Secrets of Singapore Property Gurus PDF

Secrets of Singapore
Property Gurus
Finally the Experts Reveal Their Top Tips
to Making Millions in Property Investing
Mr. Propwise, Propwise.sg
Aktive Learning
10 Anson Road #21-02
International Plaza
Singapore 079903
E-mail: publisher@aktive.com.sg
Web site: http://www.aktive.com.sg
Copyright 2011 by Aktive Learning
All rights reserved. No part of this publication may be reproduced,

stored in a retrieval system, or transmitted, in any form or by
any means, electronic, mechanical, photocopying, recording or
otherwise, without the prior permission of the publisher.
ISBN (Paperback)
ISBN (E-book)
978-981-08-7891-7
978-981-08-7892-4
National Library Board, Singapore Cataloguing-inPublication Data

Propwise, Mr., 1980Secrets of Singapore property gurus / Mr. Propwise. Singapore :
Aktive Learning, c2011.
p. cm.
ISBN : 978-981-08-7891-7 (pbk.)

1. Real estate investment Singapore. I. Title.
HD890.67
332.6324095957 -- dc22
Printed in Singapore
OCN696694642
Contents
Introduction x
PROFITABLE INVESTMENT STRATEGIES

FOR TODAYS MARKET
Rayney Wong
Lawyer, Property Investor and Bestseller Author
Investment strategies for the current environment
How to time your entry in the property market
The benefits of forming a company as an

investment vehicle
Reasons to enter into a property sharing agreement
Must do property buying due diligence
The biggest mistake property investors make
Do residential or non-residential properties make better

investments? 10
How to flip a property for a quick profit
11
My personal investment philosophy
12
My worst property investment
13
Getty Goh
Director, Ascendant Assets Pte Ltd
15
Two key trends that will drive the property market
18
Is property investment a good idea in todays market?
19
Whether new or resale properties are better investments 20

Is there a right way to structure a property deal?
23
Do residential or non-residential properties make

better investments?
24
How interest rates affect property prices
25
Are leasehold or freehold properties better investments? 26

27
Finding good investment opportunities
31
FINDING YOUR IDEAL INVESTMENT

PROPERTY
Mohamed Ismail Gafoor
CEO, PropNex Realty Pte Ltd
Trends Im seeing in the market
34
37
Impact of the fourth round of measures and

forecast for 2011
37
How to find a good and reliable real estate agent
39
The biggest mistakes property investors make
41
Promising areas for property investors
42
Should you buy an HDB flat or private property?
44
Should you do an Addition & Alteration (A&A)

or demolish and rebuild a landed property?
44
Investing in commercial property
46
How PropNex ensures the quality of its agents
46
47
My property investment track record
47
Steve Melhuish
CEO, Allproperty Media Pte Ltd
48
Trends we are seeing in the market
51
Online tools to help investors search for properties
52
The best way to find an attractive property to buy
52
The most promising projects and areas
53
Two golden tips for mortgage loans
54
Asian commercial property market outlook
55
Finding a reliable property agent
55
How PropertyGuru ensures the reliability of its site
56
56
My property investment stories
57
Kelvin Fong
Team Leader, Powerful Negotiators
59
Impact of the fourth round of measures and

prperty price forecasts
62
Should buyers go ahead with their purchase

despite the measures?
64
Should sellers sell their property now or

keep holding on?
65
How to find the right agent for you
66
How to make money in Singapore property
68
The best time to buy and sell property
70
Mistakes novice investors make
73
Promising areas and projects buyers should focus on
74
Negotiating tactics for buyers
75
How owners can maximize their selling price
76
Do residential or commercial properties make

better investments?
77
79
My experience investing in property
80
SMART PROPERTY FINANCING

Dennis Ng
Director, Leverage Holdings Pte Ltd
83
Are banks still willing to do property lending?
85
Is it easier to get rich investing in stocks or properties?
85
When an opportunity presents itself
90
My top property financing (and refinancing) tips
90
How to maximize your chances of getting a loan
95
How quickly should property owners pay off their loans? 95

Should you get mortgage insurance?
100
Why is Money Always Not Enough?
101
102
The worst and greatest property investments

I have heard of
102
Alfred Chia
CEO of SingCapital Pte Ltd
105
My biggest concern on the property market
107
Long term outlook on property in Singapore
107
The importance of proper asset allocation
108
Finding a profitable property
109
How to maximize your chances of getting a loan
111
When should you take a home equity loan?
111
Is home insurance necessary?
112
Top tips for financing your investment property
110
113
The promise (and pitfalls) of property investing
114
AVOIDING LEGAL PITFALLS AND

OTHER MISTAKES
Amolat Singh
Partner, Amolat & Partners
117
The role of a conveyancing lawyer for the seller

and buyer
120
Does it matter which conveyancing lawyer you use?
125
The advantages of forming a company as a property

investment vehicle
125
Potential pitfalls of entering into a property

sharing agreement
126
Due diligence for the smart property investor
127
What a landlord should do to protect his interests
128
The biggest mistakes property investors make
129
Singapore property horror stories I have come across
130
132
Success in property investing luck or timing?
133
Mark Chua
Partner and Head, Property Law Department,
Tito Isaac & Co LLP
How to find a good conveyancing lawyer
135
138
Does the purchase process differ for residential,

retail, office and industrial properties?
139
The different ways property investment deals can

be structured
140
When should you set up a company to invest

in property?
140
What an investor should check before committing

to a property purchase
141
What landlords should check before renting to a tenant 142

How the recent government measures have
affected property financing
143
The biggest mistakes I see property investors making
145
When the IRAS label may label you as a

property trader
146
146
HOW TO MAKE MILLIONS FROM

EN BLOC SALES
Karamjit Singh
Managing Director of Credo Real Estate
(Singapore) Pte Ltd
149
Outlook for en bloc sales in Singapore
152
How the en bloc process starts
153
The common characteristics of en bloc properties
153
The top reason why an en bloc sale fails
153
The key factor developers need to have to buy

en bloc projects
154
The impact of changes in the en bloc legislation
154
How a property consultant such as Credo helps in

the en bloc process
155
Should investors focus on en bloc properties?
155
Dillon Loi
Master Trainer, Real Estate Academy
156
How the en bloc process works
159
How to find properties with en bloc potential
160
Reasons why most en bloc deals fail
164
Economic conditions needed for the en bloc market

to take off
168
How changes in legislation will affect the prospects

for an en bloc sale
169
Where the next wave of en bloc is likely to happen
170
Are commercial properties attractive en bloc targets?
172
Real estate versus other investment products
173
Outlook on the Singapore property market
177
Parting Thoughts
179
Is property a good investment?
179
Downsides of investing in property
181
The smart investor
181
The shotgun versus the machinegun
182
Can you afford to make a mistake in property investing? 183

Investing under the shadow of government measures
184
Advice for those just starting out
185
Making the leap to becoming a property investor
186
About Mr. Propwise
188
Introduction
Introduction
If you look at the list of the Forbes 40 richest people in

Singapore, you will see many who made their fortunes
developing and investing in real estate. Or just look
around you the average Singaporeans wealth probably
comes more from the appreciation of his HDB flat or
private property than from any other asset.
My point? Based on my experience and what I have
observed, investing in property is the most common way
for the average person to build up a significant amount
of wealth.
But if you want to invest you will constantly have to
grapple with the twin animals of greed and fear. Greed
and the desire to accumulate wealth drives us to take
risks in order to achieve a higher return, but fear of loss
holds us back from doing so.
It is perfectly understandable to be scared about
investing in property. You are making the biggest
purchase of your life, and are borrowing a large amount
of money to make this purchase.
And especially in the current environment where the
government has announced multiple rounds of measures
to control the market and prevent rapid price increases,
it might feel like a very risky thing to buy a property.
Wise investors will look at this situation from a different
perspective: For long term investors, the next one to two
years is likely to present you with a golden opportunity
to pick up a good property at a low price and make a lot
of money.
x
Secrets of Singapore Property Gurus
Lets not forget that any form of investing is made

riskier when it is backed by debt. The leverage cuts both
ways while you can multiply your returns if prices go
up (and thats what many people focus on), you can also
lose more than you have if prices go down significantly.
The best way to manage that risk is to be prudent when
you are buying, to do proper research on what you buy,
and to learn as much as you can about property investing.
The problem Ive found is that there are very few good
and objective sources of information out there to help the
budding property investor. While a good property agent
is certainly helpful, a smart investor cannot rely solely on
what an agent says as he has an inherent conflict of interest
his goal is to get you to transact, as that is how he earns
his money. That might explain the amusing phenomenon
of how many in the industry will say that it is always a
good time to buy whether prices are going up or down.
That was one of the main reasons why I started
Propwise.sg, a Singapore property blog dedicated to
helping you understand the real estate market and make
better buying, selling, renting and investing decisions
minus all the hype and misinformation. You can find
most of the basic knowledge you need to get started
there.
This book brings it up a notch. Ive gone out to
interview the top experts in the property sector, and bring
to you their invaluable insights on how to make your
fortune investing in real estate. It would cost thousands
of dollars to get one of these experts to consult on your
xi
Introduction
property purchase if you could even get access to

them. This book is split into five sections to match the
specializations of these experts:
Profitable investment strategies for todays market
Finding your ideal investment property
Smart property financing
Avoiding legal pitfalls and other mistakes
How to make millions from en bloc sales
I am amazed by how generously they have shared
what they know, and truly believe that you will become
a better investor and profit greatly if you listen carefully
and learn heartily.
To wisdom and beyond,
Mr. Propwise
P.S. Before you read further, go now to www.propwise.
sg/bookbuyer/ to get your free copy of my Singapore
Property Beginners Guide, Real Estate Buyers
Checklist, and other resources I have prepared specially
for buyers of this book.
xii
Profitable
Investment Strategies
for Todays Market
Rayney Wong
Lawyer,
Property Investor and
Bestseller Author
Rayney Wong Keng
Leong, LL.B. (Hons.),
is a lawyer, property
investor and author
of the bestseller
Secrets of Property Millionaires.
A lawyer by profession, he has been practising
Conveyancing and Real Estate Law for over 23
years. As his great passion has always been property
investment, he has over the years assiduously
acquired a wealth of experience and knowledge
on the dos and donts of buying and selling
properties.
A firm believer in lifelong learning, Rayney is always
willing to share his vast accumulated knowledge
and business acumen with anyone possessing a
keen ear to listen and learn. Through conducting
countless seminars, lectures, and talks, Rayney
has enlightened bankers, real estate agents,
financial advisors, and members of the public on
the intricacies of property investment. He has also
personally coached numerous real estate agents,
and on many occasions, saved them from more
than a few legal pitfalls.
2
Never overstretch your financial

capacity. Buy only what you can
afford to hold. You must have the
financial capacity to ride out the storm
in a weak property market, and be
prepared to hold on to your property
for a few years.
Rayney Wong
Investment Strategies For The

Current Environment
The property market is at an all-time high and new
record benchmark prices are set on a monthly, weekly
and often even daily basis. In the current bullish and
toppish market, property investors must be thoroughly
educated to make wise investment decisions. I have
always advocated the principle that if an investor is
focused on the downside risk in property investment,
the upside profit will take care of itself. Each property
that an investor wishes to acquire must meet stringent
property analysis criteria.
A range of investment strategies will have to be
applied on a case by case basis. Using private limited
companies as an investment vehicle is advantageous,
and could result in a substantial increase in Return On
Investment. Property sharing agreements allow investors
to pull together their financial strength so they are not
stretched financially as individuals. I will discuss these
strategies in detail later.
How To Time Your Entry In The

Property Market
Many property gurus and agents will always say:
Anytime is a good time to buy. I disagree. Buying a
property at the wrong time can cause a lot of financial pain
and prove to be a long term burden for the uneducated
investor, especially if you buy the wrong property at the
4
Profitable Investment Strategies for Todays Market
wrong time (i.e. the peak of the market).

After studying the URA Property Price Index
carefully, I noticed a distinct pattern of property cycles
(1993-1998, 1999-2004, 2005-2009, and the current one
that started in the second quarter of 2009). I have gone
through this analysis thoroughly in my book, Secrets of
Property Millionaires.
Basically my technique of timing your entry into the
property market is to buy properties only during certain
window periods. This is when the property market just
begins to turn upwards (e.g. in the beginning of 1994,
1999, 2005, 2009) those who bought at these times will
have handsome capital gains. Through timing my entry,
I have bought more properties during such window
periods than at other times.
Of course to know when the window periods occur
and what properties you should buy at what prices
during those times, you need to monitor the market and
be on the constant lookout for good buys and the first
sign of recovery. There are two signals I look at: 1) The
prices of properties you are monitoring must have fallen
close to or below the previous transacted prices during
the downturn and bottoming of the market in the last
property cycle 2) A marked increase in the number of
property transactions is usually the first sign of an upturn
and recovery in prices.
The Benefits Of Forming A Company

As An Investment Vehicle
The benefits of forming a company as an investment

vehicle include:
1. All expenses incurred by the company in its
management of the investment property are
considered corporate tax deductible.
These include maintenance fees, property tax, utility
bills, renovation, and even furnishings. However this
book is not meant to be a guide on tax laws you must
seek the advice of qualified accountants to understand
the intricacies of the prevailing tax laws and regulations.
2. You can apply for your company to be GST
registered.
This makes sense especially if you purchase
commercial properties that require GST payment this
GST will then be recoverable as GST reimbursements,
and is substantial at 7% of the purchase price.
3. You can enjoy tax benefits
The Singapore corporate tax regime allows new
start-ups to enjoy tax exemption for the first $100,000
of normal chargeable income for each of the companys
first three consecutive financial years. Effectively, new
start-ups with a net income of $300,000 in each of their
first three financial years pay tax based on only $100,000
for each of their first three financial years (based on the
6
prevailing tax rate of 17%).

When buying with other investors, the benefits of
forming a company include:
1. The terms of agreement between the property
investors can be easily stated in the company
shareholders agreement
2. There is no big fear of a stalemate in the event
of death, bankruptcy, illness, unsoundness of
mind or inordinate absence affecting one of the
shareholders.
Property investment is a business to help you generate
profit and cash flow you should not get emotional
about it and should run it as a business. Thats why I
recommend forming a company to do it.
However, one practical challenge faced by a property
investment company is that of obtaining mortgage loans.
Bankers tend to look behind the corporate veil of the
company and conduct their due diligence on each of the
shareholders and directors. The credit rating and level of
experience of such individuals will determine both the
approval and quantum of the mortgage loans.
Reasons To Enter Into A Property

Sharing Agreement
One way to share the burden of having to pay huge
upfront sums of money towards property purchases is to
form property-sharing joint ventures. Each investor pays
a small sum of money (depending on their percentage
7
shareholding) to tap into big investment opportunities.

With a bigger investment budget, a group can also
bargain for better discounts in bulk purchase deals,
or buy costly properties like a coffee shop or eatinghouse with high rental returns. Even small buildings are
possible to buy.
Property sharing will also provide you with a greater
financial safety net to cushion you from the ups and
downs of the property market. This will help you sit out
any lull period in a property cycle.
But before you do so, make sure all your partners
possess high integrity, and make sure you do not run
afoul of the rules relating to soliciting funds from the
public. Property investment is a business, and you can
only build a good business with honest people.
Property sharing ventures often take the form of
private limited companies, which I recommend unless
you are buying the property with a close relative. Despite
the hassle of legal procedures and operation costs, it is
worth it as forming a company will not only safeguard
your interests but also offer other benefits.
Must Do Property Buying

Due Diligence
You should always make the effort to find out about all
the relevant details regarding a property, as well as its
seller(s). Never just believe what the agent says.
Important details to look out for include whether the
8
property is freehold or leasehold, its exact area, as well as

whether there are caveats or orders of court registered against
the property. Government plans for the area are also critical,
such as whether there are road or drainage line reserves.
Certain zones require special caution as they may have
special government planning restrictions, including Geylang,
Changi, Serangoon, Balestier, Chinatown, Pasir Panjang and
Tanjong Pagar.
You can conduct some of your due diligence by doing an
online search (e.g. at www.inlis.gov.sg, www.lawnet.com.
sg, www.ipto.gov.sg etc), but consulting conveyancing and
property lawyers can save you much time and hassle. In fact,
getting professional legal assistance to go over the fine print
can save you from losing heaps of money should something
go wrong during and even after the sale.
The Biggest Mistake Property

Investors Make
The biggest mistake I see property investors making is
succumbing to greed and committing to properties beyond
their financial capacity. This often happens during bullish
markets when buyers aggressively bid for properties, and
many investors boast of the huge profits they make flipping
or reselling properties.
I myself over-committed to properties during the epic
1995-1996 property boom, and when prices started to fall in
1997 I sold off some of the properties at depressed prices.
Worse, some of my co-owners started to default on their
9
commitment to pay the mortgage instalments, leaving me

to bear the burden. By 1998, most of my properties were
in negative equity, meaning the value had fallen below the
outstanding mortgage. During that time, I lived under the
shadow of foreclosure and bankruptcy. Fortunately in 1999
there was an upturn in the market and property prices started
to climb.
What I learnt from this great financial loss was this lesson:
Never overstretch your financial capacity. Buy only what you

can afford to hold. You must have the financial capacity to
ride out the storm in a weak property market, and be prepared

to hold on to your property for a few years. Make sure you
set aside enough money for the incidental costs (stamp duties,
legal costs, GST etc) and have 12 months worth of funds to
pay for the maintenance, property tax and utility bills.
Do Residential Or Non-Residential
Properties Make Better
Investments?
I have often been asked whether residential or non-residential
properties make better investments. My general assessment
is to buy residential properties for capital appreciation and
commercial and industrial properties for rental yields.
For example, I bought a 4-room unit in Martin Place
Residences off River Valley Close in the second quarter of
2009 at about $1,420 per square foot (psf). Within one and a
half years, the property appreciated to $1,850 psf, an increase

of more that 30%.
10
A month later a friend and I ventured to acquire a unit in
an industrial estate known as Eunos TechPark. The price

has not appreciated much but we have enjoyed the very
healthy net rental return of around 9% over the last five
quarters.
How To Flip A Property For A

Quick Profit
The quick sale of a property after obtaining an option to

purchase is often called a flip, so called because the entire
purchase and resale process can happen in a matter of days
and weeks. Expert property investors are often on the lookout
for such opportunities because they can get quick profits with
only a minimum outlay of 1% of the property price.
There are a few essential rules to follow when flipping:
1. All sellers of a property must sign the Option To
Purchase (OTP), and every seller must have the
capacity to sell.
2. The title of the property must be in order, i.e. there
are no caveats, order of court, or other encumbrances
preventing the sale of the property.
3. The OTP must be addressed to an individual, a
company, or a legal entity with the capacity to purchase
the property.
4. The words and/or nominee(s) must appear after
the name of the original purchaser that the OTP is
addressed to (this is critical).
5. The original purchaser, whose name is on the OTP,
11
will hand the original copy of this, together with a duly

signed nomination letter, to the final purchaser.
To execute a flip, after you have paid the 1% option money

and obtained the OTP from the seller, you market the property
aggressively and hope to find another final buyer within 2-4
weeks. The final buyer will then pay you a profit (equal to the
difference between the purchase price agreed upon between
you and him, and the original purchase price) in exchange
for the OTP and a nomination letter nominating him to be the
buyer.
Note that if you flip under construction projects from
developers you will have to execute the sale and purchase
agreement and thus be liable to pay stamp duty, but if you flip
resale properties you do not need to do so.
A word of advice from me: flipping carries the risk of
forfeiture of your option money and liabilities, so rather
than being too greedy you should be flexible when receiving
offers, and only flip during bullish markets.
My Personal Investment Philosophy
I can never over-emphasize the importance of financial

prudence. In my network we carry out what is known as
the stress test we ask ourselves whether we are able to
comfortably pay our monthly mortgage instalments in a worst
case scenario when interest rates skyrocket and mortgage
instalments increase. To make matters worse, our tenants may
leave and a suitable tenant may not be found easily. Rental
payments are not always dependable and we may have to go
without rental collections for months on end.
12
I allocate half of my investment funds to property and the

other half is invested in stocks, options, unit trusts, bonds,
commodities and currency. I do my own analysis for all my
property investments, but for the other asset classes I also
listen to the advice and recommendations of the experts in
those fields (such as my stock broker or private banker).
My Worst Property Investment

In my book Secrets of Property Millionaires (published in
the second half of 2010), I illustrated the many mistakes I
had made in my property investment journey. They were
costly mistakes and I had learned to spot the tell-tale signs of
possible pitfalls.
In 1996, I purchased three semi-detached houses at Limau
Garden, each costing $1.8-1.9 million. Though those houses
only had 99-year leases, they were part of the prestigious
Kew Vale collection of landed properties sold by Kew Park
Pte Ltd. I thought the houses were a bargain, as I obtained
them at bulk purchase discounts of up to 18% off their listed
prices. The land area for each of the three-storey split-level
houses was decent at approximately 2,800 square feet, with
huge built-up areas of about 3,770 square feet.
Back then, it seemed like a great buy. However, as it

turned out I had bought the three houses close to the peak of
the 1993-1998 property cycle.
Two years after the purchase, the economic downturn hit.
Rentals for each semi-detached house plummeted from about
$7,000 per month to a low of $2,600. Despite this, I held on
to all three houses. Surely the prices would recover one day.
13
Another year later, in 1999, I sold one of the houses at

$1,225,000 taking a loss of $655,000 on that unit. It was
indeed a very painful decision. Unfortunately, I had little
choice but to dispose of the house at this depressed price as
the property market was worsening by the day. I had sold in
a buyers market, in the hope that with the reduced liability
I could hold on to the other two properties until their prices
recovered.
The next property boom came in 2007. I finally sold my
remaining two semi-detached houses at $1.2 million each.

