How to avoid the common mistakes of Property owners and buyers?
The above is one of the most common mistakes which I have witnessed in my real estate career. Most people follow the herd mentality and rush to buy when everyone is buying. On the opposite, when market is quiet, people then to hold back.
“Let’s wait for the market to drop further before we decide to go in.” Does this sound familiar to you? Do we buy the property based on emotion or logic?
As for me, I always look at property based on research instead of hearing from others. I observe the facts and figures before making any decision. I am sure that you agree with me too. Property purchase is a big-ticket item, we should never rely on emotion buying.
Today’s market has changed. Despite the current endemic situation, prices of properties in Singapore are still very resilient. Why is it so? Does this means good or bad if you are reading this article now?
Hence, if you are trying to time the market, there is no point in doing so. Once you observe the market, you will realise that many new plots of lands (government land sales) and en-bloc are setting new record prices. As a result, prices will eventually go higher in the future too. Refer to the chart below. With the new land bids, Ang Mo Kio/ Lentor development are expected to sell at minimum $2000psf and above in the future.
Many buyers usually end up paying more because they realised they could not afford to wait further as the prices have gone up. Just look at the chart below. For a 1,200 – 1,500sqft unit at the Outside Core Central Region (outskirt properties), the buyer only pay $693,000 in 2005. Today, they need to pay an average of $2 million dollar for the same unit.
Can you see how fast the prices have gone up? This is the problem of waiting game, and how people pay more by waiting. Do not fall into this trap anymore as waiting is not the right move. It is crucial for you to learn how to look at facts to make the right decision.
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