View Full Version : Lessons in property investing
After reading many posts from bros and sis in this forum, this is what I learn:
1. Never speculate on your only home
2. Don't delay to purchase your first house
3. As you get older is harder to get longer term financing
4. Good location and freehold status will pay off
5. Expensive CCR project with huge number of units is not a good idea for investment
6. We need passive income from renting when we retire one day
7. Don't over leverage your self to buy your dream house, its not worth it
8. When the market is down, you must have a holding power. Because, price will bounced back higher than it felt.
9. There is 3 things certain in life. Beside death and taxation, there is also inflation.
10. ..........(Please add your own opinion)
10. MOST IMPORTANT - NEVER BELIEVE EVERYTHING YOU READ. :D
After reading many posts from bros and sis in this forum, this is what I learn:
1. Never speculate on your only home
2. Don't delay to purchase your first house
3. As you get older is harder to get longer term financing
4. Good location and freehold status will pay off
5. Expensive CCR project with huge number of units is not a good idea for investment
6. We need passive income from renting when we retire one day
7. Don't over leverage your self to buy your dream house, its not worth it
8. When the market is down, you must have a holding power. Because, price will bounced back higher than it felt.
9. There is 3 things certain in life. Beside death and taxation, there is also inflation.
10
11. Timing is more important than location, although we cannot perfectly time a purchase or a sale.
10. MOST IMPORTANT - NEVER BELIEVE EVERYTHING YOU READ. :D
like 50% drop by 2015...:doh:
After reading many posts from bros and sis in this forum, this is what I learn:
1. Never speculate on your only home
2. Don't delay to purchase your first house
3. As you get older is harder to get longer term financing
4. Good location and freehold status will pay off
5. Expensive CCR project with huge number of units is not a good idea for investment
6. We need passive income from renting when we retire one day
7. Don't over leverage your self to buy your dream house, its not worth it
8. When the market is down, you must have a holding power. Because, price will bounced back higher than it felt.
9. There is 3 things certain in life. Beside death and taxation, there is also inflation.
10. ..........(Please add your own opinion)
compare and contrast singapore and japan property market.
that's your homework for tonight.
then re-check your assumption 8.
compare and contrast singapore and japan property market.
that's your homework for tonight.
then re-check your assumption 8.
I still think in singapore case, in the event of market downturn its better to hold it than panic selling at a loss. A bounce will happen faster because the size of the market is smaller and the government is heavily regulating it. Prolong depress market is less likely to happen than a quick recovery. Please feel free to criticize me.
phantom_opera
03-08-12, 17:50
Singapore has ICA opening floodgate and granting new SPRs .. Japan does not welcome immigrants
So Singapore property will never be like Japan, down 50% by 2015, unless there is war or pandemic
And SG policy is your HDB is your only asset, when u are old you rent out rooms ... dun beg the government to give u $$, garmen will do what it can to ensure steady appreciation of rental that matches inflation
ikan bilis
03-08-12, 18:12
i like indomee... :cheers4:
i like indomee... :cheers4:
I like indomee with ikan bilis flavor........ Enak!!!
phantom_opera
03-08-12, 18:20
"Only invest in what you really know a lot about." - Jim Rogers
"Buy value, sell hysteria". - Jim Rogers.
I sold one private apartment in late 2010 and another in early 2011. I thought they were over valued. I was wrong!
phantom_opera
03-08-12, 19:54
"Buy value, sell hysteria". - Jim Rogers.
I sold one private apartment in late 2010 and another in early 2011. I thought they were over valued. I was wrong!
another 3y to go ... if you can wait 30y, what is 3y :p
"I dont invest in love because I know nothing about it." - Carbuncle
"Buy value, sell hysteria". - Jim Rogers.
I sold one private apartment in late 2010 and another in early 2011. I thought they were over valued. I was wrong!
One Engineering graduate - salary = $000.00 for the last 8 years. Retrenched from an MNC in 2004, jobless since then. This person is ME. Lives in a HDB flat.
