Thursday, July 19, 2012

The Winds of Change…

What a month!

Just a month ago, we were worried about the European Crisis. Well, memories are short and guess what, we are in the middle of a bull run again. The Straits Times Index has crossed the 3000 mark and there is an air of cautious optimism. The ASEAN region is in play and international funds are looking at this region with new perspectives. For those of you who bought over the last couple of months, what I advised you to buy has gone up. Kudos to you, the people with the courage to make a move. I bumped to Daren this afternoon and he thanked me for highlighting value buys in this climate. I am certainly encouraged by his sincere thanks.

Developers seem to be launching new projects at a fast and furious pace. The number of residential launches is rather amazing, all you have to do is look at Saturday’s newspapers and you will be overwhelmed. The number of mass market units launched has reached a stampede level. All these developments have me worried. With record low interest rates, a new class of buyers has emerged. They are the group who can afford the lower monthly payments due the low interest rates. However, should interest rate move north, they will certainly be in trouble. I am worried even though I do not foresee a downturn in prices as I don’t see a bubble forming. However, I will not be rushing to buy a mass market condominium any time soon.

I had received many congratulatory messages from people in the real estate industry. They like our real estate investment strategies and I am sincerely flattered. These industry veterans have validated us and I am encouraged to share more. For this reason, I have consented to teach a few more classes to share with you how we invest in real estate. Tiring as it may be, I hope I am able to share such knowledge. More details will be revealed soon.

Till the next update, take care and God Bless!

Your Friend,
Andy Ong