Value Investor?

[Ray168]

They are equity investors are trend-followers, same for the property market. I have seen "value investors" among property market, albeit a minority. Does it sound familiar with our equity market?

I have seen a real case. A run-down terrace house was bought cheaply, rebuilt from scratch, to fully utilize the plot-ratio and space. It was sold later for good profit, within months. It is a value investing, isn't it?

I have seen an ex-classmate of mine, started from HDB five-room, upgraded to EC, than private properties, with a "value mindset", rather a trend-follower. He has done well with the "passive" property investment, on top of other investments.

I am not an property expert, but I reckon the basic principle of value investing, is applicable to property market too. I have always reminded myself to be open-minded, to asset-classes beyond equity, and also those different strategies from mine, although I have to chose one suit me best.

Agree with Weijian and Ray168... it's about leverage and cheap credit because it is collateralised. On an unlevered basis, property returns are paltry, not to mention work need to be done for rentals.

And because people don't usually flip their primary home, they have positive reinforcements as their property make inflation plus returns.

I don't have extensive experience in property investment, but taking rental as the only profit for property investment, is like considering only dividend for equities investment, IMO

I should talk to property experts for their insight, when opportunity arises.

Regardless rental or equity dividend income, we should also look for capital gain as a total investment package.