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  • Aaron Lin Property

PROPERTY INVESTMENT STRATEGY FOR 2023 / How to counter recession

The most straight-forward and impactful 3 factors to note when evaluating your property investment strategy for 2023! Read on to find out what they are.

 
Top factor

If you have invested in the right properties over the past few years, there is no need to worry about the upcoming period amidst the cooling measures and 'bear' market.


As always emphasised, there is a need to have holding power, as it's hard to earn money in the next 2 or 3 years after buying a new launch. To have a chance of profits, it's vital to have the holding power beyond 2025, perhaps 2026 or 2028.


If you do not have the holding power for your property and expect to sell within 3 years, you might be in trouble.


Right property at the right price

For investment property, it's important to know if the price is right for the right property. The price of your unit might fall below purchase price currently or even in 2023-2025, but the key question is to know if the price of your unit would go back up when the market goes up in general.


Thus, the key is to recognise the current price point versus the potential price point of your chosen unit for it to be the right property, purchased at the right current price. This is relevant as there are units for which prices go down and never come back up to the same heights again.


Rental Yield

The market today is propped up by good rental yield. Therefore, it's important to recognise this point and do the due diligence to find the right rental unit, get the right tenants in order to make use of the current trend to maximise your rental yield.


However, rental yield has multiple facets to it. If one were to only consider rental yield solely, there could be trouble ahead as you buy a property with great rental yield BUT does not increase in price later on.


Overall

The three factors to consider are:

  1. Holding Power

  2. Future price

  3. Rental Yield

For the future ahead, it's important for buyers to understand your own abilities especially for new launches. Are you able to have the holding power required to purchase a new launch today? There would be no surprise if new launch folks today eventually lose money in 2 or 3 years' time.

 

Watch one of the most succinct videos from Aaron in recent times about investment strategy and looking at what's most important!


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