To Buy Or Not To Buy?

[Lisa 0]

Me and my hub had been staying with his family till recently. We had moved out and rented a place we call our home. Always wanted to buy a "actual" home that belong to us but recently with the Euro crisis and US debts, we are seriously considering if this is the best time or till the property market crash. Recently there are lots of news saying that residential pricing is going to go south in 2-3 years time due to over supply. But then you keep seeing price increment day by day. To buy or not to buy, its a tough decision, any expert to advice? I do understand it doesnt matter if its for a roof over our head but if the timing is right, we can really save alot on our first property.

[MrsLoo 1]

Me and my hub had been staying with his family till recently. We had moved out and rented a place we call our home. Always wanted to buy a "actual" home that belong to us but recently with the Euro crisis and US debts, we are seriously considering if this is the best time or till the property market crash. Recently there are lots of news saying that residential pricing is going to go south in 2-3 years time due to over supply. But then you keep seeing price increment day by day. To buy or not to buy, its a tough decision, any expert to advice? I do understand it doesnt matter if its for a roof over our head but if the timing is right, we can really save alot on our first property.

Hi Lisa,

I guess your question is a tough one, even realtor they will not be able to answer you. We bought a 4A flat 8 yrs ago with zero COV, and just paid off this year and we decided to sell it away and downgrade into a 3A flat. Alot of my friends (some are realtor)did advise me not to sell because they claimed that property is going down soon, well, we have our long term plan, so we decided to go for it. When economy is slow, out of 5 flats we have seen, all seller is asking for around 40K cash. I questioned back the realtor, so what's the actual situation now.

For your situation, you are paying for your landlord, eventually they own the house and you don't. To buy or not to buy really depends on what are you looking at, pte property or flats and which area do you want to stay?

At the end of the day, buy within your means. Just my two cents worth of comments.

[adidaem 6]

Me and my hub had been staying with his family till recently. We had moved out and rented a place we call our home. Always wanted to buy a "actual" home that belong to us but recently with the Euro crisis and US debts, we are seriously considering if this is the best time or till the property market crash. Recently there are lots of news saying that residential pricing is going to go south in 2-3 years time due to over supply. But then you keep seeing price increment day by day. To buy or not to buy, its a tough decision, any expert to advice? I do understand it doesnt matter if its for a roof over our head but if the timing is right, we can really save alot on our first property.

We got our place in mid-2011 and when we first signed the OTP 2 months before, we were told that the mkt will crash by end-2011, etc. Almost a year later, prices have actually gone up. I think it is a tough decision and we made the decision to buy mostly cos we no longer wanted to be at the mercy of our landlord.

If you read the news, the bad news are always there. Why not do a cost analysis and see if your rental over x years can cover the possible decrease in ppty value? If yes, then why not buy rather than pay rental? Just my 2 cents. All the best!

[therat 18]

First, how much you are paying the rent?

Is the rent match the monthly installment?

If yes, buy

If u buy for own stay and found a place/unit u like.

Just go for it.

Not every unit is the same.

[casa 0]

Property makt will never crash even if so won't really drop to that extend

It'll only go up if not property developer all chow law(Run)

Becaused all raw materials use to bulid are import be it concrete or whatsoever so how can the price fall?

[bepgof 20]

Property makt will never crash even if so won't really drop to that extend

It'll only go up if not property developer all chow law(Run)

Becaused all raw materials use to bulid are import be it concrete or whatsoever so how can the price fall?

Simi raw material theory?

Price floor = M,O,L. Price ceiling decide by consumer + developer + gov. Just look at HK's case. At times, esp in econ chaos, prices fall below the "floor" - nobody wants, est those non-liquid goods. Cheap, cheap, cheap sales also no business!

When econ(GDP) "no good", all price falls. Our CPI now run at 5.8% = "too much "free money" chase after too little goods". Why got "free money"? Simply not worth to keep with banks with such low interest! With high cpi, the "paper" weights lighter. Ppl try their best to exchange their paper with somethings which have more economical values as they perceived.

Ministers' pay are linked to GDP. Their try to remain GDP growth at "positive".

Edited July 1, 2012 by bepgof

[bepgof 20]

Me and my hub had been staying with his family till recently. We had moved out and rented a place we call our home. Always wanted to buy a "actual" home that belong to us but recently with the Euro crisis and US debts, we are seriously considering if this is the best time or till the property market crash. Recently there are lots of news saying that residential pricing is going to go south in 2-3 years time due to over supply. But then you keep seeing price increment day by day. To buy or not to buy, its a tough decision, any expert to advice? I do understand it doesnt matter if its for a roof over our head but if the timing is right, we can really save alot on our first property.

