carbuncle
25-05-12, 19:01
Profile of the typical
Singapore property investor
Property Blog - Fri, 25th May
2012 01:15 AM
Property is a hot topic these
days and it seems like
everyone is jumping onto the
property bandwagon.
In my line of work, I often
come across seminar
participants who ask me
where they can find good
property deals. What many of
them fail to realize is that
finding good deals is only half
of the solution.
The other half is having a
good understanding of their
investment profile (i.e. risk
appetite, investment horizon,
budget, holding power, etc).
Very often, the difference
between a profitable deal and
a non-profitable deal is
determined by an investor's
ability to hold on to the
investment, regardless the
market condition.
To better help my seminar
participants, my company,
Ascendant Assets Pte Ltd, has
developed a proprietary
Property Investor Profile
Survey (PIPS) to help our
clients better understand their
individual investment profile.
After doing the survey, we will
score them based on a scoring
system that ranges between 1
and 50. Investors who score
close to 1 tend to be more
most risk adverse while those
who score closer to 50 are
generally more aggressive.
Based on out PIPS, we were
able to draw many interesting
conclusions on the typical
Singapore property investor.
Profile of the typical
Singapore property investor
The typical Singapore property
investor has an average score
of 27.9. This would put them in
the Balanced Category.
Investors belonging to this
profile are typically long term
investors who are prepared to
hold on to their investments
for more than 10 years.
The typical property investor
has been working for quite a
while and has accumulated
some cash for his/her
property investments. The
average age is 46 and 82% of
the respondent are married.
The typical Singaporean
property investor is fairly cash
rich. Almost 42% are holding
on to between SUSD 100,000-
SUSD 400,000 of cash on hand.
The breakdown of the amount
of cash they have is shown in
Figure 1 below.
Risk appetite
In terms of risk appetite,
typical Singapore property
investor is generally quite risk
averse. This can be inferred as
more than half (56%) feel that
protecting against losses was
more important that earning
high returns (See Figure 2).
The conservative nature of
property investors is
reinforced as 69% of
respondents disagreed with
the following PIP survey
statement, "I am comfortable
with large declines in value if
there is a potential for higher
returns" (See Figure 3). This
indicates that most investors
are unwilling to accept large
declines in value even if it
means the potential for higher
returns and property investors
are generally not the
speculative type.
Our findings are congruent
with the fact that unlike the
more liquid assets (i.e. stocks,
commodities, forex), property
investors are looking for a
secure mechanism to grow
their wealth. For those of you
who would like to know what
your investment profile is,
please drop us an email at
research@
ascendantassets.com. We'd
gladly provide you with a
complimentary analysis so
that you will be able to make
a more informed decision for
your next purchase.
To conclude, let me share a
quotation from Sun Tze, the
military strategist and author
of the Art of War wrote, "If
you know your enemies and
know yourself, you will not be
imperiled in a hundred
battles." Similarly, apart from
knowing the property market,
if you know yourself well, you
would be able to "avoid peril
in a hundred investments".
By Getty Goh, Director of
Ascendant Assets, a real
estate research and
investment consultancy firm.
Posted courtesy of
www.Propwise.sg, a Singapore
property blog dedicated to
helping you understand the
real estate market and make
better decisions.
Singapore property investor
Property Blog - Fri, 25th May
2012 01:15 AM
Property is a hot topic these
days and it seems like
everyone is jumping onto the
property bandwagon.
In my line of work, I often
come across seminar
participants who ask me
where they can find good
property deals. What many of
them fail to realize is that
finding good deals is only half
of the solution.
The other half is having a
good understanding of their
investment profile (i.e. risk
appetite, investment horizon,
budget, holding power, etc).
Very often, the difference
between a profitable deal and
a non-profitable deal is
determined by an investor's
ability to hold on to the
investment, regardless the
market condition.
To better help my seminar
participants, my company,
Ascendant Assets Pte Ltd, has
developed a proprietary
Property Investor Profile
Survey (PIPS) to help our
clients better understand their
individual investment profile.
After doing the survey, we will
score them based on a scoring
system that ranges between 1
and 50. Investors who score
close to 1 tend to be more
most risk adverse while those
who score closer to 50 are
generally more aggressive.
Based on out PIPS, we were
able to draw many interesting
conclusions on the typical
Singapore property investor.
Profile of the typical
Singapore property investor
The typical Singapore property
investor has an average score
of 27.9. This would put them in
the Balanced Category.
Investors belonging to this
profile are typically long term
investors who are prepared to
hold on to their investments
for more than 10 years.
The typical property investor
has been working for quite a
while and has accumulated
some cash for his/her
property investments. The
average age is 46 and 82% of
the respondent are married.
The typical Singaporean
property investor is fairly cash
rich. Almost 42% are holding
on to between SUSD 100,000-
SUSD 400,000 of cash on hand.
The breakdown of the amount
of cash they have is shown in
Figure 1 below.
Risk appetite
In terms of risk appetite,
typical Singapore property
investor is generally quite risk
averse. This can be inferred as
more than half (56%) feel that
protecting against losses was
more important that earning
high returns (See Figure 2).
The conservative nature of
property investors is
reinforced as 69% of
respondents disagreed with
the following PIP survey
statement, "I am comfortable
with large declines in value if
there is a potential for higher
returns" (See Figure 3). This
indicates that most investors
are unwilling to accept large
declines in value even if it
means the potential for higher
returns and property investors
are generally not the
speculative type.
Our findings are congruent
with the fact that unlike the
more liquid assets (i.e. stocks,
commodities, forex), property
investors are looking for a
secure mechanism to grow
their wealth. For those of you
who would like to know what
your investment profile is,
please drop us an email at
research@
ascendantassets.com. We'd
gladly provide you with a
complimentary analysis so
that you will be able to make
a more informed decision for
your next purchase.
To conclude, let me share a
quotation from Sun Tze, the
military strategist and author
of the Art of War wrote, "If
you know your enemies and
know yourself, you will not be
imperiled in a hundred
battles." Similarly, apart from
knowing the property market,
if you know yourself well, you
would be able to "avoid peril
in a hundred investments".
By Getty Goh, Director of
Ascendant Assets, a real
estate research and
investment consultancy firm.
Posted courtesy of
www.Propwise.sg, a Singapore
property blog dedicated to
helping you understand the
real estate market and make
better decisions.