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Thread: Should we sell now while the price is still high?

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    Default Should we sell now while the price is still high?

    As an investor, the strategy is to lock in profit if market is favourable and hold on to rental income if market is not favourable.

    There has been mix findings that some investors are prepared to sell their investment properties now while the price is still high even if it means some price discount. On the other hand. some are taking a wait and see attitude and still maintaining their high asking prices knowing that they are not likely to find buyers at their asking prices. Obviously, the latter has strong holding power to ride out any major price correction.

    Who is likely to be the real winner over the next two years as interest rate is likely to remain low?

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    Wht price discount?
    They bought $400k selling now for $1.4 million
    Then reduce $200k to some smart buyers. Smart buyers thought they get good deal. Lmao

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    depends on the discount and individual debt ratio

    interest rate in my opinion is highly unlikely to rise much over the next 2-3years. sibor rates could possibly range bound between 1-2%

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    If you bought at good price and it is non toxic and giving you good rental yield, no.

    Otherwise, yes.

    There are lots of other factors to consider as well. Are there any new launches that will come up and block your view and contribute construction noise and dust? Major roadworks affecting the vicinity? Any government urban planning or rejuvenation of the neighbourhood announced? New mrt line or station coming up nearby etc...

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    Quote Originally Posted by richie$$$
    Wht price discount?
    They bought $400k selling now for $1.4 million
    Then reduce $200k to some smart buyers. Smart buyers thought they get good deal. Lmao
    This argument is so totally flawed it's amusing to see it even mentioned in a mature forum like this

    I know for a fact the bungalow in front me was bought for 900k 20yrs ago. But today if he's willing to sell at 4mil only, I'll be the 1st to grab.

    You dun look at numbers like that

    To the TS: you already made up your mind, dun you ? Nothing wrong to move on. Investment is not just on property. You can always invest in something else.

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    Quote Originally Posted by Leeds

    Who is likely to be the real winner over the next two years as interest rate is likely to remain low?
    cash rich pple who have fully paid for all their properties..

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    Quote Originally Posted by mcmlxxvi
    If you bought at good price and it is non toxic and giving you good rental yield, no.

    Otherwise, yes.

    There are lots of other factors to consider as well. Are there any new launches that will come up and block your view and contribute construction noise and dust? Major roadworks affecting the vicinity? Any government urban planning or rejuvenation of the neighbourhood announced? New mrt line or station coming up nearby etc...
    Assuming no major road works or anything else affecting your properties. If you buy at a reasonably good price, isn't it makes more sense to sell now when the price is still high and buy back again when prices correct. Of course one must act with the believe that prices will correct and the chances of price correcting now from here is very very high.

    Not selling while the price is still high could well lead to a situation where your investment asset become negative when price correct even though one is still collecting rent. In this case, one is not taking advantage of the market to realize better return by selling when prices still high and buying back when prices correct.

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    Why? You desperate calling people to sell cheap cheap because many still didn't want to sell or still maintaining price or even asking for above current market price?

    Does it even matter even if the property goes into negative equity? No, it never bother all the seasoned landlords (as far as I know).

    Very funny, who is "god" enough to know whether price will surely fall (or conversely rise)?

    Property is best for buy and hold! That is my experience. HOLD HOLD HOLD, and soon in next round you can sell at 1/3 higher from current peak (at least).

    Quote Originally Posted by Leeds
    Assuming no major road works or anything else affecting your properties. If you buy at a reasonably good price, isn't it makes more sense to sell now when the price is still high and buy back again when prices correct. Of course one must act with the believe that prices will correct and the chances of price correcting now from here is very very high.

    Not selling while the price is still high could well lead to a situation where your investment asset become negative when price correct even though one is still collecting rent. In this case, one is not taking advantage of the market to realize better return by selling when prices still high and buying back when prices correct.

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    Quote Originally Posted by teddybear

    Property is best for buy and hold! That is my experience. HOLD HOLD HOLD, and soon in next round you can sell at 1/3 higher from current peak (at least).
    So you will still sell at some point in time right? Why is it not a good time to sell when prices are still high? Why wait till the next cycle to sell? Why not sell now when the profit is already there? A bird in hands is better than two in the bush, isn't it?

    If you think next cycle price is even higher, might as well as continue to hold for the next few cycles since each cycle price peak is higher than the previous. As you said, only God knows.

    I am just merely basing on your own answers to ask more questions. Hopefully, I can learn something from season landlords here.

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    The following are some reasons for me to sell my property...

    1. When I need cash for upgrading for my own stay.
    2. When I need cash for other reasons such as sending my kids overseas for education or need cash for surgery, etc.
    3. When enbloc
    4. When I want to reduce my risk going forward if I sense something untoward.
    5. When I no longer can commit to the mortgage loan for various reasons such as loss of job, enter into retirement, etc.
    6. When I receive a ridiculously high offer that is tempting enough for me to let go of my unit even when I don't need to sell.
    7. When I just want to do something different.
    8. When bank interest rates are rising pass 4% and there's no rental demand and it doesn't make economic sense to hold on to that property.
    9. When I find that I have enough with property investment or I need to adjust my investment portfolio.
    10. When CM6 restricts my property ownership so no choice have to sell.

