5 Reasons Why I Will Buy Forest Woods Condominium

5-reasons-why-i-will-buy-forest-woods

If not for the 5 years minimum occupation period, I would certainly put my name in the application for Forest Woods this weekend. As a few of my friends are already doing site recce for this project and got the bank’s IPA ready, I think it is only fair to let more people know about this plot of awesomeness.

Here are 5 reasons that will make me buy Forest Woods.

Convenience

Whether you are buying to stay or to rent out, convenience will most likely be the key factor. Fortunately, in terms of convenience, Forest Wood is a pretty clear winner.

It is only 5 minutes walk to NEX megamall which has almost two of everything you can think of; 2 supermarkets, 2 food courts etc. And with Serangoon MRT and Bus interchange within NEX, it is also 5 minutes away. This is the key factor why I will buy this. I always have to join the queue to the car parks to NEX

This is the key factor why I will buy this, going to NEX will be just a short walk rather than joining the queue to the car parks like I always do.

Furthermore, being in Serangoon also means that you are just a short drive to the city centre, also with CTE / KPE / PIE nearby, accessibility will not be an issue.

forest wood convenience.JPG

Reputable developer

City Development Limited (CDL) is a homegrown developer that have earned the trust of many generations of Singaporeans. Through its leadership in sustainable and greener buildings, it has been recognised in various local and international awards. Not forgetting other recent good projects by CDL such as Gramercy Park, Up @ Robertson Quay and The Venue Residences and Shoppes.

Good premium developer means high-quality development in terms of construction, internal furnishing and appliances. Furthermore, riding on to the bandwagon of home automation, units in Forest Wood will be equipped with smart home appliances. How cool is that!

In short, you can be rest assured that they will do a good job and live up to their name.

forest wood appliances brands.JPG

One of its kind in Serangoon

There are no other equivalent condominiums in the radius of 2 kilometres.

It has been years since we last saw a project like this in Serangoon, you can imagine the pool of residents currently living in Serangoon waiting for this to come. It is going to be highly anticipated.

With such limited comparables supply in the vicinity, there is no doubt that the demand for this project will be high.

forest wood comparables.JPG

High rental yield

Being one of its kind and lack comparable supply makes it the unique when comes to the tenant market.

Even with 50% of the units being 1 bedroom and 2 bedrooms, it may not be enough to fulfil the demand from potential tenants that like this area and the convenience Forest Woods can provide.

With a good tenant pool, rent rate will not be impacted by the current slow and tenant’s market. Hence, together with the current low interest, rental yield will be an appealing factor if you are planning to rent out your units.

Potential capital gains

With multiple government plans in place, such as the Serangoon sub-regional centre rejuvenation and makeover for Defu industrial estate and Seletar Aerospace Park, there is no doubt that this area will look very different in a few years time.

As we all know capital gain is highly driven by the development that changes how the area will look and feel, the potential capital gain is promising.

 

Certainly, there will be tradeoffs with all the good points you see above, with more convenience means more crowd and with a reputable developer comes with a premium price tag. It is all about seeing the intrinsic value of these good points that can provide a better living standard for you and your family in the long run.

This project is going to launch this weekend, contact me if you need help to understand  your readiness to buy into this great property!

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10 Years From Now, Don’t Say We Didn’t Tell You To Invest In Property

 

10-years-from-now-dont-say-we-never-tell-you

10 years from now, You will be in your late 40s, some in your 50s. You might still have 1 last chance to have another stake in the real estate arena. But why did you not do it 10 years ago?

But why did you not do it 10 years ago?

Imagine yourself looking back, which of these will be your reasons?

Hesitant to upgrade your property

Unsure about your capability to afford a property

Chasing the bottom during recovery

Didn’t plan for retirement

My friends say to wait for cooling measures to be lifted

If you somehow can foresee yourself 10 years later in such situation, you still have a chance now to change it.

Start now. It is never too late if you start today.

 

So You Are Still Hoping For The Property Market To Go Down By Another 10%. Do You Know What It Takes?

Still hoping for property market to decline by another 10% -

With the eight rounds of cooling measures, the property market has retraced southward by 10% and showing signs of a bottom. If you are still hoping for it to go south by another 10% or even to 2009Q2 level, do you know what sort of events can cause it to happen?

Here are some hypothetical events that are essential to make that happen.

  • New cooling measure adding on top to the existing 8 cooling measures
  • Direct foreign investment withdrew – more companies leaving Singapore for another country, severe oversupply of properties to let
  • Singapore unemployment rises to double digit – more people unable to repay their mortgage
  • Fewer developers bidding for Government land sales resulting in lower successful bid for land prices
  • Sustained increase interest rates – unlikely but if it happens buyers will need to pay more for monthly mortgage
  • Fewer attractive new private condominium launch that cannot be missed – leading to oversupply of unsold properties
  • Smaller property developers reduce price point to reduce penalties from unsold completed units
  • Lower transaction volume from a reduction of qualified buyers or sellers
  • Rising tension and instability geopolitical situation in the south-east Asia region repelling investors to channel their funds elsewhere
  • When terror threats slip through Singapore’s multiple layers of firewalls
  • and many more.

