Got EXIT PLAN Or Not??
As a coach, I get asked this question very often … “Coach, I want to buy property to make money”.
I know you want to make money. Almost everyone wants to make money. It is normal to make money.
Are you keen to learn how to make money through local properties?
Read on…. It is not that difficult.
Two KEY questions you asked yourself :
1) Do you want to use the property yourself (stay or business use) and then sell?
2) Do you want to rent out the property and then sell?
Your decisions to the above questions will mean a world of difference to the property you are buying.
If you want for own-usage first, there must be a consideration of self-satisfaction.
You must first, satisfy yourself and your business partners or your family members. And then, secondly consider the potential capital gains. So you must choose a property that you are happy with.
When happy, you can sacrifice some profits. For eg, if you like the penthouse, then buy one, stay for a while and then sell it. This can make profits, but not much, because the demand for penthouses is not strong. Not many people can buy lor. You must also consider the views, locations of the unit, layout and the neighbors before buying. Enjoy using the unit should be placed higher importance than making money.
On the other, if you just want to buy a property to collect rent and then sell it for a profit a few years later, then you must buy the unit with the most popular demand at the lowest price. Views, unit locations, layouts and neighbors are not as important. Tenants don’t really care. As long as your price is right, unit may fly off the shelf. This will allow you to rent out the unit fast and start printing money for you. To make good rentals, consider making the unit into dual-key or add an extra bedroom in the hall if the space is decent. To increase my chances of making profits upon selling, I would buy a unit above MRT with Shopping Centres and negotiation for BMV unit. Many people will say this is impossible – they are right. Other people have done this successfully – they become rich.
So, next time, please consider this before asking me … are you buying for own use and then sell, or buying to collect rent and then sell?
Love, Marko
Investor, Practitioner and Full-Time Coach
