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Real estate investing has always been a popular investment for Singaporeans. Our nation has one of the highest homeownership ratings with close to 90% of residents owning a property.
So I guess Singaporeans love property investing.😅
Should You Learn Property Investing
The issue with property investing is, not everyone knows how to grow wealth with real estate.
Yes, almost every property in Singapore is “sure to make money”. That is if you hold for over 30 years and let inflation do its thing.
Over the years, we found that the best way for asset progression is knowing how to pick properties with high growth potential that won’t burn a hole in your pocket.
In this case for Parc Clematis, that’s what we did!
We Bought Parc Clematis!
In 2019, after extensive research, we felt financially confident in making one of the biggest purchases of our life.
We are HDB Upgraders
Here’s a little backstory about us.
Before becoming real estate agents, we both worked as engineers. At that time, we had been living in a 5-room flat in Boon Lay for over 10 years. As an active saver, we thought we finally had enough savings to finally move to a private condo.
We didn’t like the idea of investing in stocks and bonds, instead, we like to own tangible assets. That’s why we knew if we wanted to grow our investment, property investing was the best way for us to get to.
During that time, we went to a roadshow and an agent brought us to the show flat to help us look into finding a private condo for us. Sadly, the agent’s instructions weren’t clear and we ended up not getting the property.
That’s when we told ourselves that if we wanted to get financial results, it was best to do it ourselves. We got our real estate license in 2018 and looked into property investing ourselves.
Looking back, we realize we actually had the financial capacity to have started property investing earlier. If only a reliable agent could bring us through the process clearly of property investing…
That’s why we became property agents.
Why Parc Clematis?
We have always liked living in Clementi, using our 7-step framework to find high-growth investment, we decided that Parc Clematis ticks all our checkboxes as young parents.
Here are the considerations we looked into before buying:
1) Pricing
First and foremost before we look into property investing, we must first find our most comfortable budget to set aside for property investing.
Is it affordable to us?
Is the price justifiable?
Is there a better buy elsewhere in a better location?
Entering a property at the right price is crucial for future returns. Pay too much and you would earn less. To find a reasonable amount that we should be paying for our condo, we compared Parc Clematis to other recently launched condos around the area.
2) Future Potential
Will new launches around the area make Parc Clematis less desirable?
Often times when we look into property investing, one of our main considerations is whether there is limited supply and high demand for property projects. It’s an indicator of future potential for an exit strategy.
3) Distance to MRT
These days, although Singapore is well-interconnected. There are still places that are generally more accessible thanks to public transportation. And having homes near the MRT is a way to commute around.
4) Convenience
When we are looking for a property, the first criterion we look at is what it has to offer within the vicinity. Things we look out for are:
Shopping malls
Food stalls (preferably some well-known brand)
Amenities
Transportation
Schools
The level of convenience in these areas is a crucial factor in our exit strategy in the future. Future buyers looking to buy resale properties tend to focus more on convenience first before anything else.
Looking at Google Maps, it's always a great sign to see arrows directing to malls, schools, train stations, food stalls, and sports facilities.
5) Wide Array of Facilities
Parc Clematis has over 33 facilities to boast. It’s a lot!
The condo uses 60% of its 400,000 sqft of land dedicated to open space even with 1,468 units. This helps residents to have more room to enjoy the facilities and spacious to walk around the vicinity of the condo.
One of its USPs (unique selling point) I love about this condo is the sand color tiles that gradually blend with the blue tiles to form a “beach-like” experience. This gives a more relaxed feel to the condo making it stand out from the rest.
Just look at the artist's impression of the beach-like view, doesn’t it look amazing?
Schools Everywhere
Clementi is known as an education hub catering to education ranging from primary schools to tertiary education. For parents looking to send their kids to a good primary school. Clementi has the famous elite school Nan Hua Primary School which is highly sought-after.
In an earlier article, we covered why parents are willing to pay more for good schools in Singapore. Apart from meeting the 1km distance eligibility for Primary schools, being near any schools in Singapore helps parent feel reassured that their kids are closer to home.
Past Resale Transaction Within The Area After TOP
If you are looking for capital appreciation from your property investment, looking at past resale transactions of condo facilities around the region plays a significant.
With a limited supply of private properties in Clementi and being a more affordable option in central west Singapore, naturally there is a higher demand in the area. Here’s a look at the recent price transacted for a condo in Clementi:
This shows that over the last few years, the price around Clementi has risen tremendously over the last few years and we can still expect further growth in the future.
Was It Worth It?
It was a scary rollercoaster ride.
When we first bought Parc Clematis back in 2019, we paid over $1.4 million for the 3 bedder. At that time, you can get a larger 3 bedroom at Hillview for slightly above $ 1 million.
When the pandemic happened, we thought this was it. Our investment is going down the drain and we never know how we can recoup our income as agents.
Thankfully at that time, we were financially confident of our investment and our saying as agents to new home home buyers is:
Will you lose your home if you lose your job?
Surprisingly, the market went bullish for the subsequent part of the next 2 years. While everyone was shocked by the hype of property investing, we were just thankful that we stuck to our conviction of owning this property.
Did we Make Money?
Based on past transaction of 3 bedder, our expected gains of Parc Clematis is sitting at over $300,000 in profits!
Parc Clematis is nearly reaching its TOP and many buyers have placed their property on the open market. So far, there hasn’t been an unprofitable transaction on EdgeProp.😁
Common Concerns for HDB Upgraders
Should we upgrade?
HDB upgraders all would like to live better lives, where else is better than living in a private condo where you are given an array of facilities to enjoy yourself?
Apart from that, private condos have a higher capital appreciation as compared to HDBs. With the capital appreciation from your home, you can choose to decouple and buy a second property.
HDB upgraders tend to look at property investing in two ways; improving standard of living and increasing capital appreciation.
If you would like that, here are some pointers to take note of:
Cost
Definitely, when it comes to upgrading to a condo, the cost of ownership is higher, and having to pay for monthly maintenance could mean taking a cut away from your monthly salary.
To live comfortably even after paying for your property, buyers need to learn how to set aside a portion of their income. To be stress-free when upgrading to a private property, always know your holding power and it should ideally be able to hold for a minimum of 3 years.
With our PFD method, we help our clients upgrade to private properties without touching their savings and changing their lifestyles.
I’m Comfortable, Why Should I Upgrade?
Not everyone likes the idea of upgrading their home every 5 to 10 years.
But if you are someone looking to earn more capital gains or make passive income through rental, getting a private condo is a strategic move.
Only through private housing, Singaporeans can leverage the technique of the “sell 1 buy 2” strategy to own two residential units. One for own-stay, the other to rent out.
How can I Learn More About Real Estate Investing?
If you would like to learn more about property investing, you can check out our YouTube or blogs on our website where our focus is executive condos and private housing to grow your investment.