How to identify undervalued property for investment in prime district with strong rental yield

Mr. & Mrs. Tan, Singapore Citizen & Permanent Resident family, with 2 kids below 5 years old enjoyed a capital gain of $772K in less than 19 months in their first property investment.

Like many traditional investors, Mr. & Mrs. Tan wanted to buy a Freehold property at Orchard Road, Singapore’s shopping belt, as they believe that it could not go wrong. They were surprised that another growing location in Singapore could earn them a higher capital gain compared to Orchard Road and most importantly a stronger rental.

Today Mr. & Mrs. Tan made an informed decision and earned a Capital gain of $772K in less than 19 months in their 1st property investment.

* Names have been altered for privacy

Profile/Situation

  • Mr. & Mrs. Tan with 2 kids below 5 years old.
  • SC (Singapore Citizen) + PR (Permanent Resident) Family looking for 1st Investment

Desire

  • Buy a Freehold property at Orchard Road.

Current Problem

  • Friends and family members only identify to buy orchard developments based on familiarity of the location.

Strategy & Solutions

  • After analysis with charts and figures, I helped to identify undervalued properties and also exit strategy as well as the risk management in the event of unforeseen circumstances.
  • Compare technical analysis on the properties they had shortlisted in Orchard Road vs next prime location growth in Singapore.
  • Worked out a long-term road-map on how to maximize their investment.
  • Shared with them the exit strategy mapped out for their next 3 years.

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Source:  The Smart Singaporean, Infopedia, Giphy
Produced by: Caleb Lim, Yvonne Goh, Chee Wei Zhong and Chen Li Ren

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