Now, do you still think the property market can go south by another 10%?

If you think so, when would that happen? Share with me.

 

 

Buy High High Sell Low Low – a taboo in the market

buy high high sell low low

We are all familiar with ‘buy low sell high’ but do you know that there is an equal number of people who is in ‘buy high sell low’ group? As all transaction involves two parties, a buyer and a seller, whenever someone buy low, someone else must have sold low. Are you one of those who is buying high and selling low?

As the number of people on each side is the same, your chances to be in the ‘buy low sell high’ group is the same as ending up in the ‘buy high sell low’ group. 50% -50%

Rather than being ignorance, let’s face it and look into the buy high sell low phenomenon.

Buying on emotion

Do you weigh the maths over your personal preference? Are you destroying your property’s value right from the start?

If you agree with me that buying a house is more of a business decision than a personal decision, the decision-making process would have to be as objective as possible and minimize any emotional involvement. This is critical at the selection phase of identifying the few suitable houses based on your financial situation.

Once you have narrowed down to 2 units that are both optimal for your financial situation, you can now allow preferences or emotion bias to kick in to make the final decision. This will ensure that you do not buy high high.

Only allow emotion to kick in when deciding between the final 2 shortlisted units

Restricting the supply

As a buyer, are you setting too many criteria that limits the supply, hence buying a house at a premium? The basic of pricing tells us that when supply is low, prices go up. This is the key reason why recent record-breaking HDB flat have only recently met their minimum occupation period – i.e. very limited supply.

In order for price to be low, supply has to be abundance. Just look at the oil prices since a year ago.

Open up your requirement when selecting your property. Must it be in only a certain district? How about the adjacent one that cost 15% cheaper? Ask yourself again on all the requirement you have set. This will ensure that you do not buy high high.

Exit plan

Do you know when is the best time to sell your property?

If you are one of those who wants to live in your current property for life, have you spend some time to think about the scenarios that would cause you to sell this property? Be it, family expansion, right sizing, upgrading or other financial woes? In the event that you have to sell urgently, this is the biggest disadvantage to any distressed seller, you will not get a good price.

The only way to vercome this is to simply have an exit plan when you buy. You will need to decide on the target price to sell which gives a certain percentage annualized return. Together with the economy condition, you will be able to estimate the best time to restructure your asset and move up your real estate portfolio growth.  By doing so, you will not sell low low.

Selling strategies

DIY or engage an agent?

If you want to take time out to experience marketing your own house, are you ready to face the life of a FSBO? This approach is usually disadvantagous to seller and you will have a higher chances of selling below your expected price.

If you want to engage an agent, do you know how to find the right one and pay him correctly to achieve the best outcome for profits? By doing so, you will not sell low low.

 

So do you think you fit in the ‘buy high high, sell low low’ category?

Let me know if you are and I will help you to get out and be in the ‘buy low sell high’ category.

 

Protect Your Property From Yourself

protect your home from yourself
Adapted from wsboon

This may sounds absurd to you because logically you (as the owner of your property), should be the person who cares the most of the property. You may say that regular cleaning and maintenance is considered caring for your property, yes i do agree but what i see more importantly is how you value add your property.

From the day you agreed upon a certain value to purchase it till the day you agreed upon another value to sell it off to someone else, the difference between the two values will be the value you bring to your property. If there is a proceed, it means that the next buyer agrees that you (directly or indirectly) have increased the value of your property. Otherwise, if there is a loss, it means that both you and the next buyer agrees that you have decreased the value of your property.

How are you a liability to your property

Your decisions and actions made on behalf of your property has direct impact to the value it can generate through its life when it belongs to you.

By being adamant about lowering the rental rates in a market down trend results in longer vacant period, which your property is not only producing zero income but incurring mortgage expense.

By being ruled by greed, you cause your property to lose its value to alternative properties which its owners chose to protect it’s value rather than seeing it diminishes in a market down turn. The proceeds may be slightly lower than what it could be sold at during the market peak but it is still better than no interested buyers.

The above are only two examples which you as the legal owner is in fact a liability to your property by not protecting its interest from your emotion, judgement and poor planning.

How to check if your are already destroying your property

  1. Did you buy it when you know it is over-priced, driven by your emotion?
  2. Did you over-renovate and make it a stigmatized property?
  3. Do you have an exit plan?

What should you do if your property is damaged by your actions

  1. Treat it as separate entity, put on your rational thinking cap and have an exit plan
  2. Speak to professionals or friends who have good and bad experiences to share

How to keep your property safe

  1. Have regular reviews on property with respect to the current market situation – use SRX property tracker for easy status updates of your property.
  2. Leave it to the experts, let your trusted agent knows about your plan and let them monitor it for you.