Despite having sold at what was supposedly a peak, my total
loss on both houses amounted to slightly over $1.3 million!
Prices had simply not recovered even after a holding period
of more than 11 years. Had I held on to the houses till today,
the prices might have increased marginally to just touch the
$1.5 million range. This would still be a far cry from the over
$1.8 million I paid per house in 1996.
To sum up this hard lesson learned, I had bought the wrong

properties at the wrong time a sure formula for the typical
property investment disaster.
14
Getty Goh
Director,
Ascendant Assets
Pte Ltd
Getty Goh is the
founder of Ascendant
Assets Pte Ltd, a
real estate research
and
investment
consultancy that specialises in
providing research and analysis on the Singapore
property market. Getty graduated from the National
University of Singapores (NUS) Faculty of Building
and Real Estate (now known as School of Design
and Environment) with an Honours Degree in Building,
and is presently pursuing a Masters degree in Real
Estate from NUS.
In September 2008, Getty launched his first book
entitled Buy, Bye Property: Mistakes you want to
avoid in Property Investing, which made the Times
Bookshop Bestseller List in November 2008. Getty
has also written articles for Property Report Magazine,
MediaCorps MOCCA.com as well as Propertyguru.
Getty conducts seminars to help consumers better
understand the property market. He has been invited
by SMART Investment and International Property
Expo 2009 as well as Singapore Press Holdings
RazorTV to share his insights on the Singapore
15
property market.
Ascendant Assets Pte Ltd focuses on helping its
clients make informed property investment decisions
by providing research and statistics. Its core
strength lies in customising solutions and providing
timely advice that adds value to a clients property
investment decisions. Since its establishment in
2008, Ascendant Assets has lent its expertise to a
wide variety of clients, ranging from corporations and
investors to even home buyers.
16
I believe that just one or two

correct investments are enough to
make a significant difference to our
financial status. Hence I am very
selective with what I invest in and
would rather wait for
a good deal to come along than chase
investments that may not
be worthwhile.
Getty Goh
17
Two Key Trends That Will Drive The

Property Market
Based on the URA Price Index, we are presently
experiencing a decline for non-landed residential
housing; on the other hand, prices for landed properties
have been observed to be increasing. This indicates a
gradual shift in buyer profile and we believe that local
buyers are fuelling the growth. At this juncture, I must
qualify that property trends are dynamic and change
from time to time. Hence, what is applicable today may
not be the case tomorrow.
Conceptually, property prices are the result of various
market stimuli (e.g. government policies, interest rates,
liquidity, etc.). If the expansionary forces (e.g. ample
liquidity, increase of property demand, low interest
rates, positive market outlook, etc.) are stronger than
the contractionary forces (e.g. government intervention,
increase of property supply, uncertain market outlook,
etc.), prices will shoot up. The reverse will happen if the
expansionary forces are weaker than the contractionary
forces.
Going forward, I believe that there are two key trends
that will define the Singapore property market. The first is
the ample liquidity in the Singapore market. In 2008, the
Monetary Authority of Singapore (MAS) reported that
the amount of savings and other deposits in Singapore
was in excess of $100 billion. Putting things into
perspective, this was twice the amount that Singapore
had after the Asian Financial Crisis. The following year
18
(2009), this amount went up to about $120 billion.

My company uses savings and other deposits as a
proxy for liquidity within the real estate market as they
represent monies that can be used for property deposits.
They are also used as an indication of interest rates as there
is an inverse relationship between liquidity and interest
rates the more liquidity the economy has, the lower the
interest rates will be. With the U.S. government printing
more money and the limited investment opportunities in
many Western countries, it does not come as a surprise
that the asset price appreciation is funded by monies
flowing into Asia.
The second key trend is the Singapore governments
response to the property market. From the series of
anti-speculation measures, there is little doubt that
the government is closely monitoring property price
movements and is ever ready to take steps to cool an over
exuberant market. Thus, I will be looking at these two
factors to forecast how the market will be performing
over the next few months.
Is Property Investment A Good Idea

In Todays Market?
Before I answer this question, I think it is important

for property investors to be clear about what they hope
to achieve. Clearly, the days for quick and significant
capital appreciation are already behind us. When I was
helping my client to source for good deals in late 2009,
19
there were quite a number around. Those who proceeded

and made their purchases then (like some of my clients)
will be comfortably sitting on profits of a few hundred
thousand dollars.
In 2010, prices have appreciated significantly and the
URA Private Property Price Index (PPPI) for 2010Q2
exceeded the last peak set in the 1990s. Thus strategies
for capital appreciation are not really appropriate in the
current environment.
Personally, I think that a prudent investor should not
be entering the market right now as value-for-money
deals are limited and extremely hard to find. They should
wait for the next down cycle to enter the market. It is
important to remember that the market is cyclical and a
correction will almost certainly happen after period of
strong growth. Looking at how much property prices
have increased, I would urge investors to think twice
before jumping onto the bandwagon. Although some
investors may have missed this rounds property bull
run, there will always be the next one to catch.
Whether New Or Resale Properties

Are Better Investments
Based on the research my company has done, we found
that buyers will have a higher chance of getting valuefor-money deals by buying resale properties. If you think
about it, it is actually quite intuitive. After all, developers
are in the business of selling properties for profits. With
20
many of them having ample financial reserves, how

cheaply do you think they will sell their new units for?
Resale properties on the other hand are bought from
other owners, who can be selling for a variety of reasons.
While some of the homeowners may be savvy investors,
there will definitely be others who need to dispose their
property urgently and are prepared to sell their unit at a
discount.
I have personally come across numerous valuefor-money deals. Let me share one such deal that my
company helped a client secure. In late 2009, I was
helping a client find an investment property. As he did
not want to over-stretch himself, the investment budget
was set at $700,000. After several weeks of searching,
we eventually found a suitable unit that was going for
$650,000. Based on my companys research, we knew
that it was a good deal as the asking price of similar
sized units in the same development was about $100,000
more than the asking price for that unit. In addition, we
found out that the seller was parting with his property
for a loss of more the $50,000. All these were indications
of a value-for-money unit and we were confident that
my client would have easily made a tidy profit had he
decided to flip the unit.
We later found out that the owners were willing to
let the unit go at a discount because they were going
through a divorce and wanted to quickly divide the
assets. From this experience, it reaffirmed my belief that
there are plenty of good resale deals. It is just a matter of
21
how diligent we are in our search to find them.

That said, I am not implying that buyers should
totally avoid new sales as there are advantages to buying
properties direct from developers. Firstly, when someone
buys a property directly from developers, they will be
entitled to a one year Defects Liability Period (DLP)
that starts when the development receives its Temporary
Occupancy Permit (TOP). During the DLP, any defects
found will be rectified by the developer. Resale units
do not have such liability periods and buyers will have
to rectify any defects at their own expense.
Another advantage in new sale purchases is that
buyers generally are able to choose the unit they
want. However this is dependent on how buoyant the
property market is at that point in time. Nonetheless,
under normal market conditions, buyers are able to
select the units they desire.
Lastly, payment schemes for new and resale
purchases are different. New sale buyers can opt for a
progressive payment method, while resale buyers will
have to start serving their mortgage based on the full
loan amount after the sale is completed. While there
are pros and cons for new and resale properties, I feel
that resale properties will be a better bet for those who
are looking for value-for-money deals.
22
Is There A Right Way To Structure A

Property Deal?
I think a key misconception with deal structuring is that
there is one right way to do it in reality there is no fixed
way. In my course of work, I have structured deals for
clients as well as for my own investments, and I found
that the most ideal way to structure any deal is in a
way such that everyone is satisfied with the outcome.
It is about finding a win-win solution for all parties
involved.
I know there are currently seminars in the market that
teach people how to invest in properties with an investor
network as the main selling point. The value proposition
behind such seminars is for people to come together to
find suitable property investment partners. Intuitively,
such an approach may appear workable. While I am
sure some of these courses do impart useful knowledge,
I have reservations on the network aspect not because
they do not work, but because they over-simplify a
process that is actually quite risky.
For example, what if the other person whom you
co-invest with wants to get out of the deal halfway?
Or worse still, what if he becomes a bankrupt and the
property is seized to repay his debt. If that happens, you
may not be able to get your capital back as there could be
others (e.g. banks) that have priority over the proceeds
of the sale. Even if you are able to eventually get your
money back, imagine the trouble and uncertainty you
have to go through.
23
Professor Harold Tan, one of the lecturers for the Real

Estate Masters Programme I had taken at the National
University of Singapore, once said: Joint ventures are
like marriages you should be careful who you get
involved with. Hence, I would be more at ease with
investing large sums of money with family and close
friends instead of people whom I do not know well.
Do Residential Or Non-Residential
Investments?
This is a very common question I get from my clients.

Some of them think that commercial and industrial
properties are more worthwhile investments, especially
when residential properties become too expensive. I do
not really agree with this perspective. Different types
of properties have different characteristics some have
better rental yield while others have more potential for
capital appreciation.
If you are looking for rental yield, I would agree
that non-residential properties tend to give higher rental
returns. This is because most non-residential properties
are leasehold properties with only 30 or 60 years lease.
Due to the shorter lease, the purchase price of nonresidential properties is naturally lower as compared
to residential properties that are freehold or have a
99-year lease. However, if you are looking for capital
appreciation, I believe that residential properties are still
24
a better bet.
Based on the number of property transactions for
the first nine months of 2009, we found that residential
properties accounted for more than 90% of the total
transaction amount. From this information, we can
conclude that there is significantly more liquidity in the
residential sector as compared to the non-residential
sector.
How Interest Rates Affect

Property Prices
There are many factors that can affect property prices
and interest rates are definitely one of them. However,
by looking at the correlation between interest rates and
property prices, we found that the relationship between
the two variables is not very significant. In fact, things
like market conditions, employment rate, FDI and
location were found to have higher correlations with
property prices.
A possible reason for this is because investors have
accepted that interest rates will fluctuate frequently as
many loan packages are currently pegged to SIBOR or
SOR rates. As a result, investors would have already
priced in interest rate volatility in their decisions to buy
a property.
Moreover investors know that they can always opt to
refinance the property; as a result, interest rates tend to
have a lesser impact on their buying decisions. Thus, as
25
long as interest rates do not suddenly spike beyond what

is deemed reasonable, investors generally would not be
significantly influenced by interest rates.
Are Leasehold Or Freehold

Properties Better Investments?
I used to believe that freehold properties were better
investments. However in recent years, I am starting
to have a paradigm shift and accept that leasehold
properties may be viable investments as well.
My company did some research for my second book
Buy Right Property to see if leasehold or freehold nonlanded properties were more profitable and we found that
the proportion of profitable leasehold units was almost
the same as their freehold counterparts. Conversely,
the proportion of leasehold units that made losses was
also almost on par with freehold units. From this simple
research, we found that tenure did not matter much and
leasehold properties could be profitable too.
I am also aware that some investors prefer freehold
developments due to their en bloc potential. Prior
to 2005, all successful en bloc deals were freehold
developments. However after 2005, there have been
successful en bloc deals for leasehold developments as
well. In fact, the first successful en bloc deal involving a
leasehold development was Eng Cheong Tower in 2005.
Hence, there is equal opportunity for leasehold and
freehold developments to be sold en bloc.
26
At this point, I must qualify that the analysis above

is only applicable for non-landed properties. Freehold
GCBs with land size of at least 1,400 square meters do
command a price premium due to their rarity. However,
considerations behind buying them as well as factors
affecting their prices will be quite different from nonlanded properties.
This is a complex question. To answer it adequately, I

need to briefly discuss my personal philosophy towards
life as I think it is inextricably bound with my investment
philosophy. For example, if someone has a tendency to
take shortcuts and is reckless in what he does, do you
not think that he will adopt a similar attitude towards his
investments? On the other hand, if someone is willing to
take calculated risks and is careful and detailed in what
he does, do you not think it will be reflected in the way
he invests?
Let me share a real life example to illustrate this
point. I have a close friend called Kah Shin. He is the cofounder of Quantedge Capital, a hedge fund that operates
in Singapore. I have been told that their hedge fund has
generated consistent returns of more than 30% annually
and they are close to raising $100 million of assets under
management. It is quite an accomplishment for someone
who is in his early thirties, but it is his mental strength
and his will to succeed that impresses me.
I had the opportunity to see him display his mental
27
fortitude during one of the extreme endurance races we

took part in together. In 2008, we participated in a seven
day run across the Gobi Desert. The total distance was
250 kilometers, which is slightly more than five times
the distance between Jurong to Changi. It was my first
time taking part in such an event and my whole body
was aching by the end of the first day.
During the first dinner break, I met up with Kah
Shin and asked if his body was hurting. He told me in a
matter-of-fact manner that the run was painful for him as
well, however he was determined to complete the race
as he had set his mind to it. I followed-up by asking him
how he managed to push himself on despite the pain. He
shared that whenever he felt any pain, he simply took
painkillers and continued running never stopping or
giving up. There was even a day when he had a bad case
of diarrhea, yet he continued running!
My point of relating this event is to highlight how
our philosophies towards life impact our philosophies
towards investments. I have little doubt that Kah Shin
adopts a similar never give up attitude in whatever he
does (including his investments), hence it is little wonder
that he has accomplished so much at such a young age.
I have several personal philosophies that I believe
have an impact on my investment strategies. First, I do
not take what people say at face value and I would rather
find things out for myself and reach my own conclusion.
So when someone tells me that a particular place has
good investment potential, I would go and personally
28
check it out for myself. In 2010, I was thinking of

investing in a Malaysian property with a good friend.
While I had Malaysian property agents to service my
investment needs, I actually went to Malaysia several
times to check out the property market. On top of doing
research online, I believe I can learn more when I am
physically there to view the potential investments.
Secondly, I believe in the 80/20 rule (also known as
the Pareto Principle), which states that roughly 80% of
the effects come from 20% of the causes. Applying this
to my investments, I believe that just one or two correct
investments are enough to make a significant difference
to our financial status. Hence I am very selective with
what I invest in and would rather wait for a good deal
to come along than chase investments that may not be
worthwhile.
Some people may not subscribe to this thinking
as they believe that experience is acquired through
aggressive investing. I have come across people who
claim to be very experienced in the property market
as they had invested in many properties within a short
period of time. I am personally not comfortable with this
approach, and would rather take things slow and steady.
Although I wait for good deals to come along, it does
not mean that I am resting on my laurels and not doing
anything. The time in between is spent on finding good
deals and doing research to analyze the deals I come
across. I view buying a property akin to taking an exam.
Just like an exam, each property purchase is a test to see
29
if I have understood what the market is trying to tell me

and if I have done my homework by finding a worthwhile
property to invest in. By adopting this perspective, all
the research I do and hard work I put in makes perfect
sense.
My personal investment philosophy is to be focused
on the things I am good in. As the saying goes: Jack of
all trades, master of none. Hence I would rather be good
in a specific area than good at nothing. Moreover, we are
all gifted with different abilities and there are different
avenues of success for everyone.
Allow me to share a personal encounter with you. I
attended a stock and options trading course in 2005 and
was filled with illusions of attaining financial freedom
through day trading. The notion of trading like a pro and
earning an income was very alluring. However, it made
me realize that short term stock and options trading was
not suitable for me. It was not about the actual amount
lost but the huge anxiety I felt whenever I traded. The
whole experience made me realize that trading was not
my cup of tea and I decided to call it quits after a year
of trying.
I do buy stocks from time to time. However, they
are more for long term investment and I hold them
for months and sometimes years instead of weeks or
days. Ultimately, I see stocks as another asset class
that, if correctly used, can complement my property
investments.
30
Finding Good Investment

Opportunities
Buyers are sometimes pressured into jumping onto the
bandwagon out of fear that they would lose out.
During hot property launches, some buyers even
go to the extent of passing blank checks to property
agents in order to book any unit. I personally do not
believe in this and think that there will always be
good opportunities; you just need to look a little
harder.
Let me share a personal investment story with you
to illustrate the case. In March 2010, the Singapore
property market was on the road to recovery. If you
recall, the media then was filled with news on how
hot the property market was and the asking prices of
some properties had even exceeded the peak price
set in 2008. I had just sold my unit at Robertson
Quay for a profit of $400,000 and was looking to
reinvest my money. While I was concerned that I
may not be able to find another good deal, I took my
time to explore different possibilities and checked
out various sectors of the property market.
Eventually I managed to secure a conservation
shophouse which had an indicative bank valuation
of $1 million for about half the price. Had I decided
to flip this deal, I would have made a handsome
profit within a short period of time. This reinforced
my belief that there are opportunities even in a hot
market.
31
Some people commented that I was lucky to come

across this deal and it was not likely to be repeated.
Although I agree that such deals are not easy to find,
it was the belief that these opportunities existed that
motivated me to search relentlessly. Nonetheless, had
I not taken proactive steps to seek these opportunities
out, I would definitely not have come across such
a deal. With more than 150,000 private apartments
and condominiums units in Singapore (and more being
constructed), there is ample choice for property buyers.
32
Finding Your Ideal

Investment Property
33
Mohamed
Ismail Gafoor
CEO,
PropNex Realty
Pte Ltd
LTC (NS) Mohamed
Ismail is the CEO
of PropNex Realty,
Singapore's leading
real estate agency.
With a Bachelor in Land Economics (Hons) from
the University of Technology Sydney, Ismail owned
his first property at the age of 22 and made his first
million at 28. He is an investor, entrepreneur and a
success coach to many Million-Dollar Club Producers
in the Real Estate arena.
He has appeared on various media channels
across the region and has spoken at various seminars,
lending his expert opinion to the public. His business
efforts have led to Entrepreneur of the Year Awards
from SMCCI (2004) and SICCI and ASME (both in
2008). PropNexs professional brokerage services
have earned them an over 20% share in both the
public and private secondary residential markets,
while their in-house consultancy services also cater
to investment, en bloc, business space and other
property needs.
Formed in 2000, PropNex has nevertheless
34
established itself as a market leader, in turnover as

well as in setting and upholding service standards
in the industry. Besides working with partners to
enhance their salespersons productivity and add
value to consumers, PropNex also launched several
initiatives to empower consumers.
From an in-house mediation board and mandating
professional indemnity insurance and continual
professional development to free seminars for the
public, PropNex is the consumers trusted brand for
real estate.
35
For investors who are serious about

making money through property
investment, the Master Plan must
become your specialised field of study,
since the growth potential of the region
that you are investing in will have a
direct impact on the rental yield and
market value of your property.
Mohamed Ismail
36
Finding Your Ideal Investment Property
Trends Im Seeing In The Market

Todays interest rate of below 2% is still very attractive
for investors, whether local or foreign, which is good for
the industry as a whole and should help keep the demand
strong for property here.
The regulations from the Ministry of National
Development and the Housing Development Board
on 30 August 2010 and 13 January 2011 have led to
a dip in the number of HDB flat transactions; as there
are greater restrictions, such as a cap on loans from
banks, higher minimum cash deposits and lengthened
Minimum Occupation Periods. The decreased demand
has led to a drop in the Cash Over Valuation levels:
which will help bring stability to the public housing
market in the mid-to-long term.
On the private housing front, the mass market is
still going strong with price per square foot levels
maintaining high levels. There is some caution in the
high-end market however, mainly due to the cooling
regulations.
Impact Of The Fourth Round Of

Measures And Forecast For 2011
I feel these latest measures on 13 January 2011 are a
little premature, given the previous round of cooling
measures came less than five months ago; we would
not really have had sufficient time to assess the effects
of the previous measures on 30 August 2010.
37
The lower Loan-To-Value (LTV) ratio is expected

to psychologically cripple many investors minds.
Besides investors, many genuine HDB owners with
an existing mortgage will find it difficult to fork out
the 40% cash for a new property, especially if they are
upgrading to a condominium or other private property.
This is because HDB dwellers are mainly in the lower
to middle income groups. In fact, we know that there
were quite a few HDB dwellers who had already found
it difficult to move out of their existing flat with the
previous 70% LTV cap.
As for the lowered LTV for companies to 50%, I
think this was introduced because many individuals
were incorporating companies to circumvent the
previously introduced lower LTV of 70%.
Basically, of the three measures announced, the
increased holding period for the imposition of Sellers
Stamp Duty (SSD) is likely to have the least impact,
despite the dramatic increase of the SSD by over five
times. This is due to the fact that, since the SSD was
introduced on 30 August 2010, many investors were
already buying with a mid- to long-term view. If
anything, some of the (relatively) smaller investors will
buy private properties in the Rest of Central rather than
Core Central Region, as these would require a smaller
quantum to be locked in for the four years.
However, the greatest impact will not come from the
measures themselves, but from the short period of time
after the last slew of measures. The relatively short time
38
between the measures will probably reduce investor

confidence and have them asking: Whats next?
In short, my forecast for 2011 would be a 5% to 8%
growth for both the HDB resale and private secondary
markets. Breaking down the private property growth,
landed properties are expected to lead the way with
about 10% growth, with Rest of Central coming in
a close second at 8% to 10%. Mass market private
properties are expected to grow by between 3% and
5% with insignificant price movement for Core Central
properties.
How To Find A Good And Reliable

Real Estate Agent
A good real estate agent adds value to the investors
assets through sound advice on property investment and
reliably facilitating an investors property investments.
He/she should be able to understand the needs of the
investor and match these needs to the most appropriate
property for investment, thus helping them to achieve
their (financial) objectives.
A professional agent can greatly aid you with his
or her expertise and knowledge, and thus protect your
interests. Besides arranging and coordinating the
viewings, they would also negotiate the price with your
best interests at heart.
Specifically, the things a good agent will do for you
include:
39
Marketing of properties, conducting of open

houses, publicising the property in the MLS
(Multiple Listings Service) and traditional and
online media
Qualifying prospective customers to ensure that
they are able and ready to transact the deal
Doing a Comparative Market Analysis (CMA) for
your property
Acting as an intermediary in negotiations between
buyers and sellers
Arrange for moving in, moving out, early
renovation, and opening of utility accounts for
tenants in rental deals
Coordinating appointments with lawyers, bankers
and HDB resale officers
Preparing all the necessary documents such as
Option To Purchase (OTP), resale application,
inventory list, letter of intent, and tenancy
agreement
Facilitating the closing of the deal and witnessing
the signing of documents
Doing the financial calculation and computation of
sale proceeds for sellers, and checking the financial
requirements for the buyers
One way of finding such an agent would be through
reliable company websites. But investors should also
meet up with the agent and ask him/her to make a
presentation to gauge his/her sincerity and knowledge,
40
and to ascertain whether a working chemistry exists

between the two before hiring him/her.
Some of the things you might ask him/her during
the interview include: his/her years of experience,
knowledge of the current market situation, understanding
of policies, ability to work out the financial metrics for
your investment, and his/her desire to serve.
It is interesting to note that an agent with only one
years worth of experience but equipped with good
knowledge and a lot of enthusiasm may do an even
better job than a veteran with ten years of experience
but who is too busy to personally serve you.
The Biggest Mistakes Property