    Having said that, I agree that property investment should be for the long term in today's context. So much at stake for short term flipping in Singapore...

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    No I don't sell, I pass on to my next generation, unless I need really need money, otherwise no point selling since next peak is always higher than current peak. Buy and sell and buy again for what? Let all those people earn the taxes, fees, etc and then still end up holding the same number of properties?
    And then there is the lost opportunity costs, lost rentals etc.

    There is 1 reason I will sell (and never buy back): When I perceive that the country governance has changed, capital flow is no longer free, try to implement capital controls etc. Singapore is perceived to be going in that directionI believe many rich people are already reviewing their options. I am reviewing as well. In fact, I had already shifted much of my money out of S$, and no longer invest in Singapore listed stocks for reasons I already mentioned. Next review will be capital still invested in properties. Serious capital outflow will be detrimental to the economic health of Singapore. Hope they learn the lesson (or otherwise those super-rich will teach them a lesson, just like what happen in Malaysia, till now still cannot recover in terms of FDI).

    Quote Originally Posted by Leeds
    So you will still sell at some point in time right? Why is it not a good time to sell when prices are still high? Why wait till the next cycle to sell? Why not sell now when the profit is already there? A bird in hands is better than two in the bush, isn't it?

    If you think next cycle price is even higher, might as well as continue to hold for the next few cycles since each cycle price peak is higher than the previous. As you said, only God knows.

    I am just merely basing on your own answers to ask more questions. Hopefully, I can learn something from season landlords here.
    Last edited by teddybear; 15-01-12 at 16:01.

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    You sell only if you are holding more than 2-3 properties.... If only one please don't make the same mistake as Mr B....

    You can sell tom take some risk off the table... But if you are not leverage at all, don't sell... Which relatively safe instrument gives you 3'% -5% yield of your total investment with leverage? With interest rates so low now... And equity market so volatile and bond prices at all time high, what alternative instrument can you make use of if you cash out? Not to mention inflation at 5% and US and Euro printing a lot of hot money.....

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    Quote Originally Posted by teddybear
    No I don't sell, I pass on to my next generation, unless I need really need money, otherwise no point selling since next peak is always higher than current peak. Buy and sell and buy again for what? Let all those people earn the taxes, fees, etc and then still end up holding the same number of properties?
    And then there is the lost opportunity costs, lost rentals etc.

    There is 1 reason I will sell (and never buy back): When I perceive that the country governance has changed, capital flow is no longer free, try to implement capital controls etc. Singapore is perceived to be going in that directionI believe many rich people are already reviewing their options. I am reviewing as well. In fact, I had already shifted much of my money out of S$, and no longer invest in Singapore listed stocks for reasons I already mentioned. Next review will be capital still invested in properties. Serious
    capital outflow will be detrimental to the economic health of Singapore. Hope they learn the lesson (or otherwise those super-rich will teach them a lesson, just like what happen in Malaysia, till now still cannot recover in terms of FDI).
    Personally I think the will remove CM5 once they have met the pent up demand for condo...once the number of completed units is enough to satisfy local mass market demand, they will allow all to buy again...

    I think right now the are worried that hot money will come in. I think it is already a done deal that ECB will print more money and will nevr let europe default... Tharman is in IMF now... Sure heard some news so better pre-empt that from happening....

    That is why IMO I don't think property prices will drop much....

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    papers are saying drop. analyst say drop. all waiting for drop....

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    Quote Originally Posted by CCR
    Personally I think the will remove CM5 once they have met the pent up demand for condo...once the number of completed units is enough to satisfy local mass market demand, they will allow all to buy again...
    I'm not so positive.
    The shift to the left is inevitable. With growing discontent in the masses, the elites had to make a move to please the masses. Remember almost every revolution is triggered by the disgruntled have-nots. It will take another long period of socialist style society to generate enough social woes to move back the course to the right. SG by far is pro business and pro free market, i.e, has always been on the right. The time has come for the change. What worries me is, can we afford this experiment ? Property is just one area. Look out for the next crowd pleaser: minimum wage.

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    No one is certain recession will come this year. it is good to keep a balance of cash and investment.

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    Quote Originally Posted by CCR
    You sell only if you are holding more than 2-3 properties.... If only one please don't make the same mistake as Mr B....

    You can sell tom take some risk off the table... But if you are not leverage at all, don't sell... Which relatively safe instrument gives you 3'% -5% yield of your total investment with leverage? With interest rates so low now... And equity market so volatile and bond prices at all time high, what alternative instrument can you make use of if you cash out? Not to mention inflation at 5% and US and Euro printing a lot of hot money.....
    If you make the same mistake as Mr. B.. you will end up lock yourself up in your rental flat.. everyday desperately doing search/copy/paste of bad news all over the world..

