Your search results

Sell High Buy High : Will This Still Make You a Profit?

Posted by Jayson Ang on December 7, 2022

| 0

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 …

All Blog Posts Buying Tips

Should I Move to a Private Property?

Jayson Ang – January 9, 2023

TLDR When considering an upgrade from HDB to private property in Singapore, it's essential to understand the differences and implications....

Mandarin Top 5

5 Tips : How To Choose The Right Property Agent To Help With Your Singapore Property Investment

Jayson Ang – June 6, 2024

Choosing the right property agent is crucial to the success of your Singapore property investment. A good agent can provide...

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

Top 5 Factors : Why Not All Properties Appreciate Steadily

Jayson Ang – January 20, 2025

Real estate has long been considered a lucrative investment option, with the potential for significant returns. However, not all properties...

All Buying Tips

A Guide to Purchasing a New Launch Condo in Singapore in 2023

Jayson Ang – October 26, 2023

TLDR When buying a new launch condo in Singapore, start by planning your finances to determine loan and property limits....

All Opinion

Why Can’t Everyone Have Homes In Good Locations?

Jayson Ang – March 9, 2024

TLDR In a nutshell, the Singapore property market is undergoing significant changes, with the introduction of a new housing classification...

All Blog Posts Buying Tips

35 Brand New Condominiums Nearing Their ABSD Deadline 2023

Jayson Ang – March 4, 2023

TLDR The blog post discusses the looming ABSD deadline for several new launch condos in 2023, highlighting the impact on...

All Opinion

Singapore’s Aging Population: Is the Housing Market Ready?

Jayson Ang – February 18, 2026

TLDR Singapore is rapidly aging, with one in four citizens expected to be over 65 by 2030. Current housing models,...

All Buying Tips Opinion

Most Buyers Miss This Condo Checklist Item — Until It’s Too Late

Jayson Ang – April 18, 2026

TLDR When buying a condo, many overlook the importance of the Management Corporation Strata Title (MCST) and its finances. Beyond...

All Blog Posts Buying Tips

When Is the Right Time to Sell Your House?

Jayson Ang – December 31, 2022

TLDR When deciding to sell your house in Singapore's competitive real estate market, timing is crucial. Selling during a seller's...

Mandarin Top 5

Top 5 Overlooked Features that Buyers are Looking for in Singapore Property

Jayson Ang – May 17, 2023

The top 5 overlooked features that buyers are looking for in the Singapore real estate market. These are the overlooked...

All Buying Tips

Why The URA Master Plan Matters For Your Property’s Potential

Jayson Ang – March 24, 2024

TLDR The URA Master Plan entails significant shifts like the relocation of Paya Lebar Airport or creation of Punggol Digital...

Mandarin Top 5

Exploring Singapore: The Top 5 Surprising Facts You Never Knew

Jayson Ang – March 13, 2025

Singapore, a city-state in Southeast Asia, is known for its rich cultural heritage, diverse population, and vibrant food scene. This...

All Blog Posts Buying Tips

What is a Tenancy Agreement (TA)

Jayson Ang – July 21, 2023

TLDR When it comes to understanding property jargon, it's crucial to familiarize yourself with the specifics of a Tenancy Agreement...

All Blog Posts Buying Tips Opinion Reports

Can You Still Make Money from Older Freehold Condos in Singapore

Jayson Ang – November 23, 2024

TLDR While freehold condos might seem like a solid investment, the rise of new developments and aging buildings cast doubt...

Mandarin Top 5

Top 5 Reasons Why Singapore’s Luxury Property Market Is Booming – Expert Analysis!

Jayson Ang – October 17, 2024

Singapore's luxury property market has been experiencing a significant boom in recent years, attracting the attention of investors and high-net-worth...