Thursday, September 10, 2009

Buy low, Sell HIGH! That is the mantra!

I am so exhausted but the class was fun and my classmates were also asking me what I am buying now. Well, here’s what I make of the market. The newspapers are making big huge headlines of high profile launches. Some of the heartland properties have hit $1200 psf. If they are in great heart lands areas like AMK and Toa Payoh , there is pent up demand and rental yields will be fantastic given they are beside MRT stations. However, there is some concern at the high end segment. Some of the Holland Hill and Bt Timah launches priced in the $1500 plus region have not moved as expected.

This fact will place a limit on how high the mass markets homes can go up to. Think of it this way, if you can buy a freehold Bt Timah place for a couple of hundred psf more, you will definitely prefer that to a 99 tenure heartlands place right? It all boils down to simple logic. One of the key factors limiting the climb of higher end residential homes is the lack of demand for such unit from a rental basis. The investment banks are not hiring that aggressively and you can be sure that their housing allowances will be not as generous as before.

The wild card will be the 2 IRs, if they are phenomenally successful, there might be added demand by international investors. But the hot money are all looking at the US right now, where property prices have collapsed, I am not kidding! I am not saying that there is an impending collapse, but I suspect things will start to cool in a couple of months time.

I need your feedback; some of you want me to conduct a pure property training program. For those of you, who will appreciate a comprehensive course on investing in property, please let me know if I should organize such sessions where I will teach the basics and all the possible loopholes. Send your comments to my blogmail and till my next entry, have a profitable time!

Your Friend,
Andy Ong