Poor investors always make the mistake of not cutting their losses early and only when things get worse and they had no choice but to sell, then they panic and incur huge losses. Typical weak investors.
Quote:
Originally Posted by lazyplane
While i think the advice is good, it will be hard for anyone to let go an investment property at this stage esp if they are receiving rental income.
Prices have come off quite a bit. For this guy, he is probably counting the loss opportunity cost by missing the boat to sell earlier and which can be estimated to be a sizeable S$100-200k
Can he hold ? Well, as he is receiving rental income and he holds just 3 years, he will "recover" this loss . And who knows what will happen in 3 years time ? If it recovers, then he would have made a bad call by putting himself out of the capital gains + rental income.
I know this because i have friends in similar situation. It is easy to say cut because prices etc but this is a very difficult call to make when it is your own
money and you dont really have a "burning" bridge situation.
Having said that, when a burning bridge situation comes, getting out is near impossible. We can only place our bets as best as we can see.
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