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Old 27-12-2011, 01:38 PM
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Originally Posted by Unregistered View Post
Taking 14 years to reach the same psf, is not breaking even at all. Need to factor in the negative equity risk and high interest rates in the past. Yes, property can be a good investment, no question about that. If u can hold long enough through the market cycles, property is almost bao jiak. The question is, how long can u hold, why hold for 14 years just to break even, when if u buy at the trough, u just need to hold for far less than 14 years and make a decent profit?

Also, why buy property NOW, when the situation in 2012 is probably closer to the 1997 situation (peak) than the 2005 or 2009 situation (trough)?

If u are so rich as to not be bothered about a drop in property value, and have long holding power, then no harm can be done to u no matter what. But not everyone is that rich.

I won't bother arguing with the eternal property bulls anymore. Long property is right in the very long run, but timing is crucial. Price does not increase in a straight line, it goes up and down while generally increasing. In between, many things can happen, fortunes can be made and broken. Basically, don't get into trouble by buying property at the wrong time, that is all I am trying to say.
Agreed. And property investment involves higher risk than stock because the worst is not just losing all your money, but you can be caught in negative equity with huge debts due to leverage - downpayment 20% and borrowing 80%.
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