Last Sunday, there was an interesting article about investing in property market in Singapore: Have property, may not profit – Sunday Times, 16 Oct 11, Invest Section, Page 37
In this article, the author, Mr Goh mentioned that he had met up with some old friends who are property investors, and they were musing about their property investments in Singapore. His conclusions were that:
- Making money from the property market is not as easy as it seems.
- The local property market is like a roller coaster ride.
- It’s about the timing: like the stock market, the property market moves in cycles and if you are caught in the wrong end of the cycle, it may take years before you see the price you paid for that dream home again.
- Sometimes, on paper, it would seem like a hefty gain is made on your property but after deducting the interest paid on the mortgage and the sums spent over the years on repairs and maintenance, the returns does not seem to be a risk worth taking, considering the large outlay involved.
- During bad times, condo rentals can plunge so badly that it was uneconomical for owners to let out the unit.
- Getting into property investment is far easier than getting out of it.
How true are these statements?
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