parc Clematis 3 bedroom, or even Whistler Grand's 2+Study. However, beyond this sheet are many other factors which the consumer on the street hardly see.

Factors like:

1. What is the true supply of available condos for rent within 1km and 2km from you. How will your rent be affected?

2. Are you buying that project at a price that has seen increment multiple times. You have to find past sold data and look at them stack by stack, and levels by levels.

3. The time when you decide to sell, and exit this investment property, are there any changes that are either detrimental or beneficial to you, allowing you to make a tidy gain, or it can possibly make your property a little harder to sell.

4. Is there a chance where this property will ride on the developer's strategy to move prices up or will they re adjust it downwards due to lack of sales? It has happened before in 2018, not too long ago.

Lots of thought process goes into picking a right property to invest on. That is why the investors who have known me for years usually handpick a few properties they wish to see, and I will give the final advice, and they can make a better decision.

This was taken in July where my friend walked away with $10,800 further discount on that day.

Every property is just different. Before you commit, it doesn't harm to hear a second opinion, right? 😁

wa.me/6590074405

13/08/2020

In the past 9 years, I have invested in Singapore properties during the good times and during the bad times. I turned out unscathed. Why is it so?

For every property that I owned, I made sure that it always had an “insurance” to it. If you do not have the time to watch this entire 9 minutes video, you might want to zoom straight to (2:26mins) where I identified the “insurance” safeguards on my first property.

Then watch (4:29mins) how I leverage that initial position and acquire the second property safely. Not forgetting to show you the results I stand to achieve by the year 2030.

I don’t wish for you to make the almost same mistakes I did by purchasing a HDB Flat as your first property.

Reach out to me here: wa.me/6590074405

16/05/2020

We all have our natural unglam state don’t we? I dont keep delivering data and numbers every single day.

I offered 6 groups of buyers to zoom in the the evening with my home owners conducting the viewing walk tru while I describe the home in a story telling format, like how I read book with my kids.

Facts tell, story sells.

I’m not just another agent who goes through motion to sell the home. I create an everlasting story that every home buyer can feel how it will feel like living there for the next 5 years.

I shared with them the lifestyle of the current home owners. About how they play blockbusters on their 60 inch with great movie effects amplified tru the sound bar. About the number of times they hosted 10-12 guests serving sumptious meals on their customised dining table.

It’s the emotions you create in every buyer that makes them want to have it, want to own it, like right now.

Yes, and that’s me standing for more than an hour walking 6 buyers through the home yesterday evening.

Try this new method of virtual viewings. The buyers seem all out for a shopping spree as I received 2 offers this morning.

If you are not sure on how to create a story to sell your home, send me some pictures, and I can guide you or your agent through.

wa.me/6590074405

11/05/2020

A controversial headline by a credible news source will set the town talking.

Before I even can read the exact news, this image was being circulated by a few friends and followers that morning.

"Elson, how ah? Price dropping ah?", I said, let me read the exact piece and analyse what they are trying to depict.

So this was what I gathered. To the common reader, they will expect new launch price to drop since half the developers agree sentiment is bad.

But, they did not say who are these developers. I'm wondering what if half of these half are small time developers and not the big boys? Well, since the entire article did not quote any source and simply said it was a survey conducted by NUS.

In short right, these are sentiments (which means gut feel) by senior executives (how senior is senior) in developer's offices (big or small time developers is unknown).

It makes everyone worried.

Majority of investors I believe have forgotten about the difference between GFC (Great Financial Crisis) 2009 versus Covid-19 in 2020.

Let me explain.

In 2009, when you walk into a showflat and book a unit, you pay 5% upfront as booking fee, and will exercise the purchase latest 5 weeks from booking date. This means the purchase is confirmed and you cannot back out. When developers adjust the price downwards later on, they do not face bulk cancellation from previous bookings. Because you cannot cancel after you exercise the purchase.

Now in 2020, you walk into a showflat again and book a unit with 5% cash upfront. No change in that. However, most buyers I know of, have a delayed exercise date on their option. Meaning to say, they will "confirm" the purchase few months later down the road.

