Buy Property Cannot Go Wrong?
Clients called and emailed to thank me, they said I'm the first person who appeared on TV News to warn about the dangers of over-paying for property.
Just another day I saw on TV what some people said when being interviewed on TV on why they are rushing in to buy properties. One lady said:"you cannot go wrong with property investments......" when I heard that I was so worried for her because her words show that she knows nothing about property investment.
Another person when asked why she invested into property said:"interest rate on bank deposits so low, so I buy property to earn rental income." I was thinking does she know what is the "rental yield" she'll be getting, probably just 3% to 4% and rental rates on condos are still falling. However, if you over-pay for a property and buy a property for S$1 million and the price drops to S$900,000, there is little comfort to say you collected S$30,000 rental when you lose S$100,000.....if you over-borrow to buy a property, things can also go very wrong....
Currently, I personally do not see any "good deals" in NEW property launches by developers, some new condos are over-priced. If you really want to invest in properties, you might have better luck in finding a good deal in the resale market (secondary market).
Before you rush into buying a property, make sure you do your homework and work out your sums to ensure you can comfortably afford the property.
I am baffled by people willing to pay S$1,150 psf for a 99 year leasehold condo in Ang Mo Kio when there are condos in Bishan selling for S$800 to S$900 psf.
I also cannot understand why people need to queue and when demand was so high, they had to "ballot" to buy a condo at Optima at Tanah Merah at S$800 psf to be completed in 3 years' time.......why bother to do that when you can easily buy a NEWLY Completed (with immediate Rental Income) condo at Casa Merah (next to it) for S$700 to S$750 psf.
Guess some of these buyers do NOT do their homework at all.
I'm shocked that people do NOT hesitate to fork out hundreds of thousands of dollars to invest into stocks and property without even first acquiring the Knowledge to invest in stocks and Property.
I want to "correct" this by sharing the "Secrets to Making Money in Stocks and Property" in a 3 full-day Seminar. Details are at the url below:
We help consumers compare all the Housing Loan packages so as to help them get the BEST deal.
Just call us at 6737 8801 or email us at info@HousingLoanSG.com if you're considering to buy a property or refinance your Housing Loan, whether in Singapore or in Australia and you want to make sure you get "pre-approval" of loan before you commit your cash.
Cheers!