Investors Make
These are the biggest mistakes I see investors making:
1. Adopting a herd mentality (i.e. buying after others
have bought and when the market is already peaking)
Adopting a herd mentality is a mistake because that
would mean jumping onto the bandwagon after prices
have already started rising. This means that the buyers
did not get the best price possible and will thus realize a
smaller return on their investment.
2. Letting emotions cloud their judgement of a
property, usually for purchases
The factor of emotions is also something investors
41
should be wary of, as this may lead them to invest more

in a property that may not be worth that much in the
long-term. Some investors, for example, may invest in a
property primarily because they used to live in the area,
or because there is a view of the sea in the distance, and
may pay more than necessary for that.
3. Getting greedy and stretching beyond their means
As for being greedy, property is a mid-to-long term
investment. One must not exhaust ones finances when
investing as unforeseen events, such as a recession, may
lead to a need to hold on to ones investment for longer
than expected.
Promising Areas For Property

Investors
Landed homes in Singapore are a good bet as there is
always demand due to the scarcity of land. For strata
properties, projects in the Core Central and Rest of
Central regions offer higher returns.
For investors who are serious about making money
through property investment, the URA Master Plan
must become your specialised field of study, since the
growth potential of the region that you are investing in
will have a direct impact on the rental yield and market
value of your property. Suffice to say, a property situated
within an area of growth has higher chances of capital
appreciation and fetching a higher rental yield than one
42
in a matured estate where development is kept to the

minimum.
For example, in the past, the West Region was
shunned by many investors because of the existence of
many light and heavy industries in Tuas, which made
people feel that the air was less pure. But the Master
Plan has stipulated for the creation of the second largest
commercial hub, after the Central Area, at the Jurong
Lake district. With more than 50 hectares of vacant land
available for development, Jurong Gateway, the area
around Jurong East MRT station, will provide about
500,000 square meters of office space and 250,000
square meters of retail, F&B and entertainment space. It
is thus not hard to see that many real estate investment
opportunities now abound in what was once a less
preferred area, thanks to the changes in the Master Plan.
Also, areas where new MRT lines are being planned
are worth taking a look at. Look at real estate that is
within 10 minutes walk to an MRT station. Due to the
ever-increasing costs of car ownership, owning a car
for its convenience has become less attractive to most
people. Thus, HDB flats near to MRT stations are very
valuable, and private condominiums and landed homes
near to these stations give better en bloc potential due to
the higher demand for such land sites, no matter how old
the property is.
43
Should You Buy An Hdb Flat Or

Private Property?
For investors who can afford private property, they
might not want to buy HDB as there are other restrictions
involved. Besides the lengthened Minimum Occupation
Period (MOP), they also have to realize that they will
have to sell any private properties they own overseas or
in Singapore. They will also not be allowed to sublet, or
purchase a private property locally or overseas.
My advice is to buy a mass market private property
instead. Even by buying a small private house, the idea
is to get a FOOTHOLD into the real estate market. By
not being bound by the five year MOP, you will then
have the freedom to take advantage of the property cycle
at any time.
Should You Do An Addition &

Alteration (A&A) Or Demolish And
Rebuild A Landed Property?
If you want to buy a landed property, you need to first

check that the existing structure of the building is in
sound condition, and that the foundation allows for
further extension. You can only do an A&A if these
two conditions are met, in order to transform the house
to meet your requirements instead of demolishing and
rebuilding. You might need to engage professionals such
as architects and contractors to assess the potential of the
house for you.
44
As long as the foundation and main structure is sound

for further A&A, it is always better to opt for A&A.
Besides the fact that it is probably cheaper, one will
also not be subject to restrictions such as the mandatory
inclusion of a bomb shelter. Also, any redevelopment
on an existing plot is subject to road line interpretation
that may require you to do a setback from the frontage,
thereby giving up a portion of the land.
For example, building a 4,000 square foot house
from scratch with demolition costs thrown in will cost
you close to $1 million dollars. Just the new foundation
and piling will already cost $150,000 to $250,000,
depending on the soil conditions, which might require
different methods of piling. Doing an A&A to the existing
structure might only cost around $300,000.
Properties with the potential to do A&A are generally
landed properties with building structures equipped
with concepts that date back to 20 or more years ago.
You can then add value by focusing on modern design,
infrastructure, and incorporating technology such as solar
panels in the building to achieve a chic yet environmentally
friendly outcome. The faade of an A&A project should
not be altered by more than 50%, and is subject to approval
and conformance to statutory building guidelines.
More details on what you should consider when
deciding on an A&A property can be found in my
book, The Ultimate Guide to Real Estate Investment in
Singapore.
45
Investing In Commercial Property

Commercial properties would be more for the higher
risk investor as while they generally yield higher rental
returns, they are also more volatile during economic
downturns.
For example, a retail outlet with a high rental yield
might experience a drop in rentals and returns if a large
shopping mall opens nearby and pulls away human
traffic. The value of retail property depends on human
traffic, as every retail business needs customers to
patronise and buy things thats how they survive and
pay the rent.
However, the prices of residential properties do not
fluctuate as much as people are always willing to rent a
home at a reasonable price and the rental does not depend
on human traffic. In fact, low density residential estates
are favoured by many who prefer a quiet respite away
from the rush of the city.
For those interested in investing in commercial
properties, the key considerations are rental yield, and
how easy it would be to get another tenant in the event
the current tenant leaves.
How Propnex Ensures The Quality

Of Its Agents
We are a firm believer in self-regulation and setting

high professional standards for our agents. Although
the government has only just mandated professional
46
indemnity insurance and continual professional

development for all salespersons, weve been doing that
since the second quarter of 2008 for all our agents. The
company is covered up to $5 million for professional
indemnity insurance, which is five times the minimum
required.
Also, we have our own in-house legal counsel and
mediation board to settle any disputes or grievances that
our clients may have.

My philosophy on property investments: Do not
speculate on the short term; buy with a mid-to-long term
view, i.e. five years and beyond. Also, buy within your
means in areas with good rental demand.
I am a firm believer in property as an investment so
that is what I focus on.
My Property Investment
Track Record
So far, all of my property investments have made money
due to my buying principles of having a mid-to-long term
view. However one commercial property I bought with
my partner was sold after one week of ownership for a
$1 million profit. As for mid-term property investments,
landed property that I purchased five years ago has seen
a value increase of over $3 million.
47
Steve Melhuish
CEO,
Allproperty Media
Pte Ltd
Steve is a serial entrepreneur with 19 years
experience building
businesses in Asia
and Europe. He cofounded AllProperty Media Pte Ltd,
the owners of PropertyGuru.com.sg in 2006 with
his partner. Since then, he has helped develop the
Business into the leading Singapore property media
used by 1.7 million users monthly, created LoanGuru.
com.sg (a popular online mortgage brokerage) and
most recently launched CommercialGuru.com.sg
(Singapores first commercial property portal). Steve is
the primary spokesperson for the Business, frequent
presenter at conferences and regularly interviewed in
the press on property and business matters. In 2007,
Steve was awarded the Spirit of Enterprise Award, in
recognition of his contributions to entrepreneurship in
Singapore.
PropertyGuru.com.sg is Singapore's leading
property site, used by over 1.7 million consumers
viewing 28 million pages and generates over 150,000
leads for advertisers every month. The user-base
tripled in the last 12 months; mainly mass affluent
48
with 53% earning over $100,000 per annum and

32% owning two or more properties (source: Aktiv
Digital). The site provides real time access to multimedia rich content covering property and homerelated products, services, news, advice, guides,
tools and the largest online property database in
Singapore. It works closely with prominent real estate
developers in Singapore and overseas, over 20,000
housing agents, and home-related firms.
49
The Asian commercial property market

is witnessing a bullish period as investors
are looking to buy properties either in
their local market or in an overseas
market. The most desired locations for
commercial property investments over the
next twelve months are Singapore, Hong
Kong and Shanghai.
Steve Melhuish
50
Trends We Are Seeing In The Market

The following are the recent trends weve been seeing
in the market:
1. There is a growing preference for green office
space.
2.
There is an increased interest in the luxury
market.
3. Commercial real-estate in the Asia-Pacific region
is heating up by the day, especially in the office
space.
4. Sydney, Hong Kong and Singapore are the most
sought after markets for investors.
5. Commercial REITs will be more popular now
as these are more liquid than their residential
counterparts because of their existence as small
units or shares. Also, equity analysts from various
research houses are wary of property stocks
with large exposure to the residential market as
they are concerned that the government could
announce more measures to cool the market.
Moreover, since the outlook for the office market
in Singapore is bullish over the next two years,
commercial assets will be preferred.
6. The private residential market in Singapore
is getting a lot more attention from foreign
investors.
We see a rise in demand for Executive
7.
Condominiums.
51
Online Tools To Help Investors

Search For Properties
Online property portals such as PropertyGuru.com.sg
have made it easier for everyone, including property
agents and home buyers, to find property information
and services quickly and effectively.
In fact, PropertyGuru offers the largest database of
properties in Singapore, with close to 100,000 listings
with property photos, videos, condo descriptions and
street maps offering detailed information like where
the nearest schools and MRT stations are. Whether
its landed homes, condos or HDB flats to rent, buy,
or sell, consumers can find it quickly and easily on
the website.
The site also provides real time access to multimedia
rich content covering property and home-related
products, services, news, advice, guides, tools and
the largest online property database in Singapore. We
work closely with prominent real estate developers in
Singapore and overseas, over 20,000 housing agents,
and home-related firms.
The Best Way To Find An Attractive

Property To Buy
Searching for properties online is one of the most
convenient ways to start looking for your dream
home. PropertyGuru provides a comprehensive
list of easy-to-use tools, which allow consumers to
52
search for their desired property. The websites huge

property directory provides detailed information
about the property with photos, location information
(via Google Maps), and virtual tours.
The property portal also provides services like
shortlisting and comparing properties, automatic
email alerts, auction news and details, industry news,
etc. If consumers need additional help in their house
hunting, they can consult PropertyGurus real estate
agent members by using Ask Guru to enquire about
pricing, property laws, location etc.
The Most Promising Projects

And Areas
1. Executive Condominiums (ECs)
Looking at the demand newly launched ECs have
had in the last quarter, we expect this trend to
increase further. ECs can be compared to private
condominiums in terms of facilities and amenities.
Buying requirements are also similar to that of new
HDB flats but those investing in ECs must have a
monthly household income not exceeding $10,000.
With the price being 20% to 30% lower than private
condominiums and a hungry market ready to invest in
ECs, PropertyGuru believes that the demand for ECs
is here to stay.
53
2. Private residential properties in Districts 4, 9

and 10
From an investment point of view, private residential
property is a better choice when compared to HDBs.
Properties coming up in Districts 9 (Central Orchard),
10 (Central Tanglin) and 4 (South Keppel, Sentosa)
are promising. Sentosa is witnessing new highs with
the increased interest of foreign investors looking to
invest in luxury properties.
3. Jurong
Jurong is being developed into Singapore's second
CBD, which is expected to make properties in that
area more attractive as an investment. The new Jurong
Lake District is expected to attract billions of dollars
in development, for offices, hotels, food and beverage
and entertainment uses.
Two Golden Tips For Mortgage Loans

A home loan is a long-term commitment, so it is always
advisable to consider the stability of the interest rate
for the duration of the loan. According to LoanGuru.
com.sg, the two golden tips for home buyers are:
1. Since interest rates are at an all-time low, it is a
good time for existing home owners to refinance
their mortgage loans.
2. For new home buyers, the current scenario is an
ideal one to lock-in fixed rate loans. As interest
rates are at a historical low, locking-in will be
54
beneficial if we see an upswing in interest rates.
Asian Commercial Property

Market Outlook
The Asian commercial property market is witnessing
a bullish period as investors are looking to buy
properties either in their local market or in an overseas
market. The most desired locations for commercial
property investments over the next twelve months are
Singapore, Hong Kong and Shanghai.
Overall office rents in Asia climbed 3.2% quarteron-quarter in 3Q10, led by strong growth in Singapore
and Greater China. In Singapore, key rentals surged
7.2% quarter-on-quarter to $7.40 psf per month
from $6.90 psf per month due to rising demand from
financial institutions, insurance firms and professional
business services companies. Meanwhile in Hong
Kong, citywide office rents rose 10.8% quarter-onquarter.
Finding A Reliable Property Agent

The primary criteria for selecting a reliable agent is
to go for a certified real estate agent, which is now
mandatory even by government standards.
The advantage of looking for a certified real estate
property agent is that they have plenty of experience
and can understand a customers needs better. They
are efficient in making a quality transaction as they
55
can help the investor find exactly what one wants

within a specific budget or help sell a property for a
high price that a customer could not have imagined.
We at PropertyGuru have more than 20,000 agents
registered with us and we have a system in place to
moderate their activities.
How Property Guru Ensures The

Reliability Of Its Site
At PropertyGuru, we have a team taking care of all
the content that you see on the website. We check the
listings added onto our website and the moderation
includes processes like removal of suspicious
listings, sold listings, spamming of listings. We also
moderate the ad content (photos, videos and property
descriptions) to maintain relevancy. All listings expire
after 30 days from date of posting.
Likewise, to check the authenticity of the agents,
before the agents register on our website to post their
listings, they have to go through and abide by the
content guidelines laid down by our website. These
are supportive to and parallel with the Council of
Estate Agents (CEA) regulations.

As an entrepreneur and angel investor, Ive historically
been a risk taker. Ive invested in a number of digital
media start-ups in Asia and Europe, naturally with
56
mixed results.
Given my financial commitment to PropertyGuru
over the last 4 years, Ive taken a less risky approach
and have recently been trying to maintain a balanced
and diversified portfolio between cash, equity (small
caps and MNCs in Asia, Europe & Americas) and
property.
Much of the equity exposure was moved to cash
two years ago and Ive been drip feeding it back into
equity this year. My property exposure is limited
currently with just two properties in London.
My Property Investment Stories

My property investments so far have been very
positive both from a capital appreciation and rental
yield perspective. They have both increased in value
by 35% to 45% in the last eight years and they generate
5% to 7% net rental yields.
London is an incredibly resilient market and despite
the huge impact of the recession on its financial services
sector, the real estate market was not too affected.
This was primarily due to a significant weakening of
the pound (e.g. London property became 30% cheaper
for Singaporeans) and the rush of Asian money into
London property.
A friend of mine who made over $1.5 million
on property investment and flipping during the
2006/2007 boom, overextended himself in 2008 when
the recession hit and the property market crashed.
57
He was left with five properties, all of which

were generating negative rental yields. Two of these
properties were theoretical en bloc potentials at the time
and one of them was empty. Given he couldnt afford
to maintain five loss-making investment properties,
and the prices looked like they were dropping fast, he
sold three of them at a loss of $580,000. He was the
first to admit that he got over-greedy in the booming
2006 to 2008 period.
58
Kelvin Fong
Team Leader,
Powerful Negotiators
Kelvin Fong is the No.1
Group District Director
in PropNex. He leads
over 1,000 real estate
agents, by far the
largest group of
agents in PropNex.
For three consecutive years
(2008, 2009, 2010) he was also awarded the
Champion Team Leader title, the highest accolade
for a team leader. His group, Powerful Negotiators
(previously known as Mega Force), has been achieving
breakthrough sales figures consistently: $10 million
in 2007; $13 million even during the market crisis
in 2008; $28 million in 2009 with a significant 12%
market share of the private resale market; and $39
million in 2010.
Kelvin is also a sought-after property consultant
for investors interested in investing in Singapore
properties. He counts some of the Whos Who in
the business world as his clients. He is known to
help his clients minimise risks by leveraging on the
most suitable loans available, while also maximising
the profit potential of the investment. His expertise in
analysing the market and property investments has
consistently translated into huge profits for his clients.
59
This is why clients listen when Kelvin shares his

advice, and why new clients are constantly seeking
him out.
Kelvin is also the founder and CEO of Zest
Consultants, a leading training company providing
education for real estate agents and property investors
who are interested to learn the strategies of investing
safely and profitably.
He has been featured as a property expert in
numerous media including Channel NewsAsia,
Channel U, 938LIVE, Radio 100.3, The Sunday
Times, Property Report Magazine, Success in Real
Estate and others. He has also been a featured
speaker in iProperty.com EXPO, PropNex Convention
2007 and 2009 and other property related events.
60
It is important to buy properties that

are popular and have good facing
as that will lead to more demand
and result in higher prices. When
the market is down, prices of these
projects will be affected too but when
the market picks up, prices will go
up faster than most other projects
as witnessed in mid 2009 when the
market picked up.
Kelvin Fong
61
Impact Of The Fourth Round Of

Measures And Property
Price Forecasts
With all the new measures that were announced
recently, many buyersand sellers will need to take
some time to assessthe market conditions before
makinganydecisions.
Personally I find the measures harsh, but we must
understand that the government is doing this mainly
because they do not want to see people buying properties
recklessly and overstretching themselves to own
multiple properties.The government is concerned about
whether these people can hold on to the properties if the
economy does poorly.
On the positive side, the governments measures are
good for long term investors. With a higher downpayment,
all future investors will have stronger holding power and
will not be in a hurry to sell even if prices fall.
The new measures will not cause as steep a drop in
prices as in 2008 because our economy is still doing well.
Coupled with the current low interest rates, investors
would rather hold on to their property than sell it off.
Most investors are not willing to sell at a lower price
because they have already put in a 30% downpayment
and thanks to low interest rates, are enjoying positive
cashflow from their rental properties.
Prices in speculative areas might come down 5% to
10% in the next few months but will eventually recover
62
or even inch up by 1% to 2% by the end of the year. For

example, some of the early investors in a project like
The Sail might take this opportunity to sell it as they can
still cash a huge profit even by selling at a lower price
than the peak in 2010.
If prices fall by about 10%, investors may consider
re-entering the market and taking advantage of the low
mortgage rates to enjoy passive income from the rental
yield.
Most investors are looking at a three to five year time
horizon when they invest in property. The 16% Sellers
Stamp Duty for a sale within a year of purchase will not
affect many buyers as the majority are looking at long
term investment.
As for the HDB market, I expect prices to increase
around 5% to 8% because the supply for HDB is still
weak whilst demand is strong. The COV has dropped
to a median of $23,000 already, and I think it may drop
further to around $15,000 towards the end of the year.
This is because PRs cannot buy a HDB resale flat if
they have any property overseas and locals with private
property must sell it before they can buy a HDB for their
own use.
My forecast is for mass market prices to increase about
3% to 5% this year. Prices for older properties might
increase about 8% as they are still relatively affordable.
For new launches I expect prices to come down about 8%
because they have gone above $1,000 psf, which is the
limit of affordability for a mass market property.
63
CCR prices might increase about 1% to 2%. With a

40% downpayment for a second property, buyers might
consider going for a smaller quantum as their risk is
lower and the yield is better. This will push demand to
the RCR, helping prices there increase about 5% to 8%.
As for landed properties, prices might increase
about 8% to 10% due to weak supply. Furthermore,
with the economy doing well and the scarcity of land
in Singapore, prices for landed properties will still grow
as they are mainly for own stay and there is not much
speculation.
Should Buyers Go Ahead With Their

Purchase Despite The Measures?
Buyers should be on the lookout for any good investment,
such as projects where prices have dropped more than
10%. However, please ensure you have done your
financial planning as your purchase will be a four year
commitment if you want to avoid Sellers Stamp Duty.
For those who have cash on hand, I still think it is a good
idea to buy and enjoy the passive income rather than
putting your money in the bank as inflation is around 3%
whereas the Fixed Deposit rate is only 0.5%.
For buyers who are knowledgeable about commercial
property, they can consider investing in shophouses as
there is no SSD and the downpayment is still 30%.
For those who have not invested, there will be a small
window period to enter the market. Long term investors
64
should not be afraid as Singapore is land scarce and in

the long run, prices will still appreciate due to inflation.
Honestly, given a choice today I will still choose
property investment versus equities or commodities as
their prices are high too just look at gold which now
has an average price of US$1,400. Or even private equity
funds where the minimum holding period is five years
versus property where it is now four years. Ultimately I
believe that property is still the best investment vehicle
through which most of the rich made their money.
Should sellers sell their property

now or keep holding on?
Sellers should look at their existing portfolio to see
if they have properties where they already have good
paper profits (e.g. more than $300,000 to $500,000) or
if these properties have reached peak 2007 prices. If so,
they should consider cashing out and use the profits to
look for a better property to invest in.
For example, my parents unit at the Watermark @
Robertson Quay was bought at $1,610 psf near the peak
in 2007. They could easily have sold it in January 2008
but due to greed they held on to it, and eventually prices
dropped below $1,000 psf. If they had sold it at $1,780
psf and waited for the right opportunity to re-enter the
market at $1,000 psf, they would have doubled their
profit as prices recovered to above $1,700 psf in 2010.
For those who are holding one property and are
enjoying a large profit, they should cash out and reinvest
65
the money. If a property appreciates but was not sold,

we call this a paper gain. Eventually, if the market drops,
it becomes a negative sale. For first time investors, it
is better to realize your profit. You can then get back
your capital and buy two properties instead of holding
on to just one. But dont forget that prices go up but also
go down, so we should not be too greedy. I have seen
sellers lose more than $1 million as they are forced to
sell during the bad times.
How To Find The Right Agent For You