Thus, if a big developer has around say 50 options that have not been exercised, and this developer decides that "hey, i'm going to drop a 2-3% immediately", these yet to exercise options purchasers can simply afford to lose their 1.25% booking fee and buy a similar unit at a cheaper price.

I can depict every single detail today because I was there in 2009 when the price drop was a different reason from today's 2020 situation.

A bird in hand is definitely worth two in the bush for developers. In no right mind, would they drop prices to get new sales while risking multiple cancellations on the front.

Irony of this news? 2 days later, government announced 6 months extension for individuals and developers to sell their properties. It seemed like they paid attention to that survey afterall.

Reach out to me if you feel unsure of what to do next. You have to also look into developer's profit margin to identify if there is any risk by going ahead with a purchase. I have seen these trends for the past 10 years, 2020 is definitely different from 2009.

wa.me/6590074405

14/04/2020

You see those colourful cushions behind me? I just had to send some interior photos to some of my home sellers, sharing with them that their home doesn’t need to be staged like a showflat in order for it to be sold.

A neat clutter might create a better impression. Especially so, when this home owner of mine can’t possibly declutter and hide every single toy in the house. As a parent myself, there is never a time you will see your home clean, neat or tidy. Agree?

Instead, try this simple trick at home (pun intended) if you are selling your place right now.

Conduct a viewing with you being present and time exactly how long the average buyer lingers around in your home. Then, get your agent to time it the next round when you are not present. I always suggest my home owners to go down for a walk to take the tension off in the home.

When my owners are not home, every single buyer took around 20 minutes to walk back and forth around the house, examining every single detail. Because they can. You want them to appreciate your home slowly rather than them wasting your time by taking just 5 minutes during the viewing.

They are not pressured by the seller’s glaring eyes or comments. “Hey, don’t open that drawer.”

They are free to stay in a spot to observe the views, the sounds or even the afternoon sun. I made the buyers of another home stand at the balcony to feel the warm afternoon sun and watch sunset with me.


Back to this DBSS which I have to sell for this young family of 4.
Profits? Checked!

A 6 digit sum awaits when they sell. Shiok right?

Nope. In my owner’s exact words, “It took us 8 years to realise this 6 digit figure.” In short, the annualisation (Profit/years) is too low comparing the performance with other executive condos and private properties. The average decent rate is 4%, but their is around 2%.

8 years was a long waiting game and they were lucky profits can still be achieved. Now, all they wish to do is to invest on something right. A property that can help them retire in the long future.

Your feet might be in their exact shoes now. You might be totally unclear of what you should do not, or even what you want. I can feel you.

That’s because whenever I meet home owners like them, we spend over 1 hour talking about life, and not property investments. They are willing to share their story and I’m willing to listen. Within their stories, I sieve out little details and clues of their dreams and desires, and that helps me a lot in my planning work.

Listening is often the only thing needed to help someone. I’m willing to listen, but are you prepared to share?

wa.me/6590074405

31/03/2020

Consider these 2 price lists from a same new launch in just 2 months difference. But I’m not going to name which project it is due to it being irrelevant to what I want to bring across now.

You have been hearing of first movers advantage by buying any new launch in Singapore. Prices will surely go up. Developers will stage your project’s price up.

I do beg to differ. Please be cautious on what profile of project you decide to commit on.

Also have an overall supply count of not just the project you are buying, have a sense of the cluster around the project, the neighbourhood you are in and ultimately the total unsold supply in Singapore and how it might affect the property you buy.

By waiting out for 2 months, prices dip $40k. The next few months will be what i call “observe the price changes and time correctly when to enter the market”

19/03/2020

The bittersweet goodbye.

That’s what I feel at the last stage of a property investment process - exercising the sales at lawyer’s office. I am usually present to ensure the completion process is smooth.

From an initial stranger to a close friend in the entire buying process, everyone is happy that the purchase is exercised.

We spent days discussing about the plans in the initial stage. Spent hours comparing properties and having deep conversations about why should we buy this or that.

Late night calculations through whatsapp to ensure the funds are in order before we even decide to put in an expression of interest.

Yes, it is quite a long process.

By signing off now, it marks the end of our property hunt. And it also signifies another investment plan is materialised.

3 years later at key collection, it will be the next wave of excitement as we can physically see the structure, the asset that we planned a long time for.

