is property investing a surefire way to earn $$?
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property can earn you money. you can sell when it appreciates and while waiting for the price to go up, you can earn income by leasing it out. who here invest in properties, can share your experiences please?
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property investing is for rich ppl play de....... you got a lot of money to throw bo??
wa bo........
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i still remember some people in the late 1990's ..........or around there..........losing up to 50% of their property values...........
if can rent out at okay prices still not so bad...........
Rooney.........i hope you're not referring to those ads in the papers on Australian properties................???
those fucking descendents of criminals are always looking to make a fast buck by conning Asians...........they know S'poreans and Hong Kongers are used to high property prices...............and they tend to forget Australia is a humongous country with a tiny population............
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when you buy properties, you need to pay up to 20% instalment by your own cash, the rest is by bank loans what isnt it.
So when your property price has appreciated, you take profit by selling it. thats how people earn money in properties isnt it.
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Yes, but what if you cannot service the loan?
Do you have a good buffer? Is your income stable?
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Its all about purchasing power. Can u afford two or more pte properties? If u can, then surely u will make good $ from rental or sale. However, take note that the risks are greater if SG falls into recession....do u still have $ to service the loans? What if the rental ceased? There's also the risks of unable to sell the pte pty, then what?
From what I know, those pte pty that can't sell are the same as those who can't rent out....beware.
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From what I read, those properties in China, some of them virtually no one living there, just a buy then sell, buy then sell kind of thingy only, somehing like a dangerous musical chairs.
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With bank interests (fixed deposit) so low, many rich folks are buying pte pty instead for investment. From what I know, the pty mkt can only go up up up....until majority can't afford to own pty anymore. Then it'll be a rental of rooms market....this will be the future.
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that is speculation lar. thats why the government cool down the property prices from increasing by imposing rules on buying properties mah.
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Originally posted by Rooney9:
that is speculation lar. thats why the government cool down the property prices from increasing by imposing rules on buying properties mah.
Think that's because marlboro tan is fearful of losing his job after getting publicly scolded by the old farkin lee.
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With rising property prices, those who already have properties are happy, those who still dun have, are angry....even HDB are so expensive!
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You can also die badly with property investing.
I remember somebody mentioning earlier about his experience. Bought condo in 1996, only managed to sell it in 2009 at 5% more of the property value he bought in 1996. -
Property investments are for the very rich only....one wrong move can kill all profits....therefore NOT a surefire way to earn $$$.
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Waiting for the pty bubble to burst, then enter and grab some pte pty....
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whether properties, stocks ,shares, bonds....
only 2 things need to know about investment....Buy-Lo-Sell-Hi and Value
of course...be reflexive than emotional
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Originally posted by Fcukpap:
whether properties, stocks ,shares, bonds....
only 2 things need to know about investment....Buy-Lo-Sell-Hi and Value
of course...be reflexive than emotional
Yup but 1st of all you have to be rich first before u can play around with financial instruments....if not rich, then play safe by saving up ca$h for an early retirement.
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err....agree somewhat....start small then dream big...and not dream big without starting at all
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Originally posted by Fcukpap:
err....agree somewhat....start small then dream big...and not dream big without starting at all
Alot of financial instruments all lose $ ones....play small also will kana burnt....its always the small investors that lose out in the end....have ca$h better lah....
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If you were to study all the previous property bubbles and the premises behind those bubbles i would think future property bubble areas are quite predictable.. Its just when to get out that isnt predictable... So better to get out earlier if you sense something wrong..
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Soon the market will plunge! Prices will drop 30% at least!
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recession and depression haven't come yet..............when it comes, many many foreigners will leave................selling their homes or no longer renting HDB flats..........
HDB will fall by 30%.............only 3 and 4 room flats are safer............
i expect private property to fall 40-50%..................especially NON-SUPER-HIGH-END condos since the ''middle'' markets always get crushed.....................landed property will fall less.........
