The current property market is overheating. MM said probably no housing bubble yet. But we can see for ourselves how steep the price index is from the URA website.
So, can we buy property in the current market?
My answer is yes. You will still be able to find property that is undervalued. I bought a top floor (15th) 3 bedroom unit for $615 psf. This project is just 8 minutes walk from Hougang MRT station, Hougang Mall, Food Courts and within 1km of a SAP, Holy Innocents' Primary School.
The project may be 13 years old out of 99 years leasehold. You will not disagree that the potential for the upside is there. Comparing to neighboring estates that were selling at $700 psf, I was actually buying at a discount of 12.1%.
The maintenance of the estate was very well kept and the maintenance fee is only $180/month.
Another private property sector worth considering, landed properties. Some landed areas, outside core central, like Luxus Hills, Mimosa Terraces, Realty Park were all asking for prices that cannot be bought by the middle income family. So what can we do?
Look for alternatives.
I have been going around viewing open houses at different areas. Seletar, Teacher's Estate, Telok Kurau, Poh Huat area, Park Villas. Just take 2 areas for comparison. Park Villa is a 99 year leasehold terrace selling at $1.35 million while Teacher's Estate, a 999 year leasehold, terrace is selling for $1.3 million. Which is a better buy? I think you will have the answer now.
A 999 year or freehold terrace at other places listed above are asking for at least $1.8 million. How can a middle income family afford that kind of price?
Further investigation of the transacted prices at URA site confirms that Teacher's Estate is really a good buy. Prices were stable and in the uptrend even during the recession last year.
To buy a condominium unit, size 1200, at $1.5 million, at Meadows @Pierce or to buy a land, size 1800, for $1.3 million, it's your call.
Continue to save more money and look around for valuable properties. You will be able to climb up the property millionaire ladder one day.
Cheers.
Tuesday, July 20, 2010
Monday, July 19, 2010
Phase 1A of the downtrend
This piece of news is extracted from the businesstimes.
July 19, 2010, 8.40 am (Singapore time)
China to maintain property tightening
BEIJING - China will maintain its tightening campaign to cool real estate prices, the Minister of Housing and Urban-Rural Development said in remarks published on Monday, while urging local governments to build more affordable housing.
As Chinese economic growth slowed in the second quarter, some analysts and investors expected Beijing might loosen its efforts to temper the real estate sector, which accounts for more than 10 per cent of gross domestic product.
But Jiang Weixin, the housing minister, told a meeting of more than 70 mayors that the risks of doing so were too high.
'Once the policy is relaxed, property prices will rebound strongly. Our macro control efforts will then fail overnight, and the government will also lose the trust of its people,' he was quoted as saying by the China Business News.
China's property prices fell 0.1 per cent in June from May, the first monthly decline since February 2009, after Beijing rolled out a slew of measures in April, including higher required down payments and mortgage rates, to curb rapid housing price rises.
Mr Jiang urged the officials to speed up efforts to meet the country's target of building 5.8 million units of affordable housing this year.
His ministry will make a two-week check on the progress of construction beginning on Aug 10, he told the mayors. -- REUTERS
Now for my comments.
Prices of the properties in China as dropped 0.1% in June. It indicates that we have progressed from Phase 1 to Phase 1A. The dropped in property prices in China means that the other countries in Asia will follow suit. It may take a few months or even a few quarters for the Singapore property prices to go down too.
Prices will go down, but when? I do not know. Meanwhile, just need to continue to build our war chest with $$$ ammunition so that we can strike when the price is right.
Cheers.
Disclaimer: The above comments are personal comments. They should not be used to decide if one should buy or should sell their properties.
July 19, 2010, 8.40 am (Singapore time)
China to maintain property tightening
BEIJING - China will maintain its tightening campaign to cool real estate prices, the Minister of Housing and Urban-Rural Development said in remarks published on Monday, while urging local governments to build more affordable housing.
As Chinese economic growth slowed in the second quarter, some analysts and investors expected Beijing might loosen its efforts to temper the real estate sector, which accounts for more than 10 per cent of gross domestic product.
