Tuesday, December 20, 2011

Merry Christmas and have a Blessed Year Ahead!

Hi guys, it has been a very very fast year for me at least. 2011 literally zoomed by and now we are about to welcome 2012. I am going away till early next year as I clear my head. I need to force myself to rest as it has been a brutally exhausting year for me.

I would like to wish you a Merry Christmas and hope you find happiness in the year ahead.

God Bless and all the best!

Your Friend,
Andy Ong

Tuesday, December 13, 2011

A Tale of Two Cities.

Hi Guys and Gals, I just finished conducting a class in property investment. Many of the students were very kind in giving us encouragement. They include:

“Andy, thank you so much in opening our mind into a unique perspective frame. We all could not think like how you perceive, a rare breed mindset--million times over. Awesome! I've analyzed all the figures. They are ALL updated--awesome!”
Dr Peter Yan

“I am one of the students of the Property Investment Program Intake 21. I would like to express my appreciation for your generous impart of practical knowledge in the property investment in Singapore which is really an eye opener to me.”
Mr Thomas Ngo

My team is very proud to have received compliments and I’m proud of them for organizing the whole affair efficiently. Last week, I brought a bunch of students overseas to look at development projects and they were pretty amazed at how tremendous wealth can be created via property investments. The number of woos and wahs were amazing as many were dumbfounded until now on how much developers were making.

I was in Seoul last week when I received news of the latest round of property cooling measures. I am not holding on to much residential property right now so I am less concerned. The government is concerned about foreign money eroding the ability of Singaporeans to buy as prices are pushed to new record highs. Think about it, a fresh graduate can never hope to own private property given that our real income levels have not gone up by that much and property prices have doubled or even more over the last few years.

We are probably the country in the world to introduce new measures to cool our property markets. The Hong Kong government is now contemplating lifting measures. This is an interesting observation. Perhaps the Singapore government expects more funds to come in from Europe and other countries which may be quite possible.

Given the low global interest rates and high levels of liquidity, I had told you earlier that prices will hold and my prediction were absolutely spot on. The latest round of measures have sparked a round of bashing by analysts, who are predicting prices falling by as much as 30%. Whilst I am not optimistic, I really think that will be drastic. Why? I believe the government will certainly want to maintain a certain level as drastic price falls destabilize the economy as well.

Unfortunately, this fresh round will initiate fresh interest in commercial property. That’s life. My students are well positioned in this environment and you know why. In fact, I’m quite pleased.

Till the next blog, have fun making money!

Your Friend,
Andy Ong

Thursday, December 1, 2011

The volatile real estate markets and how to make money out of it.

Its Christmas soon, I always feel good over this season as we commemorate the anniversary of the Lord’s Jesus birth. The new decorations at Orchard looks amazing even though they used blue all over again. Let’s hope we don’t have a blue Christmas.

At the recent Success Forum, many of you were asking me how I manage to call the trends correctly despite all the economic gloom that is going on. Yup, I called for residential prices to hold and commercial to still have upside. Its been 3 months and my reading of the markets seems to be quite right as many owners are able to weather any negativity due the low holding costs as interest rates are still at a record low. Remember, its all about supply and demand. With not that many enthusiastic sellers, well prices will hold.

Right now, it does seem scary with China’s growth slowing and the Europeans cannot seem to get their act together. This brings me to recollect what happened in the mid 1990’s when the Asian financial crisis occurred. How fortunes have reversed! The US and European economies are now in doldrums. The people are now refusing to swallow the bitter pills that were prescribed by the IMF and this is simply déjà vu.

The irony is the hypocrisy but that is another story all by itself. To be very honest, I am feeling a little uneasy about the property markets. There will have be some room for softening as the markets have come up substantially. So if you are shopping for an investment residential home, you might want to hold off for the time being. Some properties will emerge stronger than other asset classes as the demand and supply balance corrects itself. If I were you now, I will want to learn about what to be looking out for in case bargains do appear and thus you will be in the right place to take full advantage.

The commercial scene is still quite active, as players are now jostling for deals. I will weigh the pros and cons of the market and get back to you once I manage to get enough rest and have a clearer perspective.

Till then, take care and don’t make any wild moves!

Your Friend,
Andy Ong