#7: Dilemma of a Home Seller in an Uptrend Market | NOTG S2 E7

1[Melvin Lim]
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– Testing, test.

2[Melvin Lim]
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(claps)

3[Melvin Lim]
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All right, so, we’re live.

4[Melvin Lim]
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Ceph, are we live?

5[Melvin Lim]
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(laughing)

6[Melvin Lim]
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Okay, welcome back to Nuggets on the Go,

7[Melvin Lim]
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season two, episode number seven.

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We have been receiving a couple of emails to our

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[email protected] email account.

10[Melvin Lim]
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Thank you for emails and hope that we have been happily

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communicating and answering some of your queries.

12[Melvin Lim]
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Also keep the questions coming in,

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because that is a dedicated email

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that myself and my senior team,

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we will do our best to reply to you individually,

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based on some other questions that you have

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regarding real estate in Singapore.

18[Melvin Lim]
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regarding some of the topics that we are discussing,

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or we were discussing in some of the previous episodes.

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Now this time around, episode number seven.

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What are we going to talk about on Nuggets on the Go,

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is that we want to talk about, what is the

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key fundamental mindset that we need to adopt,

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if let’s say we’re in the midst of transiting from our

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current primary residential property,

26[Melvin Lim]
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to our next home for our family,

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because right now what’s happening in the market,

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if you have been following us on the previous last two episodes,

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we have been talking about the fact that

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2021 is the year that we’re in the seller’s market.

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Being in the seller’s market,

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that means that there are different ways of timing your sale

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and purchase for your primary residence.

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And there’s a very important fundamental, kind of

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technique to understand,

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because if we don’t adopt the right kind of mindset,

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sometimes, it’svery difficult for us to switch homes,

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to upgrade to the next property, to switch location,

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or maybe our kids are moving on to their new primary school.

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And we want to make sure that we get a property that is

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being near to that vicinity.

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So seller’s market just to re-illustrate,

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what is a sellers market?

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Now, seller’s market by definition in our own terms

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is a market whereby

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technically we’re on like a bull market.

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And that means that there are more demand

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and supply in the market.

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When there’s more demand than supply,

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it means that there’s a lower inventory in the market.

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And that means that on the secondary tier,

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it is a little bit harder to buy properties than

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it is to sell properties.

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So seller’s market in short means that

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it’s easier to sell,

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but harder to buy.

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And we are talking about the resale market and why do we

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talk about a resale market?

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Because new launch market behaves a little bit differently,

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of course, during hypes and you know,

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sometimes properties get sold out during the first week, and

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first two weeks, and things like that.

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But we’re discussing purely about the resale market,

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especially if you’re hunting for resale property.

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So buyer’s market on the flip side,

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it means that there’s more inventory in the market,

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lesser demand, and that means that as a home seller,

68[Melvin Lim]
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sometimes when you put a property in the market,

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that has lesser viewership, maybe, you know, every two,

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three weeks you get one viewing and you don’t get that kind

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of like huge response from a lot of buyers in the market.

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In short, a buyer’s market means that it’s easier to purchase.

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It’s easier to buy from the resale market,

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but it’s a little bit harder to exit from the current property.

75[Melvin Lim]
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But take note,

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there are micro segments because

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we received some questions on

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which market is currently in the seller’s market,

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which market is in the buyer’s market,

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because there’ll be no blanket approach in a sense that when

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we talk about at current, sellers market,

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there are certain types of properties that are moving on

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very quickly off the shelves in the resale market,

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but there’s some type of properties that still takes time to move.

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And that purely depends on what kind of demand is in this segment.

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So right now, seller’s market is happening for the more

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palatable kind of landed property kind of range.

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For example, inter-terraces are moving on very quickly.

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They’re very popular, a lot of demand.

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Semi-detached homes as well, picking up a lot of steam,

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also corner terraces also. But of course,

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if we talk about the detached homes

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that are above a certain quantum.