But Jiang Weixin, the housing minister, told a meeting of more than 70 mayors that the risks of doing so were too high.
'Once the policy is relaxed, property prices will rebound strongly. Our macro control efforts will then fail overnight, and the government will also lose the trust of its people,' he was quoted as saying by the China Business News.
China's property prices fell 0.1 per cent in June from May, the first monthly decline since February 2009, after Beijing rolled out a slew of measures in April, including higher required down payments and mortgage rates, to curb rapid housing price rises.
Mr Jiang urged the officials to speed up efforts to meet the country's target of building 5.8 million units of affordable housing this year.
His ministry will make a two-week check on the progress of construction beginning on Aug 10, he told the mayors. -- REUTERS
Now for my comments.
Prices of the properties in China as dropped 0.1% in June. It indicates that we have progressed from Phase 1 to Phase 1A. The dropped in property prices in China means that the other countries in Asia will follow suit. It may take a few months or even a few quarters for the Singapore property prices to go down too.
Prices will go down, but when? I do not know. Meanwhile, just need to continue to build our war chest with $$$ ammunition so that we can strike when the price is right.
Cheers.
Disclaimer: The above comments are personal comments. They should not be used to decide if one should buy or should sell their properties.
Sunday, July 4, 2010
Phase I of downtrend is on the way
This is an excerpt from the business times breaking news.
July 5, 2010, 1.22 pm (Singapore time)
China property prices to fall before long: minister
BEIJING - China's property prices will fall within a few months as government steps to cool the real estate market bite, Xu Shaoshi, minister of land and resources, said.
China introduced a slew of measures in April, including higher down payments and mortgage rates, to curb excessive real estate price rises, which the government sees as a threat to social stability.
'Property transactions have fallen now and prices have stagnated,' Mr Xu told a meeting of ministry officials on Sunday in Dalian, a northeastern port city.
'In another quarter's time or so, the property market will probably come to a full correction and prices will fall. But it's hard to say to what extent they will fall,' the official Xinhua news agency and other domestic media quoted him as saying.
Mr Xu added that China's land market had cooled and Beijing would continue to build more affordable housing, which could pull down the average level of house prices.
Nationwide, property prices rose 0.2 per cent in May, leaving them 12.4 per cent higher than a year earlier. The increases were smaller than in April. -- REUTERS
The china property market will take lead the downtrend. The rest of the region, where property markets are over heated will follow suit. Just wait for a quarter or two and we can strike using all our reserves in our war chest.
Wait no further, save more cash now.
July 5, 2010, 1.22 pm (Singapore time)
China property prices to fall before long: minister
BEIJING - China's property prices will fall within a few months as government steps to cool the real estate market bite, Xu Shaoshi, minister of land and resources, said.
China introduced a slew of measures in April, including higher down payments and mortgage rates, to curb excessive real estate price rises, which the government sees as a threat to social stability.
'Property transactions have fallen now and prices have stagnated,' Mr Xu told a meeting of ministry officials on Sunday in Dalian, a northeastern port city.
'In another quarter's time or so, the property market will probably come to a full correction and prices will fall. But it's hard to say to what extent they will fall,' the official Xinhua news agency and other domestic media quoted him as saying.
Mr Xu added that China's land market had cooled and Beijing would continue to build more affordable housing, which could pull down the average level of house prices.
Nationwide, property prices rose 0.2 per cent in May, leaving them 12.4 per cent higher than a year earlier. The increases were smaller than in April. -- REUTERS
The china property market will take lead the downtrend. The rest of the region, where property markets are over heated will follow suit. Just wait for a quarter or two and we can strike using all our reserves in our war chest.
Wait no further, save more cash now.
Sunday, June 27, 2010
More evidence to show drop in price in the pipeline?
HOT from http://www.businesstimes.com.sg/
June 28, 2010, 1.11 pm (Singapore time)
StanChart cuts S'pore property firms
SINGAPORE - Standard Chartered has downgraded its recommendations on Singapore property firms CapitaLand Ltd, City Developments Ltd and Keppel Land Ltd, citing lower launch prices in 2011 due to larger land supply.
