Jason Yeap: Experience Counts

Jason Yeap has been around the property market for a long time. His personal philosophy is that you need to have invested through a full property cycle to appreciate how property markets operate. Jason has lived through two cycles, the recession we ‘had to have’, and the GFC.

Now on the Bank of Melbourne’s Asian Business Council, Jason shares his three key investment principles that have helped him navigate through the extreme ups and downs of the property cycle. As he says, “it’s how you respond to these ups and downs that will ultimately determine your success”.

Jason Yeap: Property Investing Principles 
Everyone in this business has their own investment philosophy. Mine is based on experience through these cycles and my background as a migrant in Australia.

My three key investment principles are:
1. Property investment is high risk
2. Timing is key,
3. You need to add value by being engaged

1. Property investment is high risk 
It is possible to make a lot of money in property because you are highly leveraged, not because it’s inherently a better asset class. It is critical to recognise and manage this risk. This means buying at the right time, having more equity (de-leverage), and spreading your assets.

2. Timing is key
To achieve success, it’s important to buy at the right time in the cycle. My personal focus is on buying, not selling. It’s important to synchronise the buy at the right time, add value and then sell. If your timing is off, you’ll be at the wrong part in the cycle. Property development is a long-term game and there are many external factors to consider when investing. That might be the interest rate cycle and whether the city you’re buying in is growing.

3. Be engaged
Add value by being engaged. If you want to invest in property, you need to be engaged and add value to the process. Property is about people, and creating capital growth – it’s not an income game.

Over the years these principles have guided my investment decisions and made the process less emotional for me.