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I read this somewhere and I think is nice:
For those of you who bought investment properties between 2007/08 peak through Dec 2010, you will have approximately 6 months to offload your real estate assests.
Why?
1. With a lower loan-to-valuation of 60% for any 2nd property purchase, you can forget about selling your property to another buyer-investor for a while. On the surface, a buyer-investor would have to top up additional 10% of the value in cash if residential prices have stayed flat. However, if the valuation of the unit has fallen from the original purchase price (even by just 10-20% - a highly likely scenario with the banks taking a far more cautious stance in dishing out mortgage loans), buyers would have to top up the difference between the declines on top of the lower loan to valuation differences. The effective loan to purchase price ratio could be as low as 50%. Now which right-minded property investor wants to put down 50% cash on a property in a declining market? Few and far between and only fools I am sure.
2. First-time home buyer demand is far lower than the supply availability. There is only a finite number of genuine first-time buyers to go around, estimated to be less than 20k comprising of expat-PR and new/young families. On the supply side however, there is an estimated 16k units due for TOP this year and another 16-17k units schedule to complete next year. These are on top of the 10k completed vacant units in the current supply pool. So the unit which you bought between 07-10 could be in for a major price correction (crash is a more appropriate word actually) in the coming 4-5 years of buyer's market.
3. You can forget about getting profitable rental income for a while. Rental prices. Same rationale as 1 & 2 above. Falling prices + ample supply = lethal combo for rental income.
Your only option other than stuck with a non-performing ill-liquid asset for the next 4-5 years of your life is to quickly offload it to the limited pool of pent-up demand, i.e. a genuine first-time buyer waiting for the past several years to get into the market.
Hope this helps.My projection:
1. Property prices across all segments (mass through high-end) will drop by 10% over the course of the next 6 months due to a combination of several factors: lower LTV, lower valuation by banks, buyers sitting on the sideline, and seller offloading existing units.
2. From Q3 2011 on, Sibor is expected to move up (by 500bps almost every quarter till it hits around 6-7%). This coupled with ample supply coming through and demand dwindling, we are now likely to witness
unprecedented declines for all private property segments starting from Q3 2011. Falling valuation, high interest rate, and lower loan quantum could put significant downward pressure on all projects sold during the irrational years of 07-10. Therefore, I see mass through luxury residential prices to decline by a further 35% from Q2 2011, bringing about a total decline of 45-60% from peak.What are the implications for the various parties?
For existing owner-investors, you should seriously consider what I stated above and exit while you still have your shirts on.
For first-time buyers or upgraders, you should not rush in if you have a choice. This is going to be a buyer's market in about 6 months from now. Probably the best time to buy is between the next 12-18 months.
For wannabe investors, buy only if you don't mind a non-performing piece of asset for the next 4-5 years.Sibor is positively correlated (or more accurately tied to) the US interest rate. With low growth, high unemployment, high debt, and inflation, the US Feds preferences starting Q3 of this year will likely move away from low rate stability to one of hawish rate raising. The reversal of the multiple serial rate cuts of 250-500 bps witnessed previously will happen soon enough. This will definitely impact Sibor for sure.
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People that have pte pty are happy to sell them at high prices, but people that buy now will be stoopid...so high price still....wait patiently, the prices will drop very soon.
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papers say our population grew by 25% in last 10 years.............so no surprise property go up...........but most of that increase due to mass influx of foreigners...........
PAP also scared they leave so try to press them become citizens..............imagine when recession come and many of these foreign workers and PRs leave.............
huge crash in property liao..........
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Originally posted by Asromanista2001:
papers say our population grew by 25% in last 10 years.............so no surprise property go up...........but most of that increase due to mass influx of foreigners...........
PAP also scared they leave so try to press them become citizens..............imagine when recession come and many of these foreign workers and PRs leave.............
huge crash in property liao..........
Agreed....I'm waiting patiently for the pty prices to fall....steady steady....Hahaha!