94[Melvin Lim]
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It will definitely still need some time to move because as

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the quantum price of the property goes up, the population

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or in terms of the buyer audience,

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it will shrink towards the top portion.

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And usually at the base portion,

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there’ll be a larger demand pool because more people can

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afford the entry level on landed properties,

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and thus, inter-terraces, semi-Ds, corner terraces,

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they are right now in the seller’s market mode.

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Now if we move on to the condominium segment.

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If you ask us, what are we seeing on the ground?

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And based on some data that we have, larger properties,

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they are in the seller’s market mode,

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but that is only happening for a certain quantum range.

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For example, properties that are above 1,500 sqft,

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above 2000 sqft, but below 3 mil,

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they’re moving on very quickly.

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And that’s what depends on certain micro-segments,

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because some districts are moving faster

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than the other districts.

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So if you want to understand a little bit more,

115[Melvin Lim]
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you can drop us an email,

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or you can subscribe to our propertylimbrothers.com/insights,

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where we talk into different segments and districts in detail.

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But right now, for today’s episode,

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I want to share a view,

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this research that we have just done and completed.

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So let me just move you on to my laptop screen.

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We actually calibrated properties based on the bedroom types.

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So there are a few parameters, is that this is going to help you

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to very easily and quickly search for which projects are

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within 500m radius from MRT stations. And in fact,

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we have covered all the MRT stations in Singapore.

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So you can get to see like Thompson East-Coast Line.

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Downtown Line, North-South Line.

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Sorry, just…

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just skip this Bukit Panjang MRT,

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all right.

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So North-East Line as well. So for example,

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you’ll be able to see based on the MRT line,

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what are the properties within the 500m radius.

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Whether is it freehold, 99-years,

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tenure start date, the year of TOP.

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And what I think very precious is that right now in most

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of the platforms online, it’s very hard to identify

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this project has how many bedrooms.

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If you want to see the 1-bedder,

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what is the size range?

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For example, like Dorsett Residences,

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which is at the Outram Park MRT, 500m radius.

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You’ll get to see that it’s been completed 2013,

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there are 1-, 2- and 3-bedders.

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And then the size of 1-bedders are from 484 sqft to 600 sqft.

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All right so what we have done is that we have also classified them

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based on asking prices right now,

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asking PSF prices.

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Now, why do we want to classify the different types of projects

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near to the 500m radius of the MRT station based asking price is

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because when you want to see what is the current situation

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in the market, it’s always good to know what is the current asking price

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of what the sellers are asking at right now,

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rather than looking at the transacted prices,

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because transacted prices,

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we always have to understand how did the transacted prices

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get float into the URA database, REALIS

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and different platforms and things like that is because

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after a property’s been negotiated, sellers and buyers agree

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on free will, on the price,

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they penned down on the OTP, with an option period to be

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wait for the option period to be exercised,

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14, 21 or maybe 30 days later.

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And then when they pay the stamp duty,

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you get lodged later on in URA.

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And thus, this entire process probably is already two months later.

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So what you’re seeing is data that has been in the market

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for maybe between two to three months.

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And these are the prices that was back then,

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perhaps in the last quarter.

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But when you look at asking prices right now,

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what are the prices of properties being listed on portals

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and things like that.

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You get a sense of the ground feel

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of the properties,

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because when you are in a fast moving market,

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sometimes when you want to buy a property,

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you’ll find that it’s increasingly difficult

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in a sense that the

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asking price is usually much higher than the transacted pricing,

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and all of us own properties.

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And we are all in the process of exiting and buying another

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property for our family, if it’s our primary residence.

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And sometimes when we look at what has been transacted,

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and we look at the next property that we want to buy,

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and we sense that,

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“Hey, it’s gonna be a little bit difficult to negotiate to buy.

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It seems like, I viewed this property

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this weekend.

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Next weekend, when I call back the listing agent and then the

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property has been sold within one week” and things like that,

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and then if this happens consistently for about

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two to three months, you will start to worry as a home seller.