'We expect an increase in the residential supply in the pipeline in 2011 mainly due to the record land supply the government has announced it will push out in the second half of 2010,' the bank said in a report.
In addition, it said it expects prices to enter a down-cycle if the government revises policies to increase public housing supply in the next six to 12 months.
It said it also forecasts launch prices to decline by 20 per cent in the mass market districts and 10 per cent in the prime districts in 2011.
Broker rating and target price:
CapitaLand, In-line, $3.95
City Developments, Underperform, $9.27
Keppel Land, Underperform, $3.35
-- REUTERS
This piece of fresh news has affirmed my views on the current property market. Property prices are indeed going towards the downcycle, if you have followed the chart from the URA website. If not, at least housing prices will stagnate.
Well, well, time to follow these steps.
1. Choose the district/area that you would like to buy your property.
2. Decide how many bedrooms you want.
3. Access http://www.ura.gov.sg/ weekly to check the transacted prices.
4. Get a reliable and trustworthy agent to update you. They have first hand news about the market sentiments.
5. Check with the bank for an in-principle approval of home loan.
6. Keep a record of your CPF statements, remember the minimum sum rule.
If you do not know how to do the calculations, I am glad to be of serivce.
7. Build more cash in the war chest.
8. Wait patiently.
Cheers.
June 28, 2010, 1.11 pm (Singapore time)
StanChart cuts S'pore property firms
SINGAPORE - Standard Chartered has downgraded its recommendations on Singapore property firms CapitaLand Ltd, City Developments Ltd and Keppel Land Ltd, citing lower launch prices in 2011 due to larger land supply.
'We expect an increase in the residential supply in the pipeline in 2011 mainly due to the record land supply the government has announced it will push out in the second half of 2010,' the bank said in a report.
In addition, it said it expects prices to enter a down-cycle if the government revises policies to increase public housing supply in the next six to 12 months.
It said it also forecasts launch prices to decline by 20 per cent in the mass market districts and 10 per cent in the prime districts in 2011.
Broker rating and target price:
CapitaLand, In-line, $3.95
City Developments, Underperform, $9.27
Keppel Land, Underperform, $3.35
-- REUTERS
This piece of fresh news has affirmed my views on the current property market. Property prices are indeed going towards the downcycle, if you have followed the chart from the URA website. If not, at least housing prices will stagnate.
Well, well, time to follow these steps.
1. Choose the district/area that you would like to buy your property.
2. Decide how many bedrooms you want.
3. Access http://www.ura.gov.sg/ weekly to check the transacted prices.
4. Get a reliable and trustworthy agent to update you. They have first hand news about the market sentiments.
5. Check with the bank for an in-principle approval of home loan.
6. Keep a record of your CPF statements, remember the minimum sum rule.
If you do not know how to do the calculations, I am glad to be of serivce.
7. Build more cash in the war chest.
8. Wait patiently.
Cheers.
Buying craze has indeed slowed down
Published June 28, 2010 (Business Times)
68 units sold at Waterfront Gold
Two of 5 blocks, or 150 units, of Bedok Reservoir condo released last Friday
By KALPANA RASHIWALA
FRASERS Centrepoint and Far East Organization have sold 68 of the 150 units for sale at the Waterfront Gold condo fronting Bedok Reservoir as of yesterday.
These were units released by the developers last Friday.
The 99-year leasehold condo, which has a total 361 units, is priced at $950 psf on average.
Over 70 per cent of units sold were smallish apartments - one bedders, one bedroom with study units and two bedders.
Buyers were predominantly Singaporeans and there was a roughly equal split between those with HDB and private addresses. In absolute price terms, the cheapest unit sold was about $555,000, for a 581 square foot, one-bedder on the second level. Both penthouses released (about 2,000 sq ft each) were sold at an average price of about $1,025 psf or $2.1 million each.
While Waterfront Gold's sales seem tepid compared with launches earlier this year, Frasers Centrepoint Homes chief operating officer Cheang Kok Kheong said the outcome was 'within our expectation and quite remarkable given today's market sentiment'.
