Your search results

Sell High Buy High : Will This Still Make You a Profit?

Posted by Jayson Ang on December 7, 2022
| 0

 

Often times when sellers are advised of the ideal time to sell their property and acquire another one, most of the time they would question the notion of selling high, because they feel that by doing so, won’t they be buying high as well?

Many would feel that it is more prudent to stay put for a lifetime, since property prices are continuously going up anyway, there is no such need.

And many of them bought their properties at a relatively lower price, surely they can’t find anything similar in that low price bracket in any given market, let alone this sizzling hot market.

What if there is a way to generate decent or massive profits regardless of if you sell high followed by buying high.

As always, we know that any investment carries some form of risk, so prudence has always been part of my own investment principle.

End of the day, profit is what we sought after but our financial security should take precedence over other factors.

Sadly, due to the lack of knowledge and/or market insights, many people have been stuck in limbo as their minds are overly clouded by market noise, monetary concerns and misconceptions. And it happened to some of my close friends too! Therefore, I am compelled to share my research and insights to allow everyone to make better informed decisions for themselves.

Reality is, the rich will get richer. Why? Reason is simple – they will continue to multiply their wealth by selling and buying properties and particularly at the early stages of the property tenure.

So why do they do that?

It is simply because they understand this significant notion – that generally a property’s price will hit its peak upon obtaining the Temporary Occupation Permit (TOP). Hence, they will need to capitalise on the rippen opportunity for maximum profit and compound their investment pot in order to grow their assets allowing them to acquire more properties and expand their investment portfolio and personal wealth.

Let’s take a look at the price chart in Figure 1 for The Centris Condominium in the West. Notice that property prices for this project have been appreciating over time even way past the TOP stage. So do I sell or wait further at this point?

Figure 1: Average transaction price (psf) for The Centris (2006-2013)

Assuming the early buyers of this development did not take action and realise the massive profits of at least $500,000 (for a 1,066sqft unit) in 2012-2013 and waited until today.

What would the numbers be like in today’s sizzling hot market?

Figure 2: Average transaction price (psf) for The Centris (2006-2021)

You could see that the price momentum eventually lost its steam. The profit they will be looking at in today’s bullish market will be about the same as if they sold it 8 to 10 years ago! They would probably be consoling themselves that the price is finally crawling back to its past glory.

What most people do not see is the inflation over the past decade and those missed opportunities to multiply their realised $500,000 profit.

I cannot stress enough the importance of knowing when to enter and exit for those looking to grow their wealth.

Moving on to the next chart (Figure 2) below, there are those out there crying over spilled milk, questioning their indecision of not investing in any property in the early stages of their lives. A closer look at the charts and you can tell that the prices keep driving upward despite the several rounds of cooling measures and crisis we had to brave through the years.

Many were apprehensive and failed to take action when the market is slow, and believe that the uptrend will have a sharp reversal that will bring the property prices down. Sadly for those waiting did not see that day come.

When the market picks up they feel that the opportunity to take action has already slipped by them. This is an endless cyclic process of inaction that will cost you dearly with the abundant opportunities that are wasted.

It is mostly due to the lack of understanding in property investment and also the undeniable uncertainty of how to take the first step even if they wanted to.

It is always good to keep an open mind and understand investment concepts or strategies that can actually benefit you and your family. Stop believing that investment is only for the rich. Many fall into the trap of ‘Investment is not for me’, ‘I already know’ or ‘this doesn’t concern me’ and end up getting into a rut. You can avoid these mistakes!

Figure 3: Overall transactions (psf) of Non-landed residential (2000-2021)

Looking at transaction data (Figure 3) below of leasehold 99-year (LH99) Seaside Residences, units were transacted at an average of $1,573 psf in 2017 – which many would consider overpriced for a LH99 property in that area during those times. In contrast, a freehold property in the area cost around $1,000 psf. Looks like this is a bad purchase, isn’t it?

The investment of Seaside Residences for many turned out to be a blessing in disguise!

Few people in the market were confident that the market could have enjoyed a momentous upswing where units are transacted in the region of $2,000psf – this is considered record-breaking for a 99-year leasehold development in District 16! Selling would allow one to bring home a fabulous score of over $600 grand!

This goes to show that buying high does not mean you will not make money, it is more important to get the facts right and NOT speculate.

Speculation puts you at risk, clarity through proper guidance helps you make discerning choices that go on to earn you good money.

Figure 4: Transactions records of Seaside Residences

An article to share with everyone below, the point that I have been driving this entire time – growing your wealth through investing in stable assets. The interest rates of your savings account and rate of your income growth does not allow you the comfort of hedging against rising cost of living and inflation, none of these can beat the growth of property prices.

What you need is systemic growth in terms of wealth accumulation. Learn how to let your money work hard for you apart from working hard for money.

Source: Me & My Property, The Straits Times

If you’d like to find out more about tackling these challenges and finding your way to start, join me at my upcoming zoom session; where I will be sharing with you on how you can grow your wealth in a systematic way with adequate safety measures in place.

Learn about right timing to sell & buy properties and determining the best time to exit. Attain the ability to find assets with the right entry price and potential for growth!

 

You May Also Like …


Singapore’s HDB Projects: From Unique Landmarks to Just Another Brick in the Wall?
All Buying Tips Opinion

Singapore’s HDB Projects: From Unique Landmarks to Just Another Brick in the Wall?

