Tell me one good reason Why I should buy a property now?
Sam, tell me one good reason Why I should be buying a property now, rather than later.
The one good reason is because Temasek Holding is buying – with the government’s blessing. In other words, the government is allowing Temasek Holding to continue to plough the country’s reserves into good investments for the long-term good of the country. Do you think the Singapore government is not smart enough to see good investment opportunities?
But Temasek Holding is losing a lot of money at this moment! Don’t you think that it can also be wrong, maybe just for this time?
No sir, I don’t think Temasek Holding is wrong at all. Yes, it has lost some $16 billion after the stock market crash in October 2008, but that was due to one unavoidable event where almost everyone in the stock market got whipped. But in terms of Temasek’s acquisition of Merrill Lynch, Standard Chartered, Citi group and Credit Suisse and so on, these are ‘once-in-a-lifetime’ opportunities. Don’t you agree that Singapore come out of every previous crisis stronger and richer than others? It will be no exception with all these purchases.
But at this moment, it is losing a lot of money and some of the banks may still go bankrupt if the situation does not improve sooner. Don’t you agree that it is very risky to buy anything now?
No sir, many buyers have suffered ‘paper losses’ because they had bought their properties at the peak of the market bull-run in the 2006/07 period, when they should be selling.
In fact, the correct way to invest in property is ‘buying in weakness and sell in strength’, which means when the market is weak and the prices are low, YOU BUY; and when the market is strong and prices are high, YOU SELL’. Just like what Temasek Holding has done.
By the way, when do you think is the best time to buy?
When the crisis is over and the economy is improving.
When this happens, how many buyers do you think will be competing with you to buy your choice property, and how much higher will the asking price be?
I don’t know?
Mr Buyer sir, in a good market you will never be able to FIND THE RIGHT HOUSE WITH THE RIGHT PRICE.
This is because most of the property listings that remains on the market are not the ideal for you – they are either on low floor levels, bad design, or simply too expensive. You will realise that the house that you like is also being liked by many other prospective buyers and the seller will be asking for a king’s ransom.
This is the main reason why most of the people who bought their properties during the bull-run in 2006/07 are right now suffering from ‘paper loss’. Don’t you see that, at this moment, you are in a good position to land yourself with THE RIGHT HOUSE AT THE RIGHT PRICE?
But I still think that prices will drop further. What do you think?
I don’t see how this can happen without the Singapore government doing something to help. The government will never allow it to happen. Just like the United States government has done everything possible to revive the economy, Singapore government will do likewise to prop up the asset prices to prevent the Singapore economy from going down.
I can guarantee you that the prices right now are the RIGHT PRICES and they will never go down further.
Singapore Property – Buy, Sell, Rent, Invest