Most people are waiting for a crash, if not all?

[3C]

Get greedy when there is blood on the street, especially your own.

noted. Hope I have the capacity and not choked. Thanks

[3C]

3c, there are so many variables at play.... My way may not be the right way. Why??? I don't know your loan amount of existing investment prop, I don't know rental amount, I don't know your age (loan tenure at play), I don't know your income - tdsr @ play here. So only u know best... Please don't reveal here hor...

Ok, my way
1. I will not pay up for investment property loan... Why? For my case, I can find instruments that can beat interest rate easily... So why pay up??? But to achieve that, I have lost quite a fair bit of money during the learning stages...
2. When times are bad, cash is king... Nothing else matters... U can get great bargains during such times
3. Your income will determine your loan quantum
4. If your investment property can get rental which can cover your mortgage, why pay up??? Your spare cash can be used to generate better interest right... Give example... Loan amount 500k. Current interest 1%. You put into bonds, 250k @ 4%. You are still better off right??? You can keep the 250k in cash... D your own computation to get what I am talking about... The interest earned from bonds and fd is better than the interest from the loan.... If interest rate goes up to 4%, bonds should hit 7% or more to make it attractive and fd will hit 3%.
5. When to buy is an art... You really must read and understand the economy and the cycle... A clue is - stocks are forward looking...
6. Open your eyes, there are many other instruments but dabble a bit first but u must be prepared to pay tuition fee.
7. Always know your goal... Accumulation or preservation mode???
8. Do your sums for worst case scenario and keep some cash for loss of job or etc...
The list goes on...

This time, I am going hibernation for awhile because I am starting my traveling again and rev up the biz...

Cheers... This is just a rough guide... Use what you think fits your profile, modify, add, subtract and come up with a plan u are comfortable with...

Hope this helps...

Good pointers. Will analyze & digest. Guess still voice down how much financial muscles one has for learning and executing. Thanks

[DKSG]

Late already. Office Boy write one last post then must sleep liao!

Theory of Property Crashes.

Think I wrote it in one of the previous posts.

To understand how property market can crash, we dont need to look any further. We just need to look into the mirror.

Ask yourselves under what circumstances will YOU, yes, YOU! Sell your properties at a deep discount (say 15-20%).

The situation has to be something like - more than 6 months cannot find tenant, PLUS lost job, low reserves, cannot pay instalment, bank chase for payment and threaten to re-possess your unit, wife also lost job, parents no money to help, relative abandon you. And there must be many many many YOU YOU YOU ... if just 50-100 units, market will pick it up straight away.

Something like that. Because it is common knowledge now and everyone knows, even in a crash, as long as you "tong" a few quarters, things will bounce back. Because we have all these vultures (yes - you you you and ME!), circling around zooming in once we see something interesting.

So, dear forumers, hopefully, you can understand how a crash can happen ?

But what follows the crash is more interesting - I believe you can predict policy makers move right ? I try not to touch on that, since they reading these posts.

Good Luck!
Sleep tight - dont anyhow crash in your dreams!

DKSG

[Rich12345]

Just sold and cash out from my 4 rm condo and plan to downgrade to 3 bedders and buy another 1 or 2 bedders for investment. Planning to rent a place for at least one year and see how the market goes before i do the purchase.

I estimate the correction will start in 2015 when many units TOP, interest rate increased and many fire sale occurs. So when the price drop by 20% in 2016, I will do the purchase.

In long term as Gov said will increase population by another 1m in 10 years time, the Singapore property will still go up due to limited land. So in 2020 or earlier when the price goes up by 20%, I will sell my 2 properties and make 40% profit altogether in 5 to 6 years time. Then, I can cash out again.

Anyone can give comment are my strategy or day dreaming plan workable? You guys think when will the market crash and by how much? When will it recover? Please advise as my wife don't like the idea of renting. Thanks.

[Khng8]

Why "play" with the only roof over your head?
Or you already identify which 3 bedder you want and can make that switch immediately - pocketing some cash in the process?

[indomie]

Just sold and cash out from my 4 rm condo and plan to downgrade to 3 bedders and buy another 1 or 2 bedders for investment. Planning to rent a place for at least one year and see how the market goes before i do the purchase.

