Buying Attitude Index

[cnud]

Sorry bro, this is a big paradigm shift for me.

I only know if prices drop and rental up, everyone will want to go in as it becomes good investment. So this topic too cheem. If really prices drop and rental high, many investors will go in and prices will go up. Period.

So I really do not understand the theory

Assume we keep the parameter of population growth fixed, that is 6m.

When it is so hard to buy or sell a property and so much easier to rent. Rental demand will shoot up.

But the price of property need not go up simply because guvment can make it so hard to transact further helped by release of more GLS to flush the market with supply.

Make sense?

[buttercarp]

Buttercarp. As an investor, when you have a few, you want prices to go up, so you can sell. Then after you sell a few, you wish for the prices to drop, so you can go in and buy. In this case you make more, right??? An investor studies the market and goes in to max profit and minimise risk.

If you look at Laguna after buying his eco, check his vote on this site.

Last, when prices down, rental definitely down !!!! Think 1997, 2003.

Can you name me a year prices down and rental up??? I seriously never come across it and thats why I say it is BIG PARADIGM SHIFT for me.

One more thing sis, I am not being sarcastic in any remarks. Just that when come typing, I come straight to the point and people mistake me for being rude, sarcastic, show off, etc.... I am who I am. Very straight forward.

Agree with you that up sell, down buy.
So if you are an investor who is waiting to buy now, won't you want it to come down?

No worries..... You are a gentleman .

[cnud]

Another group will come into play. The agents.

When transaction volumes fall. Unemployment for agents will shoot up. So that is another headache for the policy makers.

[gn108]

My framing on this issue is this...
1) Can prices go up enough to cover my transaction cost, with all this policy risk and added supply coming on?

2) Can my mortgage rates get lower or higher on a 20-30 year timeframe?

3) Can I find better use of my money to earn more/less risky return to beat inflation?

[chestnut]

Agree with you that up sell, down buy.
So if you are an investor who is waiting to buy now, won't you want it to come down?

No worries..... You are a gentleman .

If I have say 5 units, do I want it to come down? It market comes down 10%, my 5 units will be down total 50% (assuming all same price).
So say all @ 1m. drop of 10% - I lose 500K in total to get a deal of 900K. Makes sense????

If say I have 5, and sell 3 and now have 2, I dont mind it drops 10% because I still up 10% net.

So it depends on how many and where I am today.

If I have 1 unit and I staying in it, I dont mind it drop, so I can pick up.

No 1 size fits all.

But really, the theory of price drop and rent still up is mind boggling to me. I have never encountered it. So if you have a certain theory behind it, I really dont mind listening. You may know something I have not thot about. Serious. No sarcasm intended. I am here to learn as well.

[chestnut]

Assume we keep the parameter of population growth fixed, that is 6m.

When it is so hard to buy or sell a property and so much easier to rent. Rental demand will shoot up.

But the price of property need not go up simply because guvment can make it so hard to transact further helped by release of more GLS to flush the market with supply.

Make sense?

You see, when rental high and prices drop, this renters (expats) will buy the properties and make the money. This is what happened. This expats found out they can buy the properties and pay less via mortgage then thru rent. So we have many foreigners who are working here and buying the properties instead of renting. Did you not encounter offers from your tenant to buy your premise??

[gn108]

Good post bro...the ABSD added more complexity to this issue.
If you have multiple units, do you sell any if you think there is a 70% chance of prices going down 10%? To add back to your holdings, your leakage is an additional 3% ABSD.

If I have say 5 units, do I want it to come down? It market comes down 10%, my 5 units will be down total 50% (assuming all same price).
So say all @ 1m. drop of 10% - I lose 500K in total to get a deal of 900K. Makes sense????

If say I have 5, and sell 3 and now have 2, I dont mind it drops 10% because I still up 10% net.

So it depends on how many and where I am today.

If I have 1 unit and I staying in it, I dont mind it drop, so I can pick up.

No 1 size fits all.

But really, the theory of price drop and rent still up is mind boggling to me. I have never encountered it. So if you have a certain theory behind it, I really dont mind listening. You may know something I have not thot about. Serious. No sarcasm intended. I am here to learn as well.

[chestnut]

Good post bro...the ABSD added more complexity to this issue.
If you have multiple units, do you sell any if you think there is a 70% chance of prices going down 10%? To add back to your holdings, your leakage is an additional 3% ABSD.

Why not? I will if I believe prices will drop. If I sell 1, I am still in the market with the other units right. So if the prices continue to shoot up, my hypothectical 4 units also up, right. If if drops, I already made from the sold unit, so I can buy right? The key is - when to buy??? Hahaha, this one, to each his own.

[cnud]

You see, when rental high and prices drop, this renters (expats) will buy the properties and make the money. This is what happened. This expats found out they can buy the properties and pay less via mortgage then thru rent. So we have many foreigners who are working here and buying the properties instead of renting. Did you not encounter offers from your tenant to buy your premise??

But when the downpayment is 40% or more. Then they may consider many times before they commit to buy. Rather rent right?

[gn108]

Happened to me but that was in 2009. But now less of that now I imagine.

You see, when rental high and prices drop, this renters (expats) will buy the properties and make the money. This is what happened. This expats found out they can buy the properties and pay less via mortgage then thru rent. So we have many foreigners who are working here and buying the properties instead of renting. Did you not encounter offers from your tenant to buy your premise??

[chestnut]

But when the downpayment is 40% or more. Then they may consider many times before they commit to buy. Rather rent right?

If their coy can pay 4K plus for rental, guess how much their salary and determine if they have savings???? But I can tell you, my tenants have actually approach me to buy my prop and 2 of them ultimately bot on their own.

Foreigners for 1st prop not 40% down right?

[chestnut]

Happened to me but that was in 2009. But now less of that now I imagine.

One of my Singaporean tenant after renting from me for 5 yrs, just bot a landed 99 yrs. They sold their house thinking price will drop and rented from me. They also asked me if I wanted to sell to them. My answer was a NO.

I also have another Singaporean tenant just asked me if I wanted to sell him my unit. I never gave him an answer.

OK. time for lunch.

[richwang]

If you click on the numbers of bull, bear or side line, you can see the actual names. So we have a good transparency. I am yet to find a way to filter out any jokers.

Now the index is:

40 - 27 = 13

Maybe next month we can do this again, the more meaningful information will be the changes of the index.

Thanks,
Richard

[Laguna]

If you click on the numbers of bull, bear or side line, you can see the actual names. So we have a good transparency. I am yet to find a way to filter out any jokers.

so many names are silent readers.

[richwang]

in particular bears.

But thanks for voting.

Thanks,
Richard

[Leeds]

in particular bears.

But thanks for voting.

Thanks,
Richard

The bears appear to be "silenced" by the more vocal bulls. This seems to be the case here. Hope you could improve on your index. Good effort!

[Secretariat]

If their coy can pay 4K plus for rental, guess how much their salary and determine if they have savings???? But I can tell you, my tenants have actually approach me to buy my prop and 2 of them ultimately bot on their own.

Foreigners for 1st prop not 40% down right?

CMs do not apply to FTs from some countries...

[chestnut]

CMs do not apply to FTs from some countries...

Yup. Tax treaty