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You would think that, “Hey, you know, I,

196[Melvin Lim]
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I’m a little bit worried that, you know,

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if I sell my property now,

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will I be able to buy something that I like?”

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And that is a constant struggle that all of us have as home sellers.

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So in a fast paced market,

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what then should be the right mindset that we need to adopt

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as a home seller,

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trying to exit and buy at the same time.

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Now, we first have to understand the psychology of

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all home sellers on the ground,

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because we are a home seller trying to exit, the next house

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that we were trying to buy from, that family is also selling

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their home and trying to exit and buy another home.

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And thus, our mindset are the same.

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We all have the same worry.

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We’re a little bit worried about whether can we find the right home.

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And there are two ways of doing this.

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Way number one is that I start hunting for a home first,

214[Melvin Lim]
00:08:55,759 –> 00:08:58,720
I see something I like, I start negotiating.

215[Melvin Lim]
00:08:58,720 –> 00:09:00,039
I put down the option fee.

216[Melvin Lim]
00:09:00,039 –> 00:09:01,639
I try to negotiate with the seller of the home

217[Melvin Lim]
00:09:01,639 –> 00:09:04,480
that I want to buy, to give me a longer option period,

218[Melvin Lim]
00:09:04,480 –> 00:09:09,000
maybe three, four, five, six months, but in exchange for that,

219[Melvin Lim]
00:09:09,000 –> 00:09:10,759
definitely the market practice,

220[Melvin Lim]
00:09:10,759 –> 00:09:14,960
you have to put a higher amount of option fee in order to

221[Melvin Lim]
00:09:14,960 –> 00:09:18,159
compensate for opportunity cost that the seller has to take

222[Melvin Lim]
00:09:18,159 –> 00:09:18,799
to wait for you.

223[Melvin Lim]
00:09:18,799 –> 00:09:20,000
Because for example,

224[Melvin Lim]
00:09:20,000 –> 00:09:23,080
if you negotiate and ask for six months option period,

225[Melvin Lim]
00:09:23,080 –> 00:09:25,240
and said, ‘Hey, you know, I’m trying to sell my home,

226[Melvin Lim]
00:09:25,240 –> 00:09:26,200
is it okay?

227[Melvin Lim]
00:09:26,200 –> 00:09:29,159
I put in a higher option fee, maybe 3%, 4%.

228[Melvin Lim]
00:09:29,159 –> 00:09:31,600
And then you wait for me for six months.

229[Melvin Lim]
00:09:31,600 –> 00:09:33,639
There’s always a risk that the other party has to take.

230[Melvin Lim]
00:09:33,639 –> 00:09:36,159
Because if after six months,

231[Melvin Lim]
00:09:36,159 –> 00:09:38,399
if you decide not to buy or your home is not sold,

232[Melvin Lim]
00:09:38,399 –> 00:09:39,960
or you have a change of plans,

233[Melvin Lim]
00:09:39,960 –> 00:09:41,519
your option money will be forfeited.

234[Melvin Lim]
00:09:41,519 –> 00:09:44,200
And that’s a risk you have to take as a home buyer for that

235[Melvin Lim]
00:09:44,200 –> 00:09:44,559
next home.

236[Melvin Lim]
00:09:44,559 –> 00:09:49,360
But the other party will forfeit the six months they

237[Melvin Lim]
00:09:49,360 –> 00:09:50,360
have waited for you.

238[Melvin Lim]
00:09:50,360 –> 00:09:52,360
And maybe by then in a fast moving market,

239[Melvin Lim]
00:09:52,360 –> 00:09:55,559
the property that they want to buy has also appreciated to a

240[Melvin Lim]
00:09:55,559 –> 00:09:56,519
different level.

