Is property price finally comes down? Anyone went property investment talk?

[ArchRival]

Many views and none are wrong. Just different

Absolutely agree bro! Nobody is wrong!
When one generation of youngsters wipe out their cpf for decades to pay for house, its all good! :bsmilie:
How much exactly is $50k COV? An entire year's salary + bonuses for a median income worker? :bsmilie:

Hope the govt restart the asset enhancement policy. I want to see how this ends. :bsmilie:

 

[Turbonetics]

chill bro. it is not exactly a joke.

It all depends on how you started it. It is definitely a big winner for those who have invested long long time ago, when the property is like in the 5 figures range.

For us in the new generation, it is not exactly end of story.

How it works>

1) Settle down with a HDB, say 4rm flats. Estimated cost is about 300 to 350K, places like punggol or seng kang.
2) Stay there 5 yrs, bid for another BTO
3) When you move to your new BTO, your flat value should be in the region of 500 to 550K.
4) Keep the profits in your bank account (est 200K)
5) Stay at your new flat for 5 yrs
6) Buy an industrial property that cost around 200K, rent it out.

These day, you can get a decent industrial property space that has 30 yrs for about 200K, and rent out between 2 to 3k per mth. Work your sums from here. After you rent out for 10 yrs, including months of no one renting your space. You would have covered cost. Continue to rent out, you are on your way to get the next property.

Before it reaches 20 yrs, sell at a decent price.

the thing is what are the chances of getting another BTO for 2nd timer?

 

[Turbonetics]

The thing about property is yes you rake in profit but if it's your only property aka home then you'd be buying another property at similar market conditions as well so it's really money from left to right pocket unless you cash out & rent but then you have opportunity loss as well plus the fact that current rents are still very high. One year of rental in a 3 bedroom can wipe out over S$30K easily.

I've invested in some local properties and made decent margins over the last 10yrs. I cashed out at the right time, not the best but good enough and still hold two private properties in Singapore. I did not look at anything here in the past 1.5yrs as everything went absurd but just had a look again few nights ago and some late 1990s built projects are looking reasonably good value.

Commercial is always the best investment because the rental yield can be generous but only the right ones which don't come cheap but they are impossible for most to buy now.

Industrial is not for the general public. There's a lot of hype over the last 2-3years simply because of curbs on loans+stamp duties and agents+developers got creative with their marketing. Please be careful as industrial projects have a lot of restrictions & classifications/zoning so your pool of rental clients is small meaning competitive. Also, most of them are either 99 or even 30-60yrs only. Are you prepared to run a business/office there if there's no tenant?

In short, I feel that Singapore's property prices still need a correction, it won't crash as our government won't allow what happened in 1998 and many curbs+preventions put in place will soften the effect. So, upgraders can still search & possibly invest on a 2nd property provided you're not an HDB dweller.

I've split my investment overseas now & seeing 10-20% gain on paper in the last 6 months while another is giving 120% in 3yrs. Some countries are very attractive if one is brave but be prepared to lose if all goes wrong as I did lose 20% on one project & had to cut loss.

Just sharing & not selling any schemes here

iam curious if u have any Iskandar properties on hand or any advise on Iskandar properties?

 

[Turbonetics]

This is what I call counting your chickens before they are hatched :bsmilie: & like some kind of self congratulation & boasting :embrass: What they say about self praise?

If you buy a flat at $200,000 & can sell it for $580,000 you made a paper profit of $380,000
If you sell it, where you going to live, on the streets ??? :bsmilie:
If you can buy back another flat of the same type & location at $200,000 then you can claim you made $ 380,000. Can you???
If you can buy back another flat of the same type & location at $400,000, then you can claim you made $ 180,000, Can you???
If you buy a smaller flat (say 3 room) of equal quality at same location at $ 400,000, you have downsized, downgraded & translated 1 room into $$$ & cannot claim to make all of $ 180,000. If you moved to cheaper location, then its also downgrading.

Thing is, even if we have the money, we CANNOT, NOT ALLOWED to own 2 HDB flats, one to live in, the other to "invest". If you can then you can say really make money on your "investment" property, HDB asset. Consider what have you done, what smart strategies you employed to make this capital gains other than buying a HDB flat & which you are so very proud of??? You must be a first timer! Or a property agent.

Hundreds of thousands of people in Spore live in HDB flats & they can tell you the same story, they bought their flat in 19XX & now its worth so much more. You are not the first or last one. Some are so proud like they made so much money but is it really like what the Govt say S'porens are sitting on a gold mine when they own HDB flat? If you say you can afford, buy a bigger flat after selling (at market rate), then you can claim upgrading, but you pay for this, its not free. Some see these capital gains as profits, others may see it as inflation, rising costs. If you can say buy a semi-D at $400,000 (like in M'sia) it would be like wow so cheap, fantastic. If you paid $2,000,000 for it, what's so great about it, about paying the highest price except to boast you have money (provided it's not borrowed which means the bank own 70-90% of it, not you as is often the case)? Price equals cost, but not necessary value or gain.

When we buy from the govt, we buy it at a subsidized price of $60,000 or more compared to buying from the market. This account for part of the gain when one sell in the open market, nothing to do with how smart one is. The govt learned their lessons too, owners used to get "2 bites of the cherry" now its 1 bite (if you know what this means), you just got your first bite.