8 years jobless, what do you survive on?
i get it, you are a landlord. i read the "Being a Landlord vs Salaried Job" thread..........
smart move by the way, stay in hdb and rent out the many many private properties that you have.
i was right that you are unemployed by choice. no logic to you being unemployed for 8 years.
My reason for property investing was based on need. When I started my small business many years ago, I was initially paying rent for my office space which I felt was stupid. So I bought a FH commerical property and became the landlord of my company instead.
I'm the type that hates to be in debt and wanted to pay off both my home and office mortgages asap, so during those years I had to work like crazy, overnights and weekends, to generate the income needed to pay off my mortgages quickly. The properties have been fully paid years ago and my office rental income now goes to other investments.
My lesson learnt from property investing involves plenty of suffering and hard work.
My reason for property investing was based on need. When I started my small business many years ago, I was initially paying rent for my office space which I felt was stupid. So I bought a FH commerical property and became the landlord of my company instead.
I'm the type that hates to be in debt and wanted to pay off both my home and office mortgages asap, so during those years I had to work like crazy, overnights and weekends, to generate the income needed to pay off my mortgages quickly. The properties have been fully paid years ago and my office rental income now goes to other investments.
My lesson learnt from property investing involves plenty of suffering and hard work.
You are what make singapore prosperous and strong... Now enjoy the fruit of your hard work. Charge good money for your rental property. You deserve it. Let your tenant feel the suffering and do the hard work for you.
i was right that you are unemployed by choice. no logic to you being unemployed for 8 years.
He may be lim kopi with IRAS officer as we speak...
But coming from someone who unemployed for coming to one year, rejoining the workforce is not gonna be a walk in the park... you have to prove that you are constantly updated and involved in the industry/role you're gunning for - even without being employed in it.
I came to Singapore to study in the university in 1987. Been here for 30years. Born in Malaysia. Now a Singaporean citizen.
The first lesson I learned about property investment is this - when I have just one property, an executive HBD flat bought in early 1992, I am unable to gain from my property, even when the price has more than doubled in 1996. So in 1998 when the property prices were falling and the majority were afraid to buy, I downgraded to a 3 room HBD flat and bought a 2 bedroom condo in D11 and a HUDC flat in D10. I was able to survive the last 8 years without a fixed salary job, thanks to the D10 HUDC flat that I bought in 1998.
I am not suggesting that those who wish to grow their wealth through property investment should rush and buy another property now, as you may feel like a moron should property prices crash 50% by 2015, as predicted by someone in this forum.
I came to Singapore to study in the university in 1987. Been here for 30years. Born in Malaysia. Now a Singaporean citizen.
...
I am not suggesting that those who wish to grow their wealth through property investment should rush and buy another property now, as you may feel like a moron should property prices crash 50% by 2015, as predicted by someone in this forum.
Bro laojiao, given your decades of experience.. can i tap on your wisdom whether you think prices will really crash in the next 5 years?
Sorry Carbuncle, I don't know if property prices in Singapore will stay flat or continue to go up or go down, in the next 5 years. If I say I know, I should go and sit on top of a table.
...So in 1998 when the property prices were falling and the majority were afraid to buy, I downgraded to a 3 room HBD flat and bought a 2 bedroom condo in D11 and a HUDC flat in D10. I was able to survive the last 8 years without a fixed salary job, thanks to the D10 HUDC flat that I bought in 1998.
So what happened to the D11 2br?
I came to Singapore to study in the university in 1987. Been here for 30years. Born in Malaysia. Now a Singaporean citizen.
The first lesson I learned about property investment is this - when I have just one property, an executive HBD flat bought in early 1992, I am unable to gain from my property, even when the price has more than doubled in 1996. So in 1998 when the property prices were falling and the majority were afraid to buy, I downgraded to a 3 room HBD flat and bought a 2 bedroom condo in D11 and a HUDC flat in D10. I was able to survive the last 8 years without a fixed salary job, thanks to the D10 HUDC flat that I bought in 1998.