One investment done, more appointments to attend tomorrow. Are you doing your investment planning right?

I might be able to offer some insights through whatsapp. With Covid19 lingering, stay safe everybody. Let’s bring our discussion online first. Meeting up is secondary now.

wa.me/6590074405

27/02/2020

Would you want to own a wallet which costs $20 and have $10,000 inside or own a wallet which costs $10,000 and only have $20 in it?

When we are young, we should use our hard earned money and make it work harder for us.

Inside this cheap looking Wing Tai recycling bag holds a sought after piece of investment where more than 500 braved the slight drizzle to get an opportunity with balloting that Saturday. Thanks Benjamin Yeo for his lucky ballot number.

When we had the chance to be in the thinking box that day, (a thinking box is where they place you in when you can't make up your mind on which unit to purchase, they put you there like a naughty corner), I was made to decide on 2 choices.

To buy a 1 bedroom at $1.06mil which faces Intercontinental Hotel or to buy a $1.22mil which faces South Beach? Both are on the same level.

If you have an answer, leave a comment. I will share my thoughts later in the comments box. Which would you choose to buy?

Congrats to my secret buyer who now owns one of the cheapest 1br at Bugis.

10/02/2020

This is not the first time I receive enquiries from investors asking me for advice. Don’t get me wrong, it is my job and duty to give good advice even if the offer doesn’t come from me.

Yes, read again, another agent gave 2 solid offers and I gladly told her to take it even though I will lose this deal.

In real estate, it’s all about making friends in the long run. She thanked me for my honesty even though I don’t make a single cent.

The final option landlord and I chose? Option 2! Why?

Market is uncertain and it is better to secure a 2 year tenancy in lieu of new properties completing soon in next 2 years.

$3600 vs $3200 doesn’t make much difference since the first one is a full furnished offer. You need good experience to know that higher rental doesn’t mean it is a good offer.

21/01/2020

Sorry I haven’t been missing like what some followers thought it was. I was just busy since 1 Jan, assisting my investors to complete the last crucial part of their investment process.

You see, 2 years ago, I advised a few to invest on a western sector property and assuring them of the targetted rental income.

I am happy to see that my owners trust me so much to allow me to hold their keys in order to secure a good tenant fast.

Thus in the past 21 days of 2020, i have rented out a total of 9 units. It further reassures me that the 50 over tenants I have met come from various business nodes. Like One North, Mapletree Queenstown, Sembawang in Woodlands, NUS Duke, NTU etc.

The rents I secured here?
1 bedroom: $2000
2 bedroom: $2300
3 bedroom: $3100

Not too bad la.

Business nodes are the first piece of the entire jigsaw to ensure you are 99% on track to rent out fast for a good rental income.

If you are still doubtful on which property to pick for good rental incomes and fast takeup rates, reach out to me for a chat. wa.me/6590074405

10/12/2019

Early morning today, one of my blog follower sent me this article. In fact, not just 1 person, but 3 sent me this scary headline with key words like "glut" and "years to clear".

Well, as I always say, if you do your own due diligence, there is nothing to fear.

The journalist wrote that 31,948 units as of Sept 30 were still unsold. These figures are polished up. In fact, let me throw you the bomb based on URA's Q3 2019 report.

As at the end of 3rd Quarter 2019, there was a total supply of 50,964 uncompleted private residential units (excluding ECs) in the pipeline with planning approvals.

Yes 50,000 should be the total unsold supply BUT bear in mind that it only takes 5 years for our stock to be total 0. Why? There is little movement in Government Land Sales (GLS) and absolute near to 0 movement in En-bloc sales in entire 2019.

Now imagine this, if developers had an easy way out and sales were rosy month in and out, would prices today be today's prices or would it be higher?

30,000 unsold: Price lower.
10,000 unsold: Price higher.

Developers are business entities and if they have lesser stocks for sale, margins have to be made and that can only be converted from higher sales prices in future when supply gets low.

Do your own due diligience! But if you still have doubts, reach out to me at wa.me/6590074405

https://www.businesstimes.com.sg/real-estate/singapore-has-a-property-glut-that-could-take-years-to-clear

Read more at The Business Times.