Dear Readers,

 

Buying or selling a property is a big thing for many of us because everyone is fearful of losing our hard-earned money especially, when we are making the first move. For those who purchased your first property in the past, I am very sure you will have a lot of fear when you are penning down your signature. I can still recall the stress when I was making that decision. Why many of us have so much fear? Mainly is because the lack of knowledge in us. One of the emotions is fear which stopped many people from moving forward in getting their private property.   This is also the reason why I decided to write about this topic because I believe many people out there believe that property is the way to build our wealth and even provide the best for our love ones, but due to the lack of knowledge, many decided not to proceed, which I think is not right, because everyone deserve to provide the best for your family. Therefore, you must read on to understand so that you can provide the best for your loves one.

 

 

 

 

For me, I always believe in logic and not let emotion affect me, many people whom have not started to buy their private property will sure tell you, buying a big house is stressful and having high mortgage is worst. If not, people will say this pandemic will cause the property prices to drop, don’t buy now, wait for it to drop further. Every time when the market is unstable, people will sure say “ Don’t buy, it will drop further ”, I believe you have heard such statement many times from people around you. Their judgement is based on what? What knowledge do they possess to make this conclusion? This is a very important question and we should not fall into such emotion trap , which is why many people are not using their hard-earned money to work hard for them, they rather work hard for money. As you know, working hard won’t make you become richer .  Just look at all the banks, they take our money and pay us very low interest rate for our deposits, but in return they lend your money to others to earn big money, which is why you look at their share prices. If you desire to be like the bank, you need to learn how to leverage on them to make money for yourself, instead of letting the bank leverage on you. As you are reading now, I really hope you can seriously think about what I have mentioned. I am not here to tell you to speculate and take high risk , this is the last thing we should do. Do not end up having a property and end day full of stress and unhappiness. Buying a property, we can do a stress test to ensure we are comfortable before moving forward, a professional property advisor will be able to help you on this matter as in PropNex, we have our own proprietary software called Risk Assessment Management System (R.A.M) that can help clients to make better decision when comes to your numbers and to ensure Risk are reduced to the minimum before deciding whether to buy that property. I always believe financial planning is crucial when comes to buying an asset.

 

Looking at this article, you will realize why 85% of the people out there make money via property, but the truth is there are people who lose money too. Why is it so? I can tell you the main reason is lack of financial planning which is what I am trying to say above.

 

 

 

 

Therefore, it is always important to do a proper financial planning via the RAM system. Let me share with you a case study on buying a resale property. If you intend to a buy a property, check out your loan eligibility first, as you can see, based on the person income, they can borrow up to $1.278M, how do you know whether what price should I be buying ? Should I max out my loan? What are the considerations ? I would advise, look at your balance in your cash saving or CPF balance after purchase, and work out the numbers to see whether you have sufficient funds to tie over if one day you are going to be self-employed or running your business, do you have spare fund to tie over your property mortgage.

 

 

The above is what I am referring to, reserved funds after the purchase. In fact, our RAM system allows you to toggle the purchase price and work out the balance fund based on your comfort. One of the main reasons why people lose money is because lack of financial planning . All these can be solved when one work out the numbers, this is exactly what I am trying to share, do not let emotion affect you, let logic work out the numbers before you move forward to buying a property.  Our RAM system below will even show you the best scenario and worst scenario based after your purchase, how long can it last you when you are employed or when you are self-employed too. With all these planning, your fear can be greatly reduced.

 

 

 

 

Therefore to all the readers, do not let emotion affect you when comes to buying a property, work out your financial first and I strongly believe your fear will be eliminated too. In fact, to me property is a “ force saving ”, the bigger property you are buying, you save even more, why do I say that? Just take the example below, you will understand why.

 

 

If you look at above example, if your property is rented out, your tenant is paying the interest for you and on top of that they are saving $2,642 into your principal every month, if you look at one year, they are saving $31,704 for you. If you put your money in the bank, will you be getting this amount yearly from the bank via your fix deposit? Even if you are staying in this property, you are just pay less than $1000 to stay in a condominium and every month you are forcing yourself to save $2,642 to your house. This is the reason why many rich prefer to money in property, because they leverage on the bank and let the tenant save money for them. My advice to all the readers, start to become a bank soon and not let the bank leverage on you. Like I mentioned, all risk can be calculated when you have the right property advisors and using our RAM system.

 

There are many mistakes when comes to buying and selling a property, just for today, I will be touching on this as I do not want to overload you with so many things to read. If you need anything else or wanted a non-obligation RAM analysis, please whatsapp me, I will be very happy to share with you.