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how to identify the right property at the right price tag?

I will be sharing with you on some investment tips that you must take note of when buying a property. How to determine freehold property with the right price tag? And how to determine the exit strategy? What should be the exit price for your property?

How do I determine which property to select? I have always stand by my Number 1 Rule – to look for the Correct Entry Price. Let me share with you in detail by using a Jervois Mansion as a case study. This project happens to be a FH located at a super good location, near to MRT station and Orchard Road.

ENTRY PRICE

How are we going to determine the
POTENTIAL UPSIDE
and
RISK
of buying this property?

With reference from the above chart, we can see that the existing resale properties that are near to this development are already transacted between $25xxpsf to $27xxpsf on average. Being a brand-new development, the price of Jervois Mansion is starting from $22xxpsf. Do you think is there a potential? Or is it risky? Will you consider to buy based on this?

Important to take note: Before any purchase, remember to remind yourself that the price has to be what others are willing to pay. If you are buying way above (for instance) more than $3xxx psf, you might consider to do more research.

Look at the above research, the other 99 years LH in this vicinity are already transacted above $23xxpsf to even $27xx psf. This will provide an assurance to yourself. Referring to the bar chart below, the existing FH new launches are also transacting above $26xxpsf to even $36xxpsf. This will provide further assurance to this purchase.

EXIT STRATEGY

How do I determine my exit? Based on this entry price, if I am adding $300,000 profit into the purchase price, how much should be my exit psf?

The table above shows that after adding the profit, the selling price will be $2507psf. The question you need to ask now is, do you think this price is acceptable for the future new buyer after 3 years when you can sell?

CCR Average Transacted Price

Let’s take a further look at this chart below. The average transaction price in the Core Central Region (CCR) is $2704psf for all the new launches. Given this comparison, we are confident that Jervois Mansion is priced rightly and there is potential upside. Most importantly, the risk is very low. At the end day, the investment has to be safe with future upside.

After reading so much, do you agree with me that this is a property that is priced rightly for safe entry? Not only that, it is FH with good location, right in the town. With sufficient research, we can invest in Right Entry Price property.

Hope you have enjoyed the article on how I determine the right entry price property. If you are keen to further explore for other similar property in the market, drop me a WhatsApp so that we can meet up for a further discussion.

As this is a million-dollar investment, I hope you can understand that my strategies are not fully explained via an article. There is no obligation at all. It is always my pleasure to share my knowledge with you. Thank you for reading my article.

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