Property Prices Have Crashed (see graph)

Not many people have made losses since a decade ago. Maybe ask the same question again in a few years' time.

Originally Posted by Unregistered

Not many people have made losses since a decade ago.

Those who have not bought properties made losses, it's just that they don't feel it that way since no real money was invested.

Originally Posted by Unregistered

Not many people have made losses since a decade ago. Maybe ask the same question again in a few years' time.

As a matter of fact, at current peak of the property cycle, no people have lost money. Even those who bought at 1997 peak are seeing gain at current valuation.

At this stage of the cycle, this is the classic example of greater fool theory.

Originally Posted by Unregistered

As a matter of fact, at current peak of the property cycle, no people have lost money. Even those who bought at 1997 peak are seeing gain at current valuation.

At this stage of the cycle, this is the classic example of greater fool theory.

Oh... I really like to have you as customer.

You are absolutely right. Property would never be negative value in Singapore and will never make you lose money as long as you can continue to hold.

Hope you are not just giving advise but not taking any action.

Buy now lah!! I am more than willing to assist you.

Cheers!!!

Property Agent. Do you know wth is greater fool theory?

Dunno pls dun assume that the other user says he is interested in buying.

The greater fool's theory exist during the mark-up phase of a market cycle. It is the phase just before the selling off phase.

Seems like u are actually the real fool.

Originally Posted by NoobAgent

Property Agent. Do you know wth is greater fool theory?

Dunno pls dun assume that the other user says he is interested in buying.

The greater fool's theory exist during the mark-up phase of a market cycle. It is the phase just before the selling off phase.

Seems like u are actually the real fool.

A fool?

Actually indirectly to dispargage his view of long property, I don't believe this fool will buy at all.

Ha...ha...

Of course im not buying. I just sold my property two months for a 200% profit from $600k down payment i paid.
Im just saying property agent was misquoting the other guy. The other guy didnt say he was buying, he was just explaining the market sequence to property agent.

PS: Just to inform u, its spelled 'disparage', not 'dispargage'.

What about exec condo? Currently most are priced approx 20% lesser as compared to other condo in the vicinity. Will the developer slashed the asking price if the property price correct or will they stay firm on their asking price

Base on past experience usually tend to stand firm with their asking price. Even during a crisis, this is because they tend to have enough capital to hold out. They might give you a small discount here and there so as to report sales but i wont expect large drop in prices.

If you do not mind, the second hand market usually gets you a better deal than what the developers can offer. Near the end of the last financial crisis, i went to the wharf residence showroom, capital land offered me $1350psf to purchase an apartment. I didnt bite. I sourced around and found a seller selling the same project for $1250psf. So i managed to save $100psf just with some homework. Therefore, i would recommend you to do some research before you make a purchase.

Originally Posted by Unregistered

The best instrument to effect this strategy, provided you really like the stock and are comfortable buying it over 1 year, is the accumulater (also dubbed "i kill u later" by disillusioned investors). It's a good instrument if applied selectively.

But personally, as long as the European debt crisis stays unresolved, I'd like to stay cash heavy. The effect of the Lehman crisis was a massive transfer of leverage from private sector to public sector (from govt bailing out their financial institutions).

The public debt saga we are seeing now has not fully played out yet. We've only seen nibbling at the edges of the problem ie central banks agreeing to support Italy and spain by buying their bonds. The fundamental problem of high debt to gdp, persistent deficits, has not been solved. And there is no simple answer, as Italy and Spain's economies are stagnant and there is little political will to raise taxes un a democracy.

So we are still operating in pretty choppy waters, and I'd be careful.

The world bank chief came out today to warn that we are entering into a dangerous period, in line with what I've been saying above.

Of Europe, he said that bond buying by ecb can buy time but fundamental changes are needed to get europes cash strapped economies on a sound footing.

Of the US, he said that there is likely to be ongoing slow growth and high unemployment.

So there is increasing recognition that we are not out of the woods yet. This public debt saga hasn't been played out yet and there could well be a pretty significant finale ahead of us so tread cautiously.