Loh Keng Fatt says keep your eyes open if you are looking to invest in property.
YOU know the property market is hot when you cannot even get to view the house for sale.
Recently, I have been tempted to buy a resale condo for investment.
Maybe it was the slew of reports of sell-out launches of new projects, from Caspian in Jurong to 8@Woodleigh in Serangoon to Optima in Tanah Merah.
I was fired up by visions of getting a new property — maybe a small studio — and making good money from it down the road, perhaps even before the project was completed.
I scoured the property classifieds where many agents claimed that they could put your name on a very, very, very special list to preview units.
Two projects caught my attention.
One was Centro Residences, close to the Ang Mo Kio MRT station.
The agent said we needed a strategy. It was no good jostling with the masses even on the day of special preview.
He said the developer would be more impressed of my sincerity to buy if he could show them a blank cheque, presigned by me.
Then, my name would go into a ballot box on the spot to determine if I would triumph over others with similar cheques.
I said I would think about it, especially when he said the price was likely to be above $1,000psf, a phenomenal sum for a heartland condo. I never got back to him.
The agent for another launch — Optima — advised me to do the same, that is, hand over a presigned cheque. I got cold feet and struck Optima off my list of preferred condos.
Meanwhile, I was also viewing older, tenanted properties.
I liked the Bayshore condo and turned up to view two units. The prices were attractive, giving at least a 4 per cent return.
But the asking prices were also about the same as those when the condo was launched some nine years ago.
Its price had not appreciated at all — who said condos were always a winning proposition? — and that reined in my enthusiasm.
My passion was punctuated a lot more when agents for two tenanted condos, one in Simei and another in the East Coast, said there were no viewings.
The tenants were never at home and the condo owners said they were confident other folks would buy without a viewing, given the hot market.
I now think it's far easier, and less dicey, to invest in property via the share market where you can go with analysts' recommendations to buy, say, Ho Bee, CapitaLand or SC Global.
I still peruse the property classifieds with great interest but much of the hunger, maybe even craziness, to snap up a unit — not the most liquid of assets, I must say — has almost dissipated.
These are unusual times for property and you really need to go in with your eyes wide open and armed with all the facts, such as historical price movements.
Tags:
investment,
market,
property,
singapore
Who can you really blame for all this increase in price?
Who really was behind in pushing up the value of HDB prices.and then what follows suit was the sudeen property rise and many got rich overnight, including me.
I think, its time to Cash out, the whole world is in debt. Somebody needs to pay to replenish all the Job Credits. Salary cannot be increase further neither can it be reduced. Hard to hope a downward adjustment of property value-better Cash out now. Those that want to go in - Good Luck - don't say I didn't warn you.
Who can you really blame for all this increase in price?
Who really was behind in pushing up the value of HDB prices.and then what follows suit was the sudeen property rise and many got rich overnight, including me.
I think, its time to Cash out, the whole world is in debt. Somebody needs to pay to replenish all the Job Credits. Salary cannot be increase further neither can it be reduced. Hard to hope a downward adjustment of property value-better Cash out now. Those that want to go in - Good Luck - don't say I didn't warn you.
Why blame speculators be it local or foreign when conditions are favourable for them to do so.
So much so that some are willing to kowtow so low as to write balnk cheque.(maybe it is really easy money)
But the irony of it is the real eventual winners, apart from a few savvy or lucky ones, are the developers, bankers, lawyers,tax department, public housing authority who gives high resale valuation, in turn sell new apartments at higher prices and hence unwittingly helping with the upward price spiral.
The annual rich rankings are spoting the same old and older and fatter faces, no suprises.
There is this mistaken belief that don't worry, carry on partying, no party pooper allowed.
Yes! Go!
To prevent banks operating in Singapore from ultra high exposure, the banks should work with the government to link the bank accounts to immigration check points like what Dubai did. Many foreigners went in and create a hot pricey property market.....and made tons of money, creating a huge bubble also....and when the jobs went bust....many foreigners left....leaving the banks in the lurge....and then the banks and government cooperated to link all together, so that foreigners who try to 'run', vacate and leave.....were stopped at the immigration check point.....and not allowed to leave. Many were jailed instead for deliberately trying to leave these unpaid for properties behind...the banks and the Singapore Government should implement measures of similar effect....otherwise....not only will cisitzens be caught with high loans to be serviced, our country gets raped by these people without the ability to redress. When I recenly returned and took a taxi....the taxi driver related how he had fetched a chinese national PR in Singapore....and the passenger told him clearly that they time here is to make a lot of money because they cannot get similar salary....and whne they make enough....including benefitting form the property market....they will sell and return home....Singapore is not their home and they never in the first instance, ever thought so.
Today, I was speaking to a property agent. She said there is no rationale buying, and unless I buy for own stay, these properties are no longer with investment returns. She certainly understand the property well...and said this is now beyond the highs of the 1996...and that if the Singaporeans continue to buy up....as though competing with the mostly Indians who are buying up...we should be mindful of the flip side when the market cools. As a property agent, her job to to facilitate the sale for both sides....and for her income for the family....and I don't blame her. It is her rice bowl...and she was kind enough...knowing that the condo she was selling was not what i was looking for. Singaporeans who are into frenzied buying...we should take the caution by the government that we buy within our means...our affordability....and not beyond. Dun forget the times when the bubble burst in the 1997....1998....the banks increased their interest rates....to 8%....redo all the entire loans of the mortages....and demand you pay the difference in cash beased on your loan amount and the new valuation price minus...many went bankrupt....watch out....we don't seem to learn form the past.
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