In the game of property investment, there is no one strategy that is better than the other. Only the ones with higher or lower risks.
Strategy Four: Co-opt
Players pool their money together with acquaintances, usually for capital-intensive projects like purchase of high-end condos or commercial properties. They lay down terms and conditions on how to split costs, share return, when to sell, etc.
However, there are risks involved when investing with other people, especially in dire situations, for instance,
- When making maintenance or selling decisions;
- When the investment unfortunately becomes a loss or negative asset; or
- When one partner runs into financial problems.
Strategy Five: Buy and wait
Players are news-sensitive rather than price-sensitive. They buy in anticipation of a jump in value. It can be news from a trusted source or rumors from nowhere. They are betting on continuous rise in property prices, future land redevelopment, improvement in infrastructure, upgrade or privatization, etc.
Most are fond of speculation or gambling. Many are en-bloc lovers.
Personally, I am not against players buying a property because of their intuition of a windfall from en-bloc. But after the en-bloc selling attempts in two of my properties, I do have reservations about some of their tactics deployed to win the game.
Strategy Six: Flip flip flip
Players are in favour of short-term profits in a booming property market. The hot properties can change hands within days or weeks, but preferably before the TOP or handover dates.
Players can flip an Option to Purchase within 14 days of signing the option, or before the completion of the transaction in 12 weeks. Both deadlines can be extended during drafting of the contract to allow the players sufficient time for flipping.
If the market suddenly turns south, players run the risk of forfeiting the deposit, selling at a loss, or applying for a loan to own the often over-priced property.
Strong cashflow is key in this game.
It’s a board game after all. We play all sorts of them from young. Grown-ups can play in kids’ ways too.
And the major difference between a children and an adult board game is: the former wins by LUCK while the latter wins by STRATEGY.
What about you? Do you win the property game depending on luck or strategy?
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