Which Direction Will Property Prices Go ?

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.
 

arctician

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If earning or free cash flow increases in the next few quarters for many quality companies, valuation will become cheap. ;)
personally i prefer high quality value over growth stocks now, if i remember in march there was a rotation towards value stocks in US as tech stocks are dependent on future earnings and cash flow which is worth less if interest rate rise. Now i just put everything into quality SG REITs at good valutions, every month just do DCA
 

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Not exactly true. Key diff between property & stock is that property is leveraged.
It is very easy to trade on leverage with stocks too.

Key difference is that property is less volatile and less likely to get margin calls. Thats why I say sinkies and generally humans are risk-adverse. Thats fine, if not everyone will be making millions in stocks and coins.
 

Passerboy

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It is very easy to trade on leverage with stocks too.

Key difference is that property is less volatile and less likely to get margin calls. Thats why I say sinkies and generally humans are risk-adverse. Thats fine, if not everyone will be making millions in stocks and coins.
Additional point is while u can leverage with stocks the interest or “pitfall” is higher.
 

scanner007

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personally i prefer high quality value over growth stocks now, if i remember in march there was a rotation towards value stocks in US as tech stocks are dependent on future earnings and cash flow which is worth less if interest rate rise. Now i just put everything into quality SG REITs at good valutions, every month just do DCA
To each, it’s own. Lol
Amazon, Salesforce are few good examples. As long as our investment meets our needs. All is good.
 

holasingapura

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Additional point is while u can leverage with stocks the interest or “pitfall” is higher.
Exactly. That is why property is the one of the simplest form of investment.

And one passing question for you.... Would prefer to...

1. Afford 3 investment properties and collect 3x rental income. Prices appreciate slowly. Enjoy life with quarterly overseas trip.
or
2. Own 1 investment property and have its value double in 15 years. Slog throughout your life and live from paycheck to paycheck.

Just keeping your euphoria in check.
 

arctician

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To each, it’s own. Lol
Amazon, Salesforce are few good examples. As long as our investment meets our needs. All is good.
true also. thats why real estate is preferred by some for lower volatility, one will need lots of courage to have 90% of your networth in Equities. but not sure why it became comparatively OK if its real estate.
 

Passerboy

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Exactly. That is why property is the one of the simplest form of investment.

And one passing question for you.... Would prefer to...

1. Afford 3 investment properties and collect 3x rental income. Prices appreciate slowly. Enjoy life with quarterly overseas trip.
or
2. Own 1 investment property and have its value double in 15 years. Slog throughout your life and live from paycheck to paycheck.

Just keeping your euphoria in check.
Why number 1, don’t need to slog? Then where does he get the capital to afford the 3 investment property?
 

holasingapura

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Why number 1, don’t need to slog? Then where does he get the capital to afford the 3 investment property?
Don't need to slog because prices lower due to very slow appreciation in case 1. Your income rises faster than property prices, not the other way round.

Just a hypothetical situation. Anyway, hard for ordinary young sinkies to achieve number 1 today because too many sinkies are competing to be landlords.
 
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Passerboy

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Don't need to slog because prices lower due to very slow appreciation in case 1. Your income rises faster than property prices, not the other way round.

Just a hypothetical situation. Anyway, hard for ordinary young sinkies to achieve number 1 today because too many sinkies are competing to be landlords.
But u own 3 properties instead of 1, with ABSD and all it should hit equally hard as option 2.

though I say option 1 is better.
 

holasingapura

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But u own 3 properties instead of 1, with ABSD and all it should hit equally hard as option 2.

though I say option 1 is better.
If prices appreciated gradually, govt would not have imposed today's ABSD?

Anyhow, good that you are aware option 1 is better. Unfortunately, this was easier for our elders to achieve. e.g. one of our senior expert panel member has 3 or 4 properties - I do not think he has a top tier income. Oh, as I write about him, you can easily avoid the ABSD for additional 3 properties, pls consult him! But perhaps it will be tougher if you are single.

For now, happy living with option 2! Up, up and away - as you love it!
 

Passerboy

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If prices appreciated gradually, govt would not have imposed today's ABSD?

Anyhow, good that you are aware option 1 is better. Unfortunately, this was easier for our elders to achieve. e.g. one of our senior expert panel member has 3 or 4 properties - I do not think he has a top tier income. Oh, as I write about him, you can easily avoid the ABSD for additional 3 properties, pls consult him! But perhaps it will be tougher if you are single.

For now, happy living with option 2! Up, up and away - as you love it!
Haha working towards Option 1, up up and away!

but I think either options need to slog abit or look out for hyper growth stocks.
 
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