Making $1.7 Million in An En Bloc – Was it L, L, L? [Reader Letter]

[Arcachon]

Dear Sir,

I am in complete agreement with Property Soul that you should not buy property based on FOMO (Fear of Missing Out). Property is a long-term investment and one has to be very careful when buying property.

I would like to share my experience on property investment and how one could make some decent gains.

I bought Normanton Park way back in 2002 right after the Dot Com crisis and before the onset of SARS. The property cost me $385,000 and I thought it was a bargain for a 1,271 sq ft apartment.

I didn’t have much cash then, so I borrowed $300,000 and paid the balance of $85,000 with cash.

I rented out the apartment for 16 years and just recently NormantonPark went enbloc and I got $1.7million for my unit.

The $300,000 which I borrowed from the bank was essentially paid off by the monthly rent I collected from my tenant. So that the apartment was essentially free to me.

One must be patient and invest for the long term torealize the gains. Property investment is not about location, location and location. It is actually timing, timing and timing.



Regards,

K

https://www.propwise.sg/making-1-7-million-in-an-en-bloc-was-it-location-location-location-reader-letter/

[Lord Anus]

Deleted

[tonymontana]

Actually K. is wrong.

It *is* still location, location, location.

his/her property wouldn't have gone enbloc and netting a windfall of 1.7m and (not to mention such good rental) if he/she had got the timing right (2002?) but bought a unit in a far inferior location (eg: woodlands or yishun or sembawang).

I mean, he/she would still have made capital gains, but not the kind of windfall similar to normanton park.

Timing is important too, but location is still the main factor.

[teddybear]

Strongly agreed with your statement!


Actually K. is wrong.

It *is* still location, location, location.

his/her property wouldn't have gone enbloc and netting a windfall of 1.7m and (not to mention such good rental) if he/she had got the timing right (2002?) but bought a unit in a far inferior location (eg: woodlands or yishun or sembawang).

I mean, he/she would still have made capital gains, but not the kind of windfall similar to normanton park.

Timing is important too, but location is still the main factor.

[Arcachon]

The reader agree FOMO. "I am in complete agreement with Property Soul that you should not buy property based on FOMO (Fear of Missing Out)."

The Reader did not know he/she bought a under value property.

There is a new launch which is going to sell under value and our Boss tell us to take care of ourselves first instead of keep asking buyer to buy.