Selling your house: Is there ever a good time?

[irisng]

http://www.propertyguru.com.sg/lifes...urvey_readmore

Herd mentality is defined as actions undertaken by a large group of people who are easily influenced greatly by their peers or surroundings.
In real estate, herd mentality is very apparent. Supplemented with the fear of losing out, when a group of people start selling their houses for a profit, suddenly everyone wants to sell too.
But is this movement safe? Is it a good time to sell just because a hundred people are doing it? Or a thousand? Can you safely say that it is indeed a good time for you to sell your house just because your neighbours are cashing in?
The truth is, with every large movement, people are riding a wave of adrenaline not created from any real need but by a sudden spike or lapse in the market somewhere. We know people get rich from it because that's what the mainstream media would report on.
What about the ones the media does not report on? Did they get rich too or did they lose everything in the property gamble?
This is not to say that one should avoid taking advantage of a bubble forming. If you know for sure that you can make a lot of money and still manage to buy a new residence with enough cash left over for a retirement fund, not taking advantage would be the wrong thing to do.
As an investor, this makes perfect sense. A house is rarely a home and more of a money making tool.
For a homemaker, however, the playing field changes. Your house is your home and for some, all the surplus cash they have is either pumped into the residence or is insufficient for them to gamble with.
Selling your home then, becomes a weighted decision. Should you sell during a bubble and hope to make more money or do you wait it out, content that you at least have a home which is increasing in value?
Some people will advise you to sell as soon as you can to take advantage of the sharp demand in the property market while it's still hot. Others will caution you to wait and see before you plunge.
But when is it really a good time to sell and can the actions of a select group of people make that decision for you?
Herd mentality can be harmless but when it begins to influence you to make life changing decisions on a whim, it gets dangerous.
If buying and selling houses is considered investing then like typical investments, some succeed, others fail terribly.
When to sell is ultimately a decision best left up to you and you should not seek to sell your house just because everyone else is doing it.There is rarely a good or bad time to sell because opportunity can strike at any moment.
You just have to differentiate opportunity from herd reaction.

Written by: Christopher Chitty

[leesg123]

The best time to sell is... Never. Keep buying, never sell it.

[carbuncle]

jLeerx back in the house!

[Laguna]

The answers to the Q are
What are u going to do next after sellling?
what is the pricing going to be after selling?

[carbuncle]

did I just see Laguna answer question with more questions?

[Ringo33]

For investor, the best time to sell is when you found a better way to make more money

For retirees, the best time to sell is when you have enough to last you for the rest of your life.

For married couple, the best time to see is before you go through divorce

For home owner, the best time to sell is when you can afford to update

For speculator, the best time to sell is before more cooling measures

[henryhk]

In Singapore, nver sell ur property if u can hold....unless there is a better location to reinvest.,.,

[wind30]

from the replies, I think the bubble is getting bigger.

where got no good time to sell. Tell this to the people in 1997.

[buttercarp]

In Singapore, nver sell ur property if u can hold....unless there is a better location to reinvest.,.,

Agree wholeheartedly!

[henryhk]

In 97, there are mainly a few speculators.....now is many homeowners, long term investors, truly Singaporeans who love tis country, foreign talents, etc....

[irisng]

For investor, the best time to sell is when you found a better way to make more money

For retirees, the best time to sell is when you have enough to last you for the rest of your life.

For home owner, the best time to sell is when you can afford to update

For speculator, the best time to sell is before more cooling measures

Well said.

[radha08]

In 97, there are mainly a few speculators.....now is many homeowners, long term investors, truly Singaporeans who love tis country, foreign talents, etc....

i think ft love the country more than sporeans...

[carbuncle]

I read somewhere that possibly the natural born locals only make up like 45% of the total Singaporeans..... but by interpolation calculations

[Arcachon]

In 1997, the invisible money printing machine was not invented yet fast forward to 2007 US show the world their new invention, the invisible money printing machine which can print 40 billion a month with no extra electric power, ink, paper and manpower needed.

http://www.policymic.com/articles/14...n-simple-terms

[nav14]

I will sell only to renew the property. Sell a older property for a newer one or with better yield. But never to sell and time the market hoping to get in at a lower price.. Because it is almost impossible to perfectly time the market unless luck is on your side.

[irisng]

I will sell only to renew the property. Sell a older property for a newer one or with better yield. But never to sell and time the market hoping to get in at a lower price.. Because it is almost impossible to perfectly time the market unless luck is on your side.

Ya, luck is very important, when you have luck, the timing will also suit you. For my case, I'm out of luck, buy high, sell low.