241[Melvin Lim]
00:09:56,519 –> 00:09:59,480
So everybody has a certain risk to partake in a sense,

242[Melvin Lim]
00:09:59,480 –> 00:10:03,399
but what is the actual feel on the ground

243[Melvin Lim]
00:10:03,399 –> 00:10:06,120
is that because if let’s say the next property you are

244[Melvin Lim]
00:10:06,120 –> 00:10:08,720
buying is a fast moving kind of asset,

245[Melvin Lim]
00:10:08,720 –> 00:10:10,960
let’s say you’re going for an inter-terrace.

246[Melvin Lim]
00:10:10,960 –> 00:10:13,120
And in that district, maybe inter-terraces are very,

247[Melvin Lim]
00:10:13,120 –> 00:10:14,080
very popular.

248[Melvin Lim]
00:10:14,879 –> 00:10:19,000
The seller might not be that willing to go for a kind of

249[Melvin Lim]
00:10:19,000 –> 00:10:21,120
arrangement like this, with a very long option period.

250[Melvin Lim]
00:10:21,120 –> 00:10:21,960
Maybe they will,

251[Melvin Lim]
00:10:21,960 –> 00:10:24,480
they will prefer, if they have a lot of viewings every weekend,

252[Melvin Lim]
00:10:24,480 –> 00:10:27,600
maybe five viewings per day, per day, per day.

253[Melvin Lim]
00:10:27,600 –> 00:10:31,279
And within a month, they clock in like 30, 40 viewings.

254[Melvin Lim]
00:10:31,279 –> 00:10:33,080
They definitely will have more choices.

255[Melvin Lim]
00:10:33,080 –> 00:10:35,399
And when they look at all the offers on the table,

256[Melvin Lim]
00:10:35,399 –> 00:10:38,759
they will definitely be preferring to taking offers that

257[Melvin Lim]
00:10:38,759 –> 00:10:42,360
have a normal completion kind of range like 14, 21 days,

258[Melvin Lim]
00:10:42,360 –> 00:10:44,320
option period, 12 weeks completion.

259[Melvin Lim]
00:10:44,320 –> 00:10:46,039
So that they themselves can also go on and

260[Melvin Lim]
00:10:46,039 –> 00:10:47,480
hunt for their next home.

261[Melvin Lim]
00:10:47,480 –> 00:10:49,399
So all of us are trying to exit and purchase,

262[Melvin Lim]
00:10:49,399 –> 00:10:50,720
and we’re trying to avoid two things.

263[Melvin Lim]
00:10:50,720 –> 00:10:52,759
Number one is ABSD,

264[Melvin Lim]
00:10:52,759 –> 00:10:54,759
right? We need to exit first.

265[Melvin Lim]
00:10:54,759 –> 00:10:56,559
Then we exercise the option for the new place.

266[Melvin Lim]
00:10:56,559 –> 00:10:58,600
so we don’t have to pay the ABSD.

267[Melvin Lim]
00:10:58,600 –> 00:11:00,440
Number two is that the TDSR.

268[Melvin Lim]
00:11:00,440 –> 00:11:01,399
We need to exit first,

269[Melvin Lim]
00:11:01,399 –> 00:11:03,960
make sure a buyer placed in the option exercise fee

270[Melvin Lim]
00:11:03,960 –> 00:11:06,600
for our current property, and then we purchase the next home.

271[Melvin Lim]
00:11:06,600 –> 00:11:09,399
Then we can take on the 75% loan for the next home.

272[Melvin Lim]
00:11:09,399 –> 00:11:11,240
So all of us are trying to achieve these two things.

273[Melvin Lim]
00:11:11,240 –> 00:11:17,200
And the moment your offer comes in as a little bit more lengthened,

274[Melvin Lim]
00:11:17,200 –> 00:11:19,720
it disadvantages your offer strength.

275[Melvin Lim]
00:11:19,720 –> 00:11:24,360
This approach used to work very well in a buyer’s market.

