Lol nice term, but I do do a lot of analysis before buying. Then again I have 11 properties (residential/commercial) all sitting on a 65% - 85% gain on the original purchase price. Be it as it may I still sticking with my approach to property as it served me well to date. There is a saying: Bulls make money, bears make money, pigs get slaughtered
Its exactly because the gentleman is question is a salaried which is why he should practice more caution, regardless long haul/short haul, own stay or investment like me there are the basic principals of overvalued and undervalued property.
Life in unpredictable, touch wood but if something happen to the sole provider do you want you're loved ones to take on the burden? Its more sensible and practice to assess risk based on what you do know and not speculative measures.
Lets review what we do know or don't know shall we?
- The individual initial proposal was to take on a loan bore by 2 people till they were age 65, 25 years from now. What the risk of one person losing their job or being incapacitated from now till 25 years from now? Risk? 40%
- Markets are currently riding high, purchasing a new property now will factor a degree of overpaying. Especially in a Jurong which a new and hyped up area which is going strong despite all areas going down. if prices in Jurong and River Valley hit the same psf price which would you go for? Chances of prices going higher then current on a leasehold 99 year facility 25 years down the road? 30%
(Unless we allow in another 3 Million foreigners of course)
- Jurong sentiments (://jurong.files.wordpress.com/2008/09/new-a0-boards-8498126_resize.jpg)
"Jurong Lake will be undergoing a makeover next year, as part of the
URA master plan to turn the district into a business and leisure destination."
Wtf is a business and leisure districts, who is going to move there? Banks who are top paymasters in rental already have offices in Shenton, Changi Business Park and Tampines, Dhoby Gaut etc and are moving most of their operations to India.
There is a medical building also opening but again who is going to move there? We already Novena Mount E (not fully occupied), UE Medical in Novena (not fully occupied), Mount E , Glen E plus future plans for more novena medical facilities. I don't see doctors in practices packing and moving in droves to Jurong as well. Sounds like another Punggol waterfront idea. So whats your view on Jurong being the next Marina Bay Centre?
Anyway the OP seems to have reassess his situation and taken a safer approach, most of the clowns goading him on seems to have no idea on proper risk analysis. Its no wonder when the market tanks all the whiners come out and start bitching about the government.
Quote:
Originally Posted by Unregistered
Dissecting and analyzing? It is what I would call paralysis by analysis.
Yes, buying a property is a huge commitment for most of us salaried people, but in Singapore where land is scarce and especially when you are buying for own stay, it would be alright. Just make sure you can handle the loan and that you are in it for the long haul.
The poster rightly pointed out that it is indeed a form of forced savings. Many generation of homeowners before him, have reaped the financial benefits of home ownership.
Condo living brings your quality of life up a few notches. Before, I was contented staying in my cosy HDB exec flat, but after I made my move to a condo, whoa, there is no looking back. It was a case of "You don't know what you don't know".
Another thing is life is very unpredictable. You can plan all you want, but fate has a habit of springing nasty surprises. You must have read many stories of people delaying gratification because they wanted to save enough? Well, their delayed gratification became permanent delays. |