Ask yrself these qs:

1. What/where to buy? resale hdb? BTO, EC, DBSS? Resale pte, L99?, FH? Floor area?

2. Enough 20% + stamp in cash? CPF?

3. Children "factor"- when to have kid?

4. Schooling "factor" - when kid to go to school?

5. Have studied the 10 yrs PPI curve?

6. Last but not least, draw a 4-quadrant drawing:

- assign "non-urgent", then "urgent" at y-axis

- assign "non-important", then "important" at x-axis

- Analyse and think, think, think yr present and near future scenerior fall under which quadrants:

- Urgent/important - "fix" it immediately

- Urgent/non-important - take yr own sweet time to handle it.

- Non-urgent/important - failing to plan is planning to fail, plan and action!

- Non-urgent/non-important - like watching movie, hobby, can forget it for the time being!

Notably, have "bigger" picture in mind - asset allocation, planning and action

- saving that 20% as home downpayment?

- enough life/investment policies?

- have knowledge & skill in stock market?

- saving $ for children's U education?

- saving $ for retirement?

My advise: If u're in stage of saving $ for the various stages of life, get a "small enough" second-hand house first. Save the $. Never, never, never pay $$$ or "rental" which such $$$ cannot be collected back, except mortgage loan (personal), car loan....

Anyway, thesedays, youngsters (last Gen X and early Gen Y) love to enjoy life first - lifestyle choice, then "pay" later, sweet first then turn sour, I understand.

[adidaem 6]

Anyway, thesedays, youngsters (last Gen X and early Gen Y) love to enjoy life first - lifestyle choice, then "pay" later, sweet first then turn sour, I understand.

I so disagree with this statement. My batch came out to work during recession. So far I've experienced a few in my not too long working life. If anything, those of us who are recession babies can be more prudent in financial planning. Such sweeping generalizations do us no credit. Your generation enjoyed massive property price increase during the long bull run, but my generation have not experienced the same.

Maybe you can read this: http://www.wealthbriefing.com/html/article.php?title=Gen_X,Y_More_Sensible_Planners_Than_Baby_Boom_Gen&id=47280

[bepgof 20]

I so disagree with this statement. My batch came out to work during recession. So far I've experienced a few in my not too long working life. If anything, those of us who are recession babies can be more prudent in financial planning. Such sweeping generalizations do us no credit. Your generation enjoyed massive property price increase during the long bull run, but my generation have not experienced the same.

Maybe you can read this: http://www.wealthbriefing.com/html/article.php?title=Gen_X,Y_More_Sensible_Planners_Than_Baby_Boom_Gen&id=47280

I understand yr "emotion" on property-related. I "enjoyed" $90 NS mnthly allowance in 1986, the month b4 ROD after 2.5 service. My first FT job(Dip holder in EEE, super "hot" then)aft NS=$850 in early 1987. First hdb 5-rm, 123m sq, in sep 1992 costed me $124.4k -the move had also costed me to "withhold" my "dream" of further study, when there were no study loans, many "It's The End", Tan then said " 2U are enough", till last year - after 19 yrs, I "realising" the long-awaited dream.

Having abv said is to point out: comparison does us no credit. Heard the term "competency"? Which in short = KSA. Having Knowledge not necessary gives rise to having possessing the Skill. Having read, even can citate every single words in the "swimming manual" but without ever stepping into a swimming pool, u think he can swim?

Knowledge can be gained in comfortable env with own peace, unlike Skill which takes time, and only after many "painful lessons", one really possesses the "skill".

Attitude = behaviour, a reflection of ones' values world. Take a look at Bankrupcy office, singapore, look at their age tell u what I've said. Look at the ways the youngsters "fire the bossess", children shouting and running in public places as if in their home, young parents? "Playing" with their latest-model smartphone! Keeping pets more "careful" than their own live parents! Buy "performance" cars with insurance more than 3.6K a yr! Many, many more...."Sweet" now, isn't?

LKY worries for no reasons.

[adidaem 6]

I understand yr "emotion" on property-related. I "enjoyed" $90 NS mnthly allowance in 1986, the month b4 ROD after 2.5 service. My first FT job(Dip holder in EEE, super "hot" then)aft NS=$850 in early 1987. First hdb 5-rm, 123m sq, in sep 1992 costed me $124.4k -the move had also costed me to "withhold" my "dream" of further study, when there were no study loans, many "It's The End", Tan then said " 2U are enough", till last year - after 19 yrs, I "realising" the long-awaited dream.

Having abv said is to point out: comparison does us no credit. Heard the term "competency"? Which in short = KSA. Having Knowledge not necessary gives rise to having possessing the Skill. Having read, even can citate every single words in the "swimming manual" but without ever stepping into a swimming pool, u think he can swim?

