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Saturday, May 21, 2011

Peter Yee's Property Investment Guiding Principles

I would like to share some gems that I picked up from Dr Peter Yee's commercial property course today.
As always, his course is packed with practical knowledge and peppered with useful anecdotes and good humour.

1. Minimize your risks at every stage of property portfolio operations
- depending on the property cycle, an investor may need to take a fixed rate term loan for financing, and also choose the safer type of properties for investment
2. Do not lose money
- this means never go for negative cash flow properties
3. Economy is non-linear, it is cyclical
- so don't assume that all properties will go up in value all the time
4. Good time prepares for bad time
- if property cycle is in the uptrend, be prepared for the downturn
5. Property boom & bubble is certain, only the quantum and duration varies
6. You will not go wrong by buying positive cash flow properties
7. You will not go broke by taking profits
- from selling your properties
8. Ride out tough property investment cycle by focusing on quality property with good yield and high potential capital gain.
9. Property prices are determined by the forces of supply & demand at specific locations
- so study the supply & demand before taking the plunge.

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