Property Investment blog

by ChingFoo Lieu on 18/12/2011

Here’s a property investment blog which I have been following closely of late –

The author is a banker by profession, and an economist by training. The blog contains excellent no-holds barred write-ups on property investment. The content is straightforward in a way that any man on the street can understand.

I like the strategy of the author because he based his investment decisions on common sense. Common sense as in for long term sustainability, steady rental yield /growth and capital appreciation trumps over short term price speculation. No one will be forever that lucky to buy low and sell high.

The author advocates commercial properties now, especially shop lots in shopping malls. It’s a couch potato portfolio with three benefits – rental growth, hassle free and long tenure of tenancy compared to residential properties. Any investor with commercial properties in his portfolio is a class on its own.

I particularly like his 4 “80 percent rule”. They are:

  1. 80 percent rental: at least 80 percent of mortgage repayment covered by the tenant
  2. 80 percent completed properties: completed properties is the best as it allows you to secure tenancy which can offset your monthly mortgage (see rule 1). Important so that cash flow not affected, especially for income earner. Or I will see if the developer absorbs the interest during construction period
  3. 80 percent tenancy more than 2 years: hard for residential properties; commercial is easy
  4. 80 percent commercial properties: hard to achieve when you first started; the author was invested in residential properties before switching to commercial aggressively this year

So that’s it folks, one good blog to share. His mantra in properties investment is : “Buy and Wait”, not wait and buy. I don’t know about you, but I will be a close follower from now on.

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