276[Melvin Lim]
00:11:24,360 –> 00:11:27,480
That means when properties are harder to exit,

277[Melvin Lim]
00:11:27,480 –> 00:11:30,840
it worked very well because sellers trying to exit their property,

278[Melvin Lim]
00:11:30,840 –> 00:11:33,200
they’re willing to accommodate more.

279[Melvin Lim]
00:11:33,200 –> 00:11:34,879
Similarly, let’s say, if you are a home seller,

280[Melvin Lim]
00:11:34,879 –> 00:11:37,000
you’re trying to sell a property,

281[Melvin Lim]
00:11:37,000 –> 00:11:39,039
If you are very hard, finding it very difficult to exit,

282[Melvin Lim]
00:11:39,039 –> 00:11:40,879
you will definitely be willing to negotiate a little bit

283[Melvin Lim]
00:11:40,879 –> 00:11:43,759
more leeway for the next home buyer, right?

284[Melvin Lim]
00:11:43,759 –> 00:11:46,159
But if let’s say week after week, we have so many viewings,

285[Melvin Lim]
00:11:46,159 –> 00:11:47,480
so many offers coming in,

286[Melvin Lim]
00:11:47,480 –> 00:11:50,399
you definitely will prefer offers that are more beneficial

287[Melvin Lim]
00:11:50,399 –> 00:11:52,399
for you in terms of timeline.

288[Melvin Lim]
00:11:52,399 –> 00:11:56,720
And thus, the second method in the seller’s market will be to

289[Melvin Lim]
00:11:56,720 –> 00:11:58,440
continue hunting,

290[Melvin Lim]
00:11:58,440 –> 00:12:01,639
but always note that you have to start the marketing

291[Melvin Lim]
00:12:01,639 –> 00:12:03,240
of your home concurrently,

292[Melvin Lim]
00:12:03,240 –> 00:12:07,320
because it must take you from the buyer

293[Melvin Lim]
00:12:07,320 –> 00:12:08,480
that is planing to buy your home.

294[Melvin Lim]
00:12:08,480 –> 00:12:11,759
So a buyer must be willing to pay an option fee,

295[Melvin Lim]
00:12:11,759 –> 00:12:14,240
exercise the option, and that gives you the green light,

296[Melvin Lim]
00:12:14,240 –> 00:12:16,799
because the moment the buyer exercised the option for your home,

297[Melvin Lim]
00:12:16,799 –> 00:12:20,679
it frees you up from the ABSD and the LTV for the next home.

298[Melvin Lim]
00:12:20,679 –> 00:12:23,279
And then you can then put in the option fee for you for the next home.

299[Melvin Lim]
00:12:23,279 –> 00:12:24,519
And this is a vicious cycle,

300[Melvin Lim]
00:12:24,519 –> 00:12:25,759
because if let’s say I’m a home seller,

301[Melvin Lim]
00:12:25,759 –> 00:12:26,960
I’m always adopting a mindset that,

302[Melvin Lim]
00:12:26,960 –> 00:12:30,080
“Hey, I want to make sure that I put in an option fee,

303[Melvin Lim]
00:12:30,080 –> 00:12:31,320
I lock in my next home, then,

304[Melvin Lim]
00:12:31,320 –> 00:12:33,240
I accept an offer for my home.

305[Melvin Lim]
00:12:33,240 –> 00:12:36,440
Then it will always be a vicious cycle because the seller

306[Melvin Lim]
00:12:36,440 –> 00:12:39,600
for the next home will find it very hard to agree to your terms

307[Melvin Lim]
00:12:39,600 –> 00:12:41,159
if your option is so long,

308[Melvin Lim]
00:12:41,159 –> 00:12:42,600
three to six months.

309[Melvin Lim]
00:12:42,600 –> 00:12:45,360
And thus, second method is that

310[Melvin Lim]
00:12:45,360 –> 00:12:47,200
let’s focus on the marketing.