'We are testing the upper end of prices in the upgraders' market and because of the location and facilities, we are positioning Waterfront Gold as an upper-mid market condo rather than a mass-market product.
'For instance, we have a sky park with a dedicated express bubble lift and toilets in the development will have marble floors,' he added.
Mr Cheang also said the developers are offering two of the project's five blocks, or 150 units, as part of 'a deliberate attempt not to sell out the project'.
'We wish to sell progressively and keep the remaining three blocks until the location of the Bedok Reservoir Station on Downtown Line 3 is announced.'
Market watchers recall that during March/April, when home buying sentiment was stronger, developers used to achieve sales of about 300 units in the first weekend of a project's release.
Knight Frank managing director (residential services) Peter Ow attributed Waterfront Gold's sales result to a 'combination of challenging pricing and a slower market'.
Waterfront Gold is the third in a series of four condos that Frasers Centrepoint and Far East are developing on the former Waterfront View site.
Waterfront Waves was first released in January 2008 at an average price of about $750 psf, followed by the launch of Waterfront Key in July last year at $735 psf on average.
The developers have been raising prices in these two projects.
Waterfront Waves is now fully sold and the remaining 100-odd apartments at Waterfront Key are now selling at average prices of $850 psf for poolview units and $950 psf for reservoir-facing units.
Now for my comments:
The developers launch 150 units out of the 361 units that they have. What does this statement tell you?
Well, I see it that the developers have also seen a large dropped in the number of buyers. Anyway, why wait for the confirmation of the MRT station? Just launch all the units available and see the response.
Anyway, compared to March/April where selling 300 units can be easily achieved in the first weekend, but now? Only 68????
That's a 72% dropped in sales. What's more, most of the buyers are buying only the smaller units. What does this show again? No locals are interested to buy the bigger units to stay. So what do we do? Of course we target the bigger units.
Let's wait for more signals before we commit.
Have you started to build your war chest yet?
68 units sold at Waterfront Gold
Two of 5 blocks, or 150 units, of Bedok Reservoir condo released last Friday
By KALPANA RASHIWALA
FRASERS Centrepoint and Far East Organization have sold 68 of the 150 units for sale at the Waterfront Gold condo fronting Bedok Reservoir as of yesterday.
These were units released by the developers last Friday.
The 99-year leasehold condo, which has a total 361 units, is priced at $950 psf on average.
Over 70 per cent of units sold were smallish apartments - one bedders, one bedroom with study units and two bedders.
Buyers were predominantly Singaporeans and there was a roughly equal split between those with HDB and private addresses. In absolute price terms, the cheapest unit sold was about $555,000, for a 581 square foot, one-bedder on the second level. Both penthouses released (about 2,000 sq ft each) were sold at an average price of about $1,025 psf or $2.1 million each.
While Waterfront Gold's sales seem tepid compared with launches earlier this year, Frasers Centrepoint Homes chief operating officer Cheang Kok Kheong said the outcome was 'within our expectation and quite remarkable given today's market sentiment'.
'We are testing the upper end of prices in the upgraders' market and because of the location and facilities, we are positioning Waterfront Gold as an upper-mid market condo rather than a mass-market product.
'For instance, we have a sky park with a dedicated express bubble lift and toilets in the development will have marble floors,' he added.
Mr Cheang also said the developers are offering two of the project's five blocks, or 150 units, as part of 'a deliberate attempt not to sell out the project'.
'We wish to sell progressively and keep the remaining three blocks until the location of the Bedok Reservoir Station on Downtown Line 3 is announced.'
Market watchers recall that during March/April, when home buying sentiment was stronger, developers used to achieve sales of about 300 units in the first weekend of a project's release.
Knight Frank managing director (residential services) Peter Ow attributed Waterfront Gold's sales result to a 'combination of challenging pricing and a slower market'.
Waterfront Gold is the third in a series of four condos that Frasers Centrepoint and Far East are developing on the former Waterfront View site.
Waterfront Waves was first released in January 2008 at an average price of about $750 psf, followed by the launch of Waterfront Key in July last year at $735 psf on average.
The developers have been raising prices in these two projects.
