Asked on 25 Nov 2020
How would you debunk the common misconceptions on investing in property as opposed to living in them?
Every property is sure to make money. This isn't true, otherwise there would be zero unprofitable transactions, and Sentosa Cove wouldn't have gone through its "lost decade".
Freehold is always better than leasehold. You pay a big premium for freehold; leasehold properties can and do outperform freehold counterparts sometimes.
Rentabiltiy is the same as rental yield. No it isn't - being near the MRT or a school can make it easier to find tenants. It doesn't mean the tenant will pay more.
Condos can en-bloc and make loads of money. Never count on an en-bloc happening. Also, some people don't know that if you buy a condo and it goes en-bloc within the first three years, you still need to pay the Sellers Stamp Duty.
Also related to en-bloc: a 99-year leasehold property can be sitting on freehold land. If the owner of the land doesn't want to top up that lease, it can kill your en-bloc potential.
Only one I can think of: Higher floors are the best, because of the view, quiet, freedom from pests, etc.
Right up until one of your lifts breaks down or gets shut down for "upgrading", and the other lift is crammed with movers, contractors, food delivery people, and everyone in the same block fighting to get up and downstairs.