Have you ever wondered how rising land costs impact property development?
Can you actually benefit from being a first mover in the market? Well, today, we're diving deep into the world of real estate to uncover the hidden opportunities presented by increasing land costs.
Today, we'll explore the power of being a first mover in the property market and how our proven 3-Step Process, The R.E.I Method™, can help you grow, accumulate, and preserve wealth through the home you own. So, let's jump right into it!
It all starts with the Government Land Sale (GLS) programme, where developers secure land for their projects. The price at which developers acquire these land parcels plays a crucial role in determining the project's eventual cost. Take The Botany at Dairy Farm, for example. By examining the Master Plan and surrounding areas, we discovered seven unsold land plots.
Why do we need to look and study the masterplan closely around the property you are intending to buy?
You could argue, “Edmund, if I'm simply buying a property to stay, what's the point in looking at the master plan?”
Let me tell you, developing a successful long-term strategy begins with the master plan. It aids in realizing the full economic, social, and environmental potential of a development plan.
Singapore's development during the next 10–15 years will be guided by the Master Plan (MP), the statutory land use plan. It's updated every five years and serves as a thorough guide to land and property development based on the broad long-term policies of the Long-Term Plan.
It will also give you a leg up on the competition if you know in advance how the government intends to develop a given area.
Investors and "flippers" in Singapore real estate can use this information to predict which areas are likely to increase in value and predict how potential future developments will affect the quality of life and the value of a home they're considering purchasing.
This is 1 of the 5 key factors we adopt with our clients so they can be confident in knowing where to enter the market and how long they should keep the property to exit with a comfortable 6-figure profits.
As land costs rise, property prices in the area are likely to follow suit, creating a first-mover advantage for investors.
Let's explore some real-life examples of the first-mover advantage.
In the case of West Coast Vale, we witnessed a steady rise in land prices over the years. This rise, combined with later project launches, significantly boosted the prices of developments like Parc Riviera. Imagine homeowners making close to $400,000 in profits by capitalizing on this first-mover advantage!
Another prime example lies closer to The Botany at Dairy Farm. The land costs per square foot per plot ratio (ppr) for developments like Tree House showed impressive increases. First-movers who seized the opportunity enjoyed substantial profits, some even reaching a staggering $780,000! It's clear that being a first mover can lead to incredible financial gains.
Now that you've seen the potential and benefits of being a first mover, it's time to unlock The R.E.I Method™ and seize these opportunities for yourself.
With our proven 3-Step Process, The R.E.I Method™, you can confidently navigate the market, secure a first-mover advantage, and create a path to financial success.
So, here's what I want you to do: subscribe to our channel and hit that notification bell, so you never miss an update. Join our community of property enthusiasts and gain the competitive edge needed to succeed in the property market.
Remember, knowledge is power in the property market, and being well-informed can make all the difference. Stay tuned for more exciting content that will help you navigate the market with confidence. Until next time, happy investing!
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