Impact of Q4 2022
Clearer picture for the property market in Singapore after Q4
Why property investors hate me?
Investors/ Buyers that feel screened
There are some investors and buyers that do viewings for the first 2 or 3 weeks, 2 or 3 days. Thereafter, these folks disappear from the market. The main reason is the mismatch between the investor and the situation in the market.
Thus, it's important to look at what the expectations of the investors are. If they are looking for $100psf lower than the market, then it's hard to help them.
In general today, the viewings would be done within 2 to 3 days as there are not many options available in the market. It's been said since 6 to 8 months back that the buying situation will not improve. Why is this so?
Tough buying situation
If a seller that is selling for the money, you would have done so long ago.
For people that are selling in 2023, when the market is not good, they would be the ones that are forced to sell. Also, people that have bought in 2021,2022 would hardly be selling in 2023. Thus, it's really hard to find serious sellers.
In the new launch market, prices are at an all time high. This price gap is apparent between the new launch and resale prices. People who can afford the resale market would not be able to afford new launch and people that can afford the new launch market would not go shopping in the resale market.
For people that go into the new launch market now, would you be able to earn money in future, would you have the holding power?
For owners that have just gotten their keys, they would not sell low as they do not want to lose money. But high asking prices would not see buyers, thus they are going to be landlords and rent out their units.
Waiting in the market?
Should you then wait for the market to fall then? Sure, but if the market falls $100psf lower, will you then want to wait further?
For investors that are always looking to buy lower than the market, it's impossible to time the lowest point in the market. Thus, it's hard to help investors without a clear investment plan.
Investors that want a certain area
For investors that are looking for a specific area to buy in, they are surprised when Aaron advises that the property might not earn money even if it's $100 psf lower.
Truths to consider
Key things to consider:
Lowest point of price falling
How long it will take to rebound
Quality of the property
There are many things to consider when wanting to earn money with a property purchase. If what is expected cannot be achieved with Aaron's assistance, he will not be able to help.
The key trap is in understand what the lowest point is. For property, compared to stocks, it's not possible to do something like dollar cost averaging. Hence, it's important to know what is the price of the property when it's worth buying.
By providing this expectation, investors can then discuss with Aaron directly to know if such expectations can be met in the market today!
What would Aaron invest in today?
For Aaron, it's not about timing the lowest point, he would even buy at $50 psf lower and not looking at $100psf lower or more if the right property comes up. These right properties are those with good enough rental yield currently and having potential in selling for a profit in the future. Thus, with holding power, you would not be afraid even if prices were to fall in the short term.
All in all, it goes back to the core truths in the property market that we have shared about more than once!
Watch as Aaron explains why property investors seem to hate him in this current situation and what are some things to learn about property investment today!