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
TLDR
A comprehensive overview of the real estate market trends, emphasizing the importance of strategic property analysis and investment decisions. It discusses key factors such as market sentiments, property valuation, buyer considerations, and portfolio restructuring. The narrative highlights the significance of leveraging assets to maximize wealth growth and the potential pitfalls of not utilizing resources effectively. Additionally, it offers valuable advice on navigating property investments in Singapore’s dynamic real estate landscape.
Time Truly Flies! As I Write This, We Have Already Passed 2022. Let’s Take A Look At The Chart Below. How Do You Think The Market Has Been Performing In The Last Quarters?
It Is Not When We Buy The Property But When We Sell The Property That Determines The Actual Profit At The End Of The Day.
Are you wondering whether it is a good time to enter the market now? | believe many buyers are asking themselves this question, or thinking, “Should I wait further? I may get a good deal later when the market corrects further!” I totally understand their mentality because I was once like that too.
When we do not know how to analyze a property and determine whether it is a good deal, even if a unit pops up right before us and appears to be below market price (BMP), we will still not buy it. Why? Because when the market sentiment is weak, everyone will always choose to wait for prices to go lower and then they will end up not buying the property; I speak this from experience.
January 2009 was the time when the market was at the lowest. My client could get a unit at The Sail above #60 and facing the Bay at $1750psf. However they did not get it. Why? Because they said, “Let’s wait further…
My client ended up buying a unit below #10 for $2300psf. Fortunately for them, they managed to sell that low floor unit at a higher price. The lesson we learnt from this was: Many of us tend to time the market but most of the time we end up buying a much higher price unit.
In my opinion, it is not when we buy the property but when we sell the property that determines the actual profit at the end of the day. Now with the Seller’s Stamp Duty (SSD) in place, we have to pay a heavy tax if we sell our property within 3 years of purchasing it, which, of course, many of us are unwilling to do so.
Do Not Just Work Hard For Money, Let Your Money Work Hard For You!
Remember however that we cannot predict the future. When SSD is over, the market may not be in your favour and at the end you may still not be able to sell your property! Therefore I will strongly advise buyers to learn how to assess the property they have selected. Does it have potential upside based on the current market versus the various properties transacted?
Next, buyers need to carry out a ‘stress test’ on the property that they have selected. This will help to determine the risk level. If you do not know how to go about assessing the property, I have analysis tools available which will help you.
Looking at the number of transactions reported, what should homeowners do today? Is there still an opportunity for them to grow their wealth today?
Many of us carry the mentality of working hard to save enough money to own a 2nd property. But think about it; is it easy for any working couple to save enough? What will their age be when they have saved enough?
Before I became a real estate person, I worked for others too. I know how difficult it is to save because of our fixed expenses. Furthermore when our age goes up, the loan tenure will be affected and the mortgage will be high too.
I have met up with quite a number of couples recently. They own a property currently, have fully paid their property, and are currently sitting on profit on the house. However, they do not know how they can use their asset to work hard for them. asked them, “Why aren’t you using your asset to work hard for you?” The answer they gave was, ” have no idea or knowledge how to do it!” As a result, they have been putting this aside and are just focused on their work. I have seen many people working hard for money and not using their “sleeping money” to work hard for them.
Another frequent concern raised was the loan instalments. Many assumed they needed to pay a lot to own an asset. The fact however is that they did not work out the cost of the asset! When I carried out the stress test with them in planning for another asset, they realised that it was actually workable and sustainable.
With all the property measures in place, what should homeowners do today? For those of you who own 1 property now, this thought would likely have crossed your mind, “Wouldn’t it be great if I had bought 2 assets instead of 1, just 5 years ago!” Today, if you have 2 assets, your wealth would have doubled.
We need to constantly think of how we can restructure our portfolio and tap on our unutilized money in our asset or in our CPF to work hard for us. Do not just work hard for money. As often tell others, “Let your money work hard for you.” Lastly to paraphrase a view commonly heard, remember, “Invest during the bearish and exit during the bullish times!”
You May Also Like …
Find Your Dream Home: Top 5 Property Investments for Families in Singapore
As one of the most prosperous countries in the world, Singapore is an attractive destination for families looking to invest...
Read More
4 Fresh Trends among Young Homebuyers Could Shake Things up in Singapore’s Real Estate Scene
TLDR Younger generation in Singapore is reshaping house hunting by showing a preference for quality of life over location. Millennials...
Read More
Top 5 Tips for First-Time Chinese Buyers Looking to Invest in Singapore Today
Top 5 Tips for First-Time Chinese Buyers Looking to Invest in Singapore Today Here are the top 5 tips for...
Read More
5 Reasons : Why Investing In Singapore Property Is The Best Decision I Ever Made
Investing in property is a great way to build wealth and secure a stable source of passive income. When it...
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
Top 5 Case Study : The Dark Side of Property Investing in Singapore: Scams, Fraud, and Risks
Singapore's property market has long been considered a lucrative investment sector, attracting investors and speculators looking to profit from the...
Read More
Can Your HDB Flat Safeguard Your Retirement?
TLDR The HDB market has seen significant changes over the years, with many young owners looking to upgrade to private...
Read More
Top 5 : Best Karting Circuits in Singapore
Singapore, a bustling city-state known for its modern architecture, cleanliness, and vibrant culture, is also home to a thriving karting...
Read More
4 Intriguing Property Trends in Singapore for 2024
TLDR The dynamic shifts in Singapore's real estate market following Covid, highlighting three key trends: the surprising resilience of the...
Read More
Which Is Better For You: A 99-Year Leasehold Or Freehold Property Tenure?
TLDR When it comes to the choice between leasehold and freehold properties in Singapore, several factors must be considered. Leasehold...
Read More
5 Reasons : The Benefits Of Investing In A Property With Good Access To Healthcare Facilities In Singapore
Investing in a property with good access to healthcare facilities in Singapore offers numerous benefits for both homeowners and investors....
Read More
Top 5 Factors : Singapore Real Estate Investing vs Stocks and Bonds: Which is Better?
Investing is an essential aspect of wealth creation and financial planning. With a plethora of investment options available, it can...
Read More
Top 5 Museums in Singapore for Art and History
Singapore, known for its vibrant culture and rich history, is home to a plethora of museums that cater to art...
Read More
35 Brand New Condominiums Nearing Their ABSD Deadline 2023
TLDR The blog post discusses the looming ABSD deadline for several new launch condos in 2023, highlighting the impact on...
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
Singapore’s Property Market: Will the Newly Proposed 2023 Cooling Measures, Including a 60% Foreigner ABSD, Make Waves or Mere Ripples?
TLDR The recent surge in Additional Buyer's Stamp Duty (ABSD) rates in Singapore targets mainly foreigners and entities, with rates...
Read More
How to Build a Property Empire in Singapore: Scaling Your Investments
Real estate investing is a popular way to build wealth and generate passive income. However, like any investment, it comes...
Read More
NUS Real Estate Survey Reveals Growing Optimism Among Industry Leaders
TLDR A recent survey by the National University of Singapore (NUS) highlights increasing optimism among real estate industry leaders. The...
Read More
5 Singapore Property Trends to Watch in 2023: Expert Weigh In
5 Singapore Property Trends to Watch in 2023: Expert Weigh In Top 5 Singapore Property Trends to Watch in 2023...
Read More
