Recently, a foreign bank invited me to share about the property market. I arrived slightly late but I think they were very interested and everyone was already seated. After the sharing in which some participated actively, some took notes, some took photos and some just nodded, the event ended and everyone adjourned for dinner. I spoke with a few of the participants and it validated my personal understanding. Majority of the younger ones do think property is important but majority did not yet buy any. Main reason during this particular session? Staying with family. This is the same reason that I got from friends in Penang too. In fact it was the parents who told them, ‘no need to buy, save the money and stay with us’ First of all, be reminded that buying a place and moving out of your parents house need not be at odds with one another.
Many of the participants were even older than me and since the participation was voluntary, I think their reason was more of validating what they knew or heard. There were a few who expected property bubble to burst very soon and I shared with them that no one can be sure but I already know of one friend who sold his property, kept the cash and is now renting because he truly believe the time may be soon that he can ‘sapu’ the properties once the bubble bursts. In my talk, I highlighted that a few years ago, the risks were not that many but recent developments were all pointing to a potentially risky investment especially for luxury ones and not for own stay or secondary ones for rental. Australia property market, London property market and even the Singaporean market has continuously been connected to potential bubble bursting. This has continuously been denied with reasons by the governments of the respective countries.
The talk ended on a good note. I think the interest level is high. I wrote about this before. Property market is slowing. Agree. However, there are today MORE interested people. The actions would determine the successful ones compared to the slower ones. In fact one asked me about Gold Investment and said, ‘but gold prices are dropping’. I smiled. Why would you want to only buy when prices are going up? If it is up, when do you know when to buy? Also cleared the myth of ‘I will buy when the bubble burst’. If you did not dare to buy during good times, you seriously think you dare to buy during bad times? Lots of many other questions which I will continue to answer in the next few articles.
Do note, even if you are staying with your parents, nothing should stop you from buying a property. In fact it should encourage you to buy. Unless you have used up all the savings for Iphone or Samsung Notes or even an amazingly fancy car which you have to continuously spend even more to maintain and run. Happy learning.
written on 30 October 2014
Next suggested article: Playing with ‘Borrowed’ risk. Are you one of them?