I estimate the correction will start in 2015 when many units TOP, interest rate increased and many fire sale occurs. So when the price drop by 20% in 2016, I will do the purchase.

In long term as Gov said will increase population by another 1m in 10 years time, the Singapore property will still go up due to limited land. So in 2020 or earlier when the price goes up by 20%, I will sell my 2 properties and make 40% profit altogether in 5 to 6 years time. Then, I can cash out again.

Anyone can give comment are my strategy or day dreaming plan workable? You guys think when will the market crash and by how much? When will it recover? Please advise as my wife don't like the idea of renting. Thanks.

The one that just bought your 4 room condo must have a totally opposite view from you.

[chestnut]

The power of leveraging

1. Leverage is a double edges sword
2. Leveraging allow u to exponentially increase your GAINS or LOSSES.
3. Leveraging is mainly used by people in accumulating phases
4. Leveraging is also mainly used by people who knows its power and can wield it well. There are also many who do not know its power. But by luck made money. There are also those who use it down by unluckiness, become a victim of it.
5. There are those who use leverage but have back-up to a worse case scenario and manage it
6. Always know what u can afford to lose and determine if u have the means before embarking on it. If things take a turn for the worst, your family will be affected.
7. No one can predict for sure, so contingency plans are required.
8. If u can stomach stress, use it. If u are those Kia see, Kia su type, think twice or even thrice before leveraging
9. Knowledge is key. Knowledge can guide you thru the thick and thin. Remember, it can only guide u. At the end, u need to make your own decision.

This is my guide to leveraging which I adhere to. I will put OB markers along the way and play within my playing space. This is by Nolan's your guide. You will need to develop your own strategies and risk tolerance. Every man has a different threshold, earning capability, saving capability, knowledge, etc... Only if you can know yourself well, can u manage the situation around you.

Cheers

[3C]

Don't presume that so many of the forumers here did it why not me. Most of them I realize are of different breed. They have mt Everest behind them.

[star]

The amount of money bank will loan u to purchase property has gone down alot. Recent accompany a friend to ocbc, he can only loan $500k to purchase a condo for his gross salary of $8.6k a month!! Btw he got no other loan.

[mcmlxxvi]

Just sold and cash out from my 4 rm condo and plan to downgrade to 3 bedders and buy another 1 or 2 bedders for investment. Planning to rent a place for at least one year and see how the market goes before i do the purchase.

I estimate the correction will start in 2015 when many units TOP, interest rate increased and many fire sale occurs. So when the price drop by 20% in 2016, I will do the purchase.

In long term as Gov said will increase population by another 1m in 10 years time, the Singapore property will still go up due to limitued land. So in 2020 or earlier when the price goes up by 20%, I will sell my 2 properties and make 40% profit altogether in 5 to 6 years time. Then, I can cash out again.

Anyone can give comment are my strategy or day dreaming plan workable? You guys think when will the market crash and by how much? When will it recover? Please advise as my wife don't like the idea of renting. Thanks.

You should have mentioned right from the start you have a wife.

Answer is very simple - just listen to your wife. They are usually very good at financial matters.

[Rosy]

The amount of money bank will loan u to purchase property has gone down alot. Recent accompany a friend to ocbc, he can only loan $500k to purchase a condo for his gross salary of $8.6k a month!! Btw he got no other loan.

How old is your friend?

5k monthly installment based on 10year loan tenure

[Rosy]

By the way, is asset based loan no longer available?

[mermaid]

Late already. Office Boy write one last post then must sleep liao!

Theory of Property Crashes.

Think I wrote it in one of the previous posts.

To understand how property market can crash, we dont need to look any further. We just need to look into the mirror.

Ask yourselves under what circumstances will YOU, yes, YOU! Sell your properties at a deep discount (say 15-20%).

The situation has to be something like - more than 6 months cannot find tenant, PLUS lost job, low reserves, cannot pay instalment, bank chase for payment and threaten to re-possess your unit, wife also lost job, parents no money to help, relative abandon you. And there must be many many many YOU YOU YOU ... if just 50-100 units, market will pick it up straight away.

Something like that. Because it is common knowledge now and everyone knows, even in a crash, as long as you "tong" a few quarters, things will bounce back. Because we have all these vultures (yes - you you you and ME!), circling around zooming in once we see something interesting.

