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 …

All Blog Posts Buying Tips

What Hidden Costs Are There When Selling Your House?

Jayson Ang – July 7, 2023 –

TLDR When selling your house, be prepared to cover expenses such as outstanding home loans, legal fees, property agent commissions,...

Mandarin Top 5

5 Homeowners Share Their Biggest Regrets Delaying Their Property Purchase in Singapore

Jayson Ang – September 12, 2024 –

In the fast-paced and ever-evolving property market of Singapore, making a timely decision to purchase a property can make all...

All Reports

Finding Your Dream Home In The Near Future. Exciting Upcoming Property Launches In The First Half Of 2024

Jayson Ang – December 25, 2023 –

TLDR The real estate sector in 2023 saw significant policy shifts affecting both private and public housing, with various changes...

All Buying Tips Opinion

Singapore Distressed Property Market in 2025: Separating Fact from Fiction

Jayson Ang – June 23, 2025 –

TLDR Mortgagee sale listings in Singapore rose in Q1 2025, mainly due to higher interest rates in recent years. Despite...

Mandarin Top 5

5 Tips : Riding the Wave: How to Profit from the Upcoming Boom in Singapore’s Property Market

Jayson Ang – August 5, 2024 –

Singapore's property market has always been a hot topic among investors and homebuyers alike. With million-dollar HDBs being sold and...

Mandarin Top 5

Experience The Best Of Southeast Asia: 5 Must-See Destinations After Singapore

Jayson Ang – February 22, 2024 –

Singapore is a great starting point for travelers looking to explore the region. From Singapore, there are many great destinations...

All Blog Posts Buying Tips

Resale Viewing Do’s and Don’ts: Expert Advice from a Singapore Real Estate Agent

Jayson Ang – December 19, 2022 –

TLDR The blog post provides valuable insights for first-time buyers on navigating the resale property market in Singapore. It covers...

All Blog Posts Opinion

When Should You Consider a Shorter/Longer Home Tenure?

Jayson Ang – May 8, 2023 –

TLDR Understanding the benefits of long-term home loans is crucial for financially conservative individuals in Singapore. Opting for a longer...

All Buying Tips Opinion

2024 Will Be A Buyers Market

Jayson Ang – January 23, 2024 –

TLDR 2023 saw a roller-coaster ride in the real estate market, with various challenges like high interest rates and geopolitical...

All Buying Tips

The Changing Faces of Orchard Road

Jayson Ang – October 10, 2024 –

Should You Buy, Sell or Wait? If you're reading this, you must be trying to figure out the best course...

All Buying Tips Opinion

6 Misleading Claims Property Agents Often Make That Savvy Buyers Are Aware Of

Jayson Ang – March 15, 2024 –

TLDR Real estate agents can sometimes use deceptive tactics to push sales. Be cautious of claims about other interested buyers,...

All Buying Tips Opinion

Three Singaporeans Share Their Experiences of Co-Owning a Property with Friends

Jayson Ang – March 18, 2025 –

TLDR In Singapore, some individuals venture into property investments with unrelated partners, driven by opportunities and personal circumstances. Jim, leaving...