Don’t Buy Property Before You Make These 3 Decisions

Finance-focused summary (property investing in Singapore)

Core framework / “3 decisions” methodology

Decision #1: Buy vs wait

• Buying early vs waiting is framed as a tradeoff between price movement and opportunity cost (time).
• The recommendation is conditional on budget/affordability, and the “right to buy” depends on what unit sizes you can still access.
• Guidance: act sooner if you can still buy a “performing” unit size in the OCR (Outside Central Region).

Decision #2: New launch vs resale

• Strong preference for resale, based on:
  • “real profits” after accounting for marketing, and
  • (as argued) more efficient cash needs over time.
• The key comparison focuses on cash outlay timing:
  • progressive payment (new launch) vs lump-sum down payment (resale)
  • plus the cost of renting for new-launch interim housing.

Decision #3: Bigger size vs better location

• Preference is implied for bigger size when it supports a better earning profile (more capital appreciation potential).
• However, location quality can override, so both matter.
• A case study is used to show how choosing a smaller unit/less optimal option can lead to large relative underperformance.

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Key recommendations & cautions

• Caution: Waiting for price drops may mean doing nothing for 5–10 years, reducing wealth-building time.
• Recommendation (conditional): “Quickly buy” if your budget allows you to secure an appropriate unit size in the OCR; otherwise, waiting can push you down the unit-size ladder.
• Caution: Don’t follow hype that “new launches are always best.” The video calls this a “red flag.”
• Recommendation (general): Focus only on “performing projects” rather than guessing.
• Caution: New-launch advantages (e.g., progressive payment) are argued to be less beneficial once you account for installment duration and likely rental costs during the wait period.

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Decision #1: Buy vs wait — explicit budget thresholds & timelines

“Buy quickly” threshold (OCR, 3-bedroom access)

• A budget of S$1.5 million is cited as a critical cutoff.
• If you are below S$1.5m, the speaker suggests you may not secure a 3-bedroom, potentially dropping through:
  • 2+ study
  • then 2-bedroom
  • then 1-bedroom

Why waiting is risky (unit-price examples for “3-bedroom prices”)

• S$1.5m area:
  • 1 year ago: S$1.42m
  • 2 years ago: S$1.3m
• Argument: delaying can result in smaller units or losing the ability to buy.

New-launch vs resale tie-in (4-bedroom examples)

• Resale 4-bedroom (recent value): S$2.06m
• 1 year ago: S$1.89m
• Difference: ~S$170k
• The comparison is again framed around “performing projects.”

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Decision #2: New launch vs resale — cost mechanics & numbers mentioned

Cash outlay / loan affordability logic (as described)

Down payment comparison (30%)

• For both new launch and resale, the speaker states the “30%” includes stamp duty and legal fees.

Timing difference (lump sum vs progressive)

• New launch: the 30% is paid in about 6 months (progressive).
• Resale: the 30% is paid in about 3 months.
• Claim: the outlay timing advantage is only about 3 months.

Ongoing payments difference

• New launch: progressive payment leads to paying installments for ~3 years.
• Resale: some buyers can use rental income (tenant rental covering installments), reducing the need for extra out-of-pocket.

Additional cost argument for new launch homestay

• If you don’t have a place to stay, the speaker claims you may need S$180k–S$200k in renting elsewhere.
• The duration is tied to the waiting/lock-in period implied by development time (~years).

Performance caveat

• The video explicitly concedes new launches are not always worse, but claims only a handful outperform resale.
• Possible outperformers mentioned:
  • Clavon (subtitles show “Calvin” as a typo)
  • Parc Esta
  • Reserve Residences (described as upcoming)

Resale renovation cost claim challenged

• The speaker disputes the claim that resale is bad because you need S$50k–S$100k for renovation.
• This is framed as evidence that a pro-new-launch recommender may not be evaluating good resale options.

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Decision #3: Bigger size vs better location — case study numbers

OCR “performing” 3-bedroom → switching outcome

• Case study: a couple with a performing 3-bedroom in OCR.
• 2021 price: ~S$1.3m for a ~3-bedroom size.
• They sold and bought Avenue South Residences (address fragment unclear from subtitles).
• A subsequent purchase mentioned:
  • a 2-bedroom super high floor bought “around this time.”
• Outcome presented:
  • The 2-bedroom made ~S$117k (stated as profit).

Counterfactual (if they kept the 3-bedroom)

• The speaker claims the 3-bedroom today would be ~S$1.95m in July (recently).
• Implied capital appreciation from ~S$1.3m → ~S$1.95m (difference stated as ~S$650k).

Speaker conclusion

• By buying the 2-bedroom, they “lost” about S$5–600k, after factoring stamp duty and agent fees.

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Tickers / assets / sectors / instruments mentioned

• No public-market tickers (stocks/ETFs) are mentioned.
• Property assets (residential projects in Singapore):
  • Avenue South Residences
  • Clavon
  • Parc Esta
  • Reserve Residences (upcoming)
  • “No momentum park” (appears as part of a criticized new development description; not clearly identifiable as a named project)
• Regions referenced:
  • OCR (Outside Central Region)
  • City fringe
  • Core

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Key numbers & performance metrics extracted

• Opportunity cost timeline: waiting leads to 5–10 years of inaction.
• Budget thresholds / pricing:
  • S$1.5m critical threshold for accessing 3-bedroom in OCR
  • “3-bedroom price” examples: S$1.3m (2 years ago) → S$1.42m (1 year ago) → S$1.5m (recent level)
• Resale 4-bedroom example:
  • S$2.06m recent vs S$1.89m 1 year ago (≈ S$170k)
• New launch cost claims:
  • Down payment timing: 6 months (new) vs 3 months (resale) for the ~30% component
  • Installment horizon: ~3 years (new-launch monthly installments)
  • Renting cost: S$180k–S$200k (homestay scenario)
  • Renovation claim for resale: S$50k–S$100k (disputed)
• Case study:
  • 3-bed OCR (2021): ~S$1.3m
  • 2-bed outcome: ~S$117k
  • Counterfactual 3-bed today: ~S$1.95m (July)
  • Stated lost opportunity: ~S$5–600k
  • Mentioned added appreciation: ~S$650k (contextual estimate)

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Disclosures

• The subtitles do not include a clear “not financial advice” disclaimer.
• The speaker emphasizes education, being “educated,” and making decisions based on affordability and “performing projects.”

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Presenters / sources

• Presenter: Rish (referred to as “Rish” in the subtitles)