311[Melvin Lim]
00:12:47,200 –> 00:12:50,960
The moment I achieve the option exercise fee for my home,

312[Melvin Lim]
00:12:50,960 –> 00:12:52,720
it frees me up and thus,

313[Melvin Lim]
00:12:52,720 –> 00:12:55,519
it increases my ability to negotiate

314[Melvin Lim]
00:12:55,519 –> 00:12:56,960
for my new home.

315[Melvin Lim]
00:12:56,960 –> 00:12:58,240
And then when I negotiate,

316[Melvin Lim]
00:12:58,240 –> 00:13:01,159
I can always negotiate for a normal completion,

317[Melvin Lim]
00:13:01,159 –> 00:13:04,720
normal option period, and thus this is a more,

318[Melvin Lim]
00:13:04,720 –> 00:13:09,279
I would say, fluid motion, when it comes to a seller’s market.

319[Melvin Lim]
00:13:09,279 –> 00:13:10,360
When it’s a buyer’s market,

320[Melvin Lim]
00:13:10,360 –> 00:13:12,360
then you have to go back to step number one,

321[Melvin Lim]
00:13:12,360 –> 00:13:14,960
which is to go for a longer option period first,

322[Melvin Lim]
00:13:14,960 –> 00:13:17,320
to secure and then sell your home.

323[Melvin Lim]
00:13:17,320 –> 00:13:21,240
But also it depends because even in the condo market,

324[Melvin Lim]
00:13:21,240 –> 00:13:23,120
there are 1-, 2-, 3-, and 4-bedder,

325[Melvin Lim]
00:13:23,120 –> 00:13:25,240
they are not all in the seller’s market, right?

326[Melvin Lim]
00:13:25,240 –> 00:13:27,320
You can email us, we’ll share with you which one,

327[Melvin Lim]
00:13:27,320 –> 00:13:29,519
which category of bedroom task, in which district,

328[Melvin Lim]
00:13:29,519 –> 00:13:31,679
which area or which project is in the seller’s market mode.

329[Melvin Lim]
00:13:31,679 –> 00:13:34,919
We can share with you our ground feel and our statistics.

330[Melvin Lim]
00:13:34,919 –> 00:13:38,440
Coming back to this analysis based on MRT line,

331[Melvin Lim]
00:13:38,440 –> 00:13:42,480
and going back to why we want to term it based on asking prices,

332[Melvin Lim]
00:13:42,480 –> 00:13:43,720
asking PSF,

333[Melvin Lim]
00:13:43,720 –> 00:13:44,879
and I think the bedroom type

334[Melvin Lim]
00:13:44,879 –> 00:13:48,519
is going to help you to identify the projects better.

335[Melvin Lim]
00:13:48,519 –> 00:13:51,600
If you want to gain access to this data

336[Melvin Lim]
00:13:51,600 –> 00:13:55,559
that our research team has done, you can click on the link below.

337[Melvin Lim]
00:13:55,559 –> 00:13:57,320
That’s going to bring you to a page.

338[Melvin Lim]
00:13:57,320 –> 00:14:01,320
And basically all you need to do is to subscribe to our

339[Melvin Lim]
00:14:01,320 –> 00:14:03,600
Telegram channel to support us.

340[Melvin Lim]
00:14:03,600 –> 00:14:06,559
And this Telegram channel is a new channel that will

341[Melvin Lim]
00:14:06,559 –> 00:14:10,440
be dedicated for PLB Insights research articles.

342[Melvin Lim]
00:14:10,440 –> 00:14:12,639
They are going to bring you to our full-blown

343[Melvin Lim]
00:14:12,639 –> 00:14:14,799
article on our webpage as well,

344[Melvin Lim]
00:14:14,799 –> 00:14:17,120
and also subscribe to our newsletter.

345[Melvin Lim]
00:14:17,120 –> 00:14:19,639
So we’re going to update you weekly via email.

346[Melvin Lim]
00:14:19,639 –> 00:14:21,600
Some of the latest research that we have,

347[Melvin Lim]
00:14:21,600 –> 00:14:22,679
our team has done up.

