Are you 29 this year and yet to own a property? There’s a 29-year old investor in Singapore who has been featured by StraitsTimes. He owns two properties today. One in Singapore and another in Melaka. Yes, MELAKA and not Kuala Lumpur. Anyway, every weekend, Melaka is full of Singaporeans and it is not so strange for a Singaporean investor to buy Melaka properties. Here’s an earlier humour about Melaka properties. 8 reasons why buying a property in Melaka is not for you The investor’s name is Jay Tay. His preparations before buying. He looks at location, rental yields and unit’s rentability. His advantage? He is still staying with his parents and his first property which is a condominium unit is rented out with a positive rental yield. His second property is in Melaka and it has also provided him with a positive rental yield. Last but not least he believes in buying and holding for the long term. (Yes, he is doing this for high-rise units. I have no idea how long he intends to hold though)
There are 3 important things we should learn from Jay. His definition of location is NOT within the hottest spots but is somewhere near enough to hotspots. He said he bought in Potong Pasir which is near enough to the central of Singapore. Potong Pasir is known as a small town with a huge potential. It meant that this is not your usual Orchard or CBD areas. He also bought in a location that he was very familiar with and this is important to reduce the potential mistakes we may make if we have bought in locations we have no idea about.
He was also focusing on rental yields and thus he bought into a property in Melaka which was built to be rented out. He was not buying a landed property for example and then struggle to rent out. His focus was simple. He wanted to get a unit which is easy to rent out, that’s it. Every time someone asked me where to buy in order to rent out, my question is always, have you researched some areas familiar to you? Seriously, there is NO NEED to look through even 10 areas before deciding which area to buy. Select a few areas you are familiar with, understand what’s available and choose one which is easily rentable…
Last but not least, he has shown that millennials should still be looking at owning some assets for investment purpose. He has chosen property. To some experts out there, stop telling everyone that everything is already too expensive or that there are no longer any opportunity. Young people will stop buying cars and houses? Noted Seriously, when everyone can and is buying, that’s when there is no longer any opportunity. Today, majority are saying that it’s expensive or whatever reasons. This meant that they are not buying… How to choose a good ones? Here’s some tips: Buy what others did not think, see, view yet I wish him success in his property investment journey. Are you 29 today? Actually, even if you are 39, it’s not too late. There’s another 21 years more before you need to retire fully and can enjoy kopi-O everyday….
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written on 5 June 2017
Next suggested article: Be careful with property investment today