Home Solutions with David

30/01/2024

Did you catch coldplay while they were in town recently?

So glad I had the opportunity to attend one of their concerts.

And yup it was amazing. Truly enjoyed myself

No doubt that the real challenge was getting tickets to the concert itself.

After going through the whole concert booking process,

Cant help but notice was the stark similarities of the process of ticket purchase akin to a brand new property purchaser.

Understanding the property market can very simple if you can understand basic human behavior.

Ok to put into context first.

There are basically 2 groups of people buying concert tickets.

1 is the hardcore fan who genuinely wants to attend and another is the "reseller" ( which means someone who purchases tickets with the intention to resell them for a profit later on)

In property context,

1 is the buyer of the property who buys for own stay and the other is the "investor" ( purchases property with intention to resell them at a profit)

At the booking stage ,

Both groups of concert ticket buyers come together to get balloting numbers.

The lucky ones can then proceed to the booking page where they can select their seats.

Which is exactly the same process that new launch property buyers go through.

Queuing and getting a ballot number and if your number is called you get to advance to the booking process to select the unit you want.

At the end of the day, you will end up with a fully sold out concert.

And

Same goes to the property launch with strong demand it can get be fully sold out on day 1.

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So what happens to the "unlucky" ones like me? ( i didn't manage to get a ticket)

The ones who didn't get a ticket would turn to resellers who started to advertise on online platforms like carousel and viagogo.

In contrast, Property resellers advertise their properties on platforms like property guru.

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So when the dates are nearing the concert day,

It is normal to see concert tickets surge in accordance to demand.

A normal human occurrence of "last min" demand.

In contrast, when the property is near its completion date

There will be more and more ready buyers as the property is near completion as they will be able to move in immediately.

As these property buyers usually Have no alternative accommodation after selling their current property.

This is when these resellers/investors of concert tickets and private property see their profits come in.

How do i know this?

I bought a resale ticket 1.5x above retail price.( i really wanted to go lah)

Count myself lucky ,you know why?

I hunted for the ticket early about 3 months before concert day.

And 1 day before the actual concert.

Someone was desperate enough to offer me 1.5x more than i paid.

That is only just for a concert ticket.

So for a private property worth above a million dollars.

How much do you think the "investor" could make?

You see,

Over the years i run these kind of simulations in my mind again and again and the outcome is always the same.

Why concert tickets are always sold out on 1st day?

Why New launches despite its expensive price these days but yet the take up rate still so high?

Actually it's not that complicated. Just normal human behavior.

So now that you know how to identify this trend.

How will you position yourself in your next property purchase?

23/01/2024

One hdb and 1 rental done!

Starting the year with positive vibes!

Grateful for the homeowners and landlords for their trust once again.

&

A Big Thank you to my clients for recommending me to your family and friends as your trusted realtor.

21/01/2024

Buying for own stay or investment?

Typically there are 2 main types of buyers.

One with the "buying for own stay" and the other "investment" mindset

As I'm constantly researching and being very active on the ground.

Which gives me a very clear picture on property market.

So if today you will to ask me what kind of property should you be looking at.

I would strongly suggest "Buy for own stay"

Why?

Reason is simple. Policy Makers.

Its not a secret that our government generally do not like "investors"

With so many cooling measures in place to block out potential investors

Policy makers simply just want to Keep our property market stable.

By going against policy makers.

Investors going into such properties they would usually find that their properties do no appreciate as well as those properties meant for own stay.

Simply because our government do not support such properties as much.

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Let me run you through 3 simple simulations.

For the past decade or so its common knowledge that foreigners typically invest in the core central region of singapore.

Many singaporeans invested in these type of properties with the end goal in mind of a foreigner being the end consumer of such properties.

In september 2023, Policy makers introduced a 50% increase of ABSD from 30% to 60% .

A 1 million dollar property should the foreigner choose to purchase will attract a cool $600K tax on top of the regular purchase stamp duty.

As foreigners were a one of the major driving force in CCR

That 1 policy effectively wiped out almost majority of the pool of buyers.

Which inadvertently leaves the miniority of singaporeans left as the pool of buyers.

But most of these singaporeans are Investors remember??

An "investor" kind of property usually will have another "investor" consuming it.

As an investor all that matters is numbers. Good rental yield, good entry price etc.

So when you are selling your property another Investor with all the same criteria in his checklist will be your end consumer.

You can also expect alot of low-ball offers. ( based on experience)

On the contrary,

Buying for Own-stay is a product that comes with many emotional aspects attached.

For example your wife loves it (Happy wife happy life) right? haha, Your kids love it & you love the environment.

Inadvertently you have just created a Home for the next buyer.

Your future end consumer, wife and kids would love it.

So when there is a certain degree of emotions involved.


That is when they will be willing to pay a premium. Happy wife happy life isnt it?

Unsure?

Drop me a dm, i'll be happy to share more.

20/01/2024

Recently I was referred to this particular client.

During my initial meeting with him and getting to know more of his requirements.

I realized one particular thing after i zoned into the location he prefers which is marsiling.

He has been in the market looking for a house since 2019. His Budget back then was $600k

Today in 2024 his budget is $550K

Why lower budget you may think??

Technically speaking his salary increased over the years however being 5 years older meant that his loan is 5 years shorter.

With a shorter tenure, it meant that his monthly mortgage is higher

And for him to be able to pay his mortgages comfortably meant that he had to cut on his budget.

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As as active agent on the ground. i regularly meet buyers.

And talking to them is something that i do consistently. Trying to understand them well and what their priorities are.

You'll be surprised to know that many buyers out there are just viewing for fun.

In their mind they are just waiting.

Waiting for prices to drop.

But how often do you see prices drop? And if it did. Did you buy?

So after waiting for a few years and yet you did not bought anything.

Not trying to say they are wrong.

But its painful to see how this particular buyer with a Jumbo flat budget back in 2019 only able to afford a 3 room flat today.

As prices keep increasing.

Took about 5 years to reach current price point.

Many are still waiting. Another buyer told me that he is confident prices will drop this year.

If it does drop within the next 12 Months .

Will you buy? ( in your mind you will be thinking prices are crashing and it will drop further)

Some might take action but to a smaller unit today.

Think about it. What is the benchmark? what is the high and what is the low?

Not trying to ask you to buy anything.

If you're in a situation like my client drop me a dm.

I'll be happy to share more on my market research.

18/01/2024

Hdb flat prices dip up to 10.4% in at least 12 Towns.

Are you surprised?

Cant say I'm surprised.. in fact i was expecting further dips in the months to come.

Why?

Lets take an example not too long back.

Do you still remember during the early onset of covid back in 2019?

There was a widespread panic amidst the uncertainly of the virus and everybody was rushing to get their hands on a facemask.

A pack of 3ply facemasks went for as high as $50 a pack. ( i clearly remembered buying one pack at that price! )

Why? There was a shortage of supply & a huge demand for it. Simple as it is. Supply and demand.

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Now looking back at that time in the housing sector.

Construction workers were quarantined, Home construction was delayed and it caused a shortage of supply.

So the same thing that caused the facemasks to surge up in price happened to the property market which is supply shortage.

In the ensuing months to come China and a few other countries actually ramped up their mask production supply and almost doubling their output to match the demand for it.

And today we're seeing facemask back to their original $5 a pack.

Which is exactly what HDB has been doing. Ramping up supply.

If the news has flown under your radar, Hdb have been doubling their flats output during multiple sales launches in 2023.

Even offering Flats with wait times under 3 years

Along the way also introducing HFE ( in my opinion to disrupt the buying momentum of the buyers)

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So yes now that you understand the principles of Supply and Demand.

The headline news now is not that surprising anymore right?

Also by understanding what policy makers are implementing is one of the key factors to adjust your strategies for your property portfolio.

We try our best to adjust our strategies according to their policies, better not to go against.

Unsure what to do next? Feel free to drop me a dm.

HDB resale prices in 12 towns from Bukit Timah to Toa Payoh saw prices dip from 10.4% to 0.4% in 4Q2023

18/01/2024

Riding on the article i posted on 16/1 where i touched on how "bigger and older flats are selling at records prices".

Today i will be touching on one the Profile of the buyers of these bigger and older flats.

As i personally handled this case myself.

The family who upgraded to private property and then "downgrade" to a HDB.

Sounds drastic isn't it? But it actually not what you think it is.

So why are they "downgrading"?

Answer is really simple - Unlocking their retirement funds.

These families profiles are usually a couple in their late 50s to 60s, semi-retired or just working for "fun"

With fully paid up condominium and children who have already shifted out or some still living with them.

Their requirements are usually as follows.

- Mature town
- Spacious ( For children and grandkids when they visit)
- Near amenities (Hawker centre, supermarkets & wet markets)
- Near healthcare facilities
- Near Children
- Near parks
- Near mrt

So with the "unlocking" of their retirement funds. All these options becomes available to them.

Over the years of paying their monthly installments + the appreciation of their private condo ultimately becomes part of their retirement funds.

To put into perspective.

The last Family i assisted them to offload their fully paid $1.5m condo and change to a $600K 5room flat in a mature town.

Which leaves them with $900k on hand. (not too bad right?)

On the contrary if they would have held on to a $600k fully paid HDB their choices would be very much limited.

Would you be able to adjust your living lifestyle from a 4/5 room to a 3rm to studio apartment?

Depending on individuals, you probably have to make even bigger "downgrades" all the way down to a studio unit to extract larger funds.

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These families made a choice to upgrade to a condo decades ago, in spite of their busy careers & raising their families.

This process which resulted in a "forced retirement savings" scenario coupled with price appreciation.

At the end of their journey, their "downgrade" which isn't really a downgrade as they technically changed into a fully paid Hdb + a nice lumpsum of cash.

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The key however is to start as young as you can. As we age the tenure and loan amount banks are willing to extend to us get more and more limited.

With the correct financials & strategies in place , many are able to do so without stress.

So the decision is yours.

Would you want a fully paid condo or a fully paid HDB when you hit retirement?

Drop me a dm if you would like to explore furthur.

https://wa.link/k4aqip

17/01/2024

Some Clients of mine and fellow agents as well often ask me how do i manage to break multiple neighborhood estate record prices?

Not just by few thousand dollars but up to $60k to $70k more.

As an active agent with 7 years experience on the ground

Its my duty to understand different home layouts, locations and what today's buyers needs and wants are.

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And their needs and wants are constantly evolving with time.

What their needs and wants may be in 2022 may not be relevant in 2024.

Also understanding current market conditions of supply and demand.

So that's one of the reasons why i take the time to talk to the buyers after every viewing i conduct.

To understand what their priorities & needs are currently at that point of time.

But wait I'm not saying that every house i sell will break every record lah. haha

Because some units may not have all the factors the buyer is willing to pay a premium for.

**

But definitely quite confident that i will be able to identify a unit that can potentially smash records if i see one.

High chance i'm able to identify if yours might be a winner.

Have a great day ahead!

17/01/2024

Thank you to the owners for the trust 🙏

A premium DBSS unit with a super view for rent in the heart of clementi & 2bdrm condo unit for rent at woodlands.

Do dm me for more information.

15/01/2024

I guess you will be surprised to know that the all time record price transacted for a HDB was a 52yr old "Jumbo" flat with 47 years left on the lease sold at a whopping $1.5m.

Why is this so?

Today lets take a quick dive and understand more.

In short perspective. "Executive" Flats were offered to the public between 1983 up till 2000.

They ranged from sizes of 1500sqft all the way up to 2000+ sqft, the biggest of them resides in towns like Bishan, Choa Chu Kang, Queenstown, Hougang, and Pasir Ris.

In todays market, if i would to compare a similar sized condominium in queenstown at around 2000sqft, it would set you back minimally a cool 3.7m upwards.

That's why its easy to understand why people would pay over a million dollars for a 30 year old executive flat.

There is really no other way to get so much living space for a low price quantum.

But then again. Some may argue that with a decaying lease it ultimately shrinks the pool of buyers.

As there are strict regulations on cpf usage for older flats.

well...

Do you remember only recently the new restrictions imposed on private property owners?

A new Temporary 15 month wait out period for private property owners wanting to purchase a hdb flat after disposing their pty.

Even seniors aged 55 and above who are partly exempted from this measure but are still restricted to purchase only 4room or smaller flats.

https://www.channelnewsasia.com/singapore/property-cooling-15-month-wait-private-homeowners-buy-resale-hdb-analysts-2975946

This being said, the restrictions are clearly targeted towards 5rm and bigger executive units.

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My analysis is that the authorities are well aware that many of these private homeowners have cashed out, most of them bagging windfall profits.

This got me thinking how these private property owners have a luxury of options.

After disposing their ptys and going on to buying multi-million dollar Hdb properties without a whim of thought.

Which is exactly what i have been doing all this while, advising all my clients to grow their wealth.

So when the time comes, you will be in a position where you will have many options to choose from.

Let me know if you are keen to explore your options on wealth accumulation.

Have a great day ahead!

15/01/2024

Yishun. A misunderstood estate. But certainly not so In the property segment.

Big thank you to the owners for the trust!
🙏

Not the 1st time breaking records.

Which i intuitively rejected an offer which would have set the neighbourhood record price and went on to set a new estate price for a 40 Yr old 4rm flat in the area.

A really big personal achievement for myself and really big congratulations to the owners who are migrating to another country ❤️

What a great way to send off 2023 and welcome 2024!

Happy new year to all my family and friends !