Waterfront Waves is now fully sold and the remaining 100-odd apartments at Waterfront Key are now selling at average prices of $850 psf for poolview units and $950 psf for reservoir-facing units.
Now for my comments:
The developers launch 150 units out of the 361 units that they have. What does this statement tell you?
Well, I see it that the developers have also seen a large dropped in the number of buyers. Anyway, why wait for the confirmation of the MRT station? Just launch all the units available and see the response.
Anyway, compared to March/April where selling 300 units can be easily achieved in the first weekend, but now? Only 68????
That's a 72% dropped in sales. What's more, most of the buyers are buying only the smaller units. What does this show again? No locals are interested to buy the bigger units to stay. So what do we do? Of course we target the bigger units.
Let's wait for more signals before we commit.
Have you started to build your war chest yet?
Friday, June 25, 2010
So is there a property bubble or isn't there?
Jun 26, 2010
Probably no property bubble here yet: MM
THERE is probably no bubble in Singapore's property market, Minister Mentor Lee Kuan Yew said yesterday.
The sharp price rises that have been seen are 'part of the total liquidity in the whole world system', said Mr Lee, noting that interest rates are low, and foreigners still see properties as affordable.
'Even if we cap our excess, people in Hong Kong, Indonesia, will say, compared to what I have to pay, Singapore is cheap, let's buy it,' he added.
'And apart from landed properties, they can buy into any condos.'
Mr Lee, who was speaking at a dinner hosted by the Association of Banks in Singapore, said that the Government is convinced that there is real underlying demand for residential property.
'So it's probably not a bubble yet,' he added.
Still, he pointed out that the Government has taken measures to address concerns relating to the market overheating, including releasing more land to developers and putting in place more stringent rules for buyers when borrowing from banks to finance property.
'More land is being released, to dampen the enthusiasm of everybody rushing for the latest release, and we've told the banks to be more prudent and have a higher downpayment,' said Mr Lee.
'These are the precautions we can take, but it does not stop the Indonesians or the Thais or the Malaysian Chinese or the Filipino Chinese from coming here and saying, 'Compared to what I have to pay in my country, this is cheap'.'
Mr Lee was responding to a question by a Standard Chartered banker who had asked about whether he was worried about property prices here.
Above is a part of the report extracted from The Straits Times on June 26, 2010.
MM uses the word PROBABLY, hence probably there is indeed a property bubble forming, but not big enough to burst yet? Nobody knows.
I agree the statement that he make in the middle and last part, "Compared to what I have to pay in my country, this is cheap." He mentioned this statement twice!
I have been noticing that the property prices in the neighbouring countries and that includes Hong Kong and China, that their property prices are much higher than our homeland.
So what happens when the housing prices, or the 'bubble' burst in those countries?
Singapore property prices will follow suit as the investors will go back to their country to buy the properties there. But where do they find the money? By selling the properties here.
This is another example of the simple theory of "Supply and Demand", the most important topic in economics.
As the number of people to buy properties are limited, the buying craze must stop somewhere, hence demand drops. Then it will come a day when those people who follow blindly to buy, will have to sell the properties at a loss. This will slowly translate to more supply over demand and hence prices must fall.
Meanwhile, let's continue to build our warchests.
Probably no property bubble here yet: MM
THERE is probably no bubble in Singapore's property market, Minister Mentor Lee Kuan Yew said yesterday.
The sharp price rises that have been seen are 'part of the total liquidity in the whole world system', said Mr Lee, noting that interest rates are low, and foreigners still see properties as affordable.
'Even if we cap our excess, people in Hong Kong, Indonesia, will say, compared to what I have to pay, Singapore is cheap, let's buy it,' he added.
'And apart from landed properties, they can buy into any condos.'
Mr Lee, who was speaking at a dinner hosted by the Association of Banks in Singapore, said that the Government is convinced that there is real underlying demand for residential property.
'So it's probably not a bubble yet,' he added.
Still, he pointed out that the Government has taken measures to address concerns relating to the market overheating, including releasing more land to developers and putting in place more stringent rules for buyers when borrowing from banks to finance property.
