Indeed, many families become rich from flipping their property. We bought a landed house in 2006 at the bottom of the property cycle and sold at the peak in 2013. We then downgraded to a 3 bedroom condo in the Bukit Timah area and paid it in full. On top of that we still have cash in hand. With this cash, we renovated our new home nicely and also bought a new car, also paid in cash. We do not have to take any loan at all and we don't need to use any of our cash savings. We are also DEBT FREE at the age of 43. All this is made possible courtesy of the property market. However, this flipping is now no longer possible. The property bull market is OVER.
Since we have fully paid our condo, we now don't care what will happen to property prices. However those who bought their condo with only 20% downpayment will need to worry as they may face negative equity if prices crash more than 20%. The banks may ask them to top up and if they can't they have to sell at a big loss. That is why I always advice people around me to buy a property (even for their first property) with a 60% downpayment. Better still, is to buy with full cash.
Quote:
Originally Posted by Unregistered
Here is the formula to own new cars:
1. Buy your first BTO flat for $200k.
2. Wait for 5 years (MOP) of your flat, then apply for second BTO flat costing $200k.
3. After you get key to your 2nd BTO flat, sell your first BTO flat in the resale market for $500k and make profit of $300k.
4. Use your big fat profit to buy a brand new car.
Our cheap BTO flats make us all rich and able to buy new cars. As long as we have cheap BTO flats, COE prices will continue to rise higher and higher. |