This section is dedicated for aspiring home owners, no matter if it’s BTO, EC, Private Condo or resale. If you are belong to this group of investors, pay attention!
*IMPORTANT. It’s very likely that at this stage, you’ll be bombarded by opinions from your friends, relatives, colleagues and the people around you. It’s important that you DO NOT base your decision on what they tell you. Even though they mean well, they probably do not understand the industry well enough to advice you. This is a life-altering decision, so don’t base it on unqualified opinions.
Since it’s your first time venturing into property, you will be cautious, maybe even too cautious. As a result, you might end u getting the safest property in the market with low installment and hopefully generates passive income.
This is perfectly understandable, and it’s probably what most real estate agents are advising… but know this… This is actually the WRONG STRATEGY! It’s the main reason why so many end up slaving the next 30-40 years to pay off their housing loans.
So here’s what you need to do if you want to pay off your housing loan within 5-15 years: Instead of buying the cheapest property or one that gets you passive income, purchase one that gets you the most profit when you sell.
Here’s 3 important points to consider to ensure you choose the correct property:
- Affordability.Make sure you can afford it based on your current income levels without busting your savings. This Save As You Earn (SAYE) strategy will ensure you don’t buy a property you can’t afford.
- Current Property Value. Choose wisely and ensure you purchase a property that is currently under-valued. It’s really not difficult to find. Anyone with a proven track record in real estate can easily find one for you.
- High Resale Value. Analyze market conditions and trends to choose a property that will skyrocket in value in the next few years, so you have the option of selling off at high profits. Again, this is not difficult if you’re working with the correct person in real estate.
If your current agent is not fulfilling the above criteria for you, it may be time for a switch. When you purchase an affordable under-valued property that has high-resale value, you’re safeguarding yourself from landing in bottom-less debt.