    One moment telling the whole world price dropped 20% just bring cheque easily can get.. when ppl brought cheque to Luxus Hills & can't find one & asked him for help.. next moment quickly twist & turn telling ppl to wait for 40%.. KNN damn joker leh

    One moment telling the whole world by end of next week, we should see a major Dow correction... let see...
    When ppl said.. Please be responsible and repost this by 21 Jan 2012.
    Next moment quickly twist & turn "a major one will take months to yrs...." WTH damn joker leh

    KING OF ALL FAILURES

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    Don't play with your one and only house.... Coz the cost of rental, buying, selling, renovation add up to a lot, in my previous post, market must drop at least 15% in two years for you to break even.....

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    Quote Originally Posted by CCR
    Don't play with your one and only house.... Coz the cost of rental, buying, selling, renovation add up to a lot, in my previous post, market must drop at least 15% in two years for you to break even.....
    a lot people don't realise what you've spelt out. if they get the timing wrong, the pain could be a lot worse. flipping your own roof when central banks are issuing liquidity like no tomorrow is a dangerous game to play.

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    Quote Originally Posted by teddybear
    Why? You desperate calling people to sell cheap cheap because many still didn't want to sell or still maintaining price or even asking for above current market price?

    Does it even matter even if the property goes into negative equity? No, it never bother all the seasoned landlords (as far as I know).

    Very funny, who is "god" enough to know whether price will surely fall (or conversely rise)?

    Property is best for buy and hold! That is my experience. HOLD HOLD HOLD, and soon in next round you can sell at 1/3 higher from current peak (at least).
    it's not consider realised unless u realise it. Cheers!

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    well sell now provided can wait to buy back. If not all the SSD, BSD, 4 yrs , ABSD.. etc make buying another place very expensive. unless price really drop 30-40%.. which would be quite unlikly

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    Quote Originally Posted by ezonme
    it's not consider realised unless u realise it. Cheers!
    Purely from an investment point of view, I agree that one should realise the profits generate from his investment assets if the values warrant. Sitting on paper profits only make one feel good but cannot make use of the profits to generate other investment returns.

    Westerners are more likely to sell their successful businesses or investments to unlock the values of their investments while Asians prefer to hold on to their businesses and build on or pass on to the next generation.

    If one is in the position of holding on to his investment assets and still can build on his investments, he or she is in very good position. However, not many people can be in that position. Many people need to take profits to build on.

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    Firstly, have to point out that what you said about Westerners are not true.

    Secondly, You see, based on what you said, you can never be very rich. Whoever follow what you said is difficult to become rich.

    Look at Warren Buffett, he almost never sell his core stocks investments, and that is why he is the top 3 richest men in the world for so many years!

    Quote Originally Posted by Leeds
    Purely from an investment point of view, I agree that one should realise the profits generate from his investment assets if the values warrant. Sitting on paper profits only make one feel good but cannot make use of the profits to generate other investment returns.

    Westerners are more likely to sell their successful businesses or investments to unlock the values of their investments while Asians prefer to hold on to their businesses and build on or pass on to the next generation.

    If one is in the position of holding on to his investment assets and still can build on his investments, he or she is in very good position. However, not many people can be in that position. Many people need to take profits to build on.

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    Quote Originally Posted by teddybear
    Firstly, have to point out that what you said about Westerners are not true.

    Secondly, You see, based on what you said, you can never be very rich. Whoever follow what you said is difficult to become rich.

    Look at Warren Buffett, he almost never sell his core stocks investments, and that is why he is the top 3 richest men in the world for so many years!
    Both Warren Buffett and Jim Rogers will not hesitate to sell off their investments to unlock profits and reinvest the profits in other instruments. These were what I read about them. I think you did not get your facts right.

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    Quote Originally Posted by Leeds
    Both Warren Buffett and Jim Rogers will not hesitate to sell off their investments to unlock profits and reinvest the profits in other instruments. These were what I read about them. I think you did not get your facts right.
    they did not sell their core assets which is true

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    i am very surprised to see so many speculators in this property forum.

    i always thought that property is part of wealth accumulation and not for flipping. so many of you bought and sell within 2-3 years for short term gain.

    No wonder government have to introduce so many anti speculative measures

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    Quote Originally Posted by Rosy
    they did not sell their core assets which is true
    What is core asset? I believe both guys had already sold off their core assets in the US well before the crisis. They are now probably thinking of buying back their core assets or already done so.

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    Quote Originally Posted by Leeds
    What is core asset? I believe both guys had already sold off their core assets in the US well before the crisis. They are now probably thinking of buying back their core assets or already done so.
    buffet did not sell away his investment firm

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    Quote Originally Posted by Rosy
    buffet did not sell away his investment firm
    Buffett's investment firms had probably sold many of the core assets. Selling your investment assets like properties is not about selling your only property you live in. That is the different.

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    Quote Originally Posted by Leeds
    Buffett's investment firms had probably sold many of the core assets. Selling your investment assets like properties is not about selling your only property you live in. That is the different.
    different definition of what is a core asset

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