Property Investing - Case study

http://buybyeproperty.com/wp/home
Oct 12, 2008

me & money

Homing in on a good book

A home owner at 24, this new author has written a guide on property investment

By Lorna Tan, Finance Correspondent

Q: What motivated you to write Buy Bye Property?

When I first started investing in property, I was not sure about what I was doing. I bought my first property, a 678 sq ft one-bedroom condo in district 10, for $676,000 in 2002.


Q: Tell us more about your property investments.

As I said, I bought my first property when I was 24. I held on to it for about five years before selling it in the middle of last year (mid 2007)for a small profit of about $150,000. In addition, I had been collecting rental income from the property.

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Let look at ROC ....

$150K for 5 years with capital of $676K.

ROC = 22% for 5 years. Annualized ROC = 4% (I think the Reward/Risk is too low and nothing to shout about)

Noted, he went in 2002 which is also another housing bottom/housing rise.

Like any asset class, it still require lots of skills to be really successful even at market low. You definitely have to get it absolutely right.

Unless one is using his CPF fund which is designated by Govt for property investing only to beat the 2.5% CPF return, I don't really see any good incentives to divest cash to invest in property.