Knowledge can be gained in comfortable env with own peace, unlike Skill which takes time, and only after many "painful lessons", one really possesses the "skill".

Attitude = behaviour, a reflection of ones' values world. Take a look at Bankrupcy office, singapore, look at their age tell u what I've said. Look at the ways the youngsters "fire the bossess", children shouting and running in public places as if in their home, young parents? "Playing" with their latest-model smartphone! Keeping pets more "careful" than their own live parents! Buy "performance" cars with insurance more than 3.6K a yr! Many, many more...."Sweet" now, isn't?

LKY worries for no reasons.

... Seriously... Read this: http://www.plainenglish.co.uk/

[kalimantan 6]

Since the thread starter focus on housing needs, no point push them to think thru many scenarios.

A question by thread starter : should buy now or not ? That is the whole thing she is thinking now.

My simple answer : If you buy now, you are making a decision on whatever facts you can find in this free economy / newspapers in today's time. This is very transparent. Do not start thinking whether it is a right or wrong decision. Anyway are you worried people may judge you "stupid" to buy now or "clever" to buy now ?

I bought my condo at Sars period - yes cheap. People say i very smart now. But i feel very stupid : should have bought more than one apartment right ?

You see there are 2 sides of a coin. Make a decision and move on.

Anyway when you have children, your children gain eventually (like it or not, you one day will pass properties to them) compare to us as parents.

[Batman 0]

My philosophy: There is NEVER a good time to buy anything. From electronic gadgets, to cars, to property.

If u think the price is fair and right, go for it....

Ah bo at a later time, u will say "Aiya had I know it........"

Good luck and all the best

[bepgof 20]

... Seriously... Read this: http://www.plainenglish.co.uk/

Seriously, plain language often leads to "no substance" writing. No substance writing = LPPL.

Lisa's "heavy weight" question (buying property, not iphone, samsung S3 nor ipad), need to be best addressed via different scenerios analysis, brain bombardment exercises, so on & so forth. It neither falls under a "think"-ok-then-ok decision making model as what Batman suggests.

Think-ok-then-ok model = 不在乎天长地久 只在乎曾经拥有 = sweet then bitter approach = Enjoy first then default payments later lor.

Lisa concerns abt the "risks" involve and wishes to minimise it(Her question is like asking "Can I play the open-field game NOW, to "win" the opponent?)

- Is she physically fit to play the game NOW?.

- Does she understand the rules of the game?

- How to define "win".

- Is the wheather good now/while playing game, etc etc.....I supposed she has "overcome" these basic prerequisites/barriers.

Investment theory stresses positive correlation between risks & returns(Fama, 1973). No risks = no returns. Higher risks lead to higher returns.

Is buy now is "risky" (measured by standard of deviation, sigma), then BUY NOW lor if were to have higher return in future to come. Otherwise, reverse.

Lisa, cash outlay for payment of rental for residential purpose is classified as a 下下之策.(Sorry I don't know the translation in plain eng).

[Lisa 0]

Thanks folks for all the valuable replies. Guess I really have to do my own maths. We went into rental of our home because we had quite a number of friends, property owners sold off their roof, take rental and bet of the fall of property price.

I heard many new launch including those who is still under construction still have many vacant units for sale (well which we dont hear these news in the papers). This number of vacant unit will sky rocket in a yr or 2 when there are lesser influx of immigrant. I do have many foreigners who already feel the restrain from the gov's approval for work permit and PR application after the last GE. Imagine the gov is churning out more and more HDB, more and more private property launch, our fellow Singaporean is not producing enough babies or not starting a family.

[MrsLoo 1]

Thanks folks for all the valuable replies. Guess I really have to do my own maths. We went into rental of our home because we had quite a number of friends, property owners sold off their roof, take rental and bet of the fall of property price.

I heard many new launch including those who is still under construction still have many vacant units for sale (well which we dont hear these news in the papers). This number of vacant unit will sky rocket in a yr or 2 when there are lesser influx of immigrant. I do have many foreigners who already feel the restrain from the gov's approval for work permit and PR application after the last GE. Imagine the gov is churning out more and more HDB, more and more private property launch, our fellow Singaporean is not producing enough babies or not starting a family.

Hi Lisa,

Even if there are over supplies of new flats coming up for the next 5 years, the price will not dropped 50%, if that really happens, everyone will be in deep ****. Just curious, are you looking at pte property or HDB? From your concern, seems like you are looking at pte property, that's y ur friends are betting the property to drop. HDB will not go down significantly for new flats, the most the price will be stablize and for resale will be depending on COV.