'More land is being released, to dampen the enthusiasm of everybody rushing for the latest release, and we've told the banks to be more prudent and have a higher downpayment,' said Mr Lee.
'These are the precautions we can take, but it does not stop the Indonesians or the Thais or the Malaysian Chinese or the Filipino Chinese from coming here and saying, 'Compared to what I have to pay in my country, this is cheap'.'
Mr Lee was responding to a question by a Standard Chartered banker who had asked about whether he was worried about property prices here.
Above is a part of the report extracted from The Straits Times on June 26, 2010.
MM uses the word PROBABLY, hence probably there is indeed a property bubble forming, but not big enough to burst yet? Nobody knows.
I agree the statement that he make in the middle and last part, "Compared to what I have to pay in my country, this is cheap." He mentioned this statement twice!
I have been noticing that the property prices in the neighbouring countries and that includes Hong Kong and China, that their property prices are much higher than our homeland.
So what happens when the housing prices, or the 'bubble' burst in those countries?
Singapore property prices will follow suit as the investors will go back to their country to buy the properties there. But where do they find the money? By selling the properties here.
This is another example of the simple theory of "Supply and Demand", the most important topic in economics.
As the number of people to buy properties are limited, the buying craze must stop somewhere, hence demand drops. Then it will come a day when those people who follow blindly to buy, will have to sell the properties at a loss. This will slowly translate to more supply over demand and hence prices must fall.
Meanwhile, let's continue to build our warchests.
Tuesday, June 22, 2010
Are property prices going to hold or ready to experience free fall?
22 June 2010
Two independent reports from straits times and channalnewasia.com commented on recent property sales showing signs of slowdown. This two reports were written only two weeks from the last news that developer sales slowed by almost 60%.
The straits times wrote:
Residential property sector takes a breather
Channelnewasia.com wrote:
Caveats lodged in May 2010 dropped 41%
These two reports once again gave us evidence that the number of buyers out there are exhausted by the recent sales since January. We must remember that the number of people buying properties are limited, hence the buying craze must stop somewhere.
Property agents are still saying that prices will not drop. What kind of sales tactic is this? It comes to show that these agents are only interested to push sales. They do not care if the buyers will profit after that. If they are so sure that the prices are going to go up further, why don't they buy a few units each?
Of all the property showflats that I have seen, I would only consider one that is of value. If you want to know which property and why, email me.
There is another one property that I am looking forward to the launch, that I feel also have value. I will update you once I have seen it.
Meanwhile, just build our war chests and wait patiently.
Two independent reports from straits times and channalnewasia.com commented on recent property sales showing signs of slowdown. This two reports were written only two weeks from the last news that developer sales slowed by almost 60%.
The straits times wrote:
Residential property sector takes a breather
Channelnewasia.com wrote:
Caveats lodged in May 2010 dropped 41%
These two reports once again gave us evidence that the number of buyers out there are exhausted by the recent sales since January. We must remember that the number of people buying properties are limited, hence the buying craze must stop somewhere.
Property agents are still saying that prices will not drop. What kind of sales tactic is this? It comes to show that these agents are only interested to push sales. They do not care if the buyers will profit after that. If they are so sure that the prices are going to go up further, why don't they buy a few units each?
Of all the property showflats that I have seen, I would only consider one that is of value. If you want to know which property and why, email me.
There is another one property that I am looking forward to the launch, that I feel also have value. I will update you once I have seen it.
Meanwhile, just build our war chests and wait patiently.
Wednesday, June 16, 2010
After building your warchest with cash and CPF monies, then what?
Just a month ago, on 19 May 2010, I wrote that it's time to get ready money to invest in property, or to upgrade to a higer value property. Today's business times and straits times reported that developers' sale of new units has slowed by almost 60%. It comes to show that supply of new units have excess over demands from the buyers.
Yesterday, an agent sms me to consider a $1.355 million 16th floor 3+1 unit 99 years unit in Kovan Residences. Upon receiving that sms, I checked the ura website for transacted prices and found that the units with similar sizes of 1760 sqft was sold only at about between $1.08 to $1.2 million. The asking price is about 20% or 30% above what was transacted about a year ago. That's ridiculous, isn't it?
