Property Market Boom Bubble?

[Phantom 1]

Is it a co-incidence, or are you always linked with 'opera'...?

definately co-incidence

[mparade 0]

Anyone know those landed properties at Telok Kurau? How much do they costs roughly? How come seldom see any ads selling these properties?

It is true that there are not many landed properties for sale at Telok Kurau currently. I would encourage you to look at slightly beyond Telok Kurau if you are keen. If you are interested to know more, please PM me.

[icer 0]

So, is the property market going to go down given the crashing of stock market?

[kiira 0]

atm it doesnt seem to be going down....

[raincole 0]

it is going up and up and up lor.

[vampree 0]

Murphy's Law: when we wanna buy .. it's Up and Up and when we wanna sell .. it's Down and Down ..

[Phantom 1]

Although mortgage issues have plagued the states, uk and other countries, residential properties in singapore seem pretty well shielded as reflected in the transacted prices and even newly launched HDBs. If anything, transaction volumes have decreased dramatically, pulling buyers out of the market due to fear in the equity markets.

It remains to be seen whether the level of support for property prices (in my humble opinion today's prices reflect fair prices in 2-5 years time) will be able to sustain in the longer term.

With the F1 and IR just over Singapore's horizon, do expect property prices to continue to climb, albeit at a much slower pace.

Edited January 29, 2008 by Phantom

[juju 0]

!! sure hope you are right about the trend. Just bought property myself in the sub-urban off prime area for the same reason you sighted earlier, 9 10 11 have topped their potential for a while.

[raincole 0]

It will still be going up cos of inflation, material used for construction, etc. But as Phantom gege has say, it will now slow to a much comfortable pace.

I still see Singapore construction industry being strong for at least another year with on-going projects.

[Phantom 1]

For discussion, it seems that we might also see a pullback in prices though, it still remains to be seen how many ppl who have bought property actually have the capability to hold the property as we will see TOPs starting end of the year onwards. If a substantial number of property owners do not have the capacity to pay for their houses and start selling, we could see some pullback in the market.

It really depends on many factors but I'm not a very keen person on investing via property, unless I have an extremely liquid position and have loads of cash to spare.

1) Property Tax

2) Income Tax on Rental Income

3) Legal Fees

4) Agent Fees

5) If taking a loan, redemption fee when selling.

6) Interest charged on loan..

To me investing in properties is akin to taking a bet, rather big bet..

[icer 0]

In this way, I can never find a good time to enter the market.

It's just too expensive now.

[Phantom 1]

In this way, I can never find a good time to enter the market.

It's just too expensive now.

Expensive is a personal evaluation. Whats expensive to you might be cheap if you are looking long term.

Then again are you comparing 05 prices?

Its alot to ponder...

[nirwana 0]

!!

Expensive is a personal evaluation. Whats expensive to you might be cheap if you are looking long term.

Then again are you comparing 05 prices?

Its alot to ponder...

Yups... agree with you! I was considering buying a private property in early 06. But kept putting it off thinking that the market is too expensive. Lesson learnt: when it is going up... just get into the market.

But when prices start their downward spiral, get out asap. Many in the country will be thinking the exact same thoughts as you are.

Right now, I believe market still has quite a bit of upside. Private property is probably the best place to get into right now. With HDB valuation out of sync with what many people are willing to pay (HDB should really relook the basis of valuation of public flats), COV is getting way beyond the reach of many young people. These young buyers will eventually be forced into the private property market.

Everyone huat chye for CNY!

[icer 0]

Initially I wanted to wait till I am 35 to get a flat. Then I start doing research on flats and a bit on private apartments. Then I realised the prices went up and up. Too fast for me to react as I wasn't really ready to buy at that time.

Now it's too late for me to buy as I believe prices have peaked. Of course, there are beliefs that it can still go higher but I wouldn't want to harbour that thought.

As I am still not 35 yet, I can still wait and see. When I am 35 next year, then I will have to re-evaluate if the prices have dropped and whether I should get a flat or private apartment.

Worse come to worse, I will continue to stay with my parents till prices are right or I just buy a 3 room flat so that losses, if any, could be minimised.

Expensive is a personal evaluation. Whats expensive to you might be cheap if you are looking long term.

Then again are you comparing 05 prices?

Its alot to ponder...

[Phantom 1]

Initially I wanted to wait till I am 35 to get a flat. Then I start doing research on flats and a bit on private apartments. Then I realised the prices went up and up. Too fast for me to react as I wasn't really ready to buy at that time.

Now it's too late for me to buy as I believe prices have peaked. Of course, there are beliefs that it can still go higher but I wouldn't want to harbour that thought.

As I am still not 35 yet, I can still wait and see. When I am 35 next year, then I will have to re-evaluate if the prices have dropped and whether I should get a flat or private apartment.

Worse come to worse, I will continue to stay with my parents till prices are right or I just buy a 3 room flat so that losses, if any, could be minimised.

I always think that we are paying a future price for property purchase.

Don't get me wrong, I think properties are a fine way of making money, only thing is if no loan or little loan is utilized, it makes sense to make gains on capital and on rental.

On the other hand, if my place cost me 1.5m and the rental yield is 6k a month that's 4.8%p.a. (before taxes and fees)- that's not really attractive in my opinion.

so in that aspect, its not really a good investment. similarly, the interest payable over the 2years to 3 years to "wait out the market" and get a good price also eats into the potential gain.

Its only in my personal opinion that properties make money in the following scenarios

1) Little or no loan is taken

2) buying at cyclical troughs (lows)

3) holding on longer term.

people who make money flipping in my humble opinion are just lucky to be at the right place at the right time.

Edited April 14, 2008 by Phantom