348[Melvin Lim]
00:14:22,679 –> 00:14:23,480
So click on the link.

349[Melvin Lim]
00:14:23,480 –> 00:14:26,000
The moment we subscribe, what we will do is that we are

350[Melvin Lim]
00:14:26,000 –> 00:14:28,360
going to email you the report for free.

351[Melvin Lim]
00:14:28,360 –> 00:14:30,799
There’s no charge on this, it’s basically to help you to

352[Melvin Lim]
00:14:30,799 –> 00:14:32,039
value-add to you.

353[Melvin Lim]
00:14:32,039 –> 00:14:35,000
All we need is we need your support to continue

354[Melvin Lim]
00:14:35,000 –> 00:14:38,159
to watch our content on PropertyLimBrothers,

355[Melvin Lim]
00:14:38,159 –> 00:14:39,399
just to support us a little bit,

356[Melvin Lim]
00:14:39,399 –> 00:14:40,960
give encouragement to our research team,

357[Melvin Lim]
00:14:40,960 –> 00:14:42,720
because they have put in a lot of hours and hard work

358[Melvin Lim]
00:14:42,720 –> 00:14:45,159
behind-the-scenes to come up with all these data and research.

359[Melvin Lim]
00:14:45,159 –> 00:14:48,399
So it will definitely help them and help us as a team.

360[Melvin Lim]
00:14:48,399 –> 00:14:51,279
The final thing that we want to talk about today is that

361[Melvin Lim]
00:14:51,279 –> 00:14:53,039
in terms of selection of properties,

362[Melvin Lim]
00:14:53,039 –> 00:14:56,519
now we all understand now, resale market is a little bit hot.

363[Melvin Lim]
00:14:56,519 –> 00:14:59,039
We talked about that in the last episode,

364[Melvin Lim]
00:14:59,039 –> 00:15:01,120
We think that there will come a time that the

365[Melvin Lim]
00:15:01,120 –> 00:15:05,600
new launch pricing and resale is going to catch up a little bit,

366[Melvin Lim]
00:15:05,600 –> 00:15:07,519
probably towards the end of this year.

367[Melvin Lim]
00:15:07,519 –> 00:15:11,600
Recently I’ve realised that not, not say realised. I mean,

368[Melvin Lim]
00:15:11,600 –> 00:15:14,679
I think that sometimes when we look at the selection of properties

369[Melvin Lim]
00:15:14,679 –> 00:15:16,080
there’s one very key consideration.

370[Melvin Lim]
00:15:16,080 –> 00:15:20,759
Now, what is the definition of risk when it comes to real estate

371[Melvin Lim]
00:15:20,759 –> 00:15:24,279
investing or real estate purchase, even as a primary home?

372[Melvin Lim]
00:15:24,279 –> 00:15:26,639
Of course, we have our needs for our families,

373[Melvin Lim]
00:15:26,639 –> 00:15:30,559
schools, near to parents, workplace. And most importantly,

374[Melvin Lim]
00:15:30,559 –> 00:15:34,840
family must be happy and it must be a financial kind of

375[Melvin Lim]
00:15:34,840 –> 00:15:38,159
prudency approach when it comes to purchasing a property.

376[Melvin Lim]
00:15:38,159 –> 00:15:39,759
Long-term commitment,

377[Melvin Lim]
00:15:39,759 –> 00:15:40,960
that you are going to invest.

378[Melvin Lim]
00:15:40,960 –> 00:15:43,720
And a lot of your hard-earned money, savings.

