Can you actually time the property market?
The purpose of this article is to put this hotly debated topic to rest. A very common dilemma Singaporeans face when they are considering a property purchase – timing.
“Is this a good or bad time to buy?”
From forums to ‘expert’ commentary on Youtube, you would have read and heard all sorts of conflicting opinions. You find yourself searching high and low for an affirmation of your decision, but most of the time, you end being more confused than before.
Why is that so? Because this idea of trying to time a market is too idealistic. There is no clear science or math to back-up the concept because every single property in the market is unique; each has its qualities such as its location, condition and remaining lease period, to name to few.
The truth is that people make lousy property purchases even during “good times” too. So is the timing of the market the be-all and end-all?
When is the Right Time then?
Let me make this very simple for you – it is when you are ready. It is as straightforward as that. What you need are due diligence and a detailed analysis of the property and its surrounding units/ developments.
This is why you need a real estate agent that you know will always act in your interest. I cannot stress this any further. I have had many distressed home buyers calling me to ask for advice after they made their property purchase. And mind you, this happens all the time – regardless of the market condition.
A Case Study: The 2009 Lehman Crisis
Because this is such a popular question with my clients, I did a Facebook LIVE session (Watch Video) where I presented two case studies set during and after the 2009 Lehman Crisis.
Same But Different
The first of the two examples I shared was of two buyers who bought their properties (Meadows at Pierce) from the same stack on exactly the same day back in 2009, which is supposedly the ‘low point’ of the market; therefore, a ‘good time’.
One made a loss while the other made a profit of over $200,000. How is that possible that one owner made a loss when he/she entered the market at the ‘right’ time? Is the timing of entering the market truly definitive your properties’ profitability? The answer is clear – absolutely not.
Like I mentioned earlier, there are a variety of factors – the timing of the sale, renovation etc. – that attribute to the profitability of a property. So one should never base their decision of buying a property solely on the concept of timing the market. You could end up missing out on the right investment or homestay opportunities. Is the wait for the ‘right time’ logical and worth it? I am afraid it isn’t.
So if you are looking to buy a property, here are two essential tips I have for you:
Don’t FOMO (Fear of Missing Out); buy when you are ready. Go with your timeline, not others’.
Seek expert advice and do not be confuse yourself with speculations (e.g. on forums); speak to a real estate agent that you trust.
The process of buying a property should be simple and stress-free for you. The real estate agent need to do the difficult job for you – diving into the data, researching, analysing them, and then put forth the best recommendations based on your needs.
The challenge, most of the time, is finding the right agent.
If you enjoyed the read and video, have a question for me or need a second opinion… drop me a message! I don’t charge for advice (not yet!). The biggest takeaway I want you to have is not to make the same mistake as many had. And remember, there’s no need to time the market.
I have built my career in the real estate industry based on this philosophy with a solution-based approach. To me, property purchase is more than just transactions; it is helping my clients make the most out of their money. And I absolutely pride myself for being able to do that for the past ten years with over hundreds of clients who have benefited from my unconventional but highly effective approach.
And this is through my “Simple” Property Investment Framework
And I am offering a 1 on 1 consultation to share with you this Framework. Click on the link below and my Team will review your application
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