Hi again,

So it seems is not that bad, your properties must have been purchased around 2009/2010 I guess.

The question should be if from a strategic investment perspective if you think its time to let go of your properties because market has peaked? Or does the area have benefit in the future you see it worthwhile holding on too?

I guess your properties are tenanted out which results in the 80K Passive income, 1.2 Million loan would be about 4.5K repayment assuming 30 years on 2%. Plus property tax and MCST lets say its 5.5K per month which is about 66K per annum that your rental covers which puts you in a decent position (even half the rental if need be and some top up if desperate)

If you want to hold, take a defensive play and lock in your loans for fixed interest rates and try to get the tenants to lock in as long as possible on contract. From there you can calculate how much holding power you have assuming no tenants. (personally I send greeting cards and gift certs to the tenants to encourage renewal when the time comes)

Of course if you think market has peaked then sell, no need for strategy here.

As for outlook

I find it funny how some forum users here predicting market crash immediately have a magical 50% number on it, I wish that would happen too then we can buy properties in bulk.

We have come a long way since 1997 and the market is awash with cash from all the QE printing. In 97 we didn't have hordes of cash rich PRC and Indians buying delux properties all along orchard road. Not to mention inflation, in 90's my friend family built a 15,0000 sq feet house for 1.5 Million. Today the same amount of money will likely just rebuilt a terrace house or corner terrace. No need to even compare salary differences and all the rich bankers in town which was lacking in 97.

So you decide your strategy and plan accordingly, you are in no immediate risk I can see and have about a 2 year holding power. And of course if markets did fall 50% imagine all the new HDB buyers who paid 600K - 700K for their flats would do to the government.

We can't plan for everything, we plan for what we logically anticipate.