Top 5 Best Hidden Boutique Hotels in Singapore
Singapore, a vibrant city-state known for its iconic landmarks and diverse culture, offers a plethora of accommodation options for travelers....
Read More
TL;DR Summary:
- Timing of Property Sale: Selling high and buying high may seem counterintuitive, but understanding market dynamics can yield substantial profits.
- Wealth Multiplication: Early sale post-Temporary Occupation Permit (TOP) helps in maximizing profits and expanding investment portfolios.
- Market Insights: Lack of knowledge leads to missed opportunities and stagnant financial growth.
- Property Investment: Right timing for property transactions can significantly impact wealth accumulation.
- Avoid Speculation: Making informed decisions based on facts rather than speculation is crucial for financial success.
- Systemic Growth: Property investment offers a reliable avenue for wealth growth compared to traditional savings options.
- Upcoming Session: Join a session to learn about strategic property investment approaches and wealth accumulation techniques.
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 …
Market Mistakes in Property Investment: Key Lessons and Strategies for Success
TLDR In property investment, common mistakes include lack of research, overleveraging, and neglecting due diligence. To succeed, conduct thorough market...
Read More
7 Lesser-Known ‘Minor’ Condo Problems That Could Lead to Major Issues Down the Line
TLDR When choosing a condo, it's crucial to look beyond MRT station proximity, developer reputation, and price. Overlooked details can...
Read More
Finding Your Dream Home In The Near Future. Exciting Upcoming Property Launches In The First Half Of 2024
TLDR The real estate sector in 2023 saw significant policy shifts affecting both private and public housing, with various changes...
Read More
Singapore Property Price Set to Explode Upwards in 2024?
TLDR Understanding the factors influencing property prices in Singapore for 2024 can help in making informed decisions. Despite high rental...
Read More
Decoding the HDB Classification: The New Prime, Plus & Standard – What It Means for Singaporeans
TLDR The National Day Rally 2023 introduced a new classification for HDB flats, replacing the old 'mature versus non-mature estates'...
Read More
5 Points : Singapore’s Property Market vs. Stock Market: Which is the Better Investment Option?
Investing is an important aspect of personal finance and can be a valuable way to grow wealth over time. However,...
Read More
5 Factors : Why Singapore’s Property Market Is Still A Safe Haven For Investors
Real estate investment has always been a popular choice for investors looking to generate passive income and build long-term wealth....
Read More
Top 5 Reasons : Why Singapore’s Property Market Is a Safe Haven for Investors in Uncertain Times – Insider Analysis!
In today's uncertain global economic climate, investors are constantly on the lookout for safe havens to park their wealth. Amidst...
Read More
Top 5 Rules for Investing in Singapore’s Property Market – Expert Insights!
Investing in Singapore's property market has long been considered a lucrative and stable investment option. With its robust economy, strong...
Read More
The Future Of Singapore Property Investing: 5 Trends To Watch Out For
The future of Singapore's property market is shaped by several emerging trends that reflect cautious optimism, enviable locations, and sociable...
Read More
Downsizing From A Spacious 4-Bedroom Condo To A Cozy 2-Bedder: How I Chose A Condo Over A HDB
TLDR Mdm Sim's decision to trade her four-bedroom house for a two-bedroom condo is explored, highlighting the benefits of right-sizing....
Read More
5 Factors : Why Singapore’s Prime District Properties Are Still In Demand
Singapore's prime district properties continue to be in high demand due to a combination of factors that make them attractive...
Read More
Discover the Benefits of a SORA Home Loan in 2023: Why Consider SORA Interest Rates
TLDR The article discusses the transition from SIBOR and SOR to SORA as the new benchmark rate in Singapore's banking...
Read More
Top 5 Sushi Restaurants in Singapore
Singapore, a melting pot of cultures and culinary delights, is known for its diverse and vibrant food scene. Among the...
Read More
When a Property Seller Pulls Out of the Deal : What Now?
TLDR When a property deal is not yet formalized, sellers can withdraw without consequences. However, once an Option to Purchase...
Read More
Top 5 Factors : Investing In Luxury Singapore Properties: Is It Worth It?
Investing in luxury properties has always been an attractive option for high-net-worth individuals seeking to diversify their investment portfolios. Singapore,...
Read More
5 Tips for Renting Property in Singapore
Renting property in Singapore can be a challenging task, especially for those who are new to the country. With Singapore's...
Read More
5 Tips : How To Spot A Good Investment Opportunity In Singapore’s Property Market
Singapore's property market offers a plethora of investment opportunities for both local and foreign investors. To spot a good investment...
Read More
Introducing Top 5 Power Property Tips
Hello, everyone! We are excited to welcome you to our blog posts! On this blog, we will be sharing daily...
Read More
