The Worst Investment You Can Make: Buying a Home

[ginfreely]

I bought in 1988 and sold in 1994.

You are so lucky to be able to buy in 1988. I bought a few years after you sold. Those born one decade later have no chance at all to buy in the 80s and I recall in the 90s price already went up to about 800k for 3 bedroom suburban condos before the big crash during Asian currency crisis.

 

[Leongsam]

You are so lucky to be able to buy in 1988. I bought a few years after you sold. Those born one decade later have no chance at all to buy in the 80s and I recall in the 90s price already went up to about 800k for 3 bedroom suburban condos before the big crash during Asian currency crisis.

Yes but you can catch the next wave. The home I bought for $400,000 was bought in 1977 for $56,000 so the guy who sold it to me made almost 10x in a decade.

There is no good or bad time to buy property. As long as you're buying it to live in and can afford the mortgage, all you have to do is sit pretty and when you feel the price is right, sell it and move on in life.

 

[frenchbriefs]

u telling me the value of ur house went up by 100% every year for 6 years.....where did u buy ur house?in orchard rd next to oxley rise?even if its true i believe the insane growth of real estate in singapore is unlikely to continue into the 21st century.....not unless people are figuring to take on mortgage loans of 40 to 50 years and the government imports another 2 million foreigners.

Yes but you can catch the next wave. The home I bought for $400,000 was bought in 1977 for $56,000 so the guy who sold it to me made almost 10x in a decade.

There is no good or bad time to buy property. As long as you're buying it to live in and can afford the mortgage, all you have to do is sit pretty and when you feel the price is right, sell it and move on in life.

 

[Ash007]

If its to live in, where you gonna stay after selling it? Buying another "affordable" place? Or rent?

Yes but you can catch the next wave. The home I bought for $400,000 was bought in 1977 for $56,000 so the guy who sold it to me made almost 10x in a decade.

There is no good or bad time to buy property. As long as you're buying it to live in and can afford the mortgage, all you have to do is sit pretty and when you feel the price is right, sell it and move on in life.

 

[Leongsam]

If its to live in, where you gonna stay after selling it? Buying another "affordable" place? Or rent?

I'll buy another "affordable" place. The home I'm living in now which I paid NZD400,000 for is now worth NZD1.2 million. However, there are homes in the Hawkes Bay vineyard region of NZ going for a very affordable NZD500,000 eg http://www.realestate.co.nz/2340475

When I first arrived in NZ I chose Auckland because it has the best broadband speeds and infrastructure. Nowadays the regions have caught up in all areas so I no longer have to remain tethered to a city.

If I sell my Auckland residence and move to the Hawkes Bay, that's NZD700,000 in the bank which I can invest in low risk 5- 7% returns which is another $35,000 to $50,000 per year of income.

My usual rule applies and that is to never touch the principal.

Had I rented from the onset none of these opportunities would be there for taking. Ignore the article. It's a load of bull and does not reflect reality. Life is not a dollars and cents equation. There is a significant human element in all financial decisions.

 

[Leongsam]

u telling me the value of ur house went up by 100% every year for 6 years.....where did u buy ur house?in orchard rd next to oxley rise?even if its true i believe the insane growth of real estate in singapore is unlikely to continue into the 21st century.....not unless people are figuring to take on mortgage loans of 40 to 50 years and the government imports another 2 million foreigners.

No it was in 6th Ave and a really crummy semi D property but the area had potential so that's why I took the plunge.

Every generation thinks they have missed out. I thought the same thing too at the time but I needed a home but I also wanted a patch which I knew would appreciate over time as property appreciation opens up opportunities to fund other ventures.

 

[Ash007]

Thanks, what do you say to people that refuse to move out of an area where they "got used" to. They used the argument they have stayed at the same place/area for the last 20 years and just doesn't want to move to a more "rural" area. Like you have mentioned, the human element in financial decisions, at least to me can make purchasing of a property absurd at times.

I'll buy another "affordable" place. The home I'm living in now which I paid NZD400,000 for is now worth NZD1.2 million. However, there are homes in the Hawkes Bay vineyard region of NZ going for a very affordable NZD500,000 eg http://www.realestate.co.nz/2340475

When I first arrived in NZ I chose Auckland because it has the best broadband speeds and infrastructure. Nowadays the regions have caught up in all areas so I no longer have to remain tethered to a city.

If I sell my Auckland residence and move to the Hawkes Bay, that's NZD700,000 in the bank which I can invest in low risk 5- 7% returns which is another $35,000 to $50,000 per year of income.

My usual rule applies and that is to never touch the principal.

Had I rented from the onset none of these opportunities would be there for taking. Ignore the article. It's a load of bull and does not reflect reality. Life is not a dollars and cents equation. There is a significant human element in all financial decisions.

 

[Boliao]

In 2007, I put US$200,000 into an investment account and make an average of 20% per year. I also bought a landed home for S$700,000. Today, my investment is worth around US$400,000 and my home is worth S$4,200,000. What do you think?

Putting money investment is not risk free and if you need your money during an economic downturn, you're more likely to end up far worse than holding on to a property. Only an idiot will put all his money into equity and think that it will fare better than owning land (and another to believe what the first idiot said).

Just look at the world's tycoons... majority of them make their wealth through real estate.

 

[frenchbriefs]

u should be thankful ur investment account still returned 100% when u put ur money in in 2007,just before the almighty crash....shit.....when the stock market crashed in 1929,america went into depression for 10 years and unemployment shot up to 25%..

In 2007, I put US$200,000 into an investment account and make an average of 20% per year. I also bought a landed home for S$700,000. Today, my investment is worth around US$400,000 and my home is worth S$4,200,000. What do you think?

Putting money investment is not risk free and if you need your money during an economic downturn, you're more likely to end up far worse than holding on to a property. Only an idiot will put all his money into equity and think that it will fare better than owning land (and another to believe what the first idiot said).

Just look at the world's tycoons... majority of them make their wealth through real estate.

 

[Leongsam]

Thanks, what do you say to people that refuse to move out of an area where they "got used" to.

For the majority of humans, cowering within their "comfort zone" is the prime cause of their getting nowhere in life.

In order to progress, you have to venture outside of your familiar surroundings and I'm not just referring to a physical location. I'm talking about life experiences in general

For example if you hate public speaking, don't take a job that requires zero human interaction. Look for a job which requires you to make regular presentations to a large crowd. That's the only way you're going to broaden your horizons.

 

[winnipegjets]

In 2007, I put US$200,000 into an investment account and make an average of 20% per year. I also bought a landed home for S$700,000. Today, my investment is worth around US$400,000 and my home is worth S$4,200,000. What do you think?

Putting money investment is not risk free and if you need your money during an economic downturn, you're more likely to end up far worse than holding on to a property. Only an idiot will put all his money into equity and think that it will fare better than owning land (and another to believe what the first idiot said).

Just look at the world's tycoons... majority of them make their wealth through real estate.

Until you sell your home, you don't have the gain yet. You could take a line of credit secured against your home to 'realize' that gain but when the housing market tanks, you would have to fork out cash to cover your LOC.

Well, if you have are constantly buying and selling properties, you can make a bundle, that is no dispute. You won't be rich if the house you stay in appreciate.

 

[winnipegjets]

I'll buy another "affordable" place. The home I'm living in now which I paid NZD400,000 for is now worth NZD1.2 million. However, there are homes in the Hawkes Bay vineyard region of NZ going for a very affordable NZD500,000 eg http://www.realestate.co.nz/2340475

When I first arrived in NZ I chose Auckland because it has the best broadband speeds and infrastructure. Nowadays the regions have caught up in all areas so I no longer have to remain tethered to a city.

If I sell my Auckland residence and move to the Hawkes Bay, that's NZD700,000 in the bank which I can invest in low risk 5- 7% returns which is another $35,000 to $50,000 per year of income.

My usual rule applies and that is to never touch the principal.

Had I rented from the onset none of these opportunities would be there for taking. Ignore the article. It's a load of bull and does not reflect reality. Life is not a dollars and cents equation. There is a significant human element in all financial decisions.

If you always selling, of course, you will make money when the market is booming. When interest rates return to normal, the boom will be over. Then, you will be stuck in your present house, waiting for price to appreciate again. Appreciate it will but when is the unknown.

 

[hofmann]

For the majority of humans, cowering within their "comfort zone" is the prime cause of their getting nowhere in life.
.

does that include voting for a different political party?

sorry but i couldnt resist.

 

[Narong Wongwan]

Property has been the best investment of the 20th century. The question is, will it continue to be in the 21st?

I don't think so.

That is why you must also invest in stocks and businesses, IN ADDITION to property.

Yes if the gong cheebyes keep voting for vile pappies for another 50 years.
Sg real estate will skyrocket into the world's most expensive.....
Pappies will let in 10million FTs....there's simply not enough land to go around.

 

[soIsee]

For the majority of humans, cowering within their "comfort zone" is the prime cause of their getting nowhere in life.

In order to progress, you have to venture outside of your familiar surroundings and I'm not just referring to a physical location. I'm talking about life experiences in general

For example if you hate public speaking, don't take a job that requires zero human interaction. Look for a job which requires you to make regular presentations to a large crowd. That's the only way you're going to broaden your horizons.

Does that incluide taking onto the streets to change their destiny and control their own lives instead of getting screwed everyday and complaining in forums like this?

Sorry, I also cannot resist. LoL

 

[SgGoneWrong]

Thanks for sharing Leongsam, you are such an inspiration.

 

[winnipegjets]

Thanks for sharing Leongsam, you are such an inspiration.

I worship him

 

[Narong Wongwan]

Bossman Sam is my idol alongside tonychat

 

[krafty]

boss, your time and ours is different. from what i see in sinkieland, the elites are inclining to the thinking that properties here are for staying and not for selling here and there, to make a profit. this is especially true for HDB. i can't say for private properties but seemingly, the downtrend recently applies to both HDB and private properties, looks like the HDB is pulling down the pricing for private properties, co-related, i supposed...

I didn't time my purchases to make money. I bought when I needed a house. You will never lose money with real estate because good land in choice areas is finite. A view of Sydney harbor in a good neighborhood cannot be replicated somewhere else.

 

[Leongsam]

If you always selling, of course, you will make money when the market is booming. When interest rates return to normal, the boom will be over. Then, you will be stuck in your present house, waiting for price to appreciate again. Appreciate it will but when is the unknown.

I never indulged in property speculation. I have no idea what the future holds until it arrives.

However, the difference is that I am willing to move from one location to another. I am not rooted to any particular culture or country or region.

I bought a $400,000 house to live in. However, when my neighbor sold his house for $2 million in 1994, it would have been crazy for me not to do the same.

However, if you sell a Singapore home and continue to live in Singapore, you can put nothing in the bank because another home of a similar size and location would be in the same ballpark.

However, a bit of research revealed that beautiful homes by the Swan River in Perth were going for AUD400,000 or less so I bought one of those and moved to Perth and therefore managed to bank almost $2 million.

I then moved again to Sydney for the same reason and then to Auckland NZ and each time I could make some money.

I did not plan to move ahead of time. I moved when the opportunity presented itself because of property price rises. If they had not gone up, I might not have made all these moves.

Nobody can foresee the future. However, everybody can experience the "here and now". If you have an opportunity, grab it.