Btw my friend's 4rm flat in AMK at choice location facing Bishan park & brand new SERS flat fetches only +-$ 450K & 4rm flat at Fernvale (where you staying) fetches $580,000? Is it like those prices found in agents' flyers instead?

My 4 room flat at Sengkang area used to be selling above $600k now it has dropped to between $500-550k.
if your friend flat is the new colorful(yellow/blue) blocks facing the park,i don't think it is only $450k,at least $550k or more than $600k for most. and agents are not allowed to list down fake transactions on leaflets,borchures,websites...etc.

 

[Turbonetics]

20 yrs? LOL. He will be at least 60. Not much more yrs to enjoy liao. Not to mention that it is just beginning to rake in profit... ha ha ha

those who have kids will think of the next generation no more selfish thoughts.

 

[Turbonetics]

Basically, what Lawrence was trying to say that he bought his first BTO flat from HDB at around $200k 5 years ago. Now he wanted to cash out at $580k. After which, he will ballot for a second time BTO flat from HDB at the same estate, not necessarily same area.

The BTO flats launched in 2014 consists of Punggol area which Lawrence is currently staying. For a 4-room flat, you can get around $300k excluding grants. He has to pay a resale levy of $40k from his previous sold flat. Therefore, he will receive around $240k extra in terms of CPF and cash. Of course, while waiting for the second BTO flat to be ready, you will need to find a place to stay. Most of time, you will stay at your parents or in-laws place for 2-3 years while waiting for the second BTO flat to be ready.

though Lawrence didn't state clearly but base from what i read,he is selling after getting the 2nd BTO flat.
it certainly don't make sense to sell before getting another flat which is the most common mistakes many people make.

 

[Octarine]

those who have kids will think of the next generation no more selfish thoughts.

And this next generation will be interested in a 30+ year old HDB unit? Or who else would be interested in it, so that the owner can make the profit of his delusional dreams?

 

[donut88]

And this next generation will be interested in a 30+ year old HDB unit? Or who else would be interested in it, so that the owner can make the profit of his delusional dreams?

Why not. Its a property, not a car. And it will have capital appreciation by then.

Same as our parents' property now. How much is your parents' property now, compared to how much they bought it last time?

 

[Turbonetics]

And this next generation will be interested in a 30+ year old HDB unit? Or who else would be interested in it, so that the owner can make the profit of his delusional dreams?

Your reply is rather vogue.
I don't think profits from properties are delusional when the transacted prices are so transparent..it's whether paper gains the owners are living in or cash transaction if they sell.
If u had follow the postings,we were actually talking about the commercial properties that reap in profit after 20 years. But then HDB flats also has it's value,it is not worth nothing.
HDB flats or private properties pass down to next generation should not be measured by how old the properties are. No matter how old it is,it still worth some money depending on market situations.

 

[NineEleven]

iam curious if u have any Iskandar properties on hand or any advise on Iskandar properties?

No. Was tempted a few times before Iskandar was even up, back then the landed prices in JB Palace area was RM100/sqft which was a premium while those projects in the now Iskandar area were Rm30-60psf.

The reasons I don't buy into the southern state are:

#1 Poor Security
#2 Poor public transport (though most have own)
#3 Leasing problems. Who's going to rent from you? Students, expats? There's too many projects with dream promises. Are you going to manage them or leave it to agents? Are you going to stay there? I even resorted to staying in nearby hotels just to experience the daily commute between both countries and it's a nightmare made worse during school/public holidays. My friend who has children studying in Singapore needs to wake them at 5am.
#4 Now, the nail on your coffin. Foreigners can only purchase Rm1million & above projects which is fine but then there's the dreaded property gain tax which is a fixed 5% after 5yrs. Also, we have to know that the Iskandar project is overpriced for locals so nobody other than foreigners will buy from you on resale & why would they want a used unit when there's tens of thousands others competing? There's also hefty stamp duties & legal fees in Malaysia for used projects which can run into over Rm100K cash for buyers on million ringgit properties but usually absorbed by developers.

When investing, always buy the capital city (or major tourist/business hub) where there's always an influx of expats & growth that guarantees rental & growth. The same old rule applies, location, location & location!

In some countries, we need to look at their security & of course political stability. Look at Bangkok & the Johor Sultan just turned the weekend back to Friday & Saturday.

 

[ArchRival]

http://www.propertyguru.com.sg/list...l2014&utm_content=chinatown-tanjong-pagar-hdb

Pinnacle At Duxton !

$850k for 90sqm! Very good deal!
Govt under pressure to remove cooling measures!
Soon asset enhancement policy will kick in again!
Property prices will again double in the next decade!

BBB NOW!

:bsmilie:

 

[ArchRival]

I fully concur with City Dev' Kwek Leng Beng's opinion that Sg should remove cooling measures because

1. Foreigners will invest in other countries rather than sg, i.e. sg lose out in investments.
2. Sg manufacturing sector cmi, so property will help prop up the economy.
3. Property will not go into a bubble because total debt servicing ratio is in place, so everything's OK!
4. In line with govt 6.9mil population policy to attract the best FTs to invest here.

:bsmilie:

 

[hanzohattori]

Ok I sell my camera first :bsmilie: