Monday, October 11, 2010

Case study - to invest or wait?

Is it a good time now to invest in REITS? Here is my view.


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2 comments:

C H Yak said...

A similar situation with investors in the Property Market.

But there are many who does not understand, the risk of starting to invest in a "bull" market. You see many still go to Q for ECs and also the 99 LH condos such as the NV Residences.

In the past, appreciation in property values was very substantial ... there was room for freehold properties and those with hidden values to appreciate such as along future MRT lines and en-bloc possibility ...

I do not feel the same with the current market ... mass market BTO, DBSS, EC and 99 Yr LH condos are priced ridiculously. Many buyers buy just because they could work out a mortgage re-playment plan based on the high sale price and current low interest rate.

In the recent economic crisis, even FH condos prices consolidated by as much as 30%. Imagine the buyers of these mass market properties now buying at the previous high price (PSF) psf of these FH or 999 yr LH condos.

Even if a person can afford at such high price, the point of entering the market should be at the consolidated base and not near the top of a bull run.

October 11, 2010 2:43 PM
Unknown said...

Mr Tan,

Instead of waiting for market correction to happen in the next 2 years before investing, I believe in investing a certain amount first and invest the rest after a correction or invest monthly. In this way, u don't time the market.
Nobody knows when the correction will happen and by how much. At the same time, nobody knows when the current "bull market" will end as well.
Too much cheap money is flowing into our market from overseas, thanks to Federal Reserve. If another round of QE is carried out, expect more money flowing in.

October 11, 2010 3:47 PM

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