Your search results

Invest During the Bearish & Exit During the Bullish

Posted by Jayson Ang on December 27, 2022

| 0

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 …

Mandarin Top 5

Top 5 Tips How to Find Your Dream Home in Singapore: A Step-by-Step Guide

Jayson Ang – October 21, 2024 –

Singapore, a vibrant and dynamic city-state, offers a diverse range of housing options for prospective homebuyers. From condominiums and HDB...

Mandarin Top 5

Top 5 : Golden Tips to Spot a Good Investment Property

Jayson Ang – March 9, 2025 –

Investing in real estate can be a lucrative venture, but it's essential to know how to spot a good investment...

Mandarin Top 5

Top 5 : Places to Learn About Singapore’s History

Jayson Ang – February 13, 2025 –

Singapore, a bustling metropolis known for its modernity and multiculturalism, is also a treasure trove of rich history and heritage....

All Buying Tips

Simplified Guide to Buying Landed Property in Singapore

Jayson Ang – January 8, 2024 –

TLDR When considering buying a landed property in Singapore, you have options like terrace homes, semi-detached houses, and bungalows. Understanding...

Mandarin Top 5

Top 5 Reasons : Why Does Singapore Have Such Extensive Restrictions On Foreigners Purchasing Residential Property?

Jayson Ang – November 9, 2024 –

Singapore, a thriving city-state in Southeast Asia, is known for its stable political climate, strong economy, and strategic location. As...

Mandarin Top 5

5 Tips for Renting Property in Singapore

Jayson Ang – March 15, 2024 –

Renting property in Singapore can be a challenging task, especially for those who are new to the country. With Singapore's...

Mandarin Top 5

Top 5 Reasons : How Investing in a Luxury Condominium in Singapore Can Boost Your Portfolio

Jayson Ang – January 16, 2025 –

Investing in a luxury condominium in Singapore is an attractive option for investors looking to diversify their portfolio and enjoy...

All Buying Tips

Essential Steps for Safely Purchasing Your First Home in Singapore

Jayson Ang – February 20, 2024 –

TLDR When considering buying your first property in Singapore, start by assessing your budget and qualifying for a permissible loan....

Buying Tips Mandarin Top 5

5 Things to do When You Go For A Property Viewing In Singapore Part 2

Jayson Ang – June 8, 2023 –

5 Things to do When You Go For A Property Viewing In Singapore Part 2 Here are 5 more things...

Mandarin Top 5

5 Tips : How To Spot A Good Investment Opportunity In Singapore’s Property Market

Jayson Ang – July 18, 2024 –

Singapore's property market offers a plethora of investment opportunities for both local and foreign investors. To spot a good investment...

All Opinion

Is it Possible for the Government to Truly “Reclaim Your Home” in Singapore?

Jayson Ang – January 25, 2025 –

The Singaporean government possesses considerable authority to reclaim land, whether freehold or not, in accordance with the Land Acquisition Act....

All Buying Tips

44 Exciting New Condo Launches in 2024 Starting at $1,402!

Jayson Ang – June 4, 2024 –

Alright, let's talk about 2024. We're not expecting the same kind of shortages we've seen after COVID-19. Some folks are...

All Blog Posts

Singapore Property Swapper

Jayson Ang – December 7, 2022 –

https://www.youtube.com/watch?v=B1NTnjxDPy4 Jayson Ang, also known as the Singapore Property Swapper, is a certified Propnex agent and top 1% producer who...

Mandarin Top 5

5 Reasons : Can Your Real Estate Investment Hedge Against Inflation?

Jayson Ang – September 10, 2024 –

Inflation is an economic phenomenon that can have a significant impact on an individual's financial well-being. As the cost of...

All Blog Posts Buying Tips

Exploring the Resale Condo Market? Here’s What to Watch Out For!

Jayson Ang – March 22, 2023 –

TLDR The impact of COVID-19 on Singapore's real estate market has been significant, leading to a surge in demand for...

Mandarin Top 5

5 Most Iconic Landmarks In Singapore’s Landscape

Jayson Ang – June 14, 2024 –

Singapore's landscapes is renowned for its innovative and dynamic approach to urban development, boasting some of the most iconic landmarks...

All Blog Posts Buying Tips

Discover What Else You Can Focus On Beyond PSF – Here’s How!

Jayson Ang – July 17, 2023 –

TLDR When considering real estate investments, factors like property size, location, and PSF play crucial roles in determining affordability. Smaller...

All Blog Posts Buying Tips

CPF Accrued Interest On Housing: Learn What It Is and How to Calculate It

Jayson Ang – February 14, 2023 –

TLDR Understanding the CPF accrued interest on housing loans is crucial for Singaporean homeowners. When using CPF funds to finance...

All Buying Tips Opinion

Are Early Bird Discounts At New Launches Genuine Or A Marketing Gimmick?

Jayson Ang – November 20, 2023 –

TLDR When considering investing in new property projects, understanding developers' pricing strategies is crucial. Early bird discounts are not just...