It is not easy to predict where the property market is going, whether it is in Singapore or Australia.
Not even the property market “experts” can do it accurately. Why is that so?
Actually, the reason is simple. It is because what property market experts do, is to crunch the numbers. They do not have a “feel” of the consumers who are actually investing or selling their properties. They generally talk about the possible reactions and moves of the consumers.
On the other hand, realtors on the other hand, because they are constantly talking to their clients, are in a better position to know what ARE their demands and expectations. But they do not have the actual numbers to support their opinions of where the market is going.
So, predicting where the property market is going is actually an art of combining the science of numbers and the knowing of what most investors and property owners are going to do, or will be doing. Note that it is not a prediction of the investors, and property owners’ reactions. Instead, it is the knowledge of what most investors are feeling, and what they will be doing in response to the property market, and it is gained through interactions with them.
Why is knowing the feelings of investors and property owners important?
It is because in property investing, it is STILL the emotions that rule the day, NOT the logic. The property market is driven more by sentiments. Most investors simply JUSTIFY their illogical choices using LOGICAL explanations.
In property investing, there are 4 parts that all investors must be aware of:
- Knowing your investing style
- Knowing what your priorities are.
- Knowing, and understanding the characteristics of the property market that you are interested in
- Finding the correct market suitable for your investing style (and if it is not in your country of residence, you must find the market that is suitable for you).
With full awareness, the investors can invest in properties successfully!
[End of Part 1: Introduction]