Cover More than just property investments: A well-appointed apartment at Aspen at Consort Place, a London development by Crestbrick partner Far East Consortium
More than just property investments: A well-appointed apartment at Aspen at Consort Place, a London development by Crestbrick partner Far East Consortium
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Educational platform I Quadrant is helping home buyers navigate the dynamic landscape of property investments with real-time experience and expertise
Homeownership is the quintessential Singaporean Dream, be it for a billionaire or an average-income buyer. But it can be daunting. However, the advent of the Internet and digital technology has resulted in easy access to information on market trends and investment strategies. But as buyers are becoming more astute, the real estate investment market is getting equally more intricate.
Closing that knowledge gap and empowering buyers to make informed choices is the basis of Singapore’s membership-based educational platform I Quadrant (IQ). Launched in 2018, its founding partners Ivan Cai, Germaine Chow, Shawn Lee and Benny Ong each contribute their expertise in market awareness, analytical skills, resource management, and a visionary outlook to help their members learn the ins and outs of property investments.
Adding to that is their real estate arm, Crestbrick, which was launched in 2019 and complements the membership slant of IQ as well as the founders’ holistic approach to real estate investment and property management. Today, IQ has amassed 4,000 members and 60 staff members, with offices in Singapore, Malaysia, and the UK. “We are working towards a 30 by 30 plan,” says Ong, explaining this means growing its membership base to 30,000 by 2030 and expanding its educational resources regionally.
Here, the founders share simple strategies that can help buyers get a head start in real estate investment.
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Above Thoughtfully designed, modern interiors at Oval Village in London
Thoughtfully designed, modern interiors at Oval Village in London
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It is never too early to invest in real estate, says Chow, adding that one can even start as early as in their 20s with suitable financial resources and support. It is also important to be part of an environment that will keep you informed, “so that your peripherals are open”.
Resources include IQ’s membership programme which, with a one-time fee, allows access to certain workshops and classes—held four times a month—as well as monthly market analysis reports, investment insights, and industry trends, among others.
“Create the right environment by being in the right community so you can make your moves sooner. That will give you the opportunity to explore the various possibilities available for your financial standing,” adds Chow. “Real estate is one of the biggest investment decisions you can make, so gaining knowledge is crucial to changing the trajectory of your family’s future.”
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Above A well-appointed apartment at Aspen at Consort Place, Canary Wharf, a London development by Crestbrick partner Far East Consortium
A well-appointed apartment at Aspen at Consort Place, Canary Wharf, a London development by Crestbrick partner Far East Consortium
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People tend to place too much emphasis on diversifying their portfolio, leaving them with less money for property investments, says Lee. “One needs to understand that diversification is about moving wealth and not growing wealth. If you can get a tenant to pay off your mortgage as a baseline, that takes care of your 75 per cent loan. When calculated against the initial 25 per cent personal payout, you are looking at returns of at least 10 per cent a year.”
One common misconception is that people equate being debt-free with being financially free, states Chow. While it is important to be prudent, taking out a loan responsibly has its benefits, adds Ong. “When you have limited resources, it can be your most powerful and efficient tool. So, don’t fear debt. Rather, master it by learning more about interest rates and how to mitigate risk,” he says.
Above The cinema lounge at Aspen at Consort Place in London
The cinema lounge at Aspen at Consort Place in London
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Crestbrick teaches its members to isolate their personal buys from investment properties. “Eighty per cent of Singaporeans buy for homeownership, not for investment,” shares Chow. “We encourage them to pivot and venture beyond Singapore.” This also helps them navigate the additional buyer’s stamp duty (ABSD) levied by the Singapore government on buyers owning more than one local property, which can range from 20 to 30 per cent for citizens and 30 to 35 per cent for permanent residents.
“In a property purchase, your immediate cost is 25 per cent of it. In that respect, five or six years later, you don’t need the property price to double; it just needs to grow 25 per cent,” explains Chow. “You can double your investment through capital acquisition by way of rental from tenants.”
Apart from taking the guesswork out of property investments with well-researched figures, the IQ team, as active investors themselves, can identify the hurdles that may surface and bring their shared experience to their clients.
They steer clear of the extremely high returns perspective and focus on familiar markets such as London, which can guarantee a steady 5 per cent growth per year.
They also advise against investment property buys in countries such as Australia, with its high property taxes and restrictive local-buyer-only resale laws.
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Above The four founding partners of I Quadrant (IQ), clockwise from left: Benny Ong, Shawn Lee, Ivan Cai and Germaine Chow
The four founding partners of I Quadrant (IQ), clockwise from left: Benny Ong, Shawn Lee, Ivan Cai and Germaine Chow
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Crestbrick also works on pod-based community deals for some of its investments, which gives members first dibs on top-tier launches in their safety-net markets. They term this exclusive right of access a “billionaire voice”. Lifetime members and those who have opted for add-ons such as mentorship and portfolio management receive notifications on these buys on the IQ app—access to legal counsel is among the services rendered. These pre-negotiated deals at first-launch prices are backed by research and analysis in safe-haven markets and a consistent ROI rate.
Ong has witnessed a recent shift in property investments in which members started letting go of many baseline residential requirements when looking at a property strictly on investment-based returns. “They look at numbers growth, growth trajectory, location and location development. We do see that shift to a technical investment mindset versus in the past, they would be asking themselves: ‘Can I see myself staying here?’” he adds.
The biggest motivation is the rising cost of living and families buying to give them a head start in life, says Chow.
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Images: Courtesy of I Quadrant
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