PropNex ace gives advice on buying property in new book

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http://www.straitstimes.com/premium/...-book-20131107

PropNex ace gives advice on buying property in new book

Published on Nov 07, 2013

By Joyce Lim


MR KELVIN Fong often gets asked when he thinks is a good time to buy a property. His reply: There is no "right" time.

To elaborate on this answer, Mr Fong, the No. 1 team leader at PropNex with close to 2,000 property agents under his leadership, decided to write a book on how to grow your wealth in properties.

"Nobody can time the market. You can't buy a property this year, with the plan to sell it next year and hope that its value will appreciate within a year," Mr Fong, 38, told The Straits Times.

"Timing is not the key. Price affordability is the key. Many people forget that they are buying assets, not liabilities."

In his debut book Property Wealth System, launched at PropNex's quarterly convention yesterday, Mr Fong gives readers a step-by-step guide on how to conduct their research before buying a property. It also included tips on how to assess potential upside and risks in properties.

Mr Fong, who made his first million in property at age 32, said his book is aimed at first-time buyers, "people who want to grow their wealth but don't know how" and even property agents.

"With the challenging property landscape in Singapore, a property agent's job scope goes beyond the buying and selling of properties. Property agents need to be financial planners as well. They need to learn to do the maths for their clients, just like a financial planner. Today's clients want to see the numbers tagged to their properties," said Mr Fong.

"With all the cooling measures, the private property market looks set to be stagnant next year, so what do the property agents do? They create savings plans for their clients through buying and selling of properties," explained Mr Fong, who has held the title of champion team leader at PropNex for five straight years, the highest accolade given to a team leader at the home-grown firm.

Property agent Avis Wong, 40, who was at Mr Fong's book launch yesterday, said: "We've always viewed real estate as either a roof over our heads or as an investment. It is thus refreshing to view real estate as a form of savings, which is really quite apt. Insurance companies sell their policies and endowments as a form of savings, so why not real estate?"

Nearly 1,000 copies of Property Wealth System were sold at the launch.

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[radha08]

yup i was there last nite at kallang theatre hearing mr ismails 2 views on the market BOTTOMLINE...property is the way to go...but then what else do you expect him to say

[indomie]

If buying property is saving, why do I need to borrow money to safe money?

[Arcachon]

Because Money = Debt, no money = no debt.

[Ringo33]

Because Money = Debt, no money = no debt.

You ability to borrow is an asset.

[Arcachon]

For me is timing.

[latour]

yup i was there last nite at kallang theatre hearing mr ismails 2 views on the market BOTTOMLINE...property is the way to go...but then what else do you expect him to say

Like, Like, Like ...

[Ringo33]

For me is timing.

To have enough money to invest at the right time is what will make you a lot of money. So the underlying success factor is to have excess money to invest.

[henryhk]

Now market slows and pricing stagnant, come 3 to 4 years later, the market will be flourish with money and savings, .... watch for it! how to best use the $

[jeaprp]

For me is timing.

The guru say most important is not timing but affordability.
I personally think timing is the most important.

[Ringo33]

The guru say most important is not timing but affordability.
I personally think timing is the most important.

There are many interpretation if timing. It could mean trying to predict how the market will move while it could also mean waiting for bargain hunting. Ultimately your cash holding will determine your ability to take advantage of the opportunity when opporutity arise.

[kane]

for the average joe starting out in real estate investment where he isn't overflowing with excessive liquidity, timing is everything.

for the multi millionaire, most of the time is a good time provided he isn't overpaying.

[Shanhz]

If buying property is saving, why do I need to borrow money to safe money?

buying is saving because to service a ppty loan, u are forced to save money in hard assets, which would otherwise be spent on high coe car like toyota estima, expensive tour in europe, etc etc. provided the ppty is in sgp and can give good yield and capital upside in the long term

[DC33_2008]

He may be right even if it is unaffordable relative to the person i.e., high quantum, the person dare not buy in a crisis (which timing could be good).

The guru say most important is not timing but affordability.
I personally think timing is the most important.

[Violinbite]

Because Money = Debt, no money = no debt.

Bankrupts has absolute no debt at all time. Lol.

[Violinbite]

for the average joe starting out in real estate investment where he isn't overflowing with excessive liquidity, timing is everything.

for the multi millionaire, most of the time is a good time provided he isn't overpaying.

If all 1st time buyer all go for BTO then probably timing is not an issue at all. Stay w parents while just wait for BTO. I feel timing in stock market and in property cycles are rather different. Stock market can in and out many times and beyond even 70 years old, but how many times can one jump in and out of property cycles? I m stuck w decision making and can only revert to savings mode.

[fiat500]

The guru say most important is not timing but affordability.
I personally think timing is the most important.

But how would u know when is the right timing unless u hv a crystal ball ?

[Shanhz]

He may be right even if it is unaffordable relative to the person i.e., high quantum, the person dare not buy in a crisis (which timing could be good).

another way to look at it is that if it is affordable, your holding power is there to ride the wave and eventually make money. the assumption is that long run sure make money. is that true?

if it's not affordable, no matter how good the price you also can't afford.

[jeaprp]

But how would u know when is the right timing unless u hv a crystal ball ?

If own stay , then no need crystal ball, just buy if u like it
Investment property is all about timing

[DC33_2008]

You are right too. Properties are bought to be kept especially FH ones in good location and in close proximity to MRT.

another way to look at it is that if it is affordable, your holding power is there to ride the wave and eventually make money. the assumption is that long run sure make money. is that true?

if it's not affordable, no matter how good the price you also can't afford.

[PC08]

What the ace mentioned is politically correct, but it sounds more of a marketing statement to me.

Everything in this world has a cycle. For eg. in equities market, for an upturn indication, you will want to watch commodities and shipping closely. Logic tells you raw materials need to be procured and shipped before anything can be produced.

Once this material process flow kick-starts, banks will start to finance enterprise, economy will move, people armed with some cash, starts to feel comfortable to spend on travel, buy cars, buy house, asset price will inflate due to human greed as the most recent fear dwindles to nothing.

Inflation story will be used to instill fear in people by marketers who need the transaction turnover and commission, and succumbing to these fears victims will put their 'idle' money to 'work' in unit trusts, in reits, in notes etc., and suddenly a black swan event appears, and you will start hearing the end of the world news.

All the demand will vanish. Over leveraged companies and Reits will suddenly issue rights, and investors will have to cough out cash not within their budget and plan. Suddenly, no one dares to buy anything for a while not because they did'nt realise it is time to act, but rather, they are too fearful to act.

I am in the opinion that you will not know when it will arrive, but will definitely know that it has arrived. Make sure your funds are ready when that golden day comes. Don't be the majority who can only see the opportunity slip through their hands due to untimely greed and poor financial planning.

[PC08]

buying is saving because to service a ppty loan, u are forced to save money in hard assets, which would otherwise be spent on high coe car like toyota estima, expensive tour in europe, etc etc. provided the ppty is in sgp and can give good yield and capital upside in the long term

Hi Shanhz,

I share your view. If timed nicely, property assets are neat vehicles to hedge against inflation. You basically use future money to buy assets at current price.

[jwong71]

The guru say most important is not timing but affordability.
I personally think timing is the most important.

These gurus override commission 1/4 million annually. Personally know 1 of them.

Of course they tell us not timing, but affordability.

But how many of us got override commission easily 200k onwards annually.?

[Wunderkind]

Affordability needs not have to be just using your own money to invest. It is having the financial understanding of leverage and using it to your advantage to create your affordability . How does one becomes rich young if he does not have any inheritance , or win the lottery or married to a rich spouse?

[henryhk]

Well said!