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Here is my post on CNA forum, reposting here to share. Enjoy!
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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-
===========================
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-