Take a look at this chill spot in Yew Tee. Someone's gone all out to make it feel like an...
Read More
The Advantages and Disadvantages of Purchasing an Auction Property in Singapore
All Blog Posts Buying Tips

The Advantages and Disadvantages of Purchasing an Auction Property in Singapore

Are you looking to buy a property on auction in 2023 at a bargain price? Get ready, because with news...
Read More
My 6 Factors to Consider When Buying a Property in 2023
All Buying Tips Opinion

My 6 Factors to Consider When Buying a Property in 2023

As the housing market shows no signs of slowing down, many of us may feel left behind, questioning whether it...
Read More
Beware of These 7 Deceptive Tricks In Showflat Condo Sales
All Blog Posts Buying Tips

Beware of These 7 Deceptive Tricks In Showflat Condo Sales

Stricter rules and regulatory organizations such as CEA have curtailed the once wild and untamed property market of the 70s...
Read More
The 5 Hottest Neighborhoods in Singapore for Real Estate Investment
Top 5

The 5 Hottest Neighborhoods in Singapore for Real Estate Investment

Hey everyone! Today I want to share with you the 5 hottest neighborhoods in Singapore for real estate investment.  These...
Read More
5 Things to Know About Singapore’s Public Housing System
Blog Posts Buying Tips Mandarin Top 5

5 Things to Know About Singapore’s Public Housing System

5 Things to Know About Singapore's Public Housing System With over 80% of Singaporeans living in public housing, it's important...
Read More
Downpayment For Condo: How Much Do First-Timers Need In Singapore?
All Buying Tips

Downpayment For Condo: How Much Do First-Timers Need In Singapore?

The process of purchasing a home in Singapore is rarely described as a walk in the park. The journey towards...
Read More
5 Essential Tips for Renting Property in Singapore as a Foreigner: A Guide for Newcomers
Buying Tips Mandarin Top 5

5 Essential Tips for Renting Property in Singapore as a Foreigner: A Guide for Newcomers

5 Essential Tips for Renting Property in Singapore as a Foreigner: A Guide for Newcomers It's 五新房产, Renting property in...
Read More
Freehold Properties vs Leasehold Properties: Which is Better?
All Blog Posts Buying Tips Opinion

Freehold Properties vs Leasehold Properties: Which is Better?

In Singapore, where property is a hot topic, it is common to discuss the differences between leasehold and freehold properties....
Read More
From Garden City to Smart Nation: Singapore’s Top 5 Goals Building a Sustainable and Livable City
Mandarin Top 5

From Garden City to Smart Nation: Singapore’s Top 5 Goals Building a Sustainable and Livable City

Singapore is a small island city-state with a population of over 5 million people. Its urban landscape is constantly evolving,...
Read More
Beyond Marina Bay Sands: Uncovering Singapore’s 5 Little-Known Secrets
Buying Tips Mandarin Top 5

Beyond Marina Bay Sands: Uncovering Singapore’s 5 Little-Known Secrets

Beyond Marina Bay Sands: Uncovering Singapore's 5 Little-Known Secrets Singapore is a small country with a rich history and culture....
Read More
5 Hidden Expenses to Watch Out for When Buying a Home in Singapore
Buying Tips Mandarin Top 5

5 Hidden Expenses to Watch Out for When Buying a Home in Singapore

5 Hidden Expenses to Watch Out for When Buying a Home in Singapore Buying a property in Singapore can be...
Read More
A Comprehensive Guide for Buying Landed Real Estate in Singapore
All Buying Tips

A Comprehensive Guide for Buying Landed Real Estate in Singapore

Imagine the possibility of owning a terrace house that's priced around a cool $4 million. A hefty sum, isn't it?...
Read More
Top 5 Bookstores in Singapore for Book Lovers
Mandarin Top 5

Top 5 Bookstores in Singapore for Book Lovers

Singapore, a bustling cosmopolitan city, is known for its rich cultural heritage, diverse population, and of course, its love for...
Read More
The Impact of a Real Estate Agent on Your Property’s Selling Price
All Buying Tips Opinion

The Impact of a Real Estate Agent on Your Property’s Selling Price

The standard cost of a property agent is known to most of us, which is usually two percent of the...
Read More
Decoding the HDB Classification: The New Prime, Plus & Standard – What It Means for Singaporeans
All Buying Tips Opinion

Decoding the HDB Classification: The New Prime, Plus & Standard – What It Means for Singaporeans

Big news, everyone! National Day Rally 2023 has unveiled a fresh way of classifying HDB flats. We're moving from the...
Read More
Top 5 Hawker Centres in Singapore for Local Food
Mandarin Top 5

Top 5 Hawker Centres in Singapore for Local Food

Singapore, a melting pot of diverse cultures and rich culinary heritage, is home to some of the most delectable local...
Read More
Retiring in Singapore? Here’s Where to Find the 5 Best Property Investments for Comfort and Security!
Mandarin Top 5

Retiring in Singapore? Here’s Where to Find the 5 Best Property Investments for Comfort and Security!

Retirees have unique needs when it comes to property investments. They require properties that offer comfort, security, and easy access...
Read More
5 Things to Know About Singapore’s Urban Redevelopment and Landscape Changes
Mandarin Top 5

5 Things to Know About Singapore’s Urban Redevelopment and Landscape Changes

As one of the world's most densely populated cities, Singapore has undergone significant urban redevelopment over the past few decades...
Read More
Are You Worried About Overpaying On Your Property? Here’s The Secret To Finding Out Its Perfect Purchase Price!
All Blog Posts Buying Tips

Are You Worried About Overpaying On Your Property? Here’s The Secret To Finding Out Its Perfect Purchase Price!

Amidst the highly competitive property market where prices seem to rise every other day, how can you be certain you're...
Read More

Compare Listings