Just a month back, I was browsing at Kinokuniya and I was, of course, at my favorite section - Investing, when I came across this book - The Ultimate Guide to Real Estate Investment in Singapore. Many Singaporeans will definitely know Ismail Gafoor.
Ismail Gafoor is the CEO of PropNex - one of Singapore's largest local real estate agency. He started his career in the SAF as an Army Officer. Back then, he was on pensionable service. In the mid-90s, forgoing the stability and security of a civil service job, he resigned from the SAF. The rest was history.
I met Ismail 12 years ago and we had a casual talk. He was really a friendly CEO. I doubt he could remember me or even the conversation. Nevertheless, he inspired me, even for that 5 minutes of discussion.
So when I saw the book, I picked it up and eventually decided to buy it. This book is simple (to understand), yet a comprehensive sharing of real estate investing.
Owning the 2nd Property in Singapore
It has always been my dream to own more than one property in Singapore. I believe it is many Singaporeans' dream. I recently purchased my first BTO and I am already dreaming of being able to purchase the next private property - "renting the 2nd property, collecting the rental, and then servicing my mortgages".
Yes, there are REITs. REITs might give a better yield. But it is just different. Owning that 2nd property is something I would like to achieve since I was in my teens.
Kick-started my "2nd Property Fund"
With a Minimum Occupation Period (MOP), I will have no choice, even if any opportunities arise in the next five years (till 2021). Prices of properties would likely have gone up. In additions, no one knows when all these cooling measures will be removed or enhanced. These measures include the Additional Buyer's Stamp Duty (ADSR), Loan-To-Value, etc.; just means more cash down payment.
Well, the honest truth is that I may never be able to buy a second property. So put it this way, without starting this "2nd Property Fund", I will never have enough cash for the downpayment. Having said so, if the funds just aren't enough for any viable opportunity, I will just use it as my War Chest Funds in future.
In short, 5 years to save!
Save-Then-Invest - Dollar Cost Averaging
Each month I will set aside S$ XXX - Paying Myself First - from my salary. And purely invest it in STI ETF (immediately and automatically). No excuses of forgetting to invest.
I have started with a S$5,000 one time investment to kick-start this fund!
May the odds be in my favor at the end of the 5th year.