Dentist invests in homes near MRT stations

 

Tuesday, Mar 18, 2014

Rachel Scully

The Straits Times

The Gulf War in the early 1990s drove Dr Cheng Eng Wah's belief that property investments were the way to go in Singapore.

The war, over Iraq's invasion of Kuwait, caused some serious stock market turmoil, but he noticed that the property market here was less affected.

Dr Cheng, 51, a dentist, bought two landed properties shortly after the war, confident that their values would appreciate over time despite the prevailing mood of uncertainty.

With financial help from his parents, he bought a semi-detached house and a terraced house.

He remains a firm believer in property and stresses the importance of timing the market and getting a unit close to the MRT.

"The three properties my wife and I own are close to public transport networks," he says.

He was one of the first dentists here to embrace "invisible" teeth straighteners Invisalign - an alternative to traditional metal braces.

Dr Cheng has been appointed to run an Invisalign Centre of Excellence in Singapore by the parent company in the United States.

"That investment will cost about $500,000, but I'm confident that it will catch on with Singaporeans," he says of the straighteners.

"About 46 per cent of Singaporeans are born with crooked teeth and most of them are fearful of the pain associated with wearing traditional braces."

The Invisalign straighteners are transparent and can be removed when eating.

Dr Cheng runs three i.Dental clinics and the Ubi Dental Clinic, which was his first practice, located near second-hand car showrooms.

But growing his business would not have been possible without the support and encouragement of his wife, Madam Aileen Chow, 43.

They have been married for 18 years, and Dr Cheng says she complements him in many ways.

The couple have three children aged 11, 13 and 15.

Q: Are you a spender or a saver?

Growing up, I was more of a saver. But my guilty pleasure was buying comics. As I grew older, buying wooden Peranakan furniture became my new interest. I don't intend to sell them, so I won't be able to realise their value and they may not make a good investment!

Q: On average, how much do you charge to your credit cards every month?

Up to $4,000. The bulk of it goes towards travelling, meals because we eat out often, expenses for the children and entertaining friends.

Q: What financial planning have you done for yourself?

I believe in having a diversified portfolio, so I took out insurance policies for the family for protection, bought properties for long-term capital appreciation and hold some blue-chip stocks.

My wife has been bugging me to draw up a will. As we travel together often, it is wise to have this safeguard, just in case something untoward happens to us.

I'm looking at co-investing in commercial properties. My friends and I are eyeing smaller units, as potential tenants would find rental charges more affordable during an economic downturn.

Q: Moneywise, what were your growing-up years like?

I came from a middle-income family and my dad ran a bicycle shop. He earned enough to support our family of six.

He gave me an allowance of $7 a week in secondary school, which was deemed generous among my peers. Although my dad was the sole breadwinner, he was able to send me to university.

We were also the first family in the neighbourhood along Prinsep Street to have a television. Neighbours would stream in to catch programmes in black and white.

Q: How did you first get interested in investing?

After I graduated from the school of dentistry, many insurance agents would approach me and my peers to introduce products to buy, and tell us about the risks of inadequate coverage.

That was how I bought my first insurance policy at 23.

Q: What property do you own?

A freehold, seven-bedder, semi-detached house off Holland Road. My wife and I got the 3,636 sq ft home in 2011 for a few million.

I also bought a four-bedder condo unit near Nanyang Primary School, where my eldest daughter studied, for $750,000 in 2005.

In the early 1990s, I bought a shophouse unit for $400,000 in Ubi Avenue 1 to open my first practice, Ubi Dental Clinic.

Q: What is the most extravagant thing you have bought?

A $20,000 diamond ring that I gave my wife for our wedding.

Q: What is your retirement plan?

I enjoy what I'm doing and don't think I can go without seeing patients at all. So I'll stick to what I'm good at and probably slow down the pace if I have to.

I also derive joy from teaching and educating the younger dentists in my clinic, and will continue to do so.

Q: Home is now...

A semi-detached house, where I live with my mother, parents-in-law, wife, three children and two domestic helpers.

Q: I drive...

A Maserati GranTurismo that seats four. My wife drives a Volvo C30, that is also a coupe.

WORST & BEST BETS

Q: What is your worst investment to date?

The $136,000 I lost when I sold my second landed property in 2005.

The roof was leaking and we thought it might make more sense to sell it rather than repair it. Moreover, the property market then was rather stagnant.

After we sold it, the property cycle picked up but we missed the upcycle.

I learnt that you must consult an expert in the field and get the right people to advise you in areas not of your own expertise.

Don't be afraid to ask, especially when it concerns money matters that affect you and your family.

Q: And your best?

Finding a capable and supportive wife, who has helped me expand the business beyond my first clinic in Ubi.

I've always been more of a clinician, so my wife's business sense came in useful and our skills complement one another.

My family is my first priority, so investing my time and resources in them yields the best returns.

As the Chinese saying goes, when your house is in order, it gives you the energy and focus to run the state.

In my case, I could manage the business.