5 Truth for almost any property plans
After meeting/working and speaking with many different people/clients and realtors, here are 5 truths that I have seen for almost any property plans.
1. Cannot be about the project/condo
This project good anot? location can not? good buy ma? I have seen many cases when the owners would have to sell at loss not because the project is not good but rather, they did not take into account their job situation, upcoming expenses and importantly a good holding strategy that can sustain them through various curve balls life can throw at them.
2. There will be trade-off
There is hardly the perfect solution. Even if buying and selling at the same time, it comes with plenty of stress to make quick decision, huge amount of time to coordinate the renovation etc. On the other hand, selling at MOP phase might also result that your neighbours might use your sale price to bump theirs. Buying new launch might potentially give a good capital gain due to developer’s pricing strategy but it comes with that you might have to move to secondary house first and/or a delay in construction – like this covid situation. Like every investments/purchase, there will be risk involved. Often than not, some decisions are made out of FOMO but we need really understand what are the potential risks involved (plan for the worst case) and how you could handle them.
3. You can never time the market
Covid is a shock nobody can anticipate and even the bigger shock is during this crisis/pandemic, property price did not fall but increase and reaches new peak. MAS was warning about cooling measures for Q1 and Q2 of 2021 then decided to say that property prices are aligned with the economic fundamentals then on 15 Dec 2021 at 1140pm, they announced the cooling measures. In short, we cannot really time the market to exactly buy at the lowest of low, and sell at the highest of high. It is thus important to know priorities, understand the fundamental as well as the risk that whatever the storm, you are well-prepared.
4. Your family/relative/friends will all have their own ideas and opinions
Like many of you, when I made my property purchase, I was met with different opinions, thoughts and sharing – often than not, with all good intent. Having said that, it is also important to know that they might not have a holistic understanding of your financial situations, risk appetite and sometimes what they understand/heard/experienced were relevant decades ago. Importantly, their priorities might be very different from yours and your spouse Last but not least, do not compare or just adopt a herd mentality in making your property decision.
5. Important to have a consensus
Especially for a married couple, consensus between husband and wife is utmost important. I would usually recommend having a group chat or being able to speak to both the husband and wife and/or any other key decision makers in the planning phase before execution. This is to ensure that all the parties involved are aware of the above and have a general consensus.
With the above in mind, I have devised a holistic approach called the life stage property planning that not seek to find the perfect solution but allow everyone to make an informed decision for their property plans/needs before execution. Looking forward to share more and reach out to more families in 2022.
There is definitely no one-size fits all solution. All individual/families have their own priorities, commitments, risk appetite, financial positions etc. A holistic approach (I have designed one that have been very useful for my clients) with a clear understanding not just on the potential gain but being well-aware of the risk involved to make a clear and informed decision.