A good and reliable property agent looks after the
interests of his client. Firstly, the agent should determine
what type of investor he is dealing with. For example for
first time investors, the agent should help them maximize
their cash flow by turning over their portfolio rather than
just holding on to one unit without realizing any profit.
If investors do not sell when the property appreciates,
they will be stuck with just one property and will not
be able to increase their capital. This will prevent them
from buying a better asset and multiplying their asset
base.
Property is a cyclical asset and there will always be
ups and downs. Thus it is important to sell at the right
time and re-enter the market when the price comes down.
We saw this during the peak in 2007, which was followed
by the downturn in January 2009. And currently prices
have gone back to reach the 2007 peak levels again. In
general most agents will be asking their clients to sell
66
because the market situation may not be that rosy and

we may have reached another peak, so it makes sense to
lock in their capital gains. I would advise them to switch
their portfolio to increase their capital and look for a
better deal that will appreciate more when the market
improves further.
Investors should look for agents with good product
knowledge who are able to do a comparative price
analysis of the project and understand the price history
too. A good agent will look at the surrounding projects
to determine the right one for you, advise on risks you
may face should the market go against you, and help you
to do a financial calculation to ensure you have holding
power in such a scenario.
No agent should tell an investor that the project or
unit is sure to make money as anything can happen and
nothing is guaranteed. I tell my clients not to speculate
but to invest and be prepared to hold if the market drops.
To find the right agent, look at the classified ads
or surf property websites. Call some agents who are
focusing on the projects you are interested in and make
enquiries. An experienced agent will be able to discuss
the investment merits of the project and not just be an
information provider. He will also share information
about the surrounding projects and should be familiar
with any units that were recently sold even before the
caveat is lodged with the URA.
67
How To Make Money In

Singapore Property
In order to make money in Singapore property, we need
to study the location of the project, and determine the
potential upside by comparing it with the surrounding
projects and past history of the property. We also need
to look at demand and supply, facing of the unit, future
developments in that area and land size. These are the
main factors I use to help me determine the potential
capital gain of the unit. In particular I focus on:
1. Location
Land is scarce in Singapore, making prime locations
more valuable. For example, projects near the Integrated
Resorts (IR), such as The Sail or Marina Bay Residences,
are properties that have strong potential for future
growth as the government has spent billions of dollars to
develop the infrastructure in the area, and want the rich
and famous to live and invest there. This is why all the
top banks are situated at the Business Financial Hub to
attract High Net Worth (HNW) clients. Singapore is one
of the few places in the world where one can Live, Work
and Play with good governance and tight security. The
whole CBD area is going to be transformed, and there is
only a limited supply of residential units that are closed
to the IR and beside Marina Bay.
If the location is not good prices might remain
stagnant, even if the project is freehold. The price of a
property in a good location may drop due to poor market
68
sentiment, but when the market picks up, it will be

the first to appreciate, and will do so faster than other
projects.
2. Past history of the property
In order to advise my clients whether to buy or sell, I
need to look into the historical prices of the project over
the last four years. The main reason I do this is to know
the peak and the lowest prices of the project.
For example in 2008, I persuaded my client to sell
his two room unit at Cairnhill Crest at a loss, as we saw
the potential appreciation of the project based on its past
history would be slow even if the market picked up. I
advised him to switch to a studio unit at Marina Bay
Residences as the prices had come down from $2,600 psf
to $1,700 psf, whereas at Cairnhill Crest they had only
dropped by about $300 psf. I normally advise my clients
who are looking for maximum capital gain to look at
projects with the biggest fall in prices, and not the small
drops. Many clients do not focus on this information or
do not know where to get it. I helped my client pick
up a studio unit at $1,737 psf and subsequently sold it
at $1,900 psf. This was not a significant profit but my
reasoning to him was to switch to a better facing unit as
the price gap was not big. I advised him to switch to a two
room bay view unit at $2,000 psf as the potential upside
for a unit with a good view was greater. Furthermore,
the bigger size would boost his capital gain as compared
to the studio. In the Marina Bay area, there is a limited
69
supply for units facing the bay, so it is easy for demand

to outstrip supply and push up prices. He eventually
sold the unit at $3,027 psf with a profit of more than $1
million.
In this example, I touched on the two most critical
tips when looking for a good property the size of the
unit determines the size of your profit, and look for areas
where demand outstrips supply. This is how you make
millions from property investing.
The Best Time To Buy And

Sell Property
In my opinion, it is not easy to judge the best time to buy
or sell a property. I always advise my clients that buying
property is not about speculating but about long term
investment. If anyone has spare cash, it will be good to
put it in this asset due to the scarcity of land and as a good
hedge against inflation.
To me the best time to invest is when no one dares to
go in to buy, such as in 2008 and early January 2009. In
January 2009, when the market was at its lowest point,
anyone who dared to enter the market would have been
a big winner, like one of my clients who bought a four
bedroom unit at The Coast @ Sentosa for only $1,250 psf,
which is now easily worth more than $2,000 psf.
Personally, I find that currently it is still worthwhile to
enter the market even though the price might have reached
or exceeded the 2007 peak. My reasons are as follows:
70
1. Low interest rates

Even with a higher downpayment required currently, if
the price is right, people will still invest due to the low
interest rates which are as low as 0.88% to leverage
a passive income from their property. The returns can be
more than what a fixed deposit account can offer.
For example, a unit at Southbank costing about $1.2
million can generate a rental income of about $4,800
per month, while the mortgage is about $3,000. The
buyer would enjoy a passive income of $1,800 per
month, as compared to depositing his capital in a fixed
deposit to get 0.4% interest or around $1,000 per year.
2. Property is an appreciating asset (eventually)
Barring any dramatic economic upheavals, property
prices will likely stabilize or slowly increase in 2011.
Most sellers will not want to sell at a lower price today,
and are not under pressure from a large mortgage due
to low borrowing costs. The new 40% down payment
rule will actually act as an incentive because buyers,
having come up with this capital, will not want to sell.
Provided you do not sell your property during the
downturn as you will inevitably lose money on it
the value should increase. The key is that the buyer
must have holding power if the market deteriorates,
and should not buy unless they have the holding
power to weather any market condition. Prices will
eventually rise again as we witnessed in 2008, when
prices declined but eventually rose to, and in some
71
cases surpassed, the 2007 peak.

3. Hard assets are better than paper assets
Many people choose to purchase an asset like property
because of the assets enduring value, even during a
financial crisis. People feel safer putting their money
in a real asset rather than in financial instruments, as
your real asset will always be there, even when market
conditions are not good.
4. Market conditions dont matter for the long term
investor
Buyers who are looking at property as a long-term
investment are less concerned about the markets short
term movements. Property in Singapore will most likely
appreciate in the long term due to the scarcity of land.
While having a diversified portfolio is a good thing, as
a long-term investment, property is generally going to
make more money than other instruments. Investing in
bonds, for example, is a safe investment, but your capital
appreciation will be limited.
But property is not the ideal instrument for speculators.
Not only has the government introduced measures to
discourage property speculation, but you will be much
more vulnerable to market fluctuations.
5. A property keeps on giving
Buying public housing in todays market is not cheap,
with HDB executive condominiums going at around
72
$650 to $750 psf, close to mass market private property

prices. A HUDC unit has already reached the $1 million
mark, and the trend looks set to continue. Parents may
see buying a property not only as a hedge against
inflation, but also as an inheritance for their children.
If home prices continue to rise, and with the cost of
construction materials inevitably rising too, there is fear
that the younger generation could be priced out.
As for selling, I would think that if you have a
reasonable profit and a better investment opportunity
arises, that would be the right time to sell. Most owners
will not sell today because of low interest rates as most
of them are enjoying good passive income from owning
the unit.
My favorite quote is: It is not when you buy but
when you sell that makes the difference to your profit.
Mistakes Novice Investors Make

Most investors do not do much research and buy
because of hype, without doing work on the potential
upside of the project or the risks involved. Before we
buy property, we need to work out the exact breakeven
price and know the surrounding projects transaction
prices too. If surrounding prices are lower by $200 to
$300 psf, it might be safer to buy those projects instead.
If you expect the price of the project to appreciate that
much, why not consider the cheaper ones as the risk
will lower? If that project does appreciate, the nearby
projects will appreciate too.
73
Investors need to know how much profit they can

make plus the necessary costs involved, plus have an
idea of when their projected price can be achieved.
Many new investors know how to buy properties
but do not know how to exit and re-enter to multiply
their capital. They prefer to hold the unit for a long
period and hope the price will continue to go up but
fail to appreciate that prices cannot escalate year after
year without dropping. One should capitalize on the
profit made and upgrade to a better property, which in
return can help you make a bigger capital gain. All this
information and research can be done if you choose the
right agents to work with.
Promising Areas And Projects

Buyers Should Focus On
Personally, I would recommend projects near the
Business Financial Centre at the Marina Bay area as this
is the economic heart of Singapore. The government is
spending $22 billion to build infrastructure to facilitate
the growth of the financial district. This is also part of
the governments strategy to position Singapore as
one of Asias leading financial centres. This will create
demand for housing from expatriates to work and live
in Singapore, and Marina Bay will be THE place for
people to work, live and play.
There are currently many developers converting old
commercial buildings into residential units and prices
74
are moving upwards, with some units surpassing the

$3,500 psf mark even for a leasehold property. This area
will become the next Orchard Road as there will also
be shopping centres and many big events like the F1
races and Chinese New Year celebrations will be held at
Marina Bay. If the government is willing to invest such a
huge amount of money in this area, they definitely have
a long term plan for it and that is why I believe this area
is worth investing in.
I would recommend projects like The Sail @ Marina
Bay or Marina Bay Residences as these are projects
that are just beside the Integrated Resort and the new
Business Financial District. These two projects are iconic
and they are well known locally and in Asia too, to the
point where they are like a brand that many investors
would like to own, just like many ladies would like to
own Chanel or Louis Vuitton handbags. The URA has
labelled these projects as landmark projects too.
It is important to buy properties that are popular
and have good facing as that will lead to more demand
and result in higher prices. When the market is down,
prices of these projects will be affected too but when
the market picks up, prices will go up faster than most
other projects as witnessed in mid 2009 when the market
picked up.
Negotiating Tactics For Buyers

Buyers should learn to focus on which areas they are keen
to invest in first and subsequently do market research on
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the pricing of those projects. They need to know the past

transactions in order to determine whether that project
has any potential upside. They should even be familiar
with prices in different blocks of the same project.
For example, if they have identified The Sail as a
project they would like to invest in, they should call up
agents in the classified ads and find out more information
such as the pricing and facing of the units, and also to get
a feel of the market. The investor can then compare the
asking price from the agent and the last transacted price.
After this is done, the investor should give a lower
offer to test what the best price they can achieve is. If
the price is good enough, do not waste too much time
negotiating for that last $20 psf, just focus on getting the
unit immediately. This is a common mistake made by
investors, who negotiate endlessly for a small discount
but end up missing out on the chance to get a good unit
at a reasonable price.
How Owners Can Maximize Their

Selling Price
In order to maximize the selling price of their unit,
owners should touch up the place and make it look
presentable and comfortable, especially when selling
to end users. The first impression is important when the
buyer steps into the house.
As for investment properties, owners can choose
to renovate and use good interior design as that will
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normally help fetch a better rental from tenants. This

will then help the unit get a better price when selling the
property as most investors want a good rental income.
Honestly, I find that renovating a unit nicely will help
speed up the selling process but ultimately for investment
properties, your purchase price will determine most of
your profit.
For landed housing, investors will usually choose to
buy a dilapidated unit if the price is right, then rebuild
or do an Addition and Alteration and resell it for a profit.
Do Residential Or Commercial
Investments?
Investors should only invest in properties they are
familiar with. I would not advise my clients to invest in
something they are not familiar with even if they could
make a profit from it. If it is something they are focused
on, they will be able to tell if it is a good deal and make
a quick decision.
Good deals are hard to come by, and when the
opportunity comes, the investor must make a quick
decision. If the investor is not familiar with the pricing,
they will not be able to know whether the unit is a good
deal and might miss opportunities.
Most investors prefer to invest in condominiums
as they cater to a bigger group of buyers. There is no
restriction on foreigners to buy (as there is with landed
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property, where the foreign buyer needs to seek approval

from the Land Dealings Approval Unit). Rental yields
for condominiums are normally better than landed
property too.
Landed properties are more for end users, and as
such there will be less speculation, which means the
price movements are more stable and will not fluctuate
as much. Singapore is a land scarce small country and
therefore a landed property will most likely appreciate
in the long term.
There are several advantages of buying residential
over commercial and industrial properties:
1. The process for buying residential properties is
much easier compared to commercial properties.
There is no need to pay GST when buying residential
properties from GST registered companies, as you
have to when buying commercial or industrial
properties.
2. Investors can also use their CPF to buy residential
properties but not for commercial or industrial
properties.
3. Interest rates for loans to buy commercial or
industrial properties are much higher than for
residential ones.
Commercial properties include offices, shophouses,
conservation shophouses and retail shops. Industrial
properties refer to factories, warehouses and light
or heavy industrial buildings. Most investors are
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keen to invest in freehold commercial properties and

conservation shophouses due to the limited supply.
For commercial and industrial properties, many
investors are looking for yields of around 7% to 9% but
due to the recent price increases, yields have dropped to
around 5% for commercial and 7% for industrial.
There are fewer investors looking at commercial
properties as most are not familiar with it. Investors
must also take note of the lease balance for commercial
properties as many of them are 30 or 60 years leasehold,
and if the leases are short, the prices might not increase
much. With the new measures, many investors might turn
to commercial or industrial properties as there is no SSD
and the downpayment is only 30% compared to 40% for
residential.

Personally, I always believe in investing as we have to
let our money work hard for us instead of us working for
money. Having been a real estate agent for the last eight
plus years, I have seen how the rich become richer when
they know how to invest in properties. Most of the rich
people in Singapore believe in investing and part of their
fortune is built up investing in assets.
If we do not put our money in an asset and instead
choose to put it in the bank, inflation will erode our
savings away. Investing in Singapore property with a low
borrowing cost of below 1% makes sense compared to
China where the interest rate is 7% and yield is only 1%.
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Some properties I helped my parents invest in have

given them a passive income per month of around $1,500
compared to the 0.1% interest they would get if they had
put it in the bank. This passive income can then be used
to cover their monthly expenses.
For Singapore-based investors, investing in Singapore
will be the wiser choice as compared to overseas
properties as we have less control and familiarity with
the property laws elsewhere. Singapore is safer to invest
in due to the scarcity of land, which will appreciate in
the long term due to inflation.
I urge all investors to build up your knowledge before
investing.
My Experience Investing In Property

At this point of time, I have not been able to invest in
any property as I own an HDB flat that has not reached
its Minimum Occupation Period. However I have
helped my parents to invest in properties during 2007
at Robertson 100 and Tessarina, which have all been
sold at a profit. Currently they are holding on to some
properties at The Sail, Southbank and Belmond Green
for passive income.
Recently I helped one of my clients sell a property
at Normanton Park, which they bought in 2008 during
the crisis. They put in about $300,000 and made a 100%
profit in just two years. They then bought a property at
The Sail with a better rental income. I am now advising
them to leverage on the profit they made and reinvest it
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into another property to multiply their assets.

Another one of my clients bought a Marina Bay
Residences unit in early 2009. We helped him sell it at
a profit of more than $800,000 in less than a year and
immediately switched to another property in the same
project, which they are still keeping for rental income.
We advised them to sell to lock in their profit as we had
seen other owners who did not sell during the peak and
were forced to sell at a loss of more than $1 million,
losing all their capital.
For one of my parents units at the Watermark, we
had the chance to but did not sell it in January 2008 at
$1,750 psf due to greed. Prices then proceeded to drop
below $1,200 psf by end 2008. We decided to keep it
for rental instead and they are still enjoying positive
cashflow and passive income from the tenant till today
because of low interest rates. The price has now gone
back to the previous level.
Therefore, from experience I believe that as long as
you have holding power, you will not lose money if you
do not sell your property during the downturns.
81
Smart Property
Financing
82
Dennis Ng
Director,
Leverage Holdings
Pte Ltd
Dennis Ng is an Accountant
by training and has 17
years of Bank Lending
experience. He founded www.
HousingLoanSG.com a leading Mortgage
Consultancy in Singapore in year 2003 and is often
quoted by The Straits Times, Business Times, TODAY
and Lianhe WanBao for comments on financial matters.
In May 2009, he launched www.MasterYourFinance.
com a Financial Education Portal and in the same
month he launched the Very First Chinese/English Book
on Personal Finance in Singapore entitled Mastering
Your Personal Finance (). In Dec
2010, he launched his 2nd book entitled
? (Why is Money Always Not Enough?) which
dispels myths about Financial Planning and shares
practical and useful strategies and tips to planning and
managing your finances.
He also writes a Fortnightly Personal Finance
Column on every alternate Wednesday for My Paper
starting from 8 January 2008.
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My Number One rule is asking myself:

What if Im wrong, will I be financially
ok? Many novice investors will only
make money if they are right.
If their view turns out to be wrong,
they can even go bankrupt.
Dennis Ng
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Smart Property Financing
Are Banks Still Willing To Do

Property Lending?
I think there is still a very healthy demand for properties,
both for investment and own use.
As for banks, a housing loan is the lowest risk loan for
them because the loan is backed by property as collateral.
In the last Asian Crisis in 1998, banks experienced an
over 10% default rate on business loans but default rate
for Housing Loans was only 2%. This past experience
reaffirmed the banks belief that a housing loan is a low
credit risk loan. The reason is most people would make
sure that they pay their housing loan installment even
during the bad times as most people view owning a roof
over their head to be very important.
Is It Easier To Get Rich Investing In

Stocks Or Properties?
In 2006, when the market was still in an upward trend, I
had 80% of my money invested into stocks. However, in
2007, when I felt that the stock market was in a bubble
stage, I decided to sell most of my stocks, and thus
avoided the 2008 stock market crash.
I also invest in real estate. In fact, investing in
property has its own risks and characteristics. Let me
share with you the differences between Stock Investing
and Property Investing:
1. Property investing gives you more leverage than
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stocks
If you own stocks with a market value of $1 million,
the maximum loan that financial institutions might be
willing to grant to you, using your stocks as collateral,
would be a maximum of 70% of the market value of the
stocks.
On the other hand, when you buy a property, Banks
are willing to grant you loans up to a maximum of four
times your equity. For instance, if you put down 20% of
the property price as a downpayment, the bank can grant
you up to maximum of 80% financing, or 400% of your
equity, to finance the property purchase.
If stock prices fall, and the value of your holdings
drop from say $1 million to $800,000, the banks would
call you and ask you to top up $140,000, to keep the
loan to collateral ratio of 70%. This is technically known
as a Margin Call. If you fail to top up the amount in
time, the bank will force you to sell your stock to meet
the shortfall.
However, if you buy real estate, even if property
prices fall, usually as long as you can pay the mortgage
instalments, the bank will not bother you at all.
The above differences in the treatment of loans for
stocks and property clearly show that to the lender, the
risk seems much lower for real estate compared to stock
investing.
2. You may lose everything in stock investing
If you have the ability to hold for more than 10 years,
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you will usually not lose money in real estate, since in

the long run property prices typically rise and can keep
pace with the rate of inflation.
But if you buy stocks, when the company runs into
financial or cashflow problems, even if you faithfully
hold the stock for 10 years, it is still possible to make
losses to the tune of 80% to 90%. For instance, in
year 2000, during the technology bubble, many stocks
relating to technology were trading at high prices. In
year 2010, 10 years after the technology bubble burst in
March 2000, the current market value of some of these
stocks are just about 10% compared to its peak in year
2000. There are even some listed companies that faced
the misfortune of closure, and the companys stock
holders may get back nothing from their investment in
the stocks.
So if you want to make money in the stock market,
learning how to choose and select the right stocks to
invest in is very important.
However, for many people who have no knowledge
of investments, if they hold on to real estate for decades,
they might still be able to profit from it, because it is
impossible for the value of a property to fall to zero,
while a stock might actually fall to zero if the company
collapses.
3. You can pay lower than market price to buy a house
If the price of a stock is $1, there is no way for you to
pay below the market price of say, $0.90, or 10% lower,
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to buy the stock. However, if you buy real estate, it is

possible for you to buy 10% lower than the market value
of the house.
Why do some property owners sell the property
despite the sale price being 10% lower than market
value? There can be many reasons: ignorance of the
current market value of the property can be one reason,
they may be in a desperate need for cash might be
another reason, or there can be other reasons, such as
sale due to divorce or other situations.
4. You can enhance the value of the property
If you purchase a stock today, and lets say the share
price is $1, can you do anything to increase the value of
the stock by 10%? The answer is no.
You can only hope that the companys business will
improve after you bought the stock and its share price
would rise when that happens.
But if you buy a property, there are many ways you
can enhance the value of the house. It can be as simple
as giving the property a fresh coat of paint, division of
space to add a room to increase rents, or even doing
some minor retrofitting and renovation. All these actions
are likely to enhance the value of the house.
5. You can let others help you pay for your property
Imagine if you want to purchase an item, but are only
willing to pay the downpayment, and let someone
else help you pay the balance. Can this be done for
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stock investing? Of course not. But if you think about

it, when you invest in real estate, you just pay a 20%
downpayment, and the balance of up to a maximum of
80% of the purchase price can be taken as a loan, and the
monthly housing loan repayment can be reimbursed
from the rents collected. As a result, the balance of up to
80% of the price of the property is actually paid by the
tenant for you!
Let me use a simple example to illustrate. For
instance, you buy a $1 million property and borrow 70%
of the purchase price, or $700,000. Suppose you choose
a loan period of 25 years, and the average housing loan
interest rate is 3%, the monthly housing loan repayment
is $2,655. If you can rent out the house for $3,000, then
your tenant actually is helping you to pay the housing
loan instalment!
Is McDonald's in the business of selling hamburgers?
When asked whether McDonalds business is to sell
hamburgers, management replied that they are really
investing in real estate, and using the sale of hamburgers
to earn money to buy real estate!
Most people dream of being Warren Buffett. However,
most stock investors are losing money. According to CPF
data, most people with a fund investing in stocks have
ended up losing money. On the other hand, except for
some special cases such as buying a house at the peak
of the market, it is difficult to find a real estate investor
who has held for more than 10 years who is still making
a loss.
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I hope the above helps you understand better the

differences between stock and property investing. But if
you want to get rich, learn BOTH. The Really Rich and
Smart ones, invest in Both Stocks and Properties.
There are times when Stocks are a Better Investment,
and times when Properties are better investments. So
invest in the Right thing at the Right Time.
For instance, for the next year or so, I personally
think theres more upside to investing into Stocks
than Property. Lets look back in time in future to see
whether Im right on this.
When An Opportunity
Presents Itself
When the market presents an opportunity, just grab it.
For instance, when property market is hot, one might be
able to flip an Option To Purchase in just 14 days.
One can also buy a property, and when the property
value increases, take an equity loan to pay for the next
property. So the next property can be bought no money
down. In fact, one of my sifus in property investing
started with $50,000 and today he owns a property
portfolio with a value of over $100 million.
My Top Property Financing (And

Refinancing) Tips
Here are my top tips for borrowing money to buy
property:
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1. Check the bank valuation of the property

Before you put money down on your option, check
the market valuation of the property. There have been
instances where buyers checked the market valuation
of a property with the bank only to get a nasty surprise
some weeks later when they finally write out a cheque
for the option. Thats when they find out that the banks
valuation of their property has gone down.
We know an instance where someone purchased a
property for $2 million and then found out some months
later that the valuation had fallen by about 10% to $1.8
million. In other words, he ended up having to fork out
an additional $160,000 in cash as the bank was only
willing to grant a loan of $1.44 million, or 80% of the
revised valuation of $1.8 million, rather than the original
loan of $1.6 million.
The buyer could have avoided this pitfall if he had
gotten a mortgage broker to check the latest indicative
valuation within a few days of buying the property.
2. Get your loan pre-approved
To be prudent, property buyers should secure a prior
bank loan approval before committing to a property. By
doing so, you would avoid the danger of being unable to
obtain sufficient bank financing for your property.
Securing a housing loan has become trickier with
the fast changing circumstances in terms of property
valuation and loan approval criteria. Your financial
situation might also change due to pay cuts and the threat
91
of retrenchments. So to be safe, get your home loan

approved before you commit to buying your property.
3. Refinance your property to create money
Refinancing your existing housing loan might be one of
the best ways to create money for yourself by cutting
down on your interest expenses.
You can also take advantage of cheaper mortgage
rates by borrowing more if your property has appreciated
from its original price. If you had bought your property
a few years ago, chances are its current valuation is still
much higher than your purchase price.
Say, you had bought a property costing $1 million
five years ago and have an outstanding loan of $500,000
on it. The current valuation might be $1.5 million. Thus,
even if you take out an additional loan of $500,000,
bringing the total loan amount to about $1 million, it
works out to just 67% of the property valuation and well
within the 80% financing limit for a property.
The good news is that the additional loan of $500,000
comes at a low interest rate of about 2%, which is possibly
the cheapest loan a typical consumer can obtain.
4. Calculate your Debt Service Ratio properly
If a tenant pays you rent of $3,000 a month, does
your monthly income go up by $3,000? Most people
mistakenly think that it does. But what happens is that
the bank might factor in just 50% of the gross rental
income as your additional income in calculating your
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Debt Service Ratio (DSR).