[leesg123]

from the replies, I think the bubble is getting bigger.

where got no good time to sell. Tell this to the people in 1997.

in 97, got cooling measures to weed out borderline investors?

[hyenergix]

This property bubble can take a long to burst due to the large amount of liquidity and the unique situation in Singapore.

What I'm seeing is Singapore is running low on land, and is gradually becoming a financial, medical and educational center for the rest of SE Asia (like UK for the rest of Europe). These sectors can generate a lot of wealth and attract immigrants. I suppose it is hard for the bubble to burst in the next 10 years, unless an epidermic strikes.

From the news on the pains of lack of labour, I believe that the government should be still allowing immigrant labour to come in, and probably come up with new schemes to by-pass current limitations.

So just hold on to your property and dun sell if you can help. Rental for HDB and mass market condos should hold up well despite the supplies.

[lifeline]

This property bubble can take a long to burst due to the large amount of liquidity and the unique situation in Singapore.

What I'm seeing is Singapore is running low on land, and is gradually becoming a financial, medical and educational center for the rest of SE Asia (like UK for the rest of Europe). These sectors can generate a lot of wealth and attract immigrants. I suppose it is hard for the bubble to burst in the next 10 years, unless an epidermic strikes.

From the news on the pains of lack of labour, I believe that the government should be still allowing immigrant labour to come in, and probably come up with new schemes to by-pass current limitations.

So just hold on to your property and dun sell if you can help. Rental for HDB and mass market condos should hold up well despite the supplies.

good summary and analysis. i agree with your reading.

with all the cm in place, govt prob aiming to allow only 3-5% appreciation to avoid a bubble forming.

barring external shock, property is a good hedge, but against inflation only = inflation yield only. rental yield just covers your mortgage unless you lower your ltv. with leverage in low interest environment, rental yield can hit 8%; but must have standby plan for redemption when interest rate raises. bloomberg reports that our neighbours interest rates may go up next year; wonder how it will impact us.

treat all others like capital appreciation as bonus - of course if you can find that gem to get that bonus it will be even better = true investment yield.


also dun forget your other investments - your time with family and your health.

[chestnut]

Hyenergix, good observation on the the lack of labour part. Do you know which sector is complaining of the lack of labour? SMEs or MNCs? If you say SMEs, then I ask you 2 questions. Why SMEs complain and not MNCs? You will find the answer in the last question.
It is important to know where the govt is going. Everyone gives hints, it's a matter of whether u can pick it up, and u did with the labour part.
it is like the casino part but smaller in skill, 'consultation'.

Cheers.

[Secretariat]

Hyenergix, good observation on the the lack of labour part. Do you know which sector is complaining of the lack of labour? SMEs or MNCs? If you say SMEs, then I ask you 2 questions. Why SMEs complain and not MNCs? You will find the answer in the last question.
It is important to know where the govt is going. Everyone gives hints, it's a matter of whether u can pick it up, and u did with the labour part.
it is like the casino part but smaller in skill, 'consultation'.

Cheers.

I am amused by the people who take the gahmen numbers seriously...number of PRs reduced la, lesser new citizens la, ...and for that matters, inflation rate la...

You know what I mean?

[chestnut]

I am amused by the people who take the gahmen numbers seriously...number of PRs reduced la, lesser new citizens la, ...and for that matters, inflation rate la...

You know what I mean?

Wa, another deep 1. You have been studying my friend. I have this strange feeling your knowledge is better/more than mine.

[carbuncle]

Wa, another deep 1. You have been studying my friend. I have this strange feeling your knowledge is better/more than mine.

Look at this nick. His might well have inroads into govt policies. Maybe even can grace us with first hand warnings.

[Secretariat]

Wa, another deep 1. You have been studying my friend. I have this strange feeling your knowledge is better/more than mine.

No la, where got? Hahaha...

It is just that I am a keen student of history la...

[Secretariat]

Look at this nick. His might well have inroads into govt policies. Maybe even can grace us with first hand warnings.

Aiyoh...not so leh.

The nick is a salute to the greatest racehorse Secretariat.

Funnily, Secretariat is a chestnut...hahaha

[chestnut]

Aiyoh...not so leh.

The nick is a salute to the greatest racehorse Secretariat.

Funnily, Secretariat is a chestnut...hahaha

Ah, so u also watch pawnstar.

Actually, there is more then meet the eye. Have to look deep then can get the answer. And u are right, the answer lies with history. I believe u understand what I mean

[cnud]

Ah, so u also watch pawnstar.

Actually, there is more then meet the eye. Have to look deep then can get the answer. And u are right, the answer lies with history. I believe u understand what I mean

Swing more potential buyers into asset owners. Then sure huat huat! This is guvment job!