379[Melvin Lim]
00:15:43,720 –> 00:15:48,600
Thus, it’s always very important to be prudent, do not overstretch oneself,

380[Melvin Lim]
00:15:48,600 –> 00:15:52,039
but the definition of risk is that when we purchase a

381[Melvin Lim]
00:15:52,039 –> 00:15:56,639
property that does not appreciate in the mid to long-term,

382[Melvin Lim]
00:15:56,639 –> 00:15:59,960
we define it as having a higher risk than selecting a

383[Melvin Lim]
00:15:59,960 –> 00:16:02,759
property that has more chances of appreciation

384[Melvin Lim]
00:16:02,759 –> 00:16:03,639
in the mid to long-term,

385[Melvin Lim]
00:16:03,639 –> 00:16:07,799
because the longer we stretch and you realise that,

386[Melvin Lim]
00:16:07,799 –> 00:16:10,679
“Hey, after 10, 15 years,

387[Melvin Lim]
00:16:10,679 –> 00:16:14,480
why is it that my property is not appreciating at all?”

388[Melvin Lim]
00:16:14,480 –> 00:16:17,519
Or maybe not appreciating much compared to the rest,

389[Melvin Lim]
00:16:17,519 –> 00:16:21,120
then the risk of your property is technically higher.

390[Melvin Lim]
00:16:21,120 –> 00:16:23,759
And thus, the definition of risk is really about

391[Melvin Lim]
00:16:23,759 –> 00:16:27,320
whether does this property has more appreciation potential

392[Melvin Lim]
00:16:27,320 –> 00:16:30,399
than the rest of the property in the same radius

393[Melvin Lim]
00:16:30,399 –> 00:16:32,879
of maybe about 1 km or 2 km,

394[Melvin Lim]
00:16:32,879 –> 00:16:34,519
or maybe in the same district.

395[Melvin Lim]
00:16:34,519 –> 00:16:37,279
And thus, we think that this is,

396[Melvin Lim]
00:16:37,279 –> 00:16:40,279
one nugget that we want to just share with you guys.

397[Melvin Lim]
00:16:40,279 –> 00:16:43,200
And we’ve come to the end of episode number seven.

398[Melvin Lim]
00:16:43,200 –> 00:16:46,919
And just to sum up, we talked about having this free report,

399[Melvin Lim]
00:16:46,919 –> 00:16:50,360
knowing the 500m radius in the entire Singapore

400[Melvin Lim]
00:16:50,360 –> 00:16:51,960
MRT line stations,

401[Melvin Lim]
00:16:51,960 –> 00:16:55,480
what are the projects around the radius of each MRT line,

402[Melvin Lim]
00:16:55,480 –> 00:16:56,360
we’ve done that for you.

403[Melvin Lim]
00:16:56,360 –> 00:16:58,720
Our research team broke down into bedroom types,

404[Melvin Lim]
00:16:58,720 –> 00:17:03,039
1-, 2-, 3-, 4-, 5-bedrooms, a PSF range asking prices,

405[Melvin Lim]
00:17:03,039 –> 00:17:05,519
quantum price asking prices.

406[Melvin Lim]
00:17:05,519 –> 00:17:07,240
If you want this free report,

407[Melvin Lim]
00:17:07,240 –> 00:17:09,680
click on the link down below that is going to lead you to

408[Melvin Lim]
00:17:09,680 –> 00:17:10,640
Second thing is of course,

409[Melvin Lim]
00:17:10,640 –> 00:17:12,839
the mindset as a home seller,

410[Melvin Lim]
00:17:12,839 –> 00:17:14,400
concurrently selling and buying,

411[Melvin Lim]
00:17:14,400 –> 00:17:16,680
and last but not least definition of risks.

412[Melvin Lim]
00:17:16,680 –> 00:17:19,119
And we hope that this episode has value to you.

413[Melvin Lim]
00:17:19,119 –> 00:17:21,240
I’m going to see you on episode number eight.

414[Melvin Lim]
00:17:21,240 –> 00:17:22,359
In the meantime, take care,

415[Melvin Lim]
00:17:22,359 –> 00:17:24,440
my name is Melvin Lim, PropertyLimbrothers.

416[Melvin Lim]
00:17:24,440 –> 00:17:25,119
See you soon.