Invest in High Potential Upside properties – Le Quest

In today’s post, Reverse Mortgage City will be sharing with you an important concept on property investing,


“Cheap is never the reason to buy. Value is.”

After reading this post, you will:

  • learn how to measure in dollars, Potential Upside and Risks
  • know the differences between 6 price factors
  • apply the 8 Entry Price Checklist to a Bukit Batok New Launch, Le Quest

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2 Buying Criteria (2BC)

Buying is the first step in creating a wealth accumulation plan in a property. When I buy, I go for properties with high potential upside and the least risk for me. I will not go for something I cannot be certain of, nor will I buy high. So having timely and accurate data is important.

To determine which unit is the right one for my property savings plan, I evaluate each one based on what I call the 2 Buying Criteria (2BC). The 2BC are: (1) Potential Upside and (2) Risks

In order for me to assess potential upside and risks, I need to have an objective, specific and measurable data. The 2 best tools to evaluate potential upside and risks are the price variable and rental yield.

Potential Upside & Price Factors

Previously, we gave you a brief overview of what Potential Upside is about, and here, I am going t to elaborate on the topic. Many people do not fully understand what Potential Upside means. Some people believe statements such as “In 10 years’ time, property prices will increase. So there is a lot of potentials if you buy now.” But what does that really mean? It does not tell us what the Potential Upside is.

To me, Potential Upside has a very precise meaning, It is a current assessment based on price. The concept of price plays an important role in assessing Potential Upside. Price has many components. It could be the asking price or the last transacted price, or the past peak price and so on. When we compare different price components between properties and/or units, we can draw different conclusions. For example, when an agent says the asking price is $500,000, what exactly does this mean? How does $500,000 compare with the asking prices of other units? How does $500,000 compare with the historic peak prices of units in that area? This is a strategy I use so I will have a stronger assessment. singapore property newsPotential Upside can be measured and expressed in dollars. This means that at the point you decide to buy, you have an idea of how much the Potential Upside is expressed in dollars. We can say that a unit has low Potential Upside if its asking price is $1,000 psf and the current transacted prices for units in that project is $700 psf. As a guiding principle, focus your search for properties that are below market price (BMP). 

Risks & Rental Yield

Many people “hope” that their risks are minimised so that they can create wealth through their properties. Well, “hope” is not enough for me. It makes me feel nervous and worried.

Below is a great video indicate how to leverage on rental income to be financially free:

One way to minimise risk is to know what risks you are facing. There are specific ways to minimise risk when you buy properties, and the better way is to be able to measure it in terms of dollars and cents. So look at the numbers. Specifically, you can look at rental income vis-a-vis mortgage payments.

Check out official site of Le Quest:

Rental income potential against mortgage payments is an effective and specific way to measure risk. The main point is to establish whether you have a positive or negative mortgage situation. A positive mortgage situation means the rent you receive covers your mortgage and there is some extra leftover for a positive cash flow situation. A negative mortgage situation is an opposite. It is when the rent you receive is not sufficient to cover your mortgage. When using data, I base the rental income on current rent received by nearby units or projects. 

When calculating the amount of mortgage to be paid, I put down the current rent, and then start adjusting it downwards to assess my risk tolerance. For example, if the current rent is $4,000, I will reduce it to $3000, and work out if at that reduced sum of $3,000, am I still in a positive cash flow situation? To work out my tolerance level for the worst case negative cash flow scenario, I will ask myself: “if I had to top up $500 in cash each month – will that be okay for me?” (And I will keep on adjusting until I find a number that is acceptable to me.)

Exercise: Measuring Risks

William purchased a unit that cost $1,000,000. As a first-time borrower, she was eligible for an 80% loan for 20 years. Her monthly mortgage payments worked out to $4,000 per month. The current rent for the property is $6,000 per month, which is secured for two years. What is her risk?

Purchase Price: $1,000,000

Loan Amount: $800,000

Monthly Mortgage: $4,000

Other charges (e.g. maintenance/conservancy, property taxes): $1,000

Rental income: $6,000 per month

Cash Flow per month: $1,000 per month

Cash Flow per year: $12,000 per year

From the calculations, we can conclude that for the next two years, with a guaranteed rental income of $6,000 per month, her risk will be $0.