Here's an illustration. Lets say Mr. As gross salary
is $5,000. He has a car loan with a monthly installment
of $500 and a housing loan installment of $2,000. Thus,
his total monthly debt repayment obligation works out
to $2,500. Divide that by his gross income and his DSR
works out to 50%.
In general, provided you have a prompt debt
repayment record, banks would work out the maximum
loan they can grant you based on a maximum DSR of
50%.
Now Mr. A plans to buy a second property for $1
million. He expects to rent it out for $3,500 a month. He
estimates that if he takes an 80% loan ($800,000) with
a 30-year loan period, his monthly installment would be
$2,956.95. This is based on the current interest rate of
about 2% for housing loans.
However, he does not know that because there are
incidental costs to a property, such as maintenance fees,
insurance and other costs, so banks do not take the gross
rental income of $3,500 as additional income. Some
banks, for the sake of prudence, might only factor in
half the rental income, or $1,750. Thus, his total income
works out to $5,000 plus $1,750 or $6,750.
What interest rate should one use to estimate housing
loan installments? Interest rates on housing loans
fluctuate from time to time. When the economy is strong,
such as in 2007, housing loan interest rates were about
4%.
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Thus, in calculating the DSR, it might be prudent

for banks and property investors to use a higher interest
rate, such as 4%, to calculate the cost of the loan.
Based on 4%, Mr. As monthly installment for a loan
of $800,000 works out to $3,819 (or about 30% higher
than using a 2% interest rate.) His revised total monthly
debt repayment obligation works out to $6,319, while
his revised total income is $6,750.
Thus, his revised DSR stands at 93.6%, which means
that his loan application for a second property is likely
to be rejected by the bank.
So to avoid nasty surprises, it is best to get an inprinciple approval for a bank loan before committing to
a property.
5. Use a mortgage broker to help you find the best
loan package
There are over 113 different housing loan packages
available in Singapore at any one time. Each package
has its own unique features, with its own pros and
cons and different terms and conditions. Consumers
might be confused by the wide array of choices. In
the last few years, with the emergence of independent
mortgage brokers in Singapore, home loan shopping and
comparison have been made easier.
Basically, an independent mortgage broker who
knows your requirements can help you zoom in on the
most attractive home loan packages suitable to your
needs. You typically do not have to pay for the service
94
of a mortgage broker as banks pay them a fee.
How To Maximize Your Chances Of

Getting A Loan
Firstly, you must maintain a good credit record, which
means to be prompt in your payment on all loans even
a one day delay in loan repayment might cause a blemish
on your credit record.
Also do not take on too many loans and keep your
Debt Service Ratio (DSR), which is your total monthly
debt repayment obligations, less than 40%.
You can also apply for a maximum loan to asset
ratio of 80%, including the existing loan. Itll be easier
to get loan approval if your loan to asset ratio is lower
at say, 70%.
How Quickly Should Property

Owners Pay Off Their Loans?
If you read any Personal Finance books from the
bookstores, one recurrent advice they have is be
debt free as soon as possible. I have seen many people
quickly pay off their debts, including their Housing
Loan, after reading such books, which to me is unwise.
They forget that there is GOOD debt and there is
BAD debt. Bad debt is any debt for consumption. Thus
to me car loans, personal loans, credit card debt are ALL
bad debt and a person should avoid such debts or aim to
pay them off as soon as possible.
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Actually, if theres a way you can be debt free

and yet enjoy the benefit of leverage that debt provides
wouldnt it be better? It can be done, let me show you
how.
Personally, my Housing Loan is $x amount. What
I have in cash is more than 2x. So am I debt free?
Actually on a NET basis, I am. However, Im retaining
the Housing Loan debt because it makes financial sense
to do so. In my opinion, the problem is most people only
have a limited knowledge about finance and debt so they
just stick to concepts such as be debt free as soon as
possible without looking at the issue deeper.
They never think how you can be debt free but still
enjoy the Leverage that debt provides (just like what Im
doing). Isnt that better? Its like having your cake and
eating it too.
Not doing what I am doing is shortchanging
yourself.
As I mentioned, as long as a person does not overborrow, (i.e. have a Debt Service Ratio of less than
35%), he can just aim to pay off his Housing Loan by
age 55 and not hurry to pay it off.
Why? Herere the reasons:
1. A Housing Loan is the cheapest loan a person can
ever get
Currently, the Housing Loan interest rate is about
2%, compared to 7% for car loans, 14% for personal
unsecured loans and 24% for credit cards!
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2. Paying off your Housing Loan does not increase

your net worth
Let me use an example to illustrate:
Mr. A owns a condominium with a market value
of $500,000. He has an outstanding housing loan
of $400,000 and no other liabilities. He has other
investments worth about $100,000 and has $100,000 in
cash/CPF Ordinary account balance. He is considering to
use the $100,000 in cash/CPF fully to reduce his housing
loan from $400,000 to $300,000 after reading books that
teach him to be debt-free as soon as possible. Will
doing so really improve his net worth?
This is his current Net Worth Position:
Assets:
Cash/CPF $100,000
Other investments $100,000
Property (market value) $500,000
Total assets $700,000
Less total liabilities:
Housing Loan $400,000
Net Worth $300,000
By using his cash/CPF to reduce his housing loan,
this would be his revised net worth position:
Assets:
Cash/CPF $0
Other investments $100,000
Property (market value) $500,000
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Total assets $600,000

Less total liabilities:
Housing Loan $300,000
Net Worth $300,000
As you can clearly see from the above example, by
using his cash/CPF to reduce his housing loan, he is
simply reducing his asset to reduce his loan. The net
result of doing so makes no difference in his net worth
position, which remains as $300,000.
3. By reducing your Housing Loan, youre actually
reducing your Financial Security
What are the three worst things that can happen to
anyone?
Theyre death, disability, and retrenchment.
In all three scenarios, for the person who did not use
his cash/CPF to reduce his loan, his dependants would
actually be in a better financial position.
If he took up mortgage insurance, his housing loan
would in fact be paid off by his insurance in the event of
death and total permanent disability. Thus, by reducing
his loan, he is just reducing his own benefit from
mortgage insurance.
4. Opportunity cost of using cash to pay off Housing
Loan
If there is a stock market crash I would be able to benefit
from a crisis because I have cash to invest when prices
98
are low. People who use cash to reduce their loan have
NO cash to take advantage of opportunities in a crisis.
People say crisis is an opportunity.
Thats wrong. A crisis is only an opportunity to those
who have cash. A crisis is NO opportunity for people
who do not have cash to invest. When a crisis comes, I
can easily make 50% to 100% returns. Just take a look
at past crisis e.g. SARS in Singapore in 2003 and you
would know that what I say is the truth.
5. You can easily get 3% to 4% annual returns even if
you dont know how to invest
For people who say they dont know how to invest
their money as the reason they use cash to reduce their
loan, my reply to them is to just take up a 20 year single
premium endowment and you can easily get annual
returns of at least 3.5% per year. Just get a quotation
from any insurer in Singapore and again you will know
that Im speaking the truth.
6. The interest paid on your loan can be deducted
from income tax
This will increase your Return On Investment (ROI).
7. You can take up an Interest Offset Loan instead
By doing so, youre not paying interest since the interest
earned on your cash offsets the interest you pay on your
loan. You enjoy the same advantages as paying off your
loan, but have the liquidity of your cash which you forgo
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if you use cash to reduce your loan.

Thus for the reasons above I believe that your housing
loan is the last loan you should ever pay off.
Should You Get Mortgage

Insurance?
One should have some mortgage insurance, which
basically can help to pay off your Housing Loan in event
of death and total permanent disability. For your own
home, its good to get Mortgage Insurance that matches
exactly the loan amount and loan period.
However, if youre a property investor, one does NOT
need to get Mortgage Insurance that matches 100%. The
reason is the main source of repayment for investment
property is Rental Income, not your own income, which
will continue whether you (the owner) live or die.
To mitigate the risk of not being able to pay the
Housing Loan installment for investment property, for
each property loan you take you should set aside enough
Cash or CPF to pay for at least six months to one year
of Housing Loan installment payments based on a 4%
interest rate for your Housing Loan (to be safe).
So even in the worst case scenario where the property
cannot be rented out for six months to one year, you
would have no problem paying your Housing loan
installment.
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Why Is Money Always Not Enough?

My second book, Why is Money Always Not Enough?, is
basically a continuation and enhancement to what I wrote
in my first book, Mastering Your Personal Finance.
It has more articles on Investing, with specific
strategies and tips on how to grow your money.
In my opinion, Robert Kiyosaki did a good job
of changing the mindset of and arousing the general
publics interest in Personal Finance. However, he didnt
go into details of what a person can do specifically to
make money work for them, such as what things to look
out for when buying or financing a property, what things
to look out for in choosing stocks, how to decide when
to buy and when to sell stocks. So all these how tos are
covered in my second book.
At age 28, I found my Personal Life Mission, which
is to help to educate the public, to help one million
people accumulate one million dollars at least (I think
this is the minimum amount a person needs in Singapore
to be financially free or retire). So whether be it writing
articles, writing a book, conducting seminars, or
setting up a business in Housing Loans and UK Traded
Endowments, everything I do helps fulfill my personal
life mission of helping people either to save money,
increase their financial knowledge, make their money
work harder, and to reach Financial Freedom earlier
rather than later.
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My Number One rule is asking myself: What if Im
wrong, will I be financially ok? Many novice investors
will only make money if they are right. If their view
turns out to be wrong, they can even go bankrupt.
For me, I will go one step further to ask how I can
position myself to make money even if Im wrong,
to make sure my investment portfolio is all weather
proof and can survive any storm or different scenarios,
whether the world faces:
1. Depression
2. Inflation
3. Stagflation
4. Markets rising then crashing
If you can find a country or place where the
population is growing and is politically stable, and you
have a 10 year or greater timeframe, youre almost
100% guaranteed to make money in property. Singapore
in the next 10 to 20 years is one of the few countries in
the world that fit the above two criteria, which is why I
think that everyone (if they can afford it) should invest
in property in Singapore.
The Worst And Greatest Property

Investments I Have Heard Of
From my observation, the worst property investment is
buying 99 year leasehold Landed Property as the value
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rarely goes up. In fact the value might go down if the

property is over 15 years old.
Next is buying property at the market peak. Typically
at market peaks, the Singapore government will sell
sandwiched class properties, e.g. HUDC in the 1980s,
EC in 1990s, and DBSS in the last few years. Each time
all these sandwiched properties reach high prices and
are still popular is almost always a signal that the market
has peaked.
During a market down cycle property prices can drop
30% to 50%, so a person buying a property at the market
peak can go more than five years experiencing negative
equity, i.e. the market value of the property is less than
the loan outstanding.
A quite famous real life example is in 1997, someone
paid $780,000 for an HDB flat in Bishan and about nine
years later, this same property was sold for $550,000.
If you add in an estimated $100,000 in Housing Loan
interest he paid, then his total losses work out to be
37.5%.
Compared to a person who did not buy at the peak, a
buyer who buys prudently might over a few years time
even be able to take a home equity loan (second loan)
on his property and make the next property investment.
So buying property at the market peak can set a
person back in time by a few years. And a 30% to 50%
drop in property prices can mean a loss of $300,000 to
$500,000 (based on a property price of $1 million) and
this can wipe out five to over 10 years of savings.
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One of the greatest property investments I have heard

of is the boss of Transcab (and Union Gas) buying Oasis
and doubling his money in a few months when the
property he bought (Oasis at Kallang) for $20 million
was acquired by the government (to build the Sports
Hub) for $40 million. Imagine, for his business Union
Gas to make $20 million, how much manpower and how
many years it would take. But when it came to property
investing, all it took was just a few months for him to
earn $20 million.
Also, one of my sifus paid 1% Option money for
a bungalow and he managed to flip it (sell the Option
within 14 days) and made a quarter million of gains.
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Alfred Chia
CEO of SingCapital
Pte Ltd
Graduating from the National
University of Singapore with
a Bachelor of Science
degree, Alfred Chia C K,
BSc, CFP, FChFP, ChFC, is no
stranger to the world of financial planning after 16
years of being in the industry. He also holds various
professional qualifications as he believes in life-long
learning.
Training his financial consultants with creative
methods that allow them to best serve their
customers, a myriad of now successful property
agents and financial planners owe it to Alfred for his
expertise. Alfred has also developed a system to
allow homeowners to fully understand their financial
commitments, empowering them to choose the right
mortgage plan.
Various media channels also look to him for
quotes, insights and perspectives. Alfreds name can
be found next to many articles on financial mortgage
planning.
SingCapital is a MAS licensed Financial Adviser
providing a wide range of financial services to both
Individuals & Corporations. You can visit www.
singcapital.com.sg for more information.
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I believe property in Singapore will be

a fantastic long term investment.
There are many positive factors to
support investing in property
in Singapore, such as a stable
government, highly efficient
infrastructure, and Singapores role
as an international hub for finance,
medicine, education,
and entertainment.
Alfred Chia
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My Biggest Concern On The

Property Market
A major factor for property prices to climb to such giddy
heights is the low interest environment. Coupled with
the recovery of the U.S. economy from the subprime
problems which shook the global economy, investors
prefer to invest in physical property as it gives them a
sense of security.
The local banks in Singapore recovered quickly as
most did not have much exposure to the U.S. toxic assets
and were eager to lend their funds to property owners.
Even though the average current rental yield hovers
around 3%, property investors find that it is better than
leaving the funds idle in their bank account for a paltry
interest rate. As long as interest rates remain low, demand
for property will be strong.
My biggest concern is how property prices will fare
when interest rates start to rise (only a question of when
and not if) faster than rental yields.
Long Term Outlook On Property

In Singapore
Property investment is like any investment where there
are cycles during which prices rise and fall. Everyone
wants to buy at the low point but it is difficult to catch.
Fundamentally, property prices are determined by the
state of the economy. Personally, I am bullish about the
Asian region, especially with the rising economies of
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China and India.

I believe property in Singapore will be a fantastic
long term investment. There are many positive factors
to support investing in property in Singapore, such as
a stable government, highly efficient infrastructure, and
Singapores role as an international hub for finance,
medicine, education, and entertainment.
Despite this, we will not be spared from the cycle
of ups and downs. But as long as Singapore maintains
its leadership in those advantages mentioned above,
property prices will most likely trend up in the long
term. Since no one can predict the cycle, one should
first evaluate their financial position before making an
investment.
Put your financial situation through an extreme stress
test, and when you are confident about your holding
power through a cycle, you can invest confidently as you
have factored in various unexpected situations such as a
job loss, financial crisis, interest rate rise etc.
The Importance Of Proper

Asset Allocation
Proper asset allocation is very important for successful
investment. Naturally, we all want to allocate our
capital to the asset that performs the best, but this is
not an easy task.
Before we recommend an asset allocation to our
clients, we always conduct a fact finding interview with
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them first. We need to understand their Age, Risk Profile,

Investment Objectives, Investment Horizon, Investment
Budget and Investment Experience. For example, an
investor with a conservative risk profile should not take
excessive risk as they are not comfortable with a volatile
investment cycle.
To give you a more specific example, lets take the
case of an investor who is in his forties, has a balanced
investment risk profile, and is seeking to invest to generate
passive income in preparation for his retirement.
In this case, we would normally recommend an
investment portfolio that comprises a 50% Equities
and 50% Bonds allocation, and also a geographical
breakdown (e.g. how much to allocate to Asia etc). It
is difficult to apply an allocation to property but you
can specify the amount of leverage he should take on in
his property investment. After which, reference can be
made to his overall investment portfolio. Also, insurance
is very important for risk management against death,
disability and critical illness, as any unforeseen mishap
can throw a financial plan into disarray.
Finding A Profitable Property

Use Propertyguru and other online portals to search for
properties. You can search for properties using your own
criteria. Propertyguru also has a Property Alert service
where they will email you with matches to your criteria.
Most of the agents in Singapore are using this portal, so
this will increase the chances of getting the property you
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want. This is a good way to save time, and can leverage

your time by relying on technology.
I peruse the Straits Times Classifieds occasionally,
but am usually too busy to spend a lot of time going
through it every day.
You can also get good deals by networking with
property agents. Let them know to contact you if they
have any good properties for sale.
Top Tips For Financing Your

Investment Property
The first question to ask is what is your objective? Are

you buying for own stay or buying for investment? If
youre buying for investment, you want a package with
no penalties so you can offload the property anytime
when the price runs up, even if you pay a higher interest
rate in the short term. If you are buying for own stay, you
might want to look at a fixed rate package if you dont
want to subject yourself to a volatile interest rate.
Second, how long do you intend to hold the property?
Your time horizon will also help determine what package
to go for.
You should regularly review your loan, and talk to
financial advisors such as SingCapital to update yourself
on the current loan promotions and take advantage of it
whenever there is a good promotion. For most property
investors, they have no time to track the current packages
(there are hundreds), and thats where we come in.
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Plan your finances well. Dont assume that interest

rates will always stay below 2%. Do a financial stress
test, and see if you can cope financially if interest rates
rise. Keep aside at least six months worth of installments
as a reserve, for unfortunate events such as when you
cannot find a tenant or are transitioning between jobs.
How To Maximize Your Chances Of

Getting A Loan
Investors who want to maximize their chances of getting
a mortgage loan from the bank need to watch their Debt
Servicing Ratio (DSR). The DSR is the percentage
of the borrowers total recurring monthly financial
commitment against his monthly income and it will
determine the loan quantum the bank will grant.
The acceptable DSR varies from bank to bank but is
usually between 40% to 50%. The bank also needs to
ensure that the borrowers credit record is clean.
It is therefore important to reduce any commitments
you have such as a renovation loan. This is also prudent
planning as a housing loan is the biggest loan most of us
can take and you should not overstretch if your DSR is
overly high.
When Should You Take A Home

Equity Loan?
A home equity loan is a loan against the increase in

equity value of your property. For example if you bought
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a property at $1 million and now the valuation is $2

million, you can apply for an equity term loan on the
increased valuation.
The advantage of such a loan is that the interest rate
and loan tenure is the same as your housing loan.
It is best to only take such a loan if you can use
the capital to generate better returns than the interest
charged. In addition, the bank may call you for a top
up if the valuation of the property falls. I would suggest
you discuss the pros and cons of taking such a loan with
your financial adviser, who will make a recommendation
based on your individual needs.
Is Home Insurance Necessary?

Home Content Insurance is extremely important as
the cost of such protection is almost negligible but the
benefits are huge. It protects you from events beyond your
control and provides you with the financial resources to
replace or repair your property when unfortunate events
occur these may include burglary, fire, fallen trees,
bursting of pipes, explosion, vandalism and injury or
damage to a third party.
You buy insurance to protect your money. You are
spending a small amount of money on insurance to
prevent spending a big amount on catastrophes in the
future.
For example:
Medical insurance doesnt protect your health; it
protects your money should you have an expensive
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illness.
You dont buy fire insurance to protect your house;
it protects your money should fire or water damage
your property such that you need to do an extensive
renovation or re-construction.
Life insurance doesnt protect your life; it protects
your money and the financial future of your loved
ones if death or serious illness strikes.
Lets look at a scenario of Mr. Lim who has just
bought his dream house and moved in with his loved
ones. His career was soaring and he was confident in
paying off the loan in a short period of time. Suddenly,
cancer strikes. The doctor says he has a 90% chance
of recovery after extensive medical treatment. The bad
news is that Mr. Lim is not fit to work for the following
six months and has lost his job. If he had medical, life
and/or disability insurance he would be much more
secure financially. Similarly, having home insurance
would give him protection against flood, fire and theft.

