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Singapore Private Property prices still up or down? Part III


pChou
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Hypersonic

Unfortunately, a lot of pple are not savvy in investment instruments. They know a bit about stocks, unit trust, REITs etc...but they don't have time to manage the portfolio themselves. As a result, most buy into unit trust or ILP where over time, the management fees erode their returns . Or they dwell into stocks, didn't monitor and then ended up with half of what they begin with. In the end, most average consumers conclude that either the fund managers are sneaky or other investments are simply too risky for them.

 

Hence the only viable investment most average pple have is their home. So my take is that if the home is your only possible investment, then please make it a sound one especially when one is still young. Like all investments, younger age is a big advantage because of the long investment horizon for compounding returns.  Work hard, take a bit more risk and don't settle for comfort when one is still young (early 30s). There is plenty of time for comfort and low risk investments when one is old.

 

This is not to say all young pple must stretch their budget for their home, but they can make sacrifices for sound property  investment principle. For example sacrifice space for better location. Or sacrifice space for a newer home where the chances of capital appreciation is higher. Property is the biggest investment for most pple, so whether they look at it as a roof over their head, or just a home to sleep at night, it is still their biggest spending so make it a sound one where it can grow over time.

 

wah...sales talk at its finest

 

dissing other competing products and scare/pressure tactics

 

:a-m1212:  [:)] 

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if i were a property agent, i would advise my clients to keep their home and property investments separate instead of "suffering". a person should never be pressured into making investments as possibility of making mistake is high under such circumstance.

 

a fully paid up and comfortable albeit budget home for the family to build their lives gives one a peace of mind to undertake higher risk investments to build weath be it property, stocks, forex etc at his own pace.

 

the stability will also provide kids a good environment to develop and pursue their own dreams.

 

the upgrade game has gotten many families into trouble than necessary because not all will succeed given the risky nature

 

:D

wait kena suan blame sky blame earth

but no blame ownself

why not invest in property 99.999999% sure win

there is only 1 way to go for property price ... 3% increase forever ever till eternity

old already smelly smelly 2-3 properties on hand and shake legs

 

the no 1 job in spore is

jobless + shake legs + collect rents [thumbsup]

Edited by Wt_know
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Turbocharged

wah...sales talk at its finest

 

dissing other competing products and scare/pressure tactics

 

:a-m1212:  [:)] 

 

Was that even sales talk? Sorry I don't realise it as I am just giving honest sharing base on experience and observations.

 

BTW I do have separate property and other investment like stocks, ILP, unit trust, etc.  But I started those when I was 18. So I am not dissing other products, please don;t get me wrong because I have those as well, but from what I observe in the average consumer group, most don't because they either got burn before, or they heard of some bad experiences from friends and didnt want to dabble into it.

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I agree, but in a few months or years, this could be considered a bargain.. remember the AMK Hub? There was a 99 LH condo next to it, priced at 1000 psf, and many mocked the high price... now, 1000 psf can't even buy a place in Punggol...

Property agents have been texting me to sell my properties because of all these crazy prices of new 99 years LH properties. I just don't think these prices are sustainable. Those with cash should hold back for a while or go for FH/999 LH properties nearby.
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The best situation to get into is of course to have a rich inheritance from Daddy. FH and Everyday balonglong Jiak kangkong.

 

The real situation is complex though.

 

People have different priorities. New sales prices are high and near new property tracks them closely.

 

But an old FH / 999LH may not meet one’s demand. Perhaps it is a new matrimonial home. Certainly new trumps old, and with much fewer renovation items to settle.

 

Not everyone is aiming for investment gains. Some people treat it wholly as an expense.

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Adapting from Patek Philippe's advertising tagline:

 

'You never actually own a FH/999 LH private property. You merely look after it for the next generation.'

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Turbocharged

The best situation to get into is of course to have a rich inheritance from Daddy. FH and Everyday balonglong Jiak kangkong.

 

The real situation is complex though.

 

People have different priorities. New sales prices are high and near new property tracks them closely.

 

But an old FH / 999LH may not meet one’s demand. Perhaps it is a new matrimonial home. Certainly new trumps old, and with much fewer renovation items to settle.

 

Not everyone is aiming for investment gains. Some people treat it wholly as an expense.

 

Unless you are filthy rich, like what icedbs said, if your first home is a bad investment, everyone will regret it later.

 

To me, and I most of us, the first home is the BIGGEST purchase in our lives. With so much money involved, it is wise to make sure it is a good investment.

 

That is why I say if this current trend of depreciating HDB continues... a lot of HDB buyers is going to be pissed off. Unless you make HDB so cheap that it does not take up a big chunk of their pay... 

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Hypersonic

aging properties are a pain regardless hdb, lh99, lh999 or fh

 

while there is still an option of rebuild for landed properties subject to the individual owner's pocket size but for apartments....good luck if there is no rejuvenation plan for that development in the absence of an enbloc deal

 

[lipsrsealed]  :D 

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Adapting from Patek Philippe's advertising tagline:

 

'You never actually own a FH/999 LH private property. You merely look after it for the next generation.'