To manage risk, I recommend buying based on current information, not information based on the future. It is not difficult to get hold of current rental prices. The Internet, for example, has made it easier to get current information about rental prices. In Singapore, there are many online resources that can provide you with indications of current asking rents.

bukit batok

Another way is to ask your property agent directly. Among my agents, for instance, we share customised and timely data on current rental and transaction prices. This wealth of information gives us a lot of certainty over how to measure risks. Register interest for Le Quest Condo Today. 

How to Increase Your Home’s Mortgage Value

CaptureThere is a big chance that you would like to increase the mortgage that you can take on your house so that you can pay for your house in a much faster time. If you do not have any idea on how you can do this what you have to remember is that when your home’s value increases, you can also increase the mortgage loan that you can take each month so that you can pay off your debt easier.

How are you going to increase your home’s value then? Here are some things that you have to do:

  • Get rid of leaking roofs and also waterproof your home.

You have to make sure that you know where the leaks are coming from. Once you have already seen where the leaks are from, hire an SG waterproofing contractor that can give you the services that you need. Do remember that before hiring, it is essential that you gather waterproofing quotes from different companies. This will help you choose the best one for you.

  • Work on improving your home’s bathroom.

Do you know that improving the size of your bathroom can actually make a big change with your home’s value? By simply changing the size and adding a few details that you might not have had in your old bathroom, your home’s value will increase.

  • Focus on building other rooms or extra places around your home.

If you have extra money to build something new then take the chance to do it. You may choose to build a patio or deck. You know that this extra addition will add value to your home and at the same time, you can also enjoy this extra space at home. Do remember to build something that you know you can use. If you would build a deck when it always rains, and your deck is made out of wood, there is a chance that mold will start to penetrate the rotting wood.

Get to know more about mortgages when you check this out:

Once you have improved on your home with roof repair or building new rooms, you have to remember that there are still other options that you can take in order to pay off your debt. You may be tempted to take further advance for your home loan but this is not a good idea in the long run. Just pay off the new amount that you are required to pay and make sure that you will not miss anything.

Can public speaking helps you in your reverse mortgage career?

Do you believe that public speaking can change every aspect of your life? Whether you are a teacher and you would like to convey your lessons to your students or you are a lawyer who would need to help your talent in some aspects of his/her life, you have to know that public speaking can help you a lot in different things that you are going to do.
If you are searching for the right coach, public speaking coach Benjamin Loh can help you out. Here are just some of the benefits that you can get when you are skilled in public speaking:

• Become more successful – When you know how to speak your mind, you will be able to convey the various messages to other people easily. When you need to speak with important people, you can be sure that you will know how to say your thoughts in a correct and proper manner. This is one of the reasons why you would like to improve public speaking.

• People will understand what you are trying to say – When you are skilled with public speaking; it will be easy for other people to understand the message of your speech. It will be easy to pinpoint where the conversation is heading too because everything is clear and concise.

• Be more confident – When you know that you would be able to speak your mind with ease, you do not have to worry about impromptu situations wherein you need to speak or you need to say what is on your mind.

• Be less awkward in certain situations – There is a chance that you have already attended parties wherein you do not know a lot of people and the only way by which you will get to enjoy the party is if you will make friends with the other guests. You may never know you might have other friends with you later on.

It is quite obvious, you can be sure that you will be more confident overall. You may choose to hire a public speaking coach Benjamin Loh to help you out. You can also take public speaking classses that will benefit you a lot. Now that you know this, do you think that public speaking will be able to help you out in reversing your mortgage or at least helping someone in reverse mortgage?

Reversing mortgage is actually the type of mortgage that is only available to people who can borrow the money against the value of their current homes. Usually, the borrowers are not required to pay anything. The loan will be structured depending on the current value of their homes. Some elderly people get it so that they can have money for their retirement.

Elderly people would like to enjoy their twilight years and this can be hard to do if they do not have enough money to do the things that they have always wanted to do. Some people who are good in public speaking are able to get approved for this type of mortgage easily while there are also some who help people into getting this type of mortgage with the use of their skills in public speaking.

Reversing mortgage can now be harder to acquire because of the new rules that have been set. People who would like to get this type of mortgage might have better chances if they can use their skills in public speaking to make it possible to convey messages in the clearest way. Improve your public speaking by checking out public speaking course.

Learn more about public speaking here. Boost your career today!

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