So, dear forumers, hopefully, you can understand how a crash can happen ?

But what follows the crash is more interesting - I believe you can predict policy makers move right ? I try not to touch on that, since they reading these posts.

Good Luck!
Sleep tight - dont anyhow crash in your dreams!

DKSG

wat's yr take of the possibility of Singapore entering into a recession?

[teddybear]

Still available, except taken a big "haircut" to become near botak like the implementer unless you pledge those assets to banks...

By the way, is asset based loan no longer available?

[Lovelle]

Good pointers. Will analyze & digest. Guess still voice down how much financial muscles one has for learning and executing. Thanks

some people reversed mortgage

[Rich12345]

Why "play" with the only roof over your head?
Or you already identify which 3 bedder you want and can make that switch immediately - pocketing some cash in the process?

Actually, i have made a 100% profit from my current 4 bedders which i have stayed for 10 years. Yes, i have identified a few developments which are near to future MRT and great propential of appreciation. But if i sell high and buy high now make no sense. My next main objective is to generate a huge profit within this 6 years. If i buy now and market dropped 20%, i will need to wait for at least 2 years to recover my losses.
Opportunely don't always come by so I planned to leverage on the coming prediction of market correction (dropped 20% in 3 years) to fulfil my dream of early retirement. See the market trend (http://www.singaporepropertycycle.co...y-price-index/)

Actually, the worst case scenario for me will be:
a: If I rent and price still goes up by 10% within a year
I will buy my 1st 3 bedders and lose 10%. I will wait another year to monitor market before I buy my 2 bedders for investment and lose another 10%.

b:If market still go down after my 2 purchases:
I'll just hold on to it for longer period (10 years) as I have put aside 15% of my previous profit as safety net in case interest rate shoot up and bank chase after me or my 2 bedder cannot rent out for many months. I believe the market will go up in long run.

On the other hand, if my prediction is correct that the market will have a correction, I will earn at least 40% in 6 years.

So now, I will put my previous profit in bond (4% interest) to pay for my rental and monitor the market one year. I think the possibility of market going down very high right? Any comment?

[minority]

Actually, i have made a 100% profit from my current 4 bedders which i have stayed for 10 years. Yes, i have identified a few developments which are near to future MRT and great propential of appreciation. But if i sell high and buy high now make no sense. My next main objective is to generate a huge profit within this 6 years. If i buy now and market dropped 20%, i will need to wait for at least 2 years to recover my losses.
Opportunely don't always come by so I planned to leverage on the coming prediction of market correction (dropped 20% in 3 years) to fulfil my dream of early retirement. See the market trend (http://www.singaporepropertycycle.co...y-price-index/)

Actually, the worst case scenario for me will be:
a: If I rent and price still goes up by 10% within a year
I will buy my 1st 3 bedders and lose 10%. I will wait another year to monitor market before I buy my 2 bedders for investment and lose another 10%.

b:If market still go down after my 2 purchases:
I'll just hold on to it for longer period (10 years) as I have put aside 15% of my previous profit as safety net in case interest rate shoot up and bank chase after me or my 2 bedder cannot rent out for many months. I believe the market will go up in long run.

On the other hand, if my prediction is correct that the market will have a correction, I will earn at least 40% in 6 years.

So now, I will put my previous profit in bond (4% interest) to pay for my rental and monitor the market one year. I think the possibility of market going down very high right? Any comment?

a. is a downgrade from current living lifestyle
b. what if interest rate spike to 3.5-4%? and market plunge >20% over that period?

[mermaid]

Hijack a bit from the topic.
Instead of predicting crash or not
Anyone can share how are they preparing for the unfortunate event of a crash.

I am preparing sandbags of cash.

I also stocking up sandbags of cash.

care to enlighten us how many % of sandbags of cash r u guys stocking?

[3C]

care to enlighten us how many % of sandbags of cash r u guys stocking?

2 years installments at 5% interest with no rental income coming in. Enough? If crisis last more than 2 years than raise white flag. All the Mr Bs will come & take over my units.