Well, if you never forget what Mr Buffett said, "Be fearful when people are greedy and be greedy when people are fearful." I feel that this is the time when people are greedy. This "greed" started 5 months ago in January. This is the time to be more patient as before, and to gather all our ammunitions, i.e. $$$, so that we will be able to strike when people are fearful. This time should come soon, maybe by the end of this year.
There has been reports that smaller units were snapped up the very day it was launched. Don't these people have to really consider the direction and facing when buying properties? These may be the reasons:-
1. If I do not buy now, I will miss the boat.
2. Since everyone else is buying now, the price should be going up later.
3. It's still under construction, hence my monthly installment is peanuts.
It's right that one has to pay only a few hundreds of dollars monthly under the progressive payment scheme. For example, if an individual buys a $1.1 million property, the first three years of payment is about $350 to $900. Only upon TOP, the buyer will need to pay $2600. However, think twice, will I be able to pay the $2600 monthly after TOP?
Let's think about it. The properties under the deferred payment scheme a few years ago will get their TOP this year. Those properties were launch 2 to 3 years ago. That was the time when people just buy the properties without considering, because they have the mentality that I only to pay 5% cash, and 15% from CPF monies, and the rest after TOP. I am currently following a few properties that were on deferred payment scheme, and are going to TOP this year. I believe these properties will be the ones that will create panic selling towards the end of this year.
So what am I doing now? Just need building up my warchest and ammunitions and have the patience to wait for the right time to strike.
Yesterday, an agent sms me to consider a $1.355 million 16th floor 3+1 unit 99 years unit in Kovan Residences. Upon receiving that sms, I checked the ura website for transacted prices and found that the units with similar sizes of 1760 sqft was sold only at about between $1.08 to $1.2 million. The asking price is about 20% or 30% above what was transacted about a year ago. That's ridiculous, isn't it?
Well, if you never forget what Mr Buffett said, "Be fearful when people are greedy and be greedy when people are fearful." I feel that this is the time when people are greedy. This "greed" started 5 months ago in January. This is the time to be more patient as before, and to gather all our ammunitions, i.e. $$$, so that we will be able to strike when people are fearful. This time should come soon, maybe by the end of this year.
There has been reports that smaller units were snapped up the very day it was launched. Don't these people have to really consider the direction and facing when buying properties? These may be the reasons:-
1. If I do not buy now, I will miss the boat.
2. Since everyone else is buying now, the price should be going up later.
3. It's still under construction, hence my monthly installment is peanuts.
It's right that one has to pay only a few hundreds of dollars monthly under the progressive payment scheme. For example, if an individual buys a $1.1 million property, the first three years of payment is about $350 to $900. Only upon TOP, the buyer will need to pay $2600. However, think twice, will I be able to pay the $2600 monthly after TOP?
Let's think about it. The properties under the deferred payment scheme a few years ago will get their TOP this year. Those properties were launch 2 to 3 years ago. That was the time when people just buy the properties without considering, because they have the mentality that I only to pay 5% cash, and 15% from CPF monies, and the rest after TOP. I am currently following a few properties that were on deferred payment scheme, and are going to TOP this year. I believe these properties will be the ones that will create panic selling towards the end of this year.
So what am I doing now? Just need building up my warchest and ammunitions and have the patience to wait for the right time to strike.
Wednesday, May 19, 2010
Get your cash ready for property investment
Investment in the properties is not as difficult as you may have thought.
There may be some fears that's holding you back. There fears includes "No money", "No experience", "The price is too high", "What if there is a recession?"
Do you experience one or more of these fear?
If you do, then it's quite normal. Everyone will have to start something, somewhere at sometime. Once you start and gain experience, you will eliminate all those fears that we mentioned above.
Now it's the time to get ready your cash and CPF to buy an investment property. We'll wait for a good chance to buy the property at a bargain. Meanwhile, it's always good to look at the papers and websites to search keep track of the property prices.
Step 1: Choose a few areas that you would like the investment property to be.
