By Gerald Tay (guest contributor)
As a follow up to my previous post, here are 20 more pearls of wisdom I’ve gathered over the years that have helped me to build a property fortune instead of losing it.
- Novice investors should stay within their circle of competence until they acquire some experience. Avoid new sales, off-plan properties, flipping, ‘exotic’ properties, and commercial and industrial properties.
- If you truly want to achieve long-term success as a property investor, take the time to build a strong foundation of knowledge and skills, which include analysing investment deals, understanding property values, financial statements, sales, business and people skills.
- Treat your property investment like a business. Learn how to manage, market, evaluate and lease.Learn to manage and work with good vendors to support your business.
- If you can Do It Yourself, do it! I’ve heard too many people giving advice to investors that they should be hands off (subletting for example). I enjoying managing properties myself and my ROI is exponentially higher when I am at the property doing as much of the work as I can, because I’m good at it and I enjoy it. If you have the skills, don’t be afraid to use them just because other investors do not.
- As the popular saying goes, you make your money when you buy the property, not when you sell it. That’s 100% true.
- As Warren Buffett says: Price is what you pay,value is what you get.
- A home can be a nightmare if the buyer’s eyes are bigger than his wallet and if a salesperson facilitates his fantasy.
- Everyone says buying your first property (home) makes you feel like an adult. What no one mentions is that selling it for profit turns you right back into a child.
- Property exhibitions – just remember that the expensive marketing, venue and sales commissions cost more than the actual property.
- Most industry ‘experts’ are fill with hype, outmoded thinking, ignorance and overall lack of investing intelligence.
- Free property seminars and talks – mostly just want you to empty your wallets after the ‘Free’ talk.
- All big, expensive property seminar programs are time-wasters – they sell dreams, not wealth.
- Learn to spot property scammers. Protect your capital first – returns come later!
- Smart investors never buy properties from seminars and exhibitions.
- Not every property book, talk and seminar has your best interests at heart. Nobody gives a damn about your success more than yourself, but everybody gives a damn about your money!
- In investing, what is comfortable is rarely profitable.
- It’s your property – watch your money, leases, tenants, expenses, and everything else carefully.
- Remember: You’ll run into problems with your rental property (tenants, neighbours, repairs, etc.) Accept it or don’t invest.
- One of the biggest misconceptions that people have when investing overseas is that they assume all overseas property markets are the same as Singapore. They are not.
- High Yielding Overseas Properties – such properties are rarely smart investments for foreign buyers. There is a reason why the yield is so high. After all, if the property was raking in a ton of cash for the owner, why sell it? They come with many hidden risks and potential for mismanagement.
If you’ve enjoyed these gems, I have dozens more I’ve gathered to share in the future.
By guest contributor Gerald Tay, who is the founder and coach at CREI Academy Group Pte Ltd, an organization dedicated to empowering retail property investors with smarter investing philosophy and strategies. He is a full-time investor with over 13 years of solid experience in building his wealth through Property Investment and is financially wealthy today.