Singapore Property Investing 101

In an inefficient market such as property investing, where no 2 units are exactly the same, prices can very much be different from one to the other. Understanding how people value certain traits when it comes to investing in singapore's property market do help alot in searching for discounts. Focusing on residential property

First and foremost, we should find out the purpose for the purchase

1- For investment 

2- For own stay

1) For investment

• Location***** This is everything in property investing. Specifically in singapore context, the region where the most growth is happening, will have the highest chance of price appreciation. Notibly, central region, central area will command the highest nominal rental amount, but they may not offer the highest rental yields. As prices increases, rental yields drops and the only way the prices will continue to increase is when the demand for these property increases or when the supply decreases. So a forward looking mentality is crucial, understanding the government masterplan for the plans for the future will give you an edge. Look for higher growth potential of the area with 10 to 20 years down the road would give you room of price appreciation.
• Type of Property***** Each type has its own characteristics. HDB flats, DBSS flats, EC are part of government housing. I will give a more detailed explanation to each of them on a separate blog. These units are subsidized to a certain extend. Room for capital appreication for HDB and DBSS are quite limited, unless you are looking at norms of public housing of 800k to 1m in the resale markets. Pretty comparable prices to the private condos for that matter in terms of nominal amounts. As for EC, price appreciation would definitely be more certain as after 10 years, its pretty much status quo with any other condos in the market. Private housing being condos and landed in general are more susceptible to fluctuations in prices. They are subjected purely by market forces. Plenty of factors do affect their prices, some of the examples are interest rates, economic situation of the country, stability of the government in their implementation of cooling measures. 
• Rental Yields**** Sometimes certain properties in not so ideal locations may still be a good buy, as they may be selling at a lower than market price due to certain reasons not financially influenced. (ie Death of the owner, Migration, Divorce cases) So naturally, with lower than market prices tend to give rise to an opportunity to buy at higher rental yield, thus giving rise to a larger margin of safety.

2) For own stay

• Location***** Be it for investment or consumption, location itself is of top pirority. In which, the area you purchase should be dependant on your budget and needs. Ideally you want to purchase a property which can be both as an investment and a livable space, but if it is not possible, focusing on the needs, purchasing a cheaper alternative and investing using spare cash isn't a bad plan either. 
• Needs/Wants**** Near schools, supermarkets, clinics, MRTs,Shopping centres,Parks,Views, higher floors
• Condition**** Remaining lease term of the property is crucial to the price of the property. Having hit certain milestones leases for HDB flats does have a significant impact on prices as bank loans may not be allowed, or be restricted to more downpayments and shorter term structures. Poor condition of the flat also requires you to spend more on renovations. 
• Facings****Avoid facing roads, carpark, schools, expressways, West sun, rubbish dumps 
• Layout****How the flat is shaped does matter, if its squarish, its the best. Odd shaped flats will definitely be marked down as the usable space might be lesser. Corner units are favored as well. 
• Cognitive Bias**Certain unit numbers like 8 can be deemed as auspicious, while others 13,4 may be deem as unfavourable. As illogical as it seems, these can have an effect when it comes to selling your property. Some use fengshui as an added pro or cons, way beyond my skillset. 

Ultimately, buying a property is probably one of the biggest investment one makes in his or her life, so make sure due diligence is done properly. Hire a trusted agent or someone knowledgeable to aid in your purchasing decision. Often people trying to save small money ends up costing themselves much more due to misinformation or insufficient information. Take your time to choose carefully, missing out on a property is less of an issue than buying into a wrong one.