Step 2: Check the transacted prices through http://www.ura.gov.sg/
Step 3: Check the newspapers' classified, Internet (http://www.propertyguru.com.sg/ or http://www.iproperty.com.sg/ or http://www.st701.com.sg/) once a week.
Step 4: Get a very reliable property agent, who also has experience, to look out for fire sale out there.
Step 5: Get ready your cash, to pay the 5% and stamp duty. Always be ready to grab one property whenever possible.
Step 6: Wait patiently if you cannot find one now or in the near future.
The 6 steps above can help you grow your assets and cash till you retire.
If you would like to know how much returns you can get investing properties, kindly email to desjac@yahoo.com
Have fun searching.
There may be some fears that's holding you back. There fears includes "No money", "No experience", "The price is too high", "What if there is a recession?"
Do you experience one or more of these fear?
If you do, then it's quite normal. Everyone will have to start something, somewhere at sometime. Once you start and gain experience, you will eliminate all those fears that we mentioned above.
Now it's the time to get ready your cash and CPF to buy an investment property. We'll wait for a good chance to buy the property at a bargain. Meanwhile, it's always good to look at the papers and websites to search keep track of the property prices.
Step 1: Choose a few areas that you would like the investment property to be.
Step 2: Check the transacted prices through http://www.ura.gov.sg/
Step 3: Check the newspapers' classified, Internet (http://www.propertyguru.com.sg/ or http://www.iproperty.com.sg/ or http://www.st701.com.sg/) once a week.
Step 4: Get a very reliable property agent, who also has experience, to look out for fire sale out there.
Step 5: Get ready your cash, to pay the 5% and stamp duty. Always be ready to grab one property whenever possible.
Step 6: Wait patiently if you cannot find one now or in the near future.
The 6 steps above can help you grow your assets and cash till you retire.
If you would like to know how much returns you can get investing properties, kindly email to desjac@yahoo.com
Have fun searching.
Thursday, May 6, 2010
Stockpiling Time
Last night, 6 May 2010, DOW went down more than 3% and the Greece situation has caused panic selling around the world. This is the period we like. It's time to stockpile some value stocks now.
In Singapore today, 7 May 2010, people are panic selling too. Popular is trading between $0.145 and $0.150, banks are worse hit. All the three banks are down, despite reporting better than expected results.
In the US, Citigroup is trading below $4, for the first time in 3 months. It is reported that Citigroup is not involved in the technical glitch in NYSE last night, and they are expanding everywhere outside US, except Europe. I still agree with other analyst that Citi will reach $12 by 2012. Earnings in Citi are solid and they have already firm the company and earnings are coming in.
Popular's new MD maded an announcement that Popular will have a single digit earnings growth this year. I think people have forgotten about this annoucement and panic selling Popular too. At $0.15, it's really a steal. Dividend yield is at 13.3% (if according to historical dividend of $0.02 annually). Popular will announce annual result in late May or early June, therefore I feel that this is a good time to stockpile.
The above is just some personal thoughts, it still depends on yourself whether to buy or not.
Cheers.
Investment Courses for teachers on 31 May and 1 June.
Sign up now.
In Singapore today, 7 May 2010, people are panic selling too. Popular is trading between $0.145 and $0.150, banks are worse hit. All the three banks are down, despite reporting better than expected results.
In the US, Citigroup is trading below $4, for the first time in 3 months. It is reported that Citigroup is not involved in the technical glitch in NYSE last night, and they are expanding everywhere outside US, except Europe. I still agree with other analyst that Citi will reach $12 by 2012. Earnings in Citi are solid and they have already firm the company and earnings are coming in.
Popular's new MD maded an announcement that Popular will have a single digit earnings growth this year. I think people have forgotten about this annoucement and panic selling Popular too. At $0.15, it's really a steal. Dividend yield is at 13.3% (if according to historical dividend of $0.02 annually). Popular will announce annual result in late May or early June, therefore I feel that this is a good time to stockpile.
The above is just some personal thoughts, it still depends on yourself whether to buy or not.
Cheers.
Investment Courses for teachers on 31 May and 1 June.
Sign up now.
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