What is the 7R Plus Framework?
The 7R Plus Framework is a checklist that I use to determine if the private property has a good chance of profitting.
I strongly believe in it, as time and time again, I made profit from my own property purchases.
Why must we use the 7R Plus Framework?
Property should be an asset. It is your right to own a private property that will appreciate, so that you can cash out and enjoy the profits.
However, not all condos in Singapore will appreciate, and I have seen many owners making a loss. That is why, the 7R can help you avoid unnecessary risks, and help you identify condos with potential for capital appreciation.
How did the 7R Plus Framework come about?
In my 13 years of experience, and conducting close to 800 transactions, I noticed similar patterns in properties could make good profit.
This led me to codify the patterns into a checklist. Coupled with more research, and attending countless property seminars, I refined this checklist into the 7R Plus Framework.
Here are 3 OF THE FACTORS IN the 7R PLUS FRAMEWORK EXPLAINED
1
Margin Gap
Which will you pick?
In today’s Property Market, it is very common to find a unit at $1700psf. But how do you determine if the property that you are entering at is at an over-valued or under-valued price?
Before working with me, many of my clients used to determine whether a property is selling at a right price, based on hearsay from friends and family, or from what is reported on the news. There is nothing wrong with this, as they do not have proper property analytical tools, and professional advice.
In order to know if you are entering at the right price, some of the things you would have to compare with:
1) Nearby Existing Condos
2) Nearby New Launches
3) Upcoming Land Sales
4) Other Developments In The Same Region
2
Transformation
Singapore is considered to be a small city, but it is large enough for us not to know the future plan of many areas in Singapore. Having the knowledge and foresight of analyzing the masterplan, will help in identifying the potential growth of a development.
By understanding how transformation of an area affects the properties in the area,
you would be able to spot potential condos that can help you get the 1st mover advantage.
3
Condo size and Land size
Unbeknownst to many, the size of the condo and land will affect the future selling price.
We can see that in trendlines for smaller condos, the trendline will usually be stagnant, at a slight decline, or at a minimal uptick. This is due to how banks conduct property valuation.
Banks will frequently use the “comparative method” when doing property valuation. This means that their valuation will be based on the previous transaction, and since smaller condo developments tend to have way fewer transactions. This would mean that the unit is unable to fetch a higher price.
Furthermore, a smaller development has higher maintenance fees.
Whereas, for bigger developments with 200 units and up, we usually see an upwards trend because of there are numerous transactions, especially during when it TOPs. More units would mean that there will be more units put up for sale, compared with smaller developments. Also, the maintenance fee will be lower, as it is shared by more residents.
That is why, bigger is better.
The other 4 Rs are equally important, and every property buyer should know what they are.
If you want to find out more about my 7R Plus Framework, apply for my Free Property Multiplier Program! I will coach you on how you can use leverage on the 7R Plus Framework to grow your property portfolio!
Looking to have a successful real estate career instead? Look no further!
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