I just read this thread in Wallstraits forum. Besides the interesting stories of friends making bucket loads of money from property flipping, here are some good pointers I gather from the thread:
- If you only have one property – i.e. the one you’re staying in – if you sell now (sell high), you’ll also need to buy another at a high price too (buy high). My view: if you can afford to give up on certain luxuries, you can consider downgrading during this boom (sell high, buy a bit lower), then upgrade again during the downturn (sell low, buy low, with the hope of selling high later).
- Many people who made money from the current property boom actually did it with their 2nd or even 3rd property. So they had spare cash to start off with. Another example of the rich getting richer.
- Don’t be too greedy. Sell when you can make a tidy profit. Words of wisdom from the thread: “At the last property boom I did not take action to sell and saw price dropped by 30 to 40%. Then cannot sell already until now.”
- Someone else said, “One of my frens just sold his condo too, at a good profits. His concept is simple – he will buy again when there is a downturn.”
- Yet another said, “I have invested in 2 different uncompleted projects. Selling out one now to crystallise gains and to raise Opportunity Fund.”