The hard truth is, although there are people who Make A Lot Of Money in the property market, there are also people who Lose Money in it.
This happens when proper analysis and research are not done correctly beforehand.
The right property is gonna cost you but the wrong property will keep costing you.
One of the 7 Critical Mistakes that all homeowners should avoid is buying into a Wealth Stagnation Project.
The following 2 examples are cases that face Wealth Stagnation despite their good location.
1) Double Bay Residences is a project about 7 minutes walk from Simei MRT. It TOP in 2013. However, the following chart displays how the project underperformed against the market expectation, despite the market pickup in 2017.
2) The Quartz is a project less than 5 minutes walk from Buangkok MRT. It's TOP in 2010. However, they reached an unforeseen low price point making it very risky for investors to enter.
Most of the time, developments reach their Peak Price Potential during TOP as the transaction volume will be the Highest.
A Few Pointers:
1) Buyers tend to have a preference for Newer Products and may not have the Luxury of waiting for a new launch to be built.
2) Most investors exit the property after achieving a Good Profit Margin. If they had entered during the early bird discount stage (when the developer first launched the project), exiting at any point on the chart would still make them Money.
3) Age of a development will also result in the Performance of it property price.
4) For any resale property to experience a 2nd Price Surge, there needs to be a Transformation, Master Plan Changes or Government Investment in the vicinity. Some examples might be a New MRT line or Business Park.
and there is still few more to be mentioned..
+65 97 222 999
Savvy_homes@yahoo.com
Copyright | savvyhomes.sg
