Buy Property – Right Time?


Are you buying property now? Is it the right time? Yesterday’s Sunday Times gave us 2 perspectives.

First, there’s an interview with a tycoon who has businesses in property development. When asked how many properties he owns, the four-time head of Redas has this to say about property in Singapore:

“I haven’t invested in property in recent years because prices have gone up so much. As developers, we know the cost, and rental is not that attractive now. I have better use of my funds, in art, stamps and charity work.” (emphasis mine)

Seems like Mr Daniel Teo knows what he’s talking about.

Next, we have journalist Goh Eng Yeow writing on how to “save your savings”. He talks about a few scenarios, one of which is that of runaway inflation. The money-printing done by US and Europe to inflate their debts away may lead to costlier foodstuff and other necessities. He said:

“Against this backdrop of rising inflation, it is not surprising to find investors here turning to investments such as residential properties as a hedge against inflation. Their reasoning is simple: In a small crowded island like Singapore where the land supply is limited, any rise in inflation will only cause property prices to go up too. Coupled with the ultra-low interest rates charged by banks for home mortgages, it looks like a sure-win strategy for investors who bet on properties.” (emphasis mine)

So, who do you agree with? The tycoon or the journalist?


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  1. I’m still buying, but at a slower rate. If prices fall, I’ll buy more properties and at a faster rate.

    Ditto for stocks.

  2. Only fools will believe real estate prices never goes down. Proof? Remember 1996 when property bubble burst, it was not until 10 years later before it recovered. But some owners still licking their wounds.

    Everything in investment will follow a cycle. Smart investors always buy during panic time when they can make hell lots of money. In fact, investment is a sure-win game if you buy when everybody is rushing to exit the market; but alas, most newbies are impatient, they want quick money.

  3. @martin, past performance (or lack thereof) is not a predictor of future performance. property may continue to boom for another 10 years. how many 10 years can we wait?

  4. The journalist is just parroting the sales talk of developers. It always a good time buy property if you are living in it. As investment: it is hard to get a decent rental yield now due to the high prices and oversupply of condos.

  5. Developers are looking for quick profit as they are treating it as a business, not REAL estate. But as investors, we should be looking at long term wealth accumulation. Business and Real Estate don’t mix.

  6. Question is whether you want to pay someone else’ EMI or your own and whether it is worth it in the long run? If you are going to live here for more than 3 years, I say buy.

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