I think part of the price growth within the landed segment can be explained by people doing A&A and rebuilding, which makes the average landed property bigger/nicer than it was in the past. Much more expensive than renovating a condo!
I dont understand the new condo launches and people who invest all their savings for condo that costs more than 2 million and be indebted for rest of their life. The hope that price can go infinitely go up is a day dream and not a smart investment. 2 million can not go 3 million with 50% profit even in 30 years when the next generation is not even interested in family and being indebted and loving carefree. Annualised 10% profit per year is also very less considering inflation /Interest rates/ maintenance fees/credit loss and financial stress. Just wondering what goes on in people minds.
Hdb made the biggest mistake, giving generous grants for bto flats buyers. This cause the rapid rise in hdb flats, especially resale flats. In the last 3 years, resale flats have risen by more than 50%. Many new citizens are making huge amounts of money from sales of hdb flats. I am worried many hdb property owners are asking for unreasonable price. Hope, one major crisis hit the world and a good wake up call like in 1998 Asia financial crisis and 2008 the US Lehmann crisis hit the entire world economy.
I usually agree with all your videos. But your analysis of landed is completely wrong. There is a reason why q3 landed dropped together with ccr condos. Its about quantum. You try punching numbers for 10mil semi d bukit timah. See what kind of interest per month and what your deposit cash income you lose. In 2013 to 2018, landed also dropped. In todays environment, it is all about quantum. Just look at GCB transactions this year which fell off. Its not supply issue, every week got new gcb for sale. Its a quantum issue.
Thank u for supporting with me. Don't look at Quarter to Quarter. It's misleading. There are short term fluctuating. Indeed landed is very expensive now... But I have never seen them cheap before.
@@alanweeproperty landed is also highly speculative. Sometimes prices overshoot and dont make financial sense. For example you can rent a 20mil bungalow for 20k a month. Thats a rental yield of 1.2% gross before all cost. Negative carry if considering all the costs including opportunity costs and property taxes. As much as landed is viewed as crown jewel, in my opinion, condos lead the way. When landed transactions dry up, you still see condo new launch leading the way. Landed just follow condo. So if condos drop, expect landed to follow and drop ad well. Point in case 2013 to 2018.
@@alanweeproperty i dont think you understand. I myself rent 20k a month, after selling off my property recently and cashing in profits. Rental yield is 1.5%. It is "cheap". My money works harder elsewhere. If you are owner of bungalow, will you be happy if your asset only makes less than 1% after taxes? It tells you that fundamentally, high quantum property is performing poorly and extremely risky to buy at this price. Of course if you bought earlier, good profits. But now? Is too high. Even for landed.
Thought the question is if buy property NOW. The examples are for properties bought long ago. If sell recently of course many make money.
That why must have long term horizon plus other factors to make money in property.
Property continues to be more expensive and it is almost sure to make money but it is harder to become rich from buying/selling property.
Yes. I agreed with u. Harder.
Merry Xmas 🎉.
merry christmas to u too!
I think part of the price growth within the landed segment can be explained by people doing A&A and rebuilding, which makes the average landed property bigger/nicer than it was in the past. Much more expensive than renovating a condo!
maybe that play a part too. but i think scarcity + after covid ppl understand the important of space + garden.
I dont understand the new condo launches and people who invest all their savings for condo that costs more than 2 million and be indebted for rest of their life. The hope that price can go infinitely go up is a day dream and not a smart investment. 2 million can not go 3 million with 50% profit even in 30 years when the next generation is not even interested in family and being indebted and loving carefree. Annualised 10% profit per year is also very less considering inflation /Interest rates/ maintenance fees/credit loss and financial stress. Just wondering what goes on in people minds.
Most impt. We just make good decisons for ourself.
Large Amount of Money , put in Bank or Finance House better 😅 Interest Rate is pretty high now !
very true....
Hdb made the biggest mistake, giving generous grants for bto flats buyers. This cause the rapid rise in hdb flats, especially resale flats. In the last 3 years, resale flats have risen by more than 50%.
Many new citizens are making huge amounts of money from sales of hdb flats.
I am worried many hdb property owners are asking for unreasonable price. Hope, one major crisis hit the world and a good wake up call like in 1998 Asia financial crisis and 2008 the US Lehmann crisis hit the entire world economy.
hahaha.. u tell that to the HDB BTO buyers loh. they still say it is very expensive but quitely they will aim for the most expensives ones....
I usually agree with all your videos. But your analysis of landed is completely wrong. There is a reason why q3 landed dropped together with ccr condos. Its about quantum. You try punching numbers for 10mil semi d bukit timah. See what kind of interest per month and what your deposit cash income you lose. In 2013 to 2018, landed also dropped. In todays environment, it is all about quantum. Just look at GCB transactions this year which fell off. Its not supply issue, every week got new gcb for sale. Its a quantum issue.
Thank u for supporting with me. Don't look at Quarter to Quarter. It's misleading. There are short term fluctuating. Indeed landed is very expensive now... But I have never seen them cheap before.
@@alanweeproperty landed is also highly speculative. Sometimes prices overshoot and dont make financial sense. For example you can rent a 20mil bungalow for 20k a month. Thats a rental yield of 1.2% gross before all cost. Negative carry if considering all the costs including opportunity costs and property taxes. As much as landed is viewed as crown jewel, in my opinion, condos lead the way. When landed transactions dry up, you still see condo new launch leading the way. Landed just follow condo. So if condos drop, expect landed to follow and drop ad well. Point in case 2013 to 2018.
For those $$$$$ rental per month...Those are fishy money swimming around.
@@alanweeproperty i dont think you understand. I myself rent 20k a month, after selling off my property recently and cashing in profits. Rental yield is 1.5%. It is "cheap". My money works harder elsewhere. If you are owner of bungalow, will you be happy if your asset only makes less than 1% after taxes? It tells you that fundamentally, high quantum property is performing poorly and extremely risky to buy at this price. Of course if you bought earlier, good profits. But now? Is too high. Even for landed.
landed usually has low yield. but amazing their cap rates is good. @@andrewufo
Hi,
Can u suggest if buying a condo in punggol for ard 1300psf with a plan to exit 8 to 10 years after own stay ..can works as an investment too
buy for own stay that suit your needs first. any appreciation is a bonus.