Thanks to Sean Tan, a property content creator who goes by the moniker iherng, young working professionals now have valuable insights before making big financial decisions.
“When I was working at a real estate agency, a lot of my friends kept asking me for property-related advice and to view properties for them,” he said.
This was when he realised there was a real estate knowledge gap among young adults in the country, a gap that he could fill by having a social media presence.
“The motto of my YouTube channel is making informed decisions,” Tan told FMT Lifestyle, adding that he has reviewed over 300 different properties on his channel so far.
Sometimes called “The Real Estate Guy”, Tan started his YouTube channel in 2017 and has created more than 1,200 property videos since, sharing his knowledge and market experience while educating working professionals.
Enter the property market with limited financial resources
Tan said those who have limited financial resources but who wish to enter the property market all the same, must ask themselves this key question: is it for investment or for living? Mixing the two can be dicey.
“Your first property should be your investment home,” he advised, suggesting renting or staying with parents until some financial stability is achieved.
Be honest about your finances, he urged. “Do a financial check-up. Go to the bank and find out how big a loan you can apply for. Many don’t know how much they can actually afford.”
And don’t rush into buying property after the first sales gallery visit.
“A sales gallery is a sales funnel. It’s the most effective sales tool for developers to close in on you. You will be paying the highest price in the market,” Tan warned.
Instead, explore at least 20 properties within your budget for a well-rounded decision.
Location, location, location
Location matters, but Tan’s advice goes beyond this cliché. Look beyond just location and consider amenities, lifestyle preferences, and connectivity. Proximity to public transportation, schools, or commercial hubs can impact investment returns and quality of life.
Don’t get swayed by hype, he warned. Instead, focus on the right price rather than just the right location.
“Location does not correlate with the success of the investment. Location only comes into play when you finally figure out where you want to stay.”
His one golden rule is to look for properties priced relative to the median location price, which refers to the middle price point in a specific location’s property market.
This is a more useful metric than the average price because it’s less sensitive to outliers, like very expensive luxury homes.
Rent to buy or buy to rent?
Renting might be cheaper than owning, especially if you’re in a lower market rental. But Tan suggested still considering buying in order to rent.
If you’re renting a cheaper property, think about buying an apartment to rent out while continuing to stay in your current rental.
“You’re using the tenant’s rent to pay off the property. Eventually, you will own the property and have saved money,” said Tan.
Leverage on online resources
Tan said financial literacy was important when entering the property market and the vast financial resources already available on digital platforms should be tapped into.
In the past, individuals were limited to paying high fees for seminars and relying on gurus for advice. However, Tan noted, “now that the knowledge is democratised, everybody gets a fair share.”
This not only empowers you to make informed decisions but also fosters a fairer property landscape. Developers are more inclined to build products at the right prices, knowing buyers are better informed.
Visit Sean Tan’s website, watch his YouTube channel iherng or follow him on Instagram or Facebook.