Monday, October 31, 2011

Its Halloween! Especially if you are a Chinese property investor.

Hi guys, Im just back from China where I just finished a 3 city tour and I will be departing for Vietnam tomorrow. It’s a bit hectic but that is life for those who have to continue on the path of growth. I came back from Fuzhou where my grandpa came from 3 generations ago. It’s a lovely place, one of the few rare Chinese cities where I actually would visit again on vacation.

Its Halloween today but property prices in Chinese cities have been haunting buyers. The Chinese government has been trying to rein in the rapid rise in prices and they have finally succeeded after developers resisted attempts. The previously cash rich developers ran out of bullets and have to get rid of some stocks to raise cash.

Prices in the core city areas have held up but sub-urban and rural towns have seen declines of up to 30 to 40%. This is happening all over China. In fact, some property buyers were furious and are trying to demand their money back as developers lowered prices on developments that they purchased. They are demonstrating quite aggressively but the developers are staying put.

Given that Chinese buyers is a key buyer of Singapore property, one should be concerned. In the last couple of years, developers like Far East have marketed their properties direct to Chinese buyers rather pro-actively. The Chinese have lapped up Singapore properties as the amount invested actually enhance their chances of getting permanent residency.

The Singapore government recently revised this policy and property purchases now are not included. Add the fact that their home markets are being affected, this two factors might impact demand from Chinese buyers. I will share my opinion of the overall impact on Wednesday’s Success Forum. See you then.

I received the following email from Eddie recently and it has certainly boosted my mood and enthusiasm to share. Its people like Eddie who really encourage me to continue to share to create wealth and I wish you guys all the best in the year ahead, HUAT AH!
Hi Andy,

Keep it short, PIP student, 15th intake. Just to share with you, took your advice and bought a unit at D10, Villa Azura, 6th Ave. for a price of 848psf in Mar 2011. Now worth more than 1250psf. Just got back from overseas and realise made more than 500K in about 6mths.

Wow! 157% profit. Kam Sia!

Thanks and regards
Eddie Foong

Till the next blog, take care and God Bless.

Your Friend,
Andy Ong

Wednesday, October 19, 2011

Attend and Prosper! Make full use of the downturn!

Hi Guys, I’m just back from Vietnam and immediately I rushed down to Sakae Holdings Dinner and Dance. Douglas Foo started the business at the height of the economic crisis in Year 1997. From a single store, it quickly grew. The group nowhas over 100 stores around the globe and employs thousands. I am proud to be invited to be on the Board of Directors when the company was listed on the SGX. It was the most over-subscribed issue ever, and certainly a proud moment for the founder.

You see, many opportunities are created in downturns. You either suffer or you take full advantage of them. Take folks like Douglas, he created an immensely successful business and created employment opportunities for so many people. You too can make a difference if you give yourself a chance to be successful.

I started my business at the peak of the crisis and bought commercial shop houses. It was extremely challenging and the bumpy ride I experienced was emotionally stressful but I do cherish those moments. These moves set the foundation for ERC Holdings today, marking our foray into the education, real estate and hotel businesses in Singapore.

We will share more with you at the Success Forum on 2nd November. Douglas, myself and Dr John Vong with share with you how to create opportunties for yourself in the property and business arena in the months ahead. We will share with you how to overcome fear, analyse market opportunities and move ahead and create a great future for yourself.

For our students, it is free but we have limited allocations so book your ticket today! See you there and God Bless! Visit the event page

Your Friend,
Andy Ong

Andy’s predictions on the spot!

Hi Guys, I hope you profited from the session I organized in August. The strategy is to make full use of the underlying forces at work. My predictions were on the spot as the latest private homes sales numbers proved my analysis to be right. Prices have stabilized as what I shared with you but volumes have not gone down. The fact that the interest rate environment is so benign and that the market is so flush with liquidity has supported the market to a large extent. The panic sellers must be regretting that they sold after the initial euphoria. In this day and age, information is king.

Some of you were doubtful on my cautiously optimistic calls on the right commercial segments but recent transactions have been so strong and buying interest has gone through the roof. In fact, I’m getting so much interest for our commercial properties that I hardly believe it.

I sincerely hoped that more of you actually did something with the knowledge I shared with you and made money. Some of you were kind enough to share with me and I hope you will share more good news with me.

Till the next blog, God Bless and take care!

Your Friend,
Andy Ong

Monday, October 3, 2011

It’s a Brave New World!

Hi Guys, sorry for the long break. I’m just back from Bangkok…. again. Tonight I will be leaving for a multiple city trip to Australia. I hate multiple city tours but that’s life. It has been extremely hectic but very rewarding as well. All my projects are progressing and I hope to make you proud in the years ahead. I feel extremely blessed to be given the opportunity to execute what I’m doing right now. After all, I grew up in a 3 room HDB flat not knowing when the next meal is coming from.

I need to congratulate those of you whom I have told to buy projects in the Robin region. The 2 ladies who dared to go into Robin Rd which went enbloc recently have certainly made a big huge pile. You followed my very straightforward advice and made lots of money, good for you. For the rest of you, learn to seize the trend! I will be around to share with you for a couple more years before I pack my bags and go back to school.

The volatility in the stock markets over the last month or so can make grown men cry. I was rather undecided about the situation and took my time to ponder about the markets and therefore the lack of news from me. To tell you the truth, I’m getting a little uneasy about the whole situation. It’s been disaster after disaster. After the US financial fiasco, you have the Japanese tsunami and now the European debt issue is causing problems for the international investment markets.

It’s a crazy world indeed.

People are now switching to US treasuries as a safe haven. To me, it quite madness given that the concerns just a couple of months ago was the downgrade of the US ability to pay its debts. Remember the markets mayhem caused by S&P when it cut the US from AAA to AA+? How do you take advantage of the markets then? I will be very hesitant to get into residential now even though I expect our government to reverse the cooling measures once things go south. There is a industrial craze tight now but DO NOT fall into that trap.

My last session with you saw me sharing my thoughts on how world events will culminate into less demand for residential and more money into commercial properties. Time has shown that I have been quite right. There is still keen demand for quality commercial property whilst demand for residential has lost some luster. I do see opportunities as I have always shared with you that fortunes are made in market downturns. However, you will need to tread very very carefully and conserve your bullets for the right project.

I will organize another session to update you. Apologies for recalling you so often as the market is very fluid, and I do not want you to make unnecessary mistakes.

Till then, God Bless!

Your Friend,
Andy Ong