Quote:
Originally Posted by Unregistered_Making sense
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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With all due respect, the problem I have with your analysis is that there is no analysis at all.
Your fundamental premise is that property is inherently safe and hence you can choose to go in if you are comfortable doing so because you cannot lose in the long term. I beg to differ. Statistics and countless empirical examples beg to differ.
Many people who bought their outskirt condo at the peak in the mid 90s have still not seen their property values come back to par, despite the record prices we see currently. And this does not include frictional costs such as agent fees, stamp duty, inflation and interest cost.
Obviously timing matters in a highly cyclical market like property. In the absence of 20-20 hindsight, all you can do is take an objective and numerical view , and take the most rational route. Buying on faith of the infallibility of property, and ignoring the realities of the moment and if history sparks of foolhardiness to me.
Remember, no one is disputing that its important to have investments. I'm only disputing that going into property now is a good investment, and I've not seen anything in your post above that objectively convinces me otherwise.