Shownotes
BIO: Eric Sim is the author of Small Actions: Leading Your Career To Big Success, giving 66 actionable tips to help one achieve career success.
STORY: Eric bought a condo with the hopes of selling it at a higher price. Unfortunately, the government changed, affecting the demand for condos. Eric is yet to sell the property or rent it for income.
LEARNING: Don’t let your past successes blind you when investing. Identify your buyer before you even buy that real estate.
“Never expect 100% of your investments to make money. Sometimes you lose, sometimes you win.”
Eric Sim
Guest profile
Eric Sim is the author of Small Actions: Leading Your Career To Big Success, giving 66 actionable tips to help one achieve career success. He is a successful banker, having worked with Citi in Singapore, Shanghai, and Hong Kong before joining UBS Investment Bank as a managing director.
Worst investment ever
Eric bought a massive piece of property north of Singapore. It was a 2,400-square foot home. It did well because demand was high. One year later, Eric decided to buy another property. The prices had gone up this time, and he paid a lot more for the second property. There had been plans to construct a high-speed rail from Singapore to Malaysia. This saw properties in Malaysia increase in demand.
About three years later, the Malaysian government changed. The new government put the high-speed rail plans on hold. This saw property prices drop due to low demand and high supply. Eric tried to sell his property but couldn’t as there was no demand. He wanted to rent it out, but it was just not worth it because prepping the property to rent it out would cost 1-2 years of rental income. He is still holding onto the property.
Lessons learned
- Don’t let your past successes blind you when investing.
- Before you buy property, seriously think about the demand. Who will buy that property when you want to sell it one or two years later?
- Never expect 100% of your investments to make money. Sometimes you lose, sometimes you win, so don’t be too hard on yourself.
- Don’t let one lousy investment ruin your life.
Andrew’s takeaways
- Sometimes investing in condos can be a trap where you just get into it because you’re excited and then get stuck in it because nobody will buy it.
- Identify your buyer before you even buy that real estate property.
Actionable advice
Do your due diligence and make the correct type of comparison. List down the facts and be your own devil’s advocate.
Eric’s recommended resources
No.1 goal for the next 12 months
Eric’s number one goal for the next 12 months is to use his money to create impact and to live a meaningful life.
Parting words
“Think big. Start small. Act now.”
Eric Sim
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