Ha ha, I used to think like you, unfortunately, the gain is still going. May not be like my forefather (I think they don't own property at all), or simply my parents. I see how that insufficient funds can really impact their living. What is overpriced market? Ha ha, you are better than the developers, whom are bidding at higher psf, and do you think no taker at all? I have still got a long way to go, so I am not those investors that flip the property once it goes up by few percent.
When to go in, it is very much up to individual. No right or wrong, it is up to the purchaser decision and comfortability. Everyone out there (common sense) is thinking to strike when price is low, but question is when. It is not like share markets, when u think it is the "dip", ppl just move in and buy, thinking it is a bull market. Property is different, it takes expensive transaction cost to flip and get a buyer. But if we live on it or rent out, if market is not sunny, I think we won't lost in the long term, ultimately, the piece of property still belongs to you. Ha ha. cheer up and enjoy life.
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Originally Posted by Unregistered
I don't think anyone is disputing that passive income is good, and that it is important to have one to have investments, to build up your retirement nest.
The question is : is property investment a good move now, when all fundamental indicators (with the exception of excess liquidity) pointing to an overpriced market? To me the answer is a pretty resounding no.
I disagree with the statement that property investment is always safe in land scarce Singapore. There has been too many examples of prime properties collapsing in prices at the trough of the cycle in the past.
Buying at a price of x and seeing the price go down to 0.5x then selling after 15 years at 1.2x is not the mark of a good investment. Buying at 0.5x or 0.7x and selling after 5 yrs at 1.2x is a good investment. That also means being able to analyze relative value in order to optimally time your purchase instead of taking a passive buy and hold approach, and relying on the macro concept of land scarcity and leverage to clock in your gains.
Remember the generally upward trajectory of property prices our parents and grandparents enjoyed no longer applies for us. From 1980 to today, my parents house value went up by 35 times. There is no way this happens again in the next 30 years. a doubling in value is probably optimistic. Salaries are just not keeping pace. What does this mean? Well the main implication is that a blind buy and hold approach will be a lot less effective for us than for our forefathers.
So things are fundamentally different now and we need to recognize and adapt accordingly to be successful going forward. Hence to buy today with so many red flags out there is hardly prudent.
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