I believe in asset allocation. I do have a modest portfolio
in property investment for which I adopt a very long
term investment view. In the last few years my property
portfolio has increased a lot driven both by acquisitions
and an increase in valuations.
I also invest in stocks and unit trusts. I like unit trusts
for the diversification effects, geographical choices,
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liquidity and ease of management. You can also invest

into global properties through such a vehicle.
Some people believe that funds do not provide better
returns than property. To begin with, they are certainly
different asset classes. But funds do not usually have
the use of leverage unlike property investment, thus
making their returns incomparable. Removing the use
of leverage also enables the investor to invest without
the fear of dealing with a potential margin call from
the bank.
Of course, in 2007 and from 2009 to 2010 when
property prices shot up, you could have made a lot of
money in a short period of time. But I would not bet on
that happening again soon. If you go in with a long term
investment and plan your finances, you should do well.
I also like property because of the passive income it
provides.
For all my investments, I invest with a medium to
long term time horizon. I dont believe in short term
trading as I dont have the time to trade. As long as the
asset allocation is right, in the long term you should
do well.
The Promise (And Pitfalls) Of

Property Investing
I invested in an old freehold walk up apartment in
Balestier in 2006. After I bought it, I enhanced the
property and increased the rental by 100%. I got a
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greater than 7% yield which more than covered the

financing. The apartment is now going through an en
bloc process, and if it goes through I will be able to
get a capital appreciation of more than 200%.
In my line of work, I also assist clients who have
run into problems with their mortgages. One common
scenario I come across is when the investor loses his
job. Although the property he invested in is fine, he
cant continue with the extra mortgage repayment
after subtracting the rental income. This would result
in a distressed sale and since the owner has no holding
power, he will not be able to ask for a good selling
price.
This is why we emphasise the importance of
Financial Planning for any investors before any major
investment decisions.
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Avoiding Legal
Pitfalls and
Other Mistakes
116
Finding Your
Smart
Ideal
Property
Investment
Financing
Property
Amolat Singh
Partner,
Amolat & Partners
After Amolat Singh was

called to the Singapore
Bar, he practised in two
Singapore law firms before
setting up his own firm in 1994.
His practice encompasses civil and criminal
litigation, family, defamation, insurance, drafting,
advising on commercial agreements, court martial
law and conveyancing.
Amolat was the preferred lecturer when he
taught trust, family and company law to the
LL.B. law students at the Singapore Institute of
Commerce and also at Stansfield College. The
students remembered him for making complicated
legal concepts clear and simple and also for his
lively lectures and in-depth analysis of legal issues
and concepts.
Amolat was appointed main counsel to handle
capital cases in the High Court and the Court of
Appeal where the punishment is the death penalty
by the Registrar of the Supreme Court of Singapore
in 1998. He has a natural flair in cross-examination.
He has represented numerous clients in the Court
of Criminal Appeal, High Court and the Subordinate
Courts. He was recently awarded the inaugural sole
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LASCO Award by Chief Justice Chan Sek Keong in

recognition of his work in capital cases in the High
Court.
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When it comes to letting go of the

property, do not be greedy; once you
reach your sell price, just do it. You
never know if the price may drop and
you end up saddled with the weight of a
property that you never bargained for.
Amolat Singh
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The Role Of A Conveyancing Lawyer

For The Seller And Buyer
For the Seller

The conveyancing lawyer takes instructions,
prepares the Option To Purchase, ascertains if there is an
outstanding mortgage and whether there is any penalty
payable for early redemption under the mortgage, and
whether there is a CPF charge, i.e. if CPF funds have
been used.
Accordingly, when the Option is exercised the
necessary notices to the bank for redemption (or
sometimes knows as a total discharge of mortgage)
and to the CPF Board for discharge of the CPF charge
will be given. The Bank and the CPF Board will revert
with the amounts payable to them although the exact
amounts repayable have to be confirmed on the day of
Completion.
The lawyer will also provide evidence to show that
such outgoings such as the property tax, MCST charges
and dues (if the property is a strata unit/condominium)
are paid up-to-date. The seller may also give instructions
for payment of the estate agents commission from the
sale proceeds.
It is also necessary to ascertain if the sale is with
vacant possession or subject to an existing tenancy
in which case the security deposit would have to be
transferred to the buyer on completion and due notice
given to the tenant.
It is also prudent to ascertain if the sale is with
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Avoiding Legal Pitfalls and Other Mistakes
furnishings, fixtures and furniture and it is good

practice to draw up an inventory list to avoid any future
misunderstanding.
On the day of Completion, the sellers lawyer will
see to it that all monies due and payable to the seller
(and to whoever else based on his directions such as the
estate agent, etc) are accounted for and the keys to the
property are handed over although it is possible for the
keys to be handed over earlier so that the buyer could
make arrangements for the renovation works.
For the Buyer
The buyers solicitor does comparatively much more
work. He will go through the Option and advise his client
about the terms and conditions therein, e.g. whether
the 4% of the sale price payable on Completion is to
be released to the seller or held as stakeholders by the
sellers lawyers. New rules have now been introduced
for such monies to be held under a separate account
and there is presently a pilot project to fine-tune any
administrative kinks.
The buyers (if two or more persons intend to own the
property) will also be advised whether they should be
tenants-in-common or joint tenants as there are serious
and important consequences from this choice.
It is crucial that the Option contains clauses that
would allow the buyer to get out of the contract, e.g. if
approval from the Land Dealings Approval Unit (LDAU)
is required for a foreigner buying landed property, if the
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property is substantially affected by future drainage,

road widening plans, etc.
He will also conduct a title search on the property to
ascertain if the seller is the true owner and if the property
is jointly owned in which case, all the owners must sign
the Option and consent to the sale. A search is also
conducted on the seller(s) to make sure that they have
the capacity to sell, i.e. they or any one of them is not an
undischarged bankrupt.
The lawyer would also remind the buyer to sort out
the financing details from the bank contained in an offer
letter which would also set out the cap on the amount of
CPF funds that may be used. The buyer would also be
reminded to liaise with the CPF Board about the use of
CPF funds for the purchase.
The buyers lawyer will also keep close tabs on
the date by which the buyer must exercise the Option.
On that day, the lawyer will see to it that the Option is
properly exercised for a valid and binding contract for
the purchase of the property to come into existence. This
must be stamped within 14 days.
After the Option has been exercised, the buyers lawyer
will send out what are known as legal requisitions
which are simply enquiries or requests for information.
These requests are absolutely crucial to ensure that the
property would not be affected by future development
plans, e.g. a chunk of the frontage may be taken away
for road widening or a large drain may run right through
the bedroom.
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There are nine such requisitions sent to:

1. PUB (Water Reclamation Network) Department
for sewage and drainage;
2. LTA (Survey and Lands Department) for MRT
works;
3. LTA (Survey and Lands Department) for street
works;
4. LTA for Road Line Plan;
5. Building Control Authority for alterations/additions
made to the property;
6.
National Environment Agency (Environmental
Health Department) for any outstanding issues
regarding mosquito breeding, drain chokage, etc;
7. National Environment Agency (Central Building
Planning Unit) if the property is affected by the
current drainage scheme;
8. Inland Revenue Authority for any outstanding
property tax; and
9. URA to ascertain the master plan zoning, any
decision on proposals to develop the site, etc.
If all the replies to the above legal requisitions are
satisfactory, the sale can be proceeded with or else it
may have to be aborted depending on the terms and
conditions of the Option.
If the buyer is a foreigner, approval must also be
sought from the Land Dealings Approval Unit (LDAU)
if the property is landed property. As there are so many
types of developments, it is always safer and prudent
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when in doubt to apply for the approval and LDAU

would then say for sure if approval is required or not.
The buyers lawyer will also attend to the banks
mortgage documents as well as the CPF Boards charge.
It is not uncommon for the buyers lawyer to also act
for the mortgagee bank although some lawyers advise
against it because if there is a problem, whose interest
was the lawyer protecting, that of the bank or that of the
buyer?
Prior to the Completion date, there may be a need
for a final inspection of the property. Prior to the day
of Completion, the buyers lawyer will also ensure
that everything is ready for the Completion to proceed
smoothly, e.g. the necessary searches are updated,
cashiers orders according to the mode of payment
are ready, etc. At the pre-arranged time on the date of
Completion, the money changes hands and in exchange
the keys to the property are secured.
After Completion, the buyers lawyer will see to it
that the necessary notices to the MCST (if it is a strata
property) and the Property Tax Department of the IRAS
are sent out.
What has been described is applicable for a completed
property. For a property under construction, the buyers
lawyer will forward progress payment notices to his
client and upon issue of the TOP (Temporary Occupation
Permit), facilitate the collection of keys upon payment
of the necessary fees and charges. Upon statutory
completion (i.e. after the final survey has been done),
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the lawyer will also attend to the issue of a separate

subsidiary strata title (SSCT) for say, a condominium
project.
Does It Matter Which Conveyancing

Lawyer You Use?
To be fair, all lawyers doing conveyancing work are
competent and conversant with the work. The junior
lawyers will almost always be supervised and guided by
the more senior ones in the firm. Like in all other matters
and professions, experienced lawyers will have seen
enough cases as to advise their clients on the pitfalls and
alternative approaches. Sadly enough, when lawyers do
get into trouble in conveyancing work, it is mainly due
to their being overwhelmed or overloaded with the cases
they take on.
The Advantages Of Forming A

Company As A Property
Investment Vehicle
Incorporating a company as an investment vehicle is
generally a good idea for the serious investor as doing
so has the following advantages:
1. The shares are easily transferrable and so new
investors may be admitted easily as opposed to an
individual who would have to sell the property to
the new owner.
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2. As the property is owned by the company, some

investors consider it a good shield to protect
themselves from personal liability although the
banks will usually extract personal guarantees from
the shareholders.
3. To encourage entrepreneurship, companies also
enjoy tax exemptions for the first three years of
incorporation.
4. As a company has perpetual succession, it can go
on perpetually and the death of a shareholder does
not bring the existence of the company to an end.
5. It is also possible to grow the company from
strength to strength because it may have a collection
of properties, with some already paid up and some
still under mortgage. In such a situation, banks are
more willing to lend the company money based on
its track record than say to an individual who has
grown old.
One disadvantage is that decisions are taken by the
board of directors or by all the shareholders in a general
meeting and so no one single person can call the shots,
which he could do if the property was owned by him
alone.
Potential Pitfalls Of Entering Into A

Property Sharing Agreement
Going into a property sharing agreement is like entering
into a marriage. No one can underwrite its success.
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Relationships usually come under strain when the going

gets tough, e.g. a drop in property values. There may
be some with cold feet who panic and would want out.
Some may wish to stay the course and take a longer
term view. Managing such competing self-interests then
becomes a challenge.
Also if one of the investors goes bankrupt, the entire
investment may have to be liquidated to pay off his debts
since a bankrupt cannot own property in his own name.
Or if an investor passes away, the personal
representatives of his estate may wish to sell off the
property to realize his share so that it may be distributed
amongst the beneficiaries.
It is important that the investors stipulate the manner
of holding properly, i.e. whether they are joint tenants
or tenants-in-common. The most crucial difference and
consequence is the right of survivorship in a joint
tenancy such that the survivor(s) take the share of the
deceased and there would be nothing for the deceased to
pass on to his beneficiaries upon death.
Due Diligence For The Smart

Property Investor
This is really dependent on what the investor is in it for.
If it is for the long-term, he would not flutter when there
are seasonal changes in the market conditions. Given the
limited land supply in Singapore, it is common knowledge
that property prices can only go up; the only question
127
being whether it is a steep escalator or a gentle one.

Another useful due diligence that an investor could
do is to go to the URA building and see what future
plans the Government has for that area or vicinity. Some
of the plans may take years for fruition but an investors
patience would be handsomely rewarded as facilities,
MRT stations, etc come online.
It is also equally important not just to look at the
property but also its surroundings and see if they are
complementary, and look at the kind of people that
area attracts or is saturated with, its potential in terms
of rental income, whether it could be readily sold off
in the event of a need to liquidate the investment, etc.
The investor should also look carefully at the
valuation report or views of the experts about its value.
BCA has a database (accessible by its subscribers)
that gives market trends.
There are also property experts who specialize in
providing such advice and it is often cheaper to pay
them for their expertise than a DIY job.
Finally, there is the tried and tested mantra: Its
all about location, location, location!
What A Landlord Should Do To

Protect His Interests
In view that our laws regarding illegal immigrants
are very tough, it is absolutely crucial to ascertain the
immigration status and true identity of a prospective
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tenant, especially if he or she is a foreigner. In this

regard, both ICA and MOM have excellent verification
services that a landlord should use.
The tenant should be asked questions such as the
number of occupants who would occupy the property,
whether it is his family who would occupy the property,
whether he intends to keep a pet dog (often times the dogs
end up damaging the inside of the property), whether
heavy cooking would be done (the cooking smells may
lead the neighbours to develop resentment), etc.
He should also take photos of his property at the time
it is rented out so that when it is to be surrendered, there
would be a reference regarding the state of the fixtures,
fittings, appliances and furniture.
The Biggest Mistakes Property

Investors Make
Some of the mistakes I have seen investors making are:
1. Stretching themselves too thin financially and not
doing their sums properly;
2. Forgetting that the bank has a right to (and they
always do) put a cap or limit on the amount of
CPF funds that may be used for the purchase of the
property, thereby requiring them to cough up more
cash than they reckoned;
3. Getting sucked in by the herd mentality and
thinking that they have the Midas touch and that all
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their forays into the property market would turn to

gold instantly when they should have planned for
the longer haul given that a property investment
is a substantial commitment and is not to be taken
too lightly. They should not make this decision and
hope for a quick turnaround.
I have seen some buyers of condominium units even
forget to factor in the MCST charges they have to pay
over and above their mortgage payments resulting in
their being in arrears of the MCST charges. This led to
an MCST charge be placed on their property as well as
late interest levied on their MCST contributions.
Singapore Property Horror Stories I

Have Come Across
One of the glaring ones that was highlighted in the
media involved the buyers lawyer forgetting about the
exercise date of the option. The option lapsed and the
seller forfeited the 1% option fee. The poor buyer was
then left without his deposit and the property he wanted
to buy.
Another case involved the situation where the option
clearly stated that the 4% payable on exercise was to be
paid to the seller, but when the option was exercised the
cheque for the 4% was drawn in favour of the sellers
lawyers. This payment was rejected as it was not in strict
compliance with the parties agreed terms. The buyers
130
lost the chance to acquire the property.

Another shocking case involved the buyers lawyer
failing to make an application to the LDAU as the buyer
was a foreigner. It was only on the day of Completion
that the buyers lawyer realized this and although he
made a hasty application, it was rejected despite three
attempts. In the meantime, as the buyers lawyer was
also acting for the mortgagee bank, the bank had already
disbursed the funds to the seller. Fortunately, in the end,
a compromise was worked out and the disaster avoided.
I came across another sad instance where my client
who was a foreigner was unable to remit monies from
his country due to currency controls. He had bought an
apartment in a condominium project under construction
and so when the progress payments fell due, he was
unable to pay. The developer proceeded with bankruptcy
charges despite my client having offered to let the
developer forfeit the apartment and all the progress
payments that he had made thus far. The developer
would not have lost money as he could have easily sold
off the apartment to another buyer as the prices had gone
up. The developer insisted on his strict legal rights under
the contract and the buyer was made a bankrupt. Luckily
for the buyer, as he also owned another apartment, he
was able to sell it off at a handsome profit in a buoyant
market and get himself discharged from the bankruptcy
after a few years.
As mentioned above, it is very important that the
co-owners carefully check their manner of holding the
131
property, i.e. as joint tenants or tenants-in-common. I

remember the case of a married man who was undergoing
a divorce at the same time he was afflicted with a lifethreatening disease. As he feared he may pass away
before his divorced was finalized, he wanted to make
a will and give what he thought was his half share in a
private property to his children from an earlier marriage.
When a property search was done, it was found that he
was a joint tenant and so could not give away any part
of his property because by operation of the law, when he
died, his wife would inherit the whole property as the
survivor of the joint tenant. Luckily, he was able to sever
the joint tenancy into a tenancy-in-common and so able
to pass his half share upon his death as he had originally
intended.

There is much merit in the saying: Cut your coat
according to your cloth. Invest in a property that you
can sustain. Property is a big ticket item and you should
give it as much thought as possible. Talk to the experts
if necessary.
You will hear only of the success stories from those
who made money and whilst there will be a significant
number who got burnt, these are stories you will never
hear.
A good idea would be to have a mix of commercial
and residential properties instead of putting all your
eggs in one basket, e.g. the residential sector. This way,
132
if there is a correction or adjustment in the market, you

would be able to cushion a fall in one sector with some
upswing in the other.
Whatever happens, always have a property for your
home. This one property should be a constant because if
you have a family and children, they need a routine and
consistency in their lives rather than subjecting them
to shifting every now and then in pursuit of the elusive
dollar.
When it comes to letting go of the property, do not
be greedy; once you reach your sell price, just do it. You
never know if the price may drop and you end up saddled
with the weight of a property that you never bargained
for.
Most importantly, stay in your comfort zone so that
you can still carry on a normal life and not be a slave to
your mortgage payments.
Success In Property Investing

Luck Or Timing?
Some people are just plain lucky. I know of a client who
has been lucky in the sense that he bought an apartment
in an old condominium and after about two years, it was
sold en bloc. With that capital he bought two more units
and as prices were going up, he sold them both again at
a handsome profit. Some say it is luck and some say it is
all about timing.
On the flip side, I came across a case where the seller
133
was so excited about an en bloc sale that he readily

consented without doing his calculations carefully. He
ended up with negative sale proceeds and also lost his
home. The devil, as they say, is always in the details.
The worst property investments tend to be those bought
at a high price following which the market softens.
134
Finding Your
Smart
Ideal
Property
Investment
Financing
Property
Mark Chua
Partner and Head,

Property Law Dept
Tito Isaac & Co LLP
Mark Chua, Partner and
Head of the Property Law
Department at Tito Isaac &
Co LLP, is a specialist in Property
Law. His legal services have been sought by
corporate and institutional clients, as well as private
individuals both local and foreign.
Mark handles files covering all types of property
commercial, industrial, landed residential,
condominiums and HDB and advises sellers
and buyers, landlords and tenants, lenders and
borrowers. His work has also included representing
the interests of foreign clients in obtaining approval to
purchase landed residential properties in Singapore,
for whom he has made submissions to the Land
Dealings (Approval) Unit (LDAU) of the Singapore Land
Authority (SLA) for the purchase of such properties.
Mark read Law at the University of Manchester in
the United Kingdom and graduated with an honours
degree in 1997. He then pursued and obtained his
postgraduate diploma in Singapore law from the
National University of Singapore (NUS) in 1998. He
became an Advocate and Solicitor of the Supreme
Court of Singapore in 1999 and has served as an
135
Associate Director of a local Law Corporation until

moving to Tito Isaac & Co LLP in April 2007. He is
also a Commissioner for Oaths.
136
When purchasing property, it is

important to buy what one can afford
and not to overstretch oneself.
The ability to hold on to your property
during a market correction or economic
downturn and not be forced to sell it
due to affordability issues is crucial.
Mark Chua
137
How To Find A Good

Conveyancing Lawyer
The role of a conveyancing lawyer is to represent, assist
and advise a property buyer in the various aspects of the
sale and purchase of a property. Conveyancing lawyers
will facilitate the smooth flow of the legal paper work,
negotiation and communication between a seller and
a buyer, as well as with the bank, for the mortgage or
redemption of the property and also with the CPF Board
for the usage of CPF funds towards the puchase of the
property or the return of CPF funds to the Board in the
case of a sale.
As different lawyers may specialise in different areas
of law, one may like to find a lawyer who specialises in
the area of conveyancing to represent them in a property
purchase. Banks usually have a recommended approved
panel of lawyers from which buyers may also choose to
engage to represent them in their conveyancing matters.
In most cases, the purchase of a property is probably
the single most expensive item that one would buy in
one's lifetime, so it would be good for buyers to clarify
their doubts, if any, before proceeding on a purchase. It
can be quite daunting for a first time buyer to take the
initial steps towards the purchase of a property without
proper independent legal advice.
It would be useful for both buyers and sellers to speak
to the conveyancing lawyer that they intend to engage to
get a feel of the lawyer and to see if they are comfortable
with the lawyer as well as to address some of their initial
138
questions that they may have on how to proceed in their

matter and what they need to be aware of.
Does The Purchase Process Differ

For Residential, Retail, Office And
Industrial Properties?
Generally the process in the sale and purchase of these
four different categories of properties are quite similar.
Searches will need to be done to ascertain who the
registered legal owners are and whether there are any
outstanding legal issues against the registered legal owners
which may affect the sale and purchase of the property.
For the different types of properties, it must be
determined what kind of use that particular property has
been approved for. Special or specific approvals may
be required for the sale and purchase of certain types
of properties to and from certain categories of persons.
One example is that of a purchase of a landed residential
property. For such purchases, if any one of the buyers is
not a Singapore Citizen or if the buyer is a company, then
the prior approval of the Land Dealings (Approval) Unit
(LDAU), would be required.
Also, if a buyer intends to utilize his CPF monies
towards the purchase of a property, it must be noted that
CPF monies can only be utilized to purchase residential
properties in the names of individuals. CPF monies cannot
be used for the purchase of retail, office or industrial
properties.
139
The Different Ways Property

