Exploit the Recession

I do not think that freehold condos make a better investment than leaseholds, unless perhaps in the very long term.

We must know that since this definition was set for leaseholds, no properties have exceeded, or even come close, to 99 years. There is no precedent as yet as to how the government will handle leaseholds that are nearing end of life - for all we know you simply pay a small premium to continue (ala COE extension for cars)

Besides, even leaseholds can go en bloc (provided you buy those that are not ancient) as can be seen not too long ago when a 30 year old leasehold went for an en bloc sale.

Within the next ten/twenty years, as Singapore becomes more and more populated, property prices will be more evenly distributed due to scarcity of land - eg a leasehold in Jurong or Sembawang can have a chance of going en bloc nearly equal to that of one in Newton (with maybe 70 years left)

my 2 cents, thanks

The property market is also in the middle of a crash. If you have a few hundred grand (or more) in your 'opportunity' fund, I recommend you also start looking around for a second or even third property. If you do not have such spare money, you can also consider upgrading from your current HDB to a condo - try to get one in a good location and I personally prefer freehold condos to leasehold ones.

middle of recession, and recommendation is to buy property?

Not buy immediately, but start looking.
My recommended strategy is to buy low and sell high. So when better to buy than during a recession?
See also my lament on why people were flocking to buy at the height of the boom (or near it) in 2007.
Thanks for the chance to clarify.

No worries. We all learn from mistakes.

Start shopping around for property units, but DON'T BUY YET.
A recent UBS report says "we expect mass market and prime residential property prices in Singapore to decline by 20-30% and 40-50% respectively from their peaks in mid-2008 to a potential trough by mid-2010. It thus constitutes another 15-25% and 30-40% decline from the current prices for mass market and prime residential properties, respectively."

I agree with Bottom?. No one knows where the bottom is. Are we at the bottom of the property price index? Probably not. Rentals are done sharply Q1 2009, and likely to head further south, thereby dragging down prices further. HDB valuations are going to head south as well, all the people who bought properties after June 2007 on the deferred payment scheme are still having nightmares knowing there is nothing they can do but sit and pray. But I swear, if you are thinking of buying a property for investment and you have not yet started looking around and doing your sums, but just sitting around talking down property prices, you are one of those people who only know how to talk, and will probably not have the guts to put your money where your mouth is when the time comes. Always remember for any given property cycle, or even any single development per time period, only ONE buyer will get the lowest price, and everyone else is a 'loser' for not buying at that price. This person probably didn't even aim to be the lowest priced buyer. he or she probably just thought, good price, good upside, I buy now. That's all. Focusing too much on the downside (ie being all negative) and you may well miss out totally when the boat floats again and you are still looking for the bottom. Don't just be just a theory expert, start looking now if you are interested.

This is what rich people has been doing all along to expand their wealth simply because they have more than enough liquid assets like cash, fixed deposits to cover the next 10 years of their living expenses.
Although no one can catch the bottom but most definitely can know where the general bottom and top lies using certain clear metrics like equity risk premium of STI.
But most average Singaporeans, especially lower-middle and even middle-middle income with bills here, there and everywhere can only look and see the opportunity pass them by as they simply don’t have excess cash that can hold on to investment grade blue chips for more than 2 years.
“Set aside enough money to cover 1 year’s worth of your family expenses, just in case.”

The rich get greedy and get burnt, like Oei Hong Leong. It’s been said that recessions are game changers. Some move down the ranks and some move up. If you had been prudent and live within your means, you can move up by buying low during this game changing period and selling high during the “good times” when eveyone feels like an investment guru. I know, cos I moved up a few notches doing this.

Originally Posted by Salary.sg

If you have the good fortune of remaining unscathed by the recession, perhaps you should turn aggressive and try to take advantage of it instead.

First, make sure you have set aside enough money to cover 1 year's worth of your family expenses, just in case.

Then invest the rest. Take advantage of the recession.

Now is the time to buy. If you buy now, you are buying low. (See also past articles on buy low sell high and buy low sell high 2.)

The stock market is now hovering at a level that is lower than 50% from its peak. Consider buying blue chip shares. All of them have fallen drastically in value though many of these businesses are still extremely sound and well capitalized. Examples of such shares can be found here. And if you don't have your own online trading account, what's stopping you? Just ask around to get started.

Yes, buy blue chips and hold for the medium term. I would hold until the next stock market euphoria, whenever it might be.

The property market is also in the middle of a crash. If you have a few hundred grand (or more) in your "opportunity" fund, I recommend you also start looking around for a second or even third property. If you do not have such spare money, you can also consider upgrading from your current HDB to a condo - try to get one in a good location and I personally prefer freehold condos to leasehold ones.

The value of your properties will go up when the economy recovers.

Suppose you paid $200k and borrowed $800k to buy a $1m house, and managed to rent it out to cover interests and expenses. If the house is sold at $1.4m a few years later, you would have tripled your initial $200k investment!

Good luck!

Remember: if you buy now, you're buying near the bottom.

Exploit the Recession | Salary.sg - Your Salary in Singapore

Just browsing the archives.

If someone had followed this piece of advice in 2009, he/she would indeed have had paid $200k (pre-cooling measures) and borrowed $800k to buy a $1m house, and probably managed to rent it out to cover interests and expenses. And likely the house is worth $1.4m now!

Originally Posted by UBS--

Start shopping around for property units, but DON'T BUY YET.
A recent UBS report says "we expect mass market and prime residential property prices in Singapore to decline by 20-30% and 40-50% respectively from their peaks in mid-2008 to a potential trough by mid-2010. It thus constitutes another 15-25% and 30-40% decline from the current prices for mass market and prime residential properties, respectively."

we know how accurate this turned out!