Quote:
I also want to add that property to most Sgeans is mostly about condos. Landed, office and retail properties are too ex for most to even pay the downpayment. Industrial was hot for a few months, but now kena clam down by government so the market for small timers is almost dead. I have a few friends who use to shout that as long as buy blue chip shares is safe until they got burn backside by big companies like Capitaland, NOL, SGX, Wilmar, DBS etc. Already >5 years still sitting on big paper losses. |
Quote:
i thought all the cooling measures only for residential? |
Quote:
|
Quote:
1. Not necessary to stay invested at all times - now is a particularly tricky time to be invested in any asset class. Understand that inflation is a concern, but buying property has at a high is no hedge (i.e. if you bought a property in 1997, you may not have broken even in NOMINAL terms even today). 2. Leverage is the primary advantage AND disadvantage for property - obviously many generations of Singaporeans have made it rich by buying property due to the effect of leverage. But this is a double edged sword. - if you buy a $2mn property today, using your hard earned $400k as downpayment, and we see a 'normal' downturn with a 30% drop in prices, you would lose $600k and be in negative equity territory - I know its only a paper loss if you can hold on to the property, but isn't it better to wait until it drops to $1.4mn before you buy ? 3. Policy risk - We are seeing more policy risk now than ever, as the govt is coming up with round after round of policy measures - there's no end to this - If you look at what the govt has done, they have effectively taken away foreign buyers (10% stamp duty), speculators (16% sellers tax within 1st yr) and reduced mortgage tenors (35yr / 65 yr old rule) - historically such policy measures have a lag effect, but they WILL eventually gain traction (this has been proven throughout history and across geographies), so why buy now? - its damn hard to make money now i.e. my 3 to 5-yr outlook is more negative than positive (against the backdrop of continued policy risk, weak global environment, property prices at an all time high, interest rates at an all time low, record TOPs coming onstream in the next 3 yrs) and if i want to flip, i buy a $2mn property now and pay 3% stamp duty, 1% agent commission, 16% seller's tax, 2% agent commission to sell my current house --> means I have to sell at above a 22% profit in order just to break even ! so in summary, why property and why now ? |
Quote:
|
Quote:
All the points you mention everybody already know, but the thing is if not property what else is there? At least for property only those suay enough to enter at 1997 got backside burn, but alternatives like stock market don't know how many people got burn how many times from 1997 to now. Put in FD is like confirm chop guarantee loose 5% to inflation every year. Property is not good investment, but just the best among all other possible alternatives in sgland. |
Quote:
|
Quote:
commercially bred chickens through genetic selection technology will become 67.5% bigger in the future and Singaporeans will no longer be able to consume an average of 2.8 pieces per set meal; this figure will drop to 2.1. i love pulling figures out of my ass too! |
Quote:
12/1997 - 144.0 12/98 - 100.0 (-31%) 6/00 - 141.5 6/04 - 111.4 (-22%) 6/08 - 178.7 6/09 - 132.2 (-26%) Hdb resale index fell from 136.9 in q4 96 to 95.5 in q1 02 or down 30%. All this is public info. Or you can check caveats. District 10 freehold semi d in Greenleaf. $3m in 97. $1.4m in 2003. |
i bought a condominium unit in D9 in 1996 at a high, it went down by 40% due to the asian crisis and SARs. i held on until today. today's price is now 20% higher than my purchase price. as long as you are able to hold, property is still the best investment.
i bought some blue chip stocks and some of these stocks dropped 90% of its value and never recovered. so i believe in Singapore property. |
All times are GMT +8. The time now is 11:45 PM. |
Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2024, Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.3.2