PN MAGIC TOUCH | Sell High & Buy High - Will This Still Make You A Profit?
Sell High &
Will This Still Make You A Profit?
Oftentimes when sellers are advised of the
ideal time to sell their property and acquire another one, most of the time they would question the notion of selling high, because they feel that by doing so, won’t they be buying high as well? Many would feel that it is more prudent to stay put for a lifetime, since property prices are continuously going up anyway, there is no such need. And many of them bought their properties at a relatively lower price, surely they can’t find anything similar in that low price bracket in any given market, let alone this
sizzling hot market.
What if there is a way to generate decent or
massive profits regardless of if you sell high followed by buying high. As always, we know that any investment carries some form of
risk, so prudence has always been part of my own investment principle. End of the day,
profit is what we sought after but our
financial security should take precedence over other factors.
Sadly, due to the
lack of knowledge and/or market insights, many people have been stuck in limbo as their minds are overly clouded by market noise, monetary concerns and misconceptions. And it happened to some of my close friends too! Therefore, I am compelled to share my research and insights to allow
everyone to make better informed decisions for themselves.
Reality is, the rich will get richer. Why? Reason is simple - they will continue to multiply their wealth by
selling and buying properties and particularly at the early stages of the property tenure. So why do they do that? It is simply because they understand this significant notion – that generally a property’s price will
hit its peak upon obtaining the Temporary Occupation Permit (TOP). Hence, they will need to capitalise on the rippen opportunity for maximum profit and compound their investment pot in order to
grow their assets allowing them to acquire more properties and
expand their investment portfolio and personal wealth.
Figure 1: Average transaction price (psf) for The Centris (2006-2013)
Let’s take a look at the price chart in Figure 1 for The Centris Condominium in the West. Notice that property prices for this project have been appreciating over time even way past the TOP stage. So do I sell or wait further at this point?
Assuming the early buyers of this development did not take action and realise the
massive profits of at least $500,000 (for a 1,066sqft unit) in 2012-2013 and waited until today. What would the numbers be like in today’s sizzling hot market?
Figure 2: Average transaction price (psf) for The Centris (2006-2021)
You could see that the price momentum eventually lost its steam. The profit they will be looking at in today’s bullish market will be about the same as if they sold it 8 to 10 years ago! They would probably be consoling themselves that the price is finally crawling back to its past glory.
What most people do not see is the inflation over the past decade and those missed opportunities to multiply their realised $500,000 profit. I cannot stress enough the importance of
knowing when to enter and exit for those looking to
grow their wealth.
Moving on to the next chart (Figure 2) below, there are those out there crying over spilled milk, questioning their
indecision of not investing in any property in the early stages of their lives. A closer look at the charts and you can tell that the prices keep
driving upward despite the several rounds of cooling measures and crisis we had to brave through the years.
Many were apprehensive and failed to take action when the
market is slow, and believe that the
uptrend will have a sharp reversal that will bring the property prices down. Sadly for those waiting did not see that day come. When the market picks up they feel that the opportunity to take action has already slipped by them. This is an endless cyclic process of inaction that will cost you dearly with the abundant opportunities that are wasted. It is mostly due to the
lack of understanding in property investment and also the undeniable uncertainty of how to take the first step even if they wanted to. It is always good to keep an open mind and understand investment concepts or strategies that can actually benefit you and your family. Stop believing that investment is only for the rich. Many fall into the trap of ‘Investment is not for me’, ‘I already know’ or ‘this doesn’t concern me’ and end up getting into a rut.
You can avoid these mistakes!
Figure 3: Overall transactions (psf) of Non-landed residential (2000-2021)
Looking at transaction data (Figure 3) below of leasehold 99-year (LH99) Seaside Residences, units were transacted at an average of $1,573 psf in 2017 – which many would consider overpriced for a LH99 property in that area during those times. In contrast, a freehold property in the area cost around $1,000 psf. Looks like this is a bad purchase, isn’t it?
The investment of Seaside Residences for many turned out to be a
blessing in disguise! Few people in the market were confident that the market could have enjoyed a
momentous upswing where units are transacted in the region of $2,000psf - this is considered
record-breaking for a 99-year leasehold development in District 16! Selling would allow one to bring home a fabulous score of over $600 grand!
This goes to show that buying high does not mean you will not make money, it is more important to get the facts right and
NOT speculate. Speculation puts you at risk, clarity through proper guidance helps you make discerning choices that go on to
earn you good money.
Figure 4: Transactions records of Seaside Residences
An article to share with everyone below, the point that I have been driving this entire time –
growing your wealth through investing in stable assets. The interest rates of your savings account and rate of your income growth does not allow you the comfort of hedging against
rising cost of living and inflation, none of these can beat the growth of property prices. What you need is
systemic growth in terms of wealth accumulation. Learn how to
let your money work hard for you apart from working hard for money.
Source: Me & My Property, The Straits Times
If you'd like to find out more about tackling these challenges and finding your way to start, join us at
Singapore Property Xpo 2022. Our
Executive Director Kelvin Fong will be sharing with you on how you can
grow your wealth in a systematic way with
adequate safety measures in place. Learn about
right timing to sell & buy properties and determining the
best time to exit. Attain the ability to find assets with the right entry price and potential for
Join us to learn about the
right strategies as you go about working towards that FINANCIAL FREEDOM
Kelvin is a self-made multi-millionaire and a highly sought-after opinion leader in the real estate industry. With a humble beginning, he started his real estate journey as a telemarketer before becoming a real estate salesperson, and now he is the Executive Director of PropNex. A self-taught investment guru with more than 10 properties in Singapore. Some call him the Millionaire-maker as he has helped countless of his clients and agents reach the pinnacle of financial success.
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