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 : Is Investing In Properties Worth In Singapore?

Jayson Ang – February 3, 2025 –

Investing in properties has long been considered a reliable and profitable venture, and Singapore, with its robust real estate market,...

All Buying Tips

Single, Over 35, and Searching for a Home? Here’s Your Guide to Choosing Between an HDB and a Condo!

Jayson Ang – January 21, 2025 –

At the age of 35, a single Singaporean starts a significant year, highlighted by the long-awaited chance to buy their...

All Blog Posts Buying Tips

Avoid These 6 Terrible Property “Tips” in Singapore

Jayson Ang – May 1, 2023 –

TLDR When it comes to property advice, it's crucial to be cautious of common misconceptions. For instance, schemes like the...

Mandarin Top 5

5 Cons Of Buying A Resale Property

Jayson Ang – March 7, 2024 –

Luxury properties in Districts 9 and 10 of Singapore are highly coveted, and for good reason. From stunning views and...

All Buying Tips Opinion

My 6 Factors to Consider When Buying a Property in 2023

Jayson Ang – March 11, 2023 –

As the housing market shows no signs of slowing down, many of us may feel left behind, questioning whether it...

Mandarin Top 5

Top 5 Reasons : Why Singapore’s Property Market Is a Safe Haven for Investors in Uncertain Times – Insider Analysis!

Jayson Ang – September 16, 2024 –

In today's uncertain global economic climate, investors are constantly on the lookout for safe havens to park their wealth. Amidst...

Mandarin Top 5

Top 5 Mistakes to Avoid When Buying Property in Singapore – Expert Insights!

Jayson Ang – March 19, 2025 –

Purchasing a property in Singapore can be an exciting and rewarding experience, especially for those looking to invest in the...

All Buying Tips Opinion Selling Tips

What Impact Will Decreasing US Interest Rates Have on Homeowners in Singapore?

Jayson Ang – July 25, 2025 –

TLDR The Fed’s recent 0.5% rate cut is likely to lower Singapore’s SORA-based home loan rates, benefiting those with bank...

Mandarin Top 5

Top 5 Reasons : How Can A Reputable Real Estate Agent Help You When Investing In Singapore Property

Jayson Ang – May 20, 2025 –

Investing in Singapore property can be a lucrative venture, given the country's stable economy, strategic location, and high demand for...

All Blog Posts Buying Tips

5 Key Insights to Take Away from the Latest 2022 Cooling Measures

Jayson Ang – December 8, 2022 –

TLDR Affordability of HDB Market: Government is focused on ensuring affordable public housing and may increase supply if needed. Long-term...

All Buying Tips Opinion

4 Key Factors to Consider When Purchasing a Private Property for the First Time

Jayson Ang – August 27, 2023 –

TLDR When considering buying or selling property in Singapore, it's crucial to understand factors like Additional Buyer’s Stamp Duty, Loan-To-Value...