[mermaid]

2 years installments at 5% interest with no rental income coming in. Enough? If crisis last more than 2 years than raise white flag. All the Mr Bs will come & take over my units.

2 yrs of instalment is enuff to react during a crash meh? wif the 2nd ppty, one can oni loan 50% nia ...

I was tinking at least nid to accum sandbags of cash abt 50% of the ppty price to be able to go for a bargain hunt in the event of a crash?

[The_Way_I_See_It]

For 1st timers, MTBs & new citizens, they welcome crash with open arms & legs.

For existing hdb owners, it makes them easier to own a 2nd pty or upgrade to pte ppty.

For existing owners with more than 1 ppty, a crash would give them a chance to buy another property, even though their current portfolio will be temporarily be devalued. But since a rebounce after a ppty crash will result in a steeper gradient than before, it is also to their best interest to look forward to a crash.

Only owners who have bought properties at high price & has no more bullets to purchase another ppty dun wish the market to crash. But as long as this group of people r not overly leveraged, a crash would not have much negative impact to them if they are taking a long term view.

The only category of people who do not wish for a crash would be the rulers of the country.

What do you think?

Sorri hor don't understand your powderful england "rulers of the country "

which kingdom are u living in ? who is your feudal lord

[mermaid]

Sorri hor don't understand your powderful england "rulers of the country "

which kingdom are u living in ? who is your feudal lord

since when hv Singapore 改朝换代 b4?

[princess_morbucks]

Just sold and cash out from my 4 rm condo and plan to downgrade to 3 bedders and buy another 1 or 2 bedders for investment. Planning to rent a place for at least one year and see how the market goes before i do the purchase.

I estimate the correction will start in 2015 when many units TOP, interest rate increased and many fire sale occurs. So when the price drop by 20% in 2016, I will do the purchase.

In long term as Gov said will increase population by another 1m in 10 years time, the Singapore property will still go up due to limited land. So in 2020 or earlier when the price goes up by 20%, I will sell my 2 properties and make 40% profit altogether in 5 to 6 years time. Then, I can cash out again.

Anyone can give comment are my strategy or day dreaming plan workable? You guys think when will the market crash and by how much? When will it recover? Please advise as my wife don't like the idea of renting. Thanks.

Hi, for own stay, it is better to buy than rent.
Why would you wanna pay rent monthly for the next one year?
Might as well buy a place to stay and lock in the interest rate for the next 3 years or so.
For investment property, you may like to wait and target the leftovers in certain developments eg dLeedon or Sky habitat...but I think there are lots of people waiting as well.
I don't think there will be an oversupply of PC considering the influx of foreigners.
Hot money is also flowing out of China into here.

[VS]

2 yrs of instalment is enuff to react during a crash meh? wif the 2nd ppty, one can oni loan 50% nia ...

I was tinking at least nid to accum sandbags of cash abt 50% of the ppty price to be able to go for a bargain hunt in the event of a crash?

ya, I think 2 years of installments is enough to survive a crash, but not enough to buy another property. 50% cash of the target property is more reasonable to go for good bargain.

[leesg123]

Dating couples, both above 35, earn less than $5000. each buy a 2rm bto with grant. side by side. knock down wall, become 3+ rm flat! cheaper than 3rm bto.

[mcmlxxvi]

Dating couples, both above 35, earn less than $5000. each buy a 2rm bto with grant. side by side. knock down wall, become 3+ rm flat! cheaper than 3rm bto.

The grant is only substantial if one is as low income as like 1.5k pm... or lesser even.

[leesg123]

Dating couples, both above 35, earn less than $5000. each buy a 2rm bto with grant. side by side. knock down wall, become 3+ rm flat! cheaper than 3rm bto.

I think this is a loophole? need to inform kbw and mnd to plug it!?

[mcmlxxvi]

Dual key HDB!!! So cute!!

[mermaid]

Dating couples, both above 35, earn less than $5000. each buy a 2rm bto with grant. side by side. knock down wall, become 3+ rm flat! cheaper than 3rm bto.

I think this is a loophole? need to inform kbw and mnd to plug it!?

provided u muz fall in love with yr next door neighbour lor!

u oso need to inform kbw of the possibility of 楼上楼下恋 as well, since tat form of hacking will amt to a mini mansionatte liao