True, but the maintenance fees for an old property could be sky high and some of the facilities may not be able to be used. I went before to an old property for a Birthday party, where the children swam in the pool. Several of them had deep cuts in their soles due to the tiles coming off the floor of the pool.

 

End of the day, each buys for slightly different or even very different reasons.

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The owner really huat big time, almost 100% appreciation in ~10 years!!

 

Boon Keng 5-room HDB flat sells for record $1.2 million in July, but resale prices dip 0.2%

 

ak_bk_0808.jpg

 

SINGAPORE - Despite a Boon Keng five-roomer selling for a record sum, HDB resale prices remained pretty much stable last month, new figures show.
 
The 39th-floor unit at City View@ Boon Keng went for $1,205,000 - $5,000 more than the previous record for a HDB resale set by a five-room flat in Boon Tiong Road, in Tiong Bahru, in April.
 
It was the second time this year that a City View unit has claimed the record after another five-room unit in the adjacent Block 9 sold for $1,185,000 in January.
 
The 714-unit development was completed in 2011, and five of the nine flats there sold this year have gone for over a million dollars.
 
Analysts say it has proved popular because it is a new development located among ageing counterparts in a mature estate and in close proximity to two MRT stations - Bendemeer on the Downtown Line and Boon Keng on the North-East Line.
 
Despite that record price, HDB resale prices in July decreased by 0.2 per cent from June, although the number of resale transactions went up by 11.9 per cent, according to data released by SRX Property on Thursday (Aug 8).
 
The prices of three-room and five-room flats fell by 0.9 and 0.1 per cent respectively.
 
Four-room prices remained flat while prices for executive flats saw an increase of 0.3 per cent.
 
Non-mature estate prices increased by 0.2 per cent while mature estate flats were 0.8 per cent lower.
 
"What we are seeing in mature estates on one end is the value of older flats beginning to dip as the flats age, and on the other newer flats like those at City View starting to enter the resale market at higher prices," said property agent OrangeTee & Tie's head of research and consultancy Christine Sun.
 
The highest transaction price for a non-mature estate resale flat last month was for an executive flat in Hougang which sold for $908,000. Overall, resale prices were 0.8 per cent lower than in July last year.
 
There were 2,120 resale transactions last month, up from 1,895 in June. This was 17 per cent lower than in July last year, but 19.7 per cent higher than the average volume in July for the last five years.
 
The increased sales volume can be attributed to a number of factors, said Ms Sun.
 
"Sales activities usually pick up after the June holidays," she added.
 
"Demand for resale flats, especially older units, may have increased after the recent CPF rule changes that allow buyers to use more of their CPF savings as well as get bigger HDB loans for older flats.
 
"But prices may remain weak due to the increasing supply of flats that have reached MOP (minimum occupation period), with more sellers vying for buyers."
 
SRX estimated in its report that 680 flats could enter the resale market within the next three months as these units approach their five-year MOP.
 
The overall median transaction over X-value (TOX) was negative $1,000 last month, a decrease of $1,000 from the previous month.
 
The median TOX measures whether people are overpaying (positive TOX) or underpaying (negative TOX) relative to the SRX Property X-value estimated market value for flats.
 
Only three-room flats had a positive median TOX of $2,000 last month. Four-room, five-room and executive flats saw a median TOX of negative $1,000, negative $1,000 and negative $7,000 respectively.
 
Kallang Whampoa saw the highest median TOX of $18,000.

 

 

wow...can buy GCB, there must be a good reason why people choose to buy Singapore property and not Johor

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I have a friend who grew up in a modest environment

But she’s now used to servants, the good life etc. so much so that when we have gatherings there must be someone to fetch her over and there must be air conditioning

So when we eat hawker food, we eat it at a restaurant

Luckily the husband can support this lifestyle..

 

errr she became this way bec of the husband spoiling her ?  :D  

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errr she became this way bec of the husband spoiling her ? :D

Sometimes it’s the way she is used to this type of expression of love.
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Hypersonic

The right place will attract buyers.

But I wonder how liveable is a 50-60 yr old HDB?

wah... you mean 50-60 year old hdbs are not as liveable as similar atas 50-60 year old condos? why you think so?

 

another person with “hdb estates are ah beng infested slums” mentality

 

 

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LH or FH is better depends on what one is looking for. If one wants a good location but only can afford LH, why not? It is not always abt value, sometimes it is the quality of life.

 

Have a look at ICON(Gopeng). I am amazed why there is still pp willing to buy a loft unit at more than 1m when it is 12 years old.

 

FH indeed has advantage over LH over the same area if one can afford. But give me a good location LH over a bad location FH anytime.

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wah... you mean 50-60 year old hdbs are not as liveable as similar atas 50-60 year old condos? why you think so?

 

another person with “hdb estates are ah beng infested slums” mentality

 

 

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