Investment Deals Can Be Structured
When a buyer decides to purchase a property, he can
choose to purchase the property either in his individual
personal name, in the name of a company or in the name
of a sole proprietorship. The decision on which one of
the above to choose usually depends on the purpose of
the purchase and also on issues of tax minimization.
For the above methods, it is possible to have more
than one party as an owner of the property as it may
not be a purchase made in a sole individuals name or
a sole entity. In such a case where there is more than
one buyer of the property, the buyers would have to
state their preference for the manner of holding for the
property, either as joint tenants or tenants-in-common.
The manner of holding states the way in which shares
in the property are split between the various owners and
in the case of individuals, it would also govern whether
the remaining owner(s) would inherit the share of the
property should one of the individual owners pass away.
When Should You Set Up A Company

To Invest In Property?
It really depends on the individual requirements of the

buyers and what the property will be used for. In most
cases, the deciding factor will usually be tax savings
issues or legacy and estate duty issues.
In some instances, a company is set up for the sole
140
purpose of holding ones property investments so as

to shield ones personal liabilities from ones business
liabilities. In deciding whether it is worthwhile to form a
company as an investment vehicle to hold property, one
must also be aware of the potential cost savings, if any,
of such a structure as compared to holding the property
in an individuals name.
What An Investor Should Check

Before Committing To A
Property Purchase
Buyers should do a physical inspection of the property
and see if there is anything which may catch their eye
as a potential cause for concern. As lawyers, we will not
be there to physically see the property so we will have
to rely on what the buyers tell us. Buyers should also
conduct their own independent valuation of the property
to ensure that their purchase price is within the valuation
range before handing over any money or signing any
agreement to purchase.
Other basic due diligence would be to check the
ownership details of the property against the official title
search from the Singapore Land Authority and not just
rely on a property tax statement showing the owners
name as such statements sometimes do not reflect the
names of all the registered legal owners.
For landed properties, buyers may want to engage
their own architect, engineer or surveyor to inspect the
141
property to ensure that there are no illegal alterations

and additions done to the property.
What Landlords Should Check

Before Renting To A Tenant
A landlord should always check the identity papers of
any prospective tenant. In the case of a tenant who is
a foreigner, this would include items like the NRIC
(for those who are Permanent Residents), Passport,
Employment Pass, Work Permit and/or Dependent Pass.
Landlords may also request for a letter from the tenants
employer to confirm that the tenant is indeed employed
legally in Singapore.
A landlord should always be careful not to
inadvertently rent out his property to any illegal
immigrant or overstayer. Landlords should also
periodically ask the tenant to produce such papers
for inspection. The tenant profile is also important as
landlords will have to assess if the prospective tenant
will be able to make the rental payments based on what
the prospective tenants job is, for example.
It is also good to negotiate for a sufficient security
deposit to be retained by the landlord for the duration of
the tenancy.
142
How The Recent Government

Measures Have Affected
Property Financing
For the purchase of properties other than residential
properties, banks will usually grant a loan of up to 70%
of the purchase price or banks valuation of the property
whichever is lower. The balance of the 30% will have to
be paid in cash.
For residential properties, in light of the Singapore
governments measures implemented on 30 August
2010 to maintain a stable and sustainable property
market, banks may only grant a loan of up to 80% of
the purchase price or banks valuation of the property,
whichever is lower, to buyers who do not have any
outstanding housing loans at the time of the purchase of
the property. As for the remaining 20%, a minimum of
5% will have to be in cash and the remaining 15% can
be either cash or CPF monies or a combination of both.
For buyers who have one or more outstanding housing
loans at the time of the purchase of a property and if
the Option To Purchase (OTP) granted falls between 30
August 2010 and 13 January 2011 (all dates inclusive)
or if there is no OTP, where the date of the Sale and
Purchase agreement falls between the same dates, banks
may only grant a loan of up to 70% of the purchase price
or banks valuation of the property whichever is lower.
As for the remaining 30%, a minimum of 10% will have
to be in cash and the remaining 20% can be either cash
143
or CPF monies or a combination of both.

Further to the Singapore governments measures
implemented on 30 August 2010, the government had on
13 January 2011 announced more measures to maintain a
stable and sustainable property market and which would
take effect from 14 January 2011. Amongst the measures
affecting residential properties is the further reduction
of the loan quantum which may be granted to buyers
who have one or more outstanding housing loans at the
time of purchase of a property. If the Option To Purchase
(OTP) granted falls on or after 14 January 2011 or if
there is no OTP, where the date of the Sale & Purchase
agreement falls on or after 14 January 2011, banks may
only grant a loan of up to 60% of the purchase price or
banks valuation of the property, whichever is lower. As
for the remaining 40%, a minimum of 10% will have to
be in cash and remaining 30% can be either cash or CPF
monies or a combination of both. Where the buyers of
residential properties are not individuals i.e. not natural
persons, bank may only grant a loan of up to 50% of
the purchase price or banks valuation of the property,
whichever is lower.
The combined effects of such measures would mean
that buyers in general will have to fork out more cash in
order to purchase a second or subsequent property when
they still have an outstanding housing loan on one or
more of their existing properties. For buyers who have
no outstanding housing loan at all, their position as to
how much financing they qualify for remains unchanged.
144
Such buyers will still be able to qualify for up to 80%

financing of the purchase price or banks valuation of
the property, from the banks for the purchase of their
residential property.
The Biggest Mistakes I See Property

Investors Making
From my experience, the biggest mistakes that I see
property investors making are:
1. Not studying the property market in detail to look
at the fundamentals of the market or a particular
property before taking the plunge to buy.
2. Letting the herd instinct take over, especially when
buyers feel that they will be left behind if they do
not buy when they see many people buying.
3. Not doing prudent financial planning by calculating
the affordability of the monthly mortgage based on
the current low interest rates and the longest loan
tenor that they can possibly take.
4. Not making provisions for the possibility that the
property they have bought for investment may be
left vacant for an extended period of time without
any rental income or that the property was not able
to achieve the rent that was initially expected.
5. Not taking into account the additional costs of
maintaining an investment property such as the
higher rate of property tax, maintenance fees and
145
sinking fund contributions and costs of repairs,

especially for older properties.
When The Iras May Label You As A

Property Trader
It is currently difficult to ascertain exactly when or

how the IRAS will label one as a property trader for
tax purposes as there are currently no clear and definite
guidelines.
However, it seems that IRAS would look at the
duration for which one has held on to the property in
question and also look at the number of sale and purchase
transactions that one has conducted over a certain period
of time, say within a year.

I believe that a balanced investment portfolio should
always include property. Property correctly purchased,
in my opinion, is one of the best hedges against inflation.
Furthermore, one should have a long term view on
property investment rather than a short term one.
When purchasing property, it is important to buy what
one can afford and not to overstretch oneself. The ability
to hold on to your property during a market correction
or economic downturn and not be forced to sell it due to
affordability issues is crucial.
Always be aware of the rental returns, the rentability
of the property and the potential for capital appreciation.
146
Location and the availability of amenities and transport

links is a very important factor when considering where
to buy a property. Also look at the demand for the type
and size of the property.
In property investment, one must not be emotional.
At the right price and time, the property has to be sold
and the money reinvested into another property so as to
maximize the potential gains.
147
How to Make
Millions From
En Bloc Sales
148
How toFinding
Make Millions
Your
Smart
Ideal
From
Property
Investment
En Bloc
Financing
Sales
Property
Karamjit Singh
Managing Director
of Credo Real Estate
(Singapore) Pte Ltd
Karamjit Singh entered the
real estate consultancy
and marketing field in
1993, and has worked with three
major international consultancy firms, including
Colliers Jardine (now Colliers International) and
Jones Lang LaSalle before co-founding Credo
Real Estate in 2002.
Karamjit holds a first class honours degree in
finance from the National University of Ireland,
along with an Advance Diploma in Real Estate &
Property Management and a Diploma in Business
Administration.
Credo Real Estate is led by a dynamic team of
ten directors with real estate industry experience
spanning across marketing investment properties,
collective sales, consultancy, research, auction
and valuation.
Credo Real Estate has successfully concluded
more than 60 collective sale projects. In the last
peak of the collective sale cycle in 2007, Credo Real
Estate was Singapores top property consultant for
collective sales, leading the competition with $2.17
billion in total value of deals closed. Credo Real
149
Estate had also concluded the largest collective

sale in terms of size and value that of Farrer Court
for $1.3388 billion.
In 2010, Credo Real Estates market share
surged to 31%, as it extended its lead over the
competition as the runaway leader in the business.
150
The most common reason for failure

of en bloc sales is unrealistic price
expectations. Many owners mistakenly
set high reserve prices thinking that they
would be assured of the best deal.
Karamjit Singh
151
Outlook For En Bloc Sales In

Singapore
With a GDP growth of 14.7% in 2010, Singapore was the
fastest growing economy in Asia last year. The business
environment in 2011 continues to be positive.
As at the third quarter of 2010, the unemployment rate
was only 2.1%, and modest wage increases are expected.
Interest rates have never been so low for a prolonged
period in several decades. Singapores population has
been on the rise through immigration, although lately,
the pace of growth seems to be slowing. On the whole,
the factors point to positive growth in the residential
property market in Singapore.
En bloc sales happen when developers are positive
in their outlook of the market, as en bloc purchases are
effectively investments in redevelopment sites. It may
take at least a year before the developer is able to sell
units in the new development so he has to contend with
potential downside risks.
In 2009 there was only one successful en bloc deal
amounting to $100 million while some 35 deals with an
aggregate value of over $1.75 billion were done in 2010.
We expect to see more successful en bloc deals in
2011, especially with larger projects valued above $300
million entering the market. Large deals of such value
were conspicuously absent in 2010.
152
How to Make Millions From En Bloc Sales
How The En Bloc Process Starts

Informally, it starts with owners seeking advice from
property consultants if the prospects and timing for an
en bloc sale for their development is right.
Formally, it begins with the election of a Collective
Sales Committee at a duly convened Extraordinary
General Meeting, pursuant to requisitions by a required
number of owners.
The Common Characteristics Of En

Bloc Properties
While it is always difficult to generalize, the common

characteristics, however, among successful en bloc
projects are:
1. Their age (usually at least 25 years old)
2. Poor physical conditions, and/or
3. Being located in popular locations in demand by
developers
The Top Reason Why An En

Bloc Sale Fails
The most common reason for failure of en bloc sales is
unrealistic price expectations. Many owners mistakenly
set high reserve prices thinking that they would be
assured of the best deal.
The key to avoiding this is education and effective
communication. Owners need to understand why prices
153
should be set realistically and how to still have their

interests protected.
The Key Factor Developers Need To

Have To Buy En Bloc Projects
As we all know, property markets move up and down
in cycles. Developers would buy land (and en bloc
projects) when they are confident in the market, and
especially if their inventories are running low. Once they
have bought sufficient land, or begin to have concerns
over a possible slowdown in the market, they will stop
buying or become selective in acquiring sites
The key is hence confidence in the market.
The Impact Of Changes In The En

Bloc Legislation
The changes in the en bloc sales legislations enacted in 2007
and 2010 have, on the one hand, increased the time, work
and costs required for a typical en bloc sales preparation.
However, on the other hand, they have raised the bar
on standards of accountability, transparency, and discipline.
The legislative changes have also spelt out clearly the dos
and donts, which help to minimize mismanagement of the
sales process, thus providing greater assurance to owners
154
How A Property Consultant Such As

Credo Helps In The En Bloc Process
Our role is largely to provide advice on values, best
practices, help solve differences in opinions of interest
groups, and bring the best out of the property when
marketing so that the owners stand to receive maximum
benefits.
Should Investors Focus On En

Bloc Properties?
Investment in properties with en bloc potential comes with
some risks and uncertainties. Firstly, will a successful en
bloc sale take place eventually and secondly, when will
it occur?
The investor will have to weigh these uncertainties
against other investment opportunities such as purchasing
a unit under construction from a developer, acquiring a
tenanted unit with ready rental income, or buying an
older unit which requires improvements before leasing
it or enhancing its value.
155
How toFinding
Make Millions
Your
Smart
Ideal
From
Property
Investment
En Bloc
Financing
Sales
Property
Dillon Loi
Master Trainer,
Real Estate Academy
Dillon Loi is called to the
English Bar as a Barristerof-Law (Lincolns Inn)
and is admitted to the
Singapore Bar as well. He is
the first and only legally-qualified licenced estate
agent in Singapore to have consulted on more than
$1 billion worth of collective sales and investment
properties deals. He has extensive practical
experience in the legal aspects of real estate deals
and financial matters and has particular interest in
handling complex cross-border transactions.
As a Master Real Estate & Wealth Management
Trainer, he has helped thousands of real estate
salespersons and agents prepare for the industrylevel examinations using his proprietary Superlative
Learning System. He is also the author of Singapore
Real Estate Sale & Investment Handbook, a biannual publication for investors and real estate
professionals. This handbook has helped thousands
of investors to make more informed decisions when
investing in Singapore properties, whether through
supernormal capital appreciation via collective sale
or through generating regular cash-flow by renting.
Apart from real estate consulting, his scope of
156
work also includes structuring real estate and lawrelated workshops and training programmes for
companies and other institutions.
157
It is naturally difficult for one to learn

the ins and outs of the laws regulating
properties in a foreign country, so a
good start will be to invest in a second
property in Singapore and if so, why not
one with en bloc potential?
Dillon Loi
158
How The En Bloc Process Works

What is a collective sale?
An en bloc sale, or collective sale, is the sale of an entire
private strata development by way of majority consent
and is governed by the Land Titles (Strata) Act.
If there is unanimous consent to sell the development,
the laws governing en bloc sales will not apply.
How does the en bloc process work?
The first step in an en bloc sale attempt is for owners to
form a sale committee. The law requires that only one
sale committee be elected for each development and that
sale committee must follow certain procedures as stated
in the law.
Once a sale committee has been formed, owners will
indicate their consent to the en bloc sale by signing a
Collective Sale Agreement (CSA). The majority consent
by share value and strata area must be obtained within
one year before the sale attempt can proceed further. The
majority consent levels are:
For developments less than 10 years old at least
90% by share value and strata area or
For developments 10 years and older at least 80%
by share value and strata area
When majority consent is obtained, the next step
is for the sale committee to find a buyer. To ensure
transparency, this must be done through a public tender
exercise. When a buyer is selected and the sale agreed
upon, an application must be made to the Strata Titles
159
Board (STB) which will consider the application and

deliver a decision on whether the sale will go through.
When an application for an en bloc sale has been
made to the STB, the owners who do not consent to
the sale can raise objections to the STB. The STB is
required to consider these objections before deciding
on the outcome of the application for sale. Any party
dissatisfied with the STBs decision can challenge the
decision through the judiciarys appeal system.
How long does it typically take?
It typically takes at least one year after the collective
sale process has commenced before the transaction is
completed and up to another six months before the sale
proceeds are distributed out.
How To Find Properties With En

Bloc Potential
Everyone knows the simple investment philosophy
Buy Low and Sell High. Investing in properties with
en bloc potential allows the investor to Buy Low and
Sell Higher Than Those Nearby.
In a bullish market, astute investors may hit jackpot
within a short period of time if the en bloc sale
materialises. However, like all investments, there are
risks involved. A few things should be considered by the
investor:
160
1. Land value versus existing value

This is the first step in determining whether a development
has the potential for an en bloc sale.
If the land value of your property is higher than the
total value of the individual apartments, offices or houses
combined, it means your property has redevelopment
potential and you may be able to profit from a collective
sale. These are the most common situations where a
collective sale might be possible:
i. Where the land use has been changed. For example,
when use has been changed from landed to highrise, as a result of re-zoning under the Master
Plan. Changes were made to the Master Plan by
the Urban Redevelopment Authority in 1993/1994
which sparked a series of collective sales.
ii. Where the Master Plan provides for an increase in
plot ratio.
iii. Where the existing development has not fully
utilised the allowable plot ratio. This is especially
true of older apartment buildings built before 1985.
2. Collective sale premium
The next issue is the percentage of potential premium
gained from collective sales. Owners may not be
motivated to sign on the CSA if the percentage is too
low, as they also need to factor in the cost of relocation,
replacement cost of a new property and renovation costs.
As a rule of thumb, the potential premium needs to be
at least 30% to 50%. In some cases where land value has
161
escalated, such as those sites in the Orchard shopping

belt area, premiums can exceed 100%.
3. Financial loss
Another factor that en bloc investors must consider is
that owners must not suffer a financial loss i.e. the sale
proceeds of the unit in an en bloc sale are lower than
what the owner paid for it. There was a time when some
owners who bought their units during the peak in 1996
and 1997 may not have broken even. However, in 2010,
such instances are now rare.
4. Relocation
Investors should do some market research on the
pricing of new projects in the vicinity. Most owners will
evaluate if the proceeds from an en bloc sale can pay for
a replacement property in the vicinity. If not, they may
be reluctant to sell, resulting in the 80%/90% consent
being unattainable.
There are some owners who want a home of the
same size as their current home. If they are living in
a large apartment (e.g. 3,000 square feet) in an older
development, a replacement may be hard to find. This is
because many developers are trending towards building
smaller or mickey mouse apartments.
5. Number of owners
As a general rule, smaller developments have a higher
chance of success than a large project with many owners.
162
6. Age of building
Another gauge of a potential en bloc is the age of the
property. Developments built 30 to 40 years ago, such
as four storey walk-up flats, stand a higher chance of an
en bloc sale. Buildings with defects requiring substantial
funds to rectify are also candidates for an en bloc sale.
The problem is that some investors and agents use this as
the only gauge of en bloc potential!
7. Bonus value
The net sale proceeds distributed to owners in an en
bloc sale also depends on the development charge (DC)
payable, which is based approximately on the difference
between the development ceiling and development
baseline. There are some older developments built with
a higher base plot ratio (or approved gross floor area)
which may exceed the proposed developments floor
area. In these cases, the DC is relatively low or zero.
Another bonus is if the en bloc site is situated next to
state land. The owners can make an application to alienate
the land to make it part of the future development. This
is provided the remnant state land cannot be developed
on its own.
The amalgamation of the state land will average down
the land cost for the developer. This is because the state
land will be charged at the same rate as the DC, which is
pegged at 50% of land value. The developer will factor
this in the acquisition and the savings will be passed
on to the owners.
163
8. Prime location, prime location, prime location

Even as the government increase the supply of sites into
the market, there are only so few freehold sites in prime
locations. The strong demand developers have enjoyed
from home buyers in the luxury residential segment has
led them to speed up replenishing their land banks with
prime freehold sites. Who would have imagined 99-year
leasehold bungalow sites going at more than $2,000 psf
in 2010?
Developers have raised the prices they are prepared
to pay on the back of improving sentiment. Collective
sales are an excellent source of such supply.
Though the profit from an en bloc unit can be
handsome, the risks are also high. There are investors
who bought en bloc units in 2007 (during the previous
en bloc boom) and are still holding on to them today.
There are interest costs, property tax, maintenance and
opportunity cost accumulated over the years. If located
in an attractive location, the investors may be able to
cover costs through rental. If not, they will have to
continue carrying the burden until the next property upcycle, perhaps in 2011 or later.
Investors must do careful research before deciding
whether a unit truly has en bloc potential.
Reasons Why Most En Bloc

Deals Fail
Strictly speaking, the only one that has failed to meet
164
the judicial standards is Horizon Towers, but there are

many en bloc deals which failed even before reaching
that stage. There are many reasons why collective sale
attempts fail. Here are a few:
1. Too many residents are in love with the property
An estate may comprise retirees, professionals,
heartlanders, overseas owners, occupiers, investors,
youngsters or old folks, who all have different
expectations.
Before buying the unit, the investor may want to
talk to the marketing agent to understand the general
sentiment, because not every owner would want to
sell their property, even at a premium price. If en bloc
activity has not started yet, it would be a good idea to
conduct a survey of the kind of owners staying in the
development.
If too many owners are sentimentally attached to
their homes, the development is not ripe for en bloc
yet, regardless of how old the property is and it may be
necessary to wait for the next one or two cycles.
2. Poor or slow timing
Many of the en bloc deals successfully transacted
in 2007/2008 were under the old collective sale rules
enacted prior to October 2007, which were open to a
different judicial interpretation. The rules have since
been further tightened up, and tightened again in July
2010.
165
In view of enhanced regulatory requirements, it is

necessary to start the process of collecting signatures
from owners before sentiment starts to improve i.e. in
anticipation of an en bloc season. Very often, by the
time it is reported in the media that many properties
have been sold en bloc, it may already be the tail end
of an en bloc season. The earlier properties were put on
the market with more realistic price expectations from
owners, whereas the later properties have been priced
out of the present en bloc cycle.
It is therefore very important that the estate does not
take too long to launch the en bloc sale or they may miss
the up-cycle.
3. Ignorance of the collective sale process
Different subsidiary proprietors have different (hidden)
agendas in joining the sale committee. Some are
genuinely trying to facilitate the collective sale; others are
planning to derail the process at the Strata Titles Board/
High Court stage with inside information they got. Most
are not aware that since the Horizon Towers case, the
sale committee members have certain duties with legal
consequences if they not discharged properly. This may
result in the collective sale application being disallowed
at the courts. Many subsidiary proprietors assume that
the same mechanics that helped them succeed in an en
bloc sale pre-October 2007 will automatically work in
2010 and beyond.
Often, it is only at an advanced stage of the collective
166
sale process that the owner(s) discovers they have:

i. Adopted a reserve price which is too high for the
present cycle e.g. after considering maximum
permissible gross floor areas, development charges
etc
ii. Used an apportionment method which is not
acceptable by 80% or 90% of the owners depending
on the age of the development
iii. Appointed a marketing agent who is unfamiliar
with the law or a lawyer who is not commerciallyminded to facilitate the sale
A collective sale is a complex process and there are
many pitfalls to be avoided. A good agent should help
you to:
i. Confirm the development potential of your
property
ii. Assess accurately the land value and compare
it with the value of the individual apartments,
houses, shops or offices
iii. Recommend a minimum price
iv. Aggressively market the property in Singapore
and internationally, to maximise the sale price
v. Advise on and coordinate the signing of the
collective sale agreement
vi. Help owners find replacement properties
vii. Advise on the legislation and how to apply to the
Strata Titles Board for approval of the collective
sale
167
It is important that sale committee members upgrade

their knowledge of the law relating to collective sales
and not micro-manage the process, leaving that in the
safe hands of a competent marketing agent.
Economic Conditions Needed For

