I shared my thoughts during the INVEST ASIA event and I was invited for the Mandarin session. The topic was in Mandarin and it was along the lines of opportunities and threats in the current property market. As one of the 4 forum panelists, I learnt a lot from a few fellow forum panelists too. That two questions popped up again (never ending…) but I think I was not alone this time.
The two questions are when is the best time to buy a property as well as whether property investment is the most attractive investment of all versus all the rest. Generally, I think all the panelists agree that property investment and property speculation are two very different things. My answers during the session was much shorter but here they are as below for everyone’s understanding.
Timing is one important factor no doubt but it is almost impossible to know when is the highest or the lowest point unless we have a time machine. Anyone has one to spare? Personally, even more important than timing would be the 4Ps (People, Price, Policy, Preference) In fact I would rate Price as a more important factor if compared to timing yeah. Just look at the many people who were buying a property due to huge cash backs.
They were told it was the BEST TIME because during good times, developers would not offer such huge cash backs! They failed to realise that the price per sq ft must not be way higher than similar properties nearby. Else the cashbacks are just THE BUYERS’s own money advanced back to them… TODAY. Well guess what happened to many who got their credit cards and could not manage their finances well?
Attractiveness of property investment versus other investments? There is actually no apple to apple comparison if it is stocks vs property or unit trust versus property or even REITs versus properties. Property is unfortunately the most illiquid of all. Completing the whole process of selling a home would take easily months. However, other than that, the risk vs returns are better than most investments I have thus far. Yes, I have stocks as well as unit trust too. I am not a property agent, so there’s no incentive for me to say property investment is good and that everyone should own one. I have no courses to sell as well, thus if you think what I say is true, please proceed to sign up other people’s courses. Haha. Hope this answers the two questions; timing and property investment attractiveness.
If you need an article about why property investment makes good financial sense, read here: H0 reasons for property investments, more actually Happy deciding.
Next suggested article: When everything we want to buy seems so easy monthly