Which Direction Will Property Prices Go ?

holasingapura

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Most sinkies are risk-adverse and have little knowledge on how to analyse stocks. So properties for them is the easiest and safest option.
 

TeamUSA

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Do you have any recent cases where investors can flip and sell witin 3 years- TOP for that kind of profit - is it still possible now with SSD and assuming you have to take a bank loan ? I know it was possible in the early 2010s but how do you do that now?

Quote:

"yay, found another favouring stocks asset over property, hehe. however, really no denying that those who were able to flip their new launch condo in 3 years and earn >100%, their returns would be as good as buying stocks from the Covid-19 lows. the key here however is consistency - is one able to reliably purchase a property/stocks and make consistent profits given any period.."
 

arctician

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If up and up is the only direction, this also applies to all asset classes and its better to put your money in stocks as the property markets always lags the stock market.. even the humble STI has outperformed private property index most of the past decade, let alone US stocks. There is a huge opportunity cost as property investment means you lose large amounts of liquidity - you would have lost chance to make 50%- 80% returns on capital in less than a year from the recent COVID recovery if all your cash is tied up in invstment properties .
for alot ppl they use real estate to balance overall investment portfolio. Do remember though stock may have outperform ppty index, there is leverage which increase your ROE on latter - unless you are using also CFD or margin financing for equities.

I calculated for a property investment with 3% gross yield and 2% annual capital gain, the return on equity is around 20-25% annualized due to leverage, which outperform the average 5-10% for stocks and 3-5% for bonds.

Neither is good or bad, diversification and balancing is key.
 

Passerboy

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yay, found another favouring stocks asset over property, hehe. however, really no denying that those who were able to flip their new launch condo in 3 years and earn >100%, their returns would be as good as buying stocks from the Covid-19 lows. the key here however is consistency - is one able to reliably purchase a property/stocks and make consistent profits given any period..

for this i really prefer stocks over investment properties, as over the long term stocks will outperform properties
I think the key is diversification. Personally, have stocks too, but liquidated a portion to divert into property investment back in 2018.
 

arctician

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I think the key is diversification. Personally, have stocks too, but liquidated a portion to divert into property investment back in 2018.
same i liquidated 70% early this year to divert into property, of course STI has went up higher since

For me its less of an investment, when one has enough, quality of life takes over financial metrics like yield and ROE
 

Rxgn

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If up and up is the only direction, this also applies to all asset classes and its better to put your money in stocks as the property markets always lags the stock market.. even the humble STI has outperformed private property index most of the past decade, let alone US stocks. There is a huge opportunity cost as property investment means you lose large amounts of liquidity - you would have lost chance to make 50%- 80% returns on capital in less than a year from the recent COVID recovery if all your cash is tied up in invstment properties .
my 50% money is in doge le, haha
 

zzzzzzz

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Notice now agents have additional line in their sales talk. Regardless whether it applies to the project or not.

"Construction costs are going up, developer cannot price any lower'.
for HDB resale listings they will say "Unit in high demand! Please have your HLE or IPA ready."
:frown:
 

daheigou999

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Notice now agents have additional line in their sales talk. Regardless whether it applies to the project or not.

"Construction costs are going up, developer cannot price any lower'.
Should start a thread on “Common lines used by agents” :s13: :s13:
 

arctician

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"another buyer offered $xxx,xxx"
:frown:
got one even more power, last month i went to view a resale unit advertised at $abc, but agent say got buyer meet the asking price already and now its STARTING FROM $abc

even if you offer the asking you will not get it ...i just walked away
 

Passerboy

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Should start a thread on “Common lines used by agents” :s13: :s13:
One more.. price increase come xx, you will see paper gain once the price increase.

I really kena this before though, and the price increase really happened but one week after the xx date agent mentioned.
 

zzzzzzz

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got one even more power, last month i went to view a resale unit advertised at $abc, but agent say got buyer meet the asking price already and now its STARTING FROM $abc

even if you offer the asking you will not get it ...i just walked away
ever kana this before too
i just say its okay, let the person who offered buy

been checking hdb resale portal every month but till now cannot find that block number and floor range under HDB's transacted prices
:frown:
 

arctician

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ever kana this before too
i just say its okay, let the person who offered buy

been checking hdb resale portal every month but till now cannot find that block number and floor range under HDB's transacted prices

maybe is seller decided not to sell and wait for prices to go up more to huat more
cos selling agent chut all kind of stunts to get me to back out from the viewing

not uncommon to find such insincere sellers/agents time wasters
:frown:
i tracked the caveats realized it was sold at $50k lower than advertised. i have my doubt when they said got buyer offer xx, to me its all sales tactic.

I find purchase of new launch straightforward, but resale will really test your negotiation and understanding of human psychology. beside knowing the market prices one also need to work with both buyer and seller agent and everyone has vested interest
 

zzzzzzz

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i tracked the caveats realized it was sold at $50k lower than advertised. i have my doubt when they said got buyer offer xx, to me its all sales tactic.

I find purchase of new launch straightforward, but resale will really test your negotiation and understanding of human psychology. beside knowing the market prices one also need to work with both buyer and seller agent and everyone has vested interest
agents just want to close deals fast and take commissions
price difference of tens of thousands dont affect their commissions by much
they rather do deals fast and do deals high volume
:frown:
 

scanner007

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same i liquidated 70% early this year to divert into property, of course STI has went up higher since

For me its less of an investment, when one has enough, quality of life takes over financial metrics like yield and ROE
I use property to hedge against inflation since housing price is generally likely on the uptrend due to some of factors which was discussed in other thread.

Disclaimer: Equity market is one of the good alternative and to grow wealth quicker, but of course must have the knowledge and skill.
*Don't invest on tips. Do homework and ensure one really understand well.
 

arctician

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I use property to hedge against inflation since housing price is generally likely on the uptrend due to some of factors which was discussed in other thread.

Disclaimer: Equity market is one of the good alternative and to grow wealth quicker, but of course must have the knowledge and skill.
*Don't invest on tips. Do homework and ensure one really understand well.
in finance there is a term called sharpe ratio, basically its risk adjusted returns after taking into account the volatility. Though property may not be able to outperform stocks without leverage, but its comparatively less volatile so some investors may like it due to a better profile on risk adjusted returns

if i remember correctly stock market valuations are at all time high now since dot com era as investors priced in a recovery..so not too different from real estate
 

scanner007

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if i remember correctly stock market valuations are at all time high now since dot com era as investors priced in a recovery..so not too different from real estate
Yes based on PE and Shiller pe. However, investor could still dig further and unturn stones to find GEM which is likely not noticed by the market or go for quality companies with high growth at fair value to enjoy the ride upwards. No one can time the market, when is the next crash as we don't know.

This time technology companies is backed with growing earnings due to expedited digital transformation and helped by Cov19 and unlike those in dotcom era (not backed with earning and positive cash flow, practically burn cash).
If earning or free cash flow increases in the next few quarters for many quality companies, valuation will become cheap. ;)
 

SBC

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Most sinkies are risk-adverse and have little knowledge on how to analyse stocks. So properties for them is the easiest and safest option.
Not exactly true. Key diff between property & stock is that property is leveraged.
 
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