The En Bloc Market To Take Off
When the property market is recovering, the land price
would generally rise faster than the price of the existing
building on it. This is in anticipation of a higher selling
price for a new project by developers. Consequently,
the land value of a development with en bloc potential
would appreciate to a level that exceeds the total value
of all existing units.
This perceived value is further enhanced if there
is competition between developers for the site. This
may present an opportunity for owners to consider a
collective sale for a better price.
Macro-economic and micro-economic conditions for
the property market to move into en bloc mode include:
1. Flow of hot money into Asia
Recent efforts by the United States Government in
quantitative easing (i.e. printing of U.S. dollars) has
resulted in excess cash flowing out of America in
search of a higher return potential. The largest property
markets are located in developing countries in Asia such
as China and India.
168
2. Bank interest rates

As long as the Federal Reserve keeps their interest rates
low in order to spur economic activity in the United
States, many banks around the world will follow suit, in
order to remain competitive.
3. Employment opportunities
As more expatriates shift to Asia in search of better
job opportunities, demand for residential homes or
commercial space will naturally increase. This leads to
higher rental yields, which in turns encourages more
investors to buy homes/offices for good returns, leading
developers to be more gung-ho when they tender for
government land or en bloc sites.
When the opposite happens, it follows that en bloc
transactions move into hibernation mode.
How Changes In Legislation Will

Affect The Prospects For An
En Bloc Sale
For more details on the most current legislation, check
out the second edition of my book, Singapore Real
Estate Sale & Investment Handbook 2011/2012.
One of the main changes in July 2010 is the higher
level of support needed for convening a general meeting
to proceed with collective sale. If the meeting is proposed
to be held within two years of a previous failed attempt,
the first requisition in that period of two years after
169
a failed attempt must be made by at least 50% of the

total number of subsidiary proprietors or by subsidiary
proprietors owning at least 50% of the aggregate share
values of all lots in the strata title plan. For a second or
subsequent attempt within the two years, the requisition
must be made by at least 80% of the total number of
subsidiary proprietors or subsidiary proprietors owning
at least 80% of the aggregate share values of all lots in
the strata title plan.
This means that it is necessary for the subsidiary
proprietors spearheading the collective sale to have
a sense of when the up-cycle will begin and to launch
the tender exercise in the first 6 to 12 months of that
cycle. This requires the en bloc process to commence 9
to 15 months before the tender is launched a tall order
to fulfil. If they get the timing wrong, it will be more
difficult to re-launch the en bloc sale quickly as they
need a higher level of support. This means the days of
large en bloc sites (where there are more than 150 strata
units) may be over.
Where The Next Wave Of En Bloc Is

Likely To Happen
Arguably the last collective sale frenzy (third en bloc
season from 2005 to 2007) came to a halt with the
U.S. financial crisis. The crisis has inadvertently led to
a flow of funds into Asia, including Singapore. These
funds must be parked in investment vehicles to grow,
170
which can include Asian stock markets or currencies or

properties.
The strong recovery in residential property in 2009
boosted developers confidence and triggered a series of
aggressive bids for government sites as well as freehold
sites. The surge in en bloc activity in 2010 has created
opportunities for investors to pick up strata units in
projects with the potential for an en bloc sale.
It should be said that all investors, when investing in
properties, should always lookout for properties with en
bloc potential.
Over the past 12 months, the market has seen a
significant increase in land prices in non-traditional
residential districts (usually 9, 10 and 11). There has
been a relaxation of the rules regarding re-zoning of
commercial properties to residential ones. As such,
investors may want to consider commercial properties
located within the future enlarged Central Business
District (CBD) and those in the suburbs located near
MRT stations or waterbodies.
Land prices in these areas have not risen substantially
and owners price expectations are still manageable.
When positive sentiment seeps in, developers may be
tempted to acquire such sites at a higher premium since
the risk is still not too high.
171
Are commercial properties

attractive en bloc targets?
From 2010 onwards, the next wave of collective sales
could well come from commercial properties stratatitled office buildings and shopping centres. A number
of commercial properties have been placed on the block
in the past. They include UIC Building along Shenton
Way, Satnam House on High Street, Upper Serangoon
Shopping Centre on Upper Serangoon Road, and
Tanglin Shopping Centre is going through a tender at
the time of this writing.
Owners of strata-titled commercial properties are
climbing onboard the en bloc bandwagon for various
reasons:
Aging properties requires higher cost of upkeep
and maintenance
The owners have grown with the development and
now wish to cash out
For some strata-divided shopping malls, the
management council are not equipped with
marketing skills to attract retail crowds of a new
generation
Real Estate Investment Trusts (Reits), which are
constantly on the lookout for opportunities to grow their
portfolios, form a ready pool of buyers for retail and
office properties.
Launching a commercial site for an en bloc sale is not
as easy as launching a residential site. For starters, unit
172
owners disagree as to how the money is divided among

them as the method of apportionment for commercial
properties is still untested. For example, when it comes to
retail properties, factors such as the floor level, a shops
distance from an escalator and even its distance from the
toilets might affect its value. Also, in every shopping
centre, no matter how old, there will be profitable shops
whose owners will not want to sell. Whenever many of
the unit owners operate their own businesses, they will
always ask for a very good en bloc premium to entice
them.
Real Estate Versus Other

Investment Products
Investment is such a wide field it ranges from the

basics of personal finance, to the complexities of the
stock markets and investment products and tools. A
quick overview:
1. Stocks and shares
Buying a share of stock is like buying a piece of a
company, that is, part-ownership of a company. So if one
buys 100,000 shares in a company that has issued one
million shares, he owns 10% of that company. Most retail
investors own what is called ordinary shares. Holders of
ordinary shares have the right to share in the profits of
the company after preference share holders have been
paid their dividends.
Holders of ordinary shares are paid dividends that
173
vary according to the profitability of the company and

the recommendation of the companys directors. Should
a company be wound up, its ordinary shareholders will
receive a payout only after all other creditors, including
unsecured creditors, have been paid.
2. Bonds
These can be seen as loans that are made out to
corporations or governments in return for a set amount
of interest on a regular basis. Every bond has a specific
maturity date or date when it expires. The loan is then
paid back in full at the price it was bought. In investing,
many bonds (especially government-backed bonds) are
seen as lower-risk investments, as the maturity date and
returns are generally fixed.
3. Warrants
Warrants provide the holder with the right, but not the
obligation, to subscribe for a given number of ordinary
shares in the company at a pre-determined exercise
price within a specified time period. A warrant is also
generally known as a transferable subscription right.
4. Mutual funds / Unit Trusts
A mutual fund is made up of a collection of different
stocks, bonds, or other securities which are managed by
a professional investment company. The idea behind it is
to diversify and to pool money to increase buying power.
174
5. Options
A stock option is a contract that gives the buyer (or the

holder) the right to buy or sell a certain number of shares
at a fixed price anytime on or before a predetermined
date. The seller (or the writer) of an option has to deliver
or buy those shares when the buyer decides to exercise
his right. There are two common stock option contracts:
i. A call option
This gives the buyer the right to buy a fixed quantity
of a specified stock at a predetermined price on or
before a specified date.
ii. A put option
A put option allows the holder to exercise the right
to sell the underlying stock at the predetermined
price on or before the specified date.
6. Currencies
In the long term Asian currencies will appreciate, or

if not, asset prices in Asia will increase substantially.
Given the Chinese Yuans increase has accelerated
recently, other Asian governments will also let their
currencies rise against the U.S. dollar without fear of
losing competitiveness.
If the U.S. government prints more money, the stock
index may rise higher and the U.S. dollar may drop in
value and this may pull down other currencies pegged
to the U.S. dollar e.g. Euro etc. Understanding how
currencies relate to each other is important for those of
us who plan to invest in foreign properties.
175
7. Real Estate Investment Trusts (REITs)

REITs have in the past decade or so become an
increasingly popular investment tool. A REIT raises
capital to purchase real estate assets, usually with the
aim of generating income for unit holders of the fund. It
allows individual investors to access real property assets
and share the benefits and risks of owning a portfolio of
these assets, which typically distribute income at regular
intervals.
8. Real estate
Real estate is a favourable asset class for investors in the
long run. The living space per capita in this part of the
world is still low, and demographics in markets such as
China, India, and Vietnam are favourable for another 20
years.
Many Singaporeans have built up their savings
through their primary properties, usually the house
they stay in. But to truly create wealth through property
investment, one needs to invest in secondary properties,
be it locally or overseas.
It is naturally difficult for one to learn the ins and outs
of the laws regulating properties in a foreign country,
so a good start will be to invest in a second property in
Singapore and if so, why not one with en bloc potential?
176
Outlook On The Singapore

Property Market
In the past year, as the real estate upswing saw all types
of properties increasing in value, prices of property
stocks have also sky-rocketed across the board. Almost
all property counters, big and small, have hit record
highs in recent months, from property giants such as
CapitaLand and City Developments to smaller players
including Sim Lian Group and Ho Bee.
Some experts believe the crowd is slowly leaving
the property market party, while others argue that the
there is firm demand and fundamentals are still strong.
Previously, some take the view that unless prices of
physical properties rose further, it is unlikely for property
counters to rise again. It is unlikely for property prices to
rise again quickly as the government has intervened and
will continue to monitor the market.
Should the government intervene too drastically, it
may be difficult for the property market to absorb the
shock. And coupled with adverse changes in macroeconomic conditions, this can lead to a slowdown in the
broader economy.
As long as hot money enters Singapore shores,
demand for properties is bound to shoot up quickly. The
reverse holds true. As a free economy, it is unlikely that
MAS will impose capital control curbs on funds flowing
through Singapore.
At the same time, by not doing anything, many
Singaporeans may experience a hard fall when the
177
bubble bursts. As in anything, life moves in cycles. The

key is recognising when to pick up value properties and
when to liquidate.
178
Parting Thoughts
Parting Thoughts
If youve made your way through this book, you will
now know more than what 90% of the other property
investors out there do. This knowledge will be your edge
in the market, and will help you to do well in your own
investing.
Id like to end off by sharing some of my thoughts
on property investing, building wealth, and how to get
started on this journey.
Is Property A Good Investment?

Here are my top reasons why properties make good
investments:
1. Cheap leverage available to help you boost your
return
The biggest advantage of property is that you can get a
LOT of leverage for a LARGE absolute sum of money
at an incredibly LOW interest rate (versus any other loan
you can take).
If the property price goes up, your return on capital
is multiplied. Of course leverage, like a knife, cuts both
ways. If prices fall, your equity will decline even faster.
But as long as you do not overstretch yourself and have
holding power, buying a property will usually not be a
fatal mistake.
And when you get it right, you can make a lot of
money. How much? How about several YEARS worth
179
of your employment income with a holding period from

six months to six years?
2. Can generate passive rental income
You can rent out your property (or a room in your
property if you are living in it) to generate rental income.
This rental income can help to offset your mortgage, part
of which is going towards the principal repayment, thus
helping you to build equity in your investment. If your
yield is high enough, you can even get positive cash flow
after paying off your mortgage and the maintenance fees.
3. Ability to make enhancements
If youre the kind of person who likes to fix things, you
can add value to the property by doing a renovation, or
sprucing up the interior design. Even just a fresh coat of
paint can do wonders for the value of the property.
4. No capital gains tax
Like stocks, there is no capital gains tax when your
property appreciates in price and you sell it for a profit
(unless the IRAS comes after you as a property trader).
Contrast this with your employment income where up
to 20% of it (depending on your tax bracket) goes to the
taxman.
180
Parting Thoughts
Downsides Of Investing In Property

But properties do have some disadvantages versus other
types of investments that you should be aware of.
One disadvantage is that properties are troublesome
to buy and maintain. House hunting can take lots of effort
and time, the negotiations to buy can be complicated,
then there are the repairs, dealing with tenant complaints
and so on.
Also properties are an illiquid asset that means it
is not as easy and as quick to convert to cash when you
need it. Selling a property may take months depending
on the market. But sometimes the illiquidity is not a
bad thing, as it forces you to have a longer time horizon
when investing.
And the biggest obstacle for most people when
investing in properties is that it requires a large amount
of capital to get started. Saving enough money to buy
one property could take a couple three to five years of
scrimping.
The Smart Investor

Property is not the only avenue through which investors
can make money. A smart investor can make money in
any asset class IF he knows what he is doing. You need to
figure out where your interests, knowledge and abilities
lie before investing. And I wholeheartedly believe that
you should only invest in something you know (i.e.
dont blindly follow the crowd).
181
The smart investor learns how to invest in different

asset classes at different times of the cycle. You dont
have to choose to exclusively focus on one or the other.
For example, you can invest in BOTH properties and
equities. Both types of investments have their place.
In fact, I do both. It all depends on your judgment of
the property and stock markets.
The Shotgun Versus The

Machinegun
When you buy a property, you lock in your purchase
price when you sign on the dotted line. For equities, you
can spread your purchase over a period of time using
Dollar Cost Averaging.
I liken this to the difference between using a shotgun
and a machine gun. With a shotgun you only have one
shot, but you can do more damage with that shot. You
can spray lots of bullets with a machine gun, but you
might not achieve the same effect as the shotgun. Which
one is better? Depends on whether you hit the target!
Some financial advisors will tout the benefits of
diversification when investing in equities, which you
cant do when investing in properties (unless you invest
in REITs or via property sharing agreements with other
investors).
Is diversification a good thing? Ask Warren Buffett,
who said: Diversification is a protection against
ignorance. It makes very little sense for those who know
182
Parting Thoughts
what they are doing.

I particularly like how he described his US$26 billion
investment in Burlington Northern (a railroad company)
as an all in bet on the U.S. economy. If it wasnt
Warren Buffett saying that, you would think you were in
the Marina Bay Sands casino!
Is diversification a good thing? It depends on whether
you know what youre doing.
Can You Afford To Make A Mistake In

Property Investing?
Whether you can afford a mistake in property or not
depends on whether you have holding power. If you
bought a property at the peak of the market in 1996,
most likely after a 14 year holding period you will be
back above water. True, you had a zero return all this
time (well unless you managed to rent it out for a good
yield), but it came back.
Whereas for stocks I am embarrassed to say but I have
bought stocks that have gone to zero. Sure on hindsight
it was an affordable mistake, but even if my property
purchase had gone badly it would have been affordable
as well because I did not overstretch myself.
And looking back, I still made a lot more money in
property than if that stock I bought had gone up 10x.
Of course, if you could find a gem like Peter Lim did in
Wilmar that goes up 100x then its a different story
183
Investing Under the Shadow of

Government Measures
Theres no doubt that the government measures
introduced on 13 January 2011 are harsh, especially the
Sellers Stamp Duty (SSD) increase to 16%, 12%, 8%
and 4% of selling price for residential properties which
are bought on or after 14 January 2011, and are sold in
the first, second, third and fourth year after purchase
respectively. So to just break even if youre selling within
the first three years, your property price has to go up
by at least 15-20% (taking into account transaction and
interest costs). This basically means that most buyers are
forced to hold for at least three (if not four) years.
Also the SSD is a tax on your selling price regardless
of whether you made money or not (unlike a capital
gains tax). If property prices stay flat and you are forced
to sell your house for whatever reason (loss of job, need
liquidity etc) you will immediately make a loss of 4% to
16% (not including transaction and interest costs) on the
total home price. Assuming you took a 60% loan, you
could lose up to 40% of your capital due to the impact of
leverage even if home prices stay flat.
Also if you already have a loan outstanding your
maximum Loan To Valuation for your second loan will
be 60%, which means you need to fork out 40% in cash.
This will present a formidable barrier to entry for many
buyers, and will also result in a lower Return On Equity
for investors.
Thus I believe the net impact of these measures is
184
Parting Thoughts
that transaction volumes will fall significantly. Buying

demand from investors and speculators will be heavily
impacted, while even end users are likely to take a wait
and see attitude in the hope that prices fall more.
Will prices fall? I dont think prices will fall
significantly in the short term. Home owners and
developers still have strong balance sheet positions and
are not likely to sell at a loss. We will need to have a
recession and retrenchments before these two groups
start to sweat.
But the moment there is any sort of external crisis,
or if unemployment starts to creep up, foreigners leave
Singapore in large numbers or interest rates go up, the
market will be vulnerable.
As I mentioned in the Introduction, investing in an
environment where the government has announced
multiple rounds of measures to control the market and
where prices are falling feels like a very risky thing to
do. But for the wise long term investors, a fall in prices
will be a golden opportunity to pick up a good property
at a low price and make a lot of money.
Advice For Those Just Starting Out

If you are just starting out on your journey of wealth
accumulation, my advice would be to focus your efforts
on EARNING more money (do a good job and get
promoted, find a better career, start a business etc) so
you can accumulate enough money to make a difference
when you INVEST it.
185
To buy your first property you need either a large

ramp up in your capital (which will involve making a
risky bet), or if youre more risk averse you can save
your way to your first downpayment.
I think for most individuals or couples if you save
hard for three to five years you can usually accumulate
enough capital to get your feet wet in property. If you
can save $1,000 to $3,000 a month you can start with
an HDB flat. If you can save more than that you can
consider private property.
For your first property, buy something you like and
can afford. By like I mean that you can see yourself
living in it for the long term. And a good rule of thumb
to follow for affordability is to buy something that is
five times your annual household income or less. So if
your monthly household income is $8,000 you can look
at buying a house that is around $480,000 ($8,000 x 12
x 5).
So even if mortgage rates hit 4%, your monthly
payment on a 20 year mortgage for a $384,000 loan (80%
of $480,000) will be $2,327, giving you a comfortable
Debt Service Ratio of 29%. For further safety, keep
six to twelve months of your expenses in cash or fixed
deposits as a buffer in case you lose your job.
Making The Leap To Becoming A

Property Investor
The above is a fairly conservative approach to buying
186
Parting Thoughts
a property as most of the time I see that first-timers are

(understandably) filled with fear about buying a property,
which will be by far the largest purchase they have ever
made, and also about taking up such a large loan.
If you follow the above guidelines, even in most
bad case scenarios, you will not lose your home or go
bankrupt.
The important thing is to get started when youre
young (or soon if youre not that young). This allows you
to take a mortgage with a longer term (and thus get a lower
monthly payment and afford a larger home), gives you the
leeway to make a mistake or two and recover from it, and
lets you benefit from the magic of time and inflation to
help you build your wealth.
Finally, dont forget Warren Buffetts advice: Be
fearful when others are greedy and greedy when others
are fearful.
Good luck on your property investing journey!
To wisdom and beyond,
Mr. Propwise
P.S. If you have feedback or questions, Id love to hear
from you. I can be reached at info@propwise.sg.
P.P.S. If you havent done so already, go now to
www.propwise.sg/bookbuyer/ to get your free copy of
my Singapore Property Beginners Guide, Real Estate
Buyers Checklist, and other resources I have prepared
especially for buyers of this book.
187
About Mr. Propwise

Mr. Propwise is the founder of Propwise.sg, a Singapore
property blog dedicated to helping you understand the
real estate market and make better buying, selling,
renting and investing decisions minus all the hype and
misinformation.
A Chartered Financial Analyst, his articles on the
Singapore property market have also been published on
Yahoo and Propertyguru.
188
Also Published By Aktive Learning
Diary of a Taxi Driver

True stories from Singapores most
educated cabdriver
When Dr. Cai Mingjie, a lifelong scientist and university

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Singapore, his world collapsed around him. Despite having
published numerous papers and a Stanford PhD, he could not
find a suitable job. Disheartened by the global financial crisis,
he became a taxi driver, the Singaporean job of last resort.
While driving a cab he jotted down notes about his
experiences and posted them on his blog, quickly becoming
an internet celebrity with close to one million hits so far.
This book includes edited posts from his blog plus exclusive
new material from him. Experience the real Singapore and
join Dr. Cai as he recounts true stories about nave prostitutes
and lecherous johns, abusive customers and kind strangers,
violent drivers and heart-wrenching encounters.

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Copyright 2011 by Aktive Learning

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National Library Board, Singapore Cataloguing-inPublication Data

PROFITABLE INVESTMENT STRATEGIES

Investment strategies for the current environment

How to time your entry in the property market

The benefits of forming a company as an

Reasons to enter into a property sharing agreement

Must do property buying due diligence

The biggest mistake property investors make

Do residential or non-residential properties make better

My personal investment philosophy

My worst property investment

Two key trends that will drive the property market

Is property investment a good idea in todays market?

Whether new or resale properties are better investments 20

Do residential or non-residential properties make

How interest rates affect property prices

Are leasehold or freehold properties better investments? 26

Finding good investment opportunities

FINDING YOUR IDEAL INVESTMENT

Impact of the fourth round of measures and

How to find a good and reliable real estate agent

The biggest mistakes property investors make

Promising areas for property investors

Should you buy an HDB flat or private property?

Should you do an Addition & Alteration (A&A)

Investing in commercial property

How PropNex ensures the quality of its agents

My personal investment philosophy

My property investment track record

Trends we are seeing in the market

Online tools to help investors search for properties

The best way to find an attractive property to buy

The most promising projects and areas

Two golden tips for mortgage loans

Asian commercial property market outlook

Finding a reliable property agent

How PropertyGuru ensures the reliability of its site

My personal investment philosophy

My property investment stories

Impact of the fourth round of measures and

Should buyers go ahead with their purchase

Should sellers sell their property now or

How to find the right agent for you

How to make money in Singapore property

The best time to buy and sell property

Mistakes novice investors make

Promising areas and projects buyers should focus on

Negotiating tactics for buyers

How owners can maximize their selling price

Do residential or commercial properties make

My personal investment philosophy

My experience investing in property

SMART PROPERTY FINANCING

Are banks still willing to do property lending?

Is it easier to get rich investing in stocks or properties?

When an opportunity presents itself

My top property financing (and refinancing) tips

How to maximize your chances of getting a loan