Quote:
Originally Posted by Unregistered
I'm still long property. Read the Straits Times today. Chinamen are still buying. Their money has no where to go. Inflation in China is rampant, so the rich will park their money here, not in cash but in property.
We'll see who's correct.
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There's no point talking about seeing who's correct when folks are taking a buy and hold mindset. These folks think that they are correct if they buy today and sell in 10 years time at 10 percent profit - conveniently choosing to forget that they have paid considerable fictional and transaction costs ie (i) interest of 1-4 percent for 10 years, (ii) inflation of 3-5 percent pa for 10 years (iii) agent commission of 3% (1% to buy and 2% to sell) (iv) renovation cost of $30k to 100k (v) stamp duty.
The simple question is : do you think there is 20 percent upside within 5 years. If yes, please go ahead. If no, then no point going in now (cos with the new stamp duties, you cannot flip).