I am not suggesting that those who wish to grow their wealth through property investment should rush and buy another property now, as you may feel like a moron should property prices crash 50% by 2015, as predicted by someone in this forum.
Hi..what do you think of Mt Sinai? I am intend to use all my savings and resources to get a Mt Sinai property.
Estimated committed figure will be 1.7mil to 1.8mil. I am giving all out with all resources squeeze.
So what happened to the D11 2br?
That 2 bedroom condo also gone. Some smart Malaysian PR speculator (I think) "snatched" it away from me, in early 2007. Offered me $710K through the agent, after midnight and give me ultimatum to sign immediately. I was ignorant then. Didn't know the last recent transaction, same size in the same condo, done at $850K. I checked the URA transactions but the $850K price didn't show up until a few weeks later. I sold mine a $710K. Felt like a moron then. The ignorant and the greedy investor usually lose, in property investment.
Hi..what do you think of Mt Sinai? I am intend to use all my savings and resources to get a Mt Sinai property.
Estimated committed figure will be 1.7mil to 1.8mil. I am giving all out with all resources squeeze.
So sorry yowetan, I do no wish to influence your decisions with my thoughts. Do your own thinking and make your own decision.
phantom_opera
05-08-12, 16:34
How Can 30y own hudc and hdb same time?
"I dont invest in love because I know nothing about it." - Carbuncle
No love, No u.....:D kidding...
How Can 30y own hudc and hdb same time?
U can own one and inherit another one...I guess. Which one of them u have to off load within a period of time. Never sell your hdb...did I hear that from someone very famous? :D
thanks to the D10 HUDC flat that I bought in 1998.
This 1 u huat big time?
That D10 hudc is now D'Leedon? :rolleyes:
http://hudcsg.blogspot.com/2009/10/farrer-court-en-bloc-sale-reaps-134.html
That 2 bedroom condo also gone. Some smart Malaysian PR speculator (I think) "snatched" it away from me, in early 2007. Offered me $710K through the agent, after midnight and give me ultimatum to sign immediately. I was ignorant then. Didn't know the last recent transaction, same size in the same condo, done at $850K. I checked the URA transactions but the $850K price didn't show up until a few weeks later. I sold mine a $710K. Felt like a moron then. The ignorant and the greedy investor usually lose, in property investment.
I think we all been there before, don't take it too hard. But I still feel so bad whenever passing pass the property I sold too low. It has since increased in price since I sold it. So another lesson in property:
When selling a property always consider the replacement cost. No only u must find out the price of the similar unit in your area, but you must add in stamp duty of your replacement unit. Better still consider buying another lower price unit as soon u sell yours.
I never sell mine until I have one replacement one in mind...
UltimateAro888
05-08-12, 20:34
I never sell mine until I have one replacement one in mind...
Agreed. I have friend who are quite gungho. They sold the condo they have, and rented from someone else..They betting on the fact that property will come down...that again is a risk and a gamble.
better to plan according to something u can control vs something u cant...
u can control: shortlist 10-20 potential acquisition targets
u cant control: market price dropping by x%
Allthepies
05-08-12, 22:18
Most importantly separate the real facts from the dreams/predictions.... and u will be able to make a better judgement.
eg of real fact #1... interest rate is dammed low.
eg of real fact #2... after few rounds of CM, properties r still holding strong, why is tat so?
eg of dream/prediction #1... property is gg to crash by 50% next year
:D :D :D
That D10 hudc is now D'Leedon? :rolleyes:
http://hudcsg.blogspot.com/2009/10/farrer-court-en-bloc-sale-reaps-134.html
haha this enbloc is like toto, no lessons in any form of investing needed.
haha this enbloc is like toto, no lessons in any form of investing needed. eh august, just curious why do you say so leh? care to elaborate why this enbloc is so 'heng heng' or so no-chance that it's all up to luck in this case? :D
Hi..what do you think of Mt Sinai? I am intend to use all my savings and resources to get a Mt Sinai property.
Estimated committed figure will be 1.7mil to 1.8mil. I am giving all out with all resources squeeze.
Yes u should go buy. Bao jia
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