Is Now The Right Time To Invest In Property?

(27-04-2012, 01:45 PM)money Wrote:

(22-04-2012, 01:18 PM)D123 Wrote: I realize also that they may be another class of people who might want/need to participate in today's residential property markets - those who are ineligible for BTO, low to middle wage earners, but genuinely wanting to buy a first home for themselves. This would include singles, and Singaporeans with non-citizen spouses. However, these two groups of people, historically, have not been able to catch the attention of our government. I guess the best choice for them would be to rent a place for the time being, while waiting out the property cycle.

Actually for this group of people, i also think the best option is to rent. Many people consider renting as a waste of money, but if they take up a loan to buy a house, they are also wasting money on interest.

For the past 20 years, even with all the interests added and opportunity cost lost, it is still worth to buy property as the returns are huge as Singapore was on a developing nation stage. The issue will be as we mature like America, housing price increase is less and maybe negative. Growth driven by FT imports cannot last in perpetual mode.

20% discount of the published price?

too low... :O

(06-05-2012, 09:50 AM)brattzz Wrote: 20% discount of the published price?

too low... :O

21% of published price of S$700 psf will become ~S$550 psf or published price of S$1000 psf will become ~S$800 psf

I assume you mean the discount is too low, and should go deeper

"Mr Khaw replied: "The member's concern about potential oversupply if we are not careful is something I think we all ought to be mindful of, because cycles sometimes get a little bit too exuberant and then when they crash, they can create other kinds of problems.

"That's why we continue to be very vigilant and monitor closely the situation. Clearly, the market is heading towards a soft landing but we have not landed yet. So, stay seated with your buckle on."

Mr Khaw say not yet bottom...

Bringing this up for discussion again. Recent news have some that shown that interest ppty have cooled and prices started to correct. In fact signs are there since last year. There are more e.g. For me to quote now. But I wouldn't quote it as one can see it yourself if you just do some research.

Staying vested in stocks and Saving my ammo now. When it comes down to my desired px, it will be time for me to bargain hunting again. Buy when no one is interested.

(09-04-2012, 03:21 PM)lvpierre Wrote: Here is my post on CNA forum, reposting here to share. Enjoy!


===========================
Property investing is about the timing and the purchased price…if you have purchased a ppty when the px is low, one would have made a huge gain..BUT the reverse is also true, if you have bought it when px had gone up a lot, be prepared to suffer huge loss when mkt turns (unless you are prepared to hold long which we don’t know when…the opportunity cost is high)


Just to create awareness that property price is coming down; I have re-pasted my post on reflection at keppel bay below again:
Reflections at Keppel Bay ---> want to buy at more than 20% discount from initial launch price?

Launched at average psf of $1900psf. now can get at $1500psf. ---> http://www.channelnewsasia.com/stories/s...30/1/.html

Go to the property guru url link i pasted below, once u go to the webpage ----> stroll down to bottom of page 1 and to page 2 and 3 etc, u can see alot of listing at around $14++psf. based on a area of around 1100sqft.

http://www.propertyguru.com.sg/project-l...&order=asc


There are currently 290 unsold units in reflections at keppel bay. Keppeland had said that they intend to rent it out at $8-9k/mth, don’t believe them. If you go to propertyguru, you can see lots of listings wanting to rent it out. Browse through the page, you can see that the quoted price is about $4+ to $5+ psf (I am sure one can negotiate a much lower rental than the quoted price which usually is a mark-up)..This would translate to $4k+ to $5k+/mth…given that one can get rent it at a half the amt in the mkt, do you think that Keppeland can rent it out at $8-9k/mth?


Some more facts to illustrate the importance of purchased price and timing:

1. Do you know that property price of HDB masionette (2-storey type) was once about $500k when it was first introduced in the late 80s? It took them more than 20 yrs to breakeven and maybe minimum profit (over 20yrs, its definitely not a lot, and note that this is not taking into consideration of inflation…opportunity cost is high)
2. Do you know that private ptty at sub-urban area was once selling about $1000psf in the 90s (around 95/96)…it took them more than 15 yrs to see this px again and im not sure they make any profit taking into consideration the interest, mthly maintenance fee, inflation…
In short, now is not the right time to purchase property if you intend to invest your money somewhere. Reasons are as follows:
1. Employment rate is already very high..it can only maintain or go lower which means limited upside but massive downside. If we do see massive retrenchment in sg, be prepared for the great singapore property sales
2. Interest rate is already so low, it can only maintain or go up. In fact, it is already going up…it was 0.8% in jul 11, now it is about 1.08%
3. Massive supply coming up and many unsold units…just go to URA property information, you can find the info…there are about 79k private ppty under construction and out of that amt, about 40k are unsold…the media is only reporting on those which have good sales but there are many which are not selling well, why are they not reporting?
4. Govt would not want price to go up...if price go up somewhere, govt would only introduce more measures…I guess we would need price to come down substantially (20 to 30%?) in order for govt to remove these measures…
5. Price had already gone up quite substantially for the past few yrs (especially so for mass mkt)…not much meat left, limited upside but downside a lot..price alrdy coming down if you monitor the mkt


The above are just my 2 cents. To me, there are better alternatives to put your money, opportunity cost is definitely high if you intend to invest in property now (the money get stucked if ppty px come down substiantially)…one can perhaps take a look at ppty again when px has come down about 20%...

Happy investing. Cheers!

---

D' Leedon

launched in 2010. up till now still got 1255 unsold units (source - URA). only 20+ % sold (Total units: 1700+ units).

launched at around $1700psf.

---> http://www.channelnewsasia.com/stories/s...33/1/.html


now can get at $1400+psf. somemore this is for small unit. bigger unit will be much cheaper in terms of $psf.

---> http://www.propertyguru.com.sg/listing/9...rrer-court-

(14-05-2012, 10:31 PM)brattzz Wrote: "Mr Khaw replied: "The member's concern about potential oversupply if we are not careful is something I think we all ought to be mindful of, because cycles sometimes get a little bit too exuberant and then when they crash, they can create other kinds of problems.

"That's why we continue to be very vigilant and monitor closely the situation. Clearly, the market is heading towards a soft landing but we have not landed yet. So, stay seated with your buckle on."

Mr Khaw say not yet bottom...

Agree not yet. But if DJ crashes or Stock markets crash, then all bets are off.

alot more people are keenly aware that when the chips are down, it's time to buy.
People are getting more financially savvy. Only thing that is going to differentiate is the interpretation of "down".
My 2 cents would be the down cycle will get shorter and shorter.

(02-12-2013, 06:18 PM)kagemusha Wrote: alot more people are keenly aware that when the chips are down, it's time to buy.
People are getting more financially savvy. Only thing that is going to differentiate is the interpretation of "down".
My 2 cents would be the down cycle will get shorter and shorter.

Ya lol!
If more and more people wise up, then many more people are buying during a downtown; And soon it will be up cycle again.

Is it happening too with our SGX now? ST IDX seems to be "stuck in the middle with you". Where as DJ IDX seems to climbing higher and higher.
See what's ST IDX going to do in 2014 if DJ IDX keeps up to it's death defying climbing the so called "Wall of Worries"
Ha! Ha!

traders away on dec holiday....lol

The first thing when gov remove the curbs, people will cheong in again. Many have already wise up, the 6.9m people will make many people huat!