Special Feature

$500,000 profit in just 12 months - PropNex Millionaire Raymond Giam's expert analysis turns his old HDB shop into high returns

January 5, 2024 11:00 AM SGT

Giam's blend of economic insights, thorough research, and client-centric philosophy has established him as a trusted consultant for Singapore's astute real estate stakeholders. (Picture: Albert Chua/The Edge Singapore)

Many home buyers in Singapore view property as both a commodity and a cultural touchstone, often making emotionally driven decisions in real estate investment. PropNex's Millionaire Raymond Giam offers insightful perspectives for those seeking profitable property ownership.

As a seasoned real estate consultant and investor in multiple properties, Giam merges market acumen with a deep understanding of human psychology.

"I set myself apart from others in the industry. Some claim to be investors in multiple properties but only own a small share of those assets in reality," he asserts confidently.

"While none of my properties are co-shared or co-owned, it's not a reflection of the lack of potential in collaborating for property investments. In fact, I welcome the idea of joint property purchases with like-minded individuals. I always have off-market properties worth considering for investment. I invite those interested in collaborative ventures to contact me for further discussions."

With sharp intuition and a proven property acquisition formula, Giam achieved a remarkable 500% growth in one of his property portfolios within a year. Today, all his fully owned properties yield above-average rental returns, ensuring positive monthly cash flow.

(Picture: Raymond Giam)

Deriving Value by Selecting the Right Property

Giam shared his insights over coffee with EdgeProp Singapore, at a cafe a stone's throw from an HDB shop near Farrer Park that he purchased in September 2022 and sold for a profit exceeding $500,000 within a year. He emphasizes that profitable real estate endeavors go beyond property selection alone.

As for defining the 'right' property, Giam stresses the significance of strategic actions and timely exits, aligning with the investor's goals, capital, and market conditions, in addition to focusing on the property itself.

"I prioritize my client's unique needs and circumstances over closing a sale to earn a commission. On several occasions, I discouraged clients from buying certain new property launches," he states emphatically. "My clients' success determines my success."

Leveraging decades of real estate experience, Giam combines his judgment and intuition with data research and analysis to ensure clients grasp market dynamics and appreciate intricate property details for informed decision-making.

Moreover, Giam's service network extends beyond real estate, encompassing bankers, contractors, interior designers, lawyers, and even property developers. "I provide everything for my clients; their success is paramount," he adds.

Central to his success is Giam's meticulous approach to property identification, selection, and in-depth analysis.

(Picture: Raymond Giam)

Three Fundamental Principles Guide His Investment Decisions

Firstly, understanding goals and objectives—whether for long-term or short-term gains, rental income, or equity buildup—is crucial. "It's just like a navigator mapping out the route before going on a sail. Many residential buyers aim for a property that promises both personal residence and investment return. Balancing these needs can be challenging; clear objectives help refine choices."

Secondly, comprehending the unique characteristics of a property is pivotal. Giam uses an analogy of observing tigers to understand tigers and not be distracted by focusing on other objects such as weather, vegetation, or other animals on the mountains, emphasizing the need for careful scrutiny before expanding research scopes.

(Picture: Raymond Giam)

"Many buyers fall into the trap of looking at neighboring units and surrounding projects instead of evaluating the property itself. Comparative analysis is crucial, but understanding your purchase is key."

Giam dedicates time to daily property chart analysis, monitoring trends, attending various property courses, and conducting thorough research.

"I continuously research property from an investment perspective; it's my personal passion, not just a job," highlighted Giam.

"I also purchased and utilized different digital platforms, AI, apps, and geospatial analytics tools for further study, analysis, and recommendations."

Finally, Giam underscores the significance of field research, site visits, and exploring neighborhood fabric, ethnicity, demographics, amenities, and infrastructure.

"Conducting on-site visits is a crucial aspect of my role as a consultant and investor. For instance, in December 2023, I was introduced to acquire a freehold commercial retail unit in the East. The owner was willing to sell below bank valuation.

“However, after walking the ground and surveying the area, I discovered that this particular unit faces incoming traffic, mostly considered inauspicious to businessmen. Furthermore, the area had limited parking facilities and was marked by high turnover. Had I not conducted on-site surveys, I might have invested in a property that would have taken a considerable time to exit."

Viewing the Property Landscape Beyond Transactions and Numbers

Giam emphasizes a holistic approach to property evaluation, seamlessly integrating unique property characteristics, past and present transactions, bank valuations, proximity to transport nodes, future developments, and URA master plans.

"Understanding market cycles, interest rates, location, supply pipeline, demographics, and competition profiles is crucial."

Even less fashionable areas may present lucrative investment opportunities for those prioritizing profits over emotional biases.

When asked about areas like Little India, which may carry negative associations, Giam notes that "gems exist in every corner of Singapore", rooted in his belief that investment potential transcends stereotypes.

Acknowledging Diverse Perspectives and Risks in Property Investing

Giam recognizes that property investment offers a broad range of perspectives and alternative strategies. He also acknowledges the inherent risks in property investing but emphasizes the aim to manage these risks smartly while maximizing gains. He's aware that some individuals experience losses in property investment due to various reasons. Also, he highlights the impact of larger market environments and economic fluctuations on real estate investments.

(Picture: Raymond Giam)

Achieving Results Through Sharp Intuition and a Proven Formula

He illustrates his investment story where he recognized the inherent value of a property beyond its surface.

"You don't buy because it's cheap; you buy because it's undervalued. Most people are influenced by the poor advice given by well-meaning people around them, and some could even be property agents," he explains, highlighting the importance of conviction and expertise in investment decisions.

"I purchased and fully owned a very old HDB shophouse in September 2022 at a record high price in a high-interest-rate environment, despite naysayers claiming I was crazy to pay so much."

His conviction paid off as he secured a high rental yield and, within a year, sold it for a $500,000 profit without spending on renovations.

"This approach guides my advice to clients, whether buyers or sellers."

Giam's blend of economic insights, thorough research, and client-centric philosophy has established him